Bangladesh has made significant economic progress over the past decade and a half, but attracting large-scale global capital will depend on continued economic reforms, predictable policies and greater investor confidence.
Prashant Thakker, who recently visited Dhaka, says the country's transition beyond LDC status presents opportunities to deepen its global economic links and establish itself as a major manufacturing hub.
In an exclusive interview with The Business Standard, he discussed Bangladesh's investment potential, the expansion of local companies overseas, sustainable finance and the reforms needed to attract international capital.
TBS: What are the major business and investment opportunities emerging for Bangladesh over the next five to 10 years?
Prashant Thakker: Bangladesh has demonstrated strong economic progress over the past decade and a half. As the country prepares to graduate from Least Developed Country (LDC) status and connect more deeply with the global economy, major business and investment opportunities are emerging across multiple sectors over the next five to 10 years.
The country can quickly become a key manufacturing hub, ideally located as a gateway between South Asia and Southeast Asia.
While the garment sector continues to shift towards higher-value apparel and synthetic fabrics, rapid growth is taking place across many other industries, including pharmaceuticals, IT exports, shipbuilding, agro-processing, electronics assembly and light engineering.
At the same time, major infrastructure projects, such as deep-sea ports, modern transport corridors and clean energy transitions, are opening up attractive opportunities for private investors, public-private partnerships and local capital markets.
Domestically, a young, tech-connected population and a growing middle class are driving high demand for digital banking, e-commerce, modern healthcare and consumer technology. In addition, leading Bangladeshi companies are expanding overseas, building regional supply chains and establishing a global presence.
Expanding Special Economic Zones, clear and consistent government policies, updated regulations and steady improvements in the ease of doing business are boosting investor confidence. Together, these factors are strengthening Bangladesh's domestic market and cementing its position as a reliable global trade partner.
How can Citi help Bangladeshi companies expand internationally?
That overseas push is growing, with a number of Bangladeshi companies expanding beyond national borders through operations, partnerships and investments.
For decades, Citi has played a key role in connecting Bangladesh's financial system and corporate sector with international markets. Today, as leading Bangladeshi businesses expand across borders, Citi uses its global network in more than 90 countries to help them set up and grow worldwide.
Rather than managing relationships with multiple local banks in every new country, companies can work through Citi to gain direct, seamless access to international payment systems, local banking networks and on-the-ground regulatory knowledge.
Through Citi's digital banking platforms, expanding companies can easily track and manage their money across different currencies, automate global payments and optimise daily cash flow across all their overseas branches. To help businesses handle currency swings and interest rate changes, Citi offers straightforward hedging tools and risk-management solutions.
In addition, Citi helps companies raise capital overseas through international bank loans, global bonds, export credit financing and advisory support for cross-border mergers and partnerships, complying with the applicable central bank approvals and authorisations.
Citi also connects Bangladeshi exporters and expanding businesses with global buyers and suppliers through trade finance, letters of credit and supply-chain finance programmes.
By combining global reach with deep local experience, Citi provides Bangladeshi champions with the network they need to succeed on the global stage.
How can sustainable finance help Bangladesh strengthen its global competitiveness?
Bangladesh is widely recognised for both its climate vulnerability and its emergence as a leader in sustainable manufacturing. While the country faces real climate challenges, it also shows industrial resilience, boasting the highest number of certified green factories in the world.
Citi's goal is to help turn Bangladesh's strong commitment to sustainability into a real global business advantage by providing the right financial support.
Citi has committed to providing $1 trillion in sustainable finance globally by 2030 and reaching net-zero emissions by 2050. It also works closely with international development banks to reduce investment risks and attract more funding for key climate projects in Bangladesh.
Citi aims to support local businesses in having the financing, global reach and support they need to lead the way in sustainable trade.
What role can international capital markets and development finance institutions play in meeting Bangladesh's investment needs?
As Bangladesh's development ambitions continue to expand, international capital markets, offshore financing, and partnerships with Development Finance Institutions and Multilateral Development Banks can support the country's infrastructure, trade and long-term investment needs.
With a presence in more than 90 countries, Citi serves as a vital bridge connecting Bangladesh with global investors, international financial hubs and development partners.
Citi has played a key role in connecting Bangladesh's financial system to the world for decades, starting in 1973 when it opened a foreign currency clearing account for a major public sector bank. Over the years, Citi has led landmark financing deals that brought international funding to local banks, microfinance institutions and growing businesses.
What reforms are essential for Bangladesh to attract large-scale global capital?
To successfully attract large-scale global capital, continued progress on key economic reforms is essential.
Citi strongly emphasises the importance of policy predictability, ease of doing business, foreign investor confidence, regulatory modernisation and capital market development. By advancing these priorities and leveraging international partnerships, Bangladesh can unlock the global funding it needs to build a more resilient, dynamic economy.
What are Citi's priorities as Bangladesh moves into its next phase of growth?
Citi is approaching four decades of continuous presence in Bangladesh, and looking ahead to the country's next chapter of growth, it is focused on supporting the transition beyond LDC status, facilitating global investment flows, empowering local champions going global, enabling sustainable and digital growth, and remaining the partner of choice for cross-border opportunities.
As Bangladesh advances towards its vision of becoming a high-income, globally connected economy, Citi will continue to stand as its partner of choice, connecting local ambitions with global opportunities.