Govt moves to unify investment agencies under single body

The government on Monday decided in principle to merge Bangladesh’s key investment promotion agencies into one unified organisation, a move aimed at simplifying procedures, reducing institutional overlap and making the country more attractive to both local and foreign investors.

The decision was made at meetings of the Governing Boards of the Bangladesh Economic Zones Authority (BEZA) and the Investment Promotion Agencies (IPA), both chaired by Chief Adviser Prof Muhammad Yunus. 

The policy decision was later announced at a press conference at the Foreign Service Academy on Bailey Road in Dhaka.

Speaking at the briefing, Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury said the country currently operates multiple agencies responsible for investment promotion, six of which are actively functioning. 

“A proposal to merge these six agencies was placed before the previous governing board. Subsequently, an advisory committee was formed comprising several advisers, the Governor of Bangladesh Bank and the Attorney General, among others,” he said.

According to Ashik, the committee unanimously recommended the merger, and policy-level approval has now been granted.

Under the plan, the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Hi-Tech Park Authority, the Public-Private Partnership (PPP) Authority and either the Bangladesh Small and Cottage Industries Corporation (BSCIC) or the Maheshkhali Integrated Development Authority (MIDA) will ultimately be consolidated into a single entity, bringing all investment promotion functions under one umbrella.

Ashik, who also serves as executive chairman of BEZA and MIDA and chief executive officer of the PPP Authority, said the decision was driven by persistent complaints from investors about regulatory complexity. 

“An investor moving from BEZA to BEPZA has to follow a completely different set of rules. The Hi-Tech Park has another set of regulations. Investors have to visit six offices and deal with six different land prices, incentives and facilities. It often feels like dealing with six different countries,” he said. “The merger aims to relieve investors from this complexity.”

Responding to questions on whether the move contradicts decentralisation efforts, Ashik argued that excessive fragmentation has instead discouraged investment.

 “There has been so much decentralisation in investment management that investment inflow itself has become difficult. Bringing the institutions together is intended to make Bangladesh more investment-friendly,” he said.

He stressed that the merger has been approved in principle, while actual implementation will be carried out by the next elected government. An independent third-party consultancy will be appointed to design the new organisational structure to ensure neutrality. 

“The new organisation will be designed so that none of the six agencies receives any additional advantage or preferential treatment,” Ashik said.

The briefing also outlined additional initiatives to boost investment. Ashik said BIDA will open agent offices abroad, initially in China and European Union countries. 

These offices will operate without fixed salaries, with agents receiving incentives based on the volume of investment they attract. 

Local citizens will be appointed to overcome language barriers and better identify potential investors.

He further announced special incentives for expatriate Bangladeshis bringing foreign direct investment (FDI) into the country. Under a proposed scheme, expatriates will receive a 1.25% cashback. 

“For example, if someone brings in $100 million in investment, the government will provide $1.25 million as an incentive, similar to existing remittance incentives,” he said.

Ashik also noted that a 137-member organisational structure has been approved for MIDA, with major projects such as the Maheshkhali deep-sea port, LNG and LPG terminals, and a fish hub planned over the next five years.