EMBRACING SUSTAINABILITY
A $200 billion
opportunity for a greener
future in Bangladesh.
In just a few decades, Bangladesh has grown to become the 41st largest economy in the world, with its economy on track to more than double to hit the $1 trillion mark by 2040. Home to a population of over 170 million, the country is currently the fastest-growing consumer market in Asia and projected to become the ninth largest globally by 2030.
By putting sustainable development at the heart of its growth strategy, countries like Bangladesh can focus on meeting the needs of the present without compromising the viability of future generations.
In recognition of the need for sustainable development, Bangladesh has implemented national strategies including the National Sustainable Development Strategy 2010-2021 and National Adaptation Plan (2023 – 2050) to meet the challenges of the country’s economic, social, and environmental sustainability goals.
The country has also formed dedicated government agency units, and adopted the United Nations’ Sustainable Development Goals (SDG), of which it has made significant progress in fields including alleviating poverty and promoting quality education, and already achieved two of its 17 objectives ahead of schedule: taking climate action to reduce CO2 emissions, and ensuring sustainable consumption and production patterns.
We are committed to continue on the path of our sustainable development where each step of the journey ahead, complements a certain aspect of reducing carbon emission.
Fabric of Society
A major driver of economic growth in Bangladesh has been the ready-made garment (RMG) industry. According to the Bangladesh Garment Manufacturers & Exporters Association (BGMEA), the trade body of apparel manufacturers in Bangladesh, RMG export for FY2021-22 reached $42.61 billion, accounting for over 81% of total exports of Bangladesh.
The sector, however, has traditionally been seen as a major contributor to global warming, producing 1.7 billion tons of CO2 emissions per year, but efforts have been made to reverse the tide.
In 2018, garment stakeholders forged the United Nations Framework Convention on Climate Change Fashion Industry Charter for Climate Action, for which the BGMEA is a signatory, committing to a 30% reduction in greenhouse gas emissions by 2030 and net-zero emissions by 2050.
Sustainability has also been put to the fore at the Beximco Group, the largest business conglomerate in Bangladesh and one of the region’s largest vertically integrated textile and garment companies. The company is a contributor to the Zero Discharge of Hazardous Chemicals Community whose Roadmap to Zero program tackles sustainable chemical management within the fashion industry.
In 2022, Beximco partnered with Spanish recycling technology company Recover to open a new facility in Bangladesh to create a circular industry with recycled fabrics to turn textile waste into premium fibers. Beximco has also collaborated with companies like Jeanologia to modify the conventional dyeing and washing process to minimize usage of chemicals and freshwater.
Powering the Economy
Economic expansion increases energy demand and causes strains on the energy infrastructure, and in 2012 the Sustainable and Renewable Energy Development Authority was created to ensure the energy security of the country.
To help the country achieve its energy needs, the World Bank has committed over $1.8 billion in ongoing support in the country’s energy sector, including a $500 million Electricity Distribution Modernization Program to upgrade and expand the national power transmission system in Bangladesh. In recent years, Bangladesh has made significant progress in increasing access to electricity in remote and underserved areas, with electricity now available for 85% of the population, up from 20% in 2002.
The government’s Ministry of Planning estimates an investment requirement of $6 billion per year until 2041 to help propel growth and meet the demand for energy. At the 2022 United Nations Climate Change Conference (COP27), Information and Broadcasting Minister Dr. Hasan Mahmud announced Bangladesh’s plans to have 40% of the expected total energy consumption to come from renewable sources by 2041.
Helping the country achieve its renewable energy goals, Beximco subsidiary Teesta Solar has recently commenced solar power generation at a renewable energy plant. When fully operational, the plant will have the capacity to generate 200 MW, making it one of the country’s largest solar-based power stations.
To Bangladesh and Beyond
The Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), together with the Government of Bangladesh, organized the Bangladesh Business Summit in March 2023 with the aim of presenting investment prospects in Bangladesh.
Inaugurated by the Honorable Prime Minister of Bangladesh Sheikh Hasina, the three-day event provided a platform for local business leaders to engage with policymakers and investors and discuss relevant topics such as Energy Security, Circular Economy, and Apparel & Textile in dedicated sessions.
A $200 Billion Opportunity
The potential for climate and green investments in Bangladesh, according to World Bank environmental specialist Monika Kumar, is greater than $200 billion, including in renewable energy, green buildings, and transport infrastructure.
This sustainability focus will allow Bangladesh to mitigate the negative impacts of climate change, reduce poverty and inequality, and provide a high quality of life for its citizens, all of which are crucial for long-term economic stability and to secure a greener future for the country and the world.
As part of our carbon reduction strategy, we are aligning each and every industry vertical to adapt and develop a more environment friendly approach to business with the intention to become the first conglomerate to reach net zero emission in Bangladesh.
INDUSTRIES OF THE FUTURE
A $8 billion local pharma market
and other priority sectors in
Bangladesh primed for
growth potential.
The potential for climate and green investments in Bangladesh, according to World Bank environmental specialist Monika Kumar, is greater than $200 billion, including in renewable energy, green buildings, and transport infrastructure.
This sustainability focus will allow Bangladesh to mitigate the negative impacts of climate change, reduce poverty and inequality, and provide a high quality of life for its citizens, all of which are crucial for long-term economic stability and to secure a greener future for the country and the world.
Beximco played a very important role in the transformation of the pharmaceutical industry by investing in building modern compliant facilities, creating a highly skilled workforce, and strengthening R&D capabilities.
Nurturing Economic Health
In 2021, Beximco Pharmaceuticals became the first company in the world to launch a generic version of Paxlovid, Pfizer’s novel antiviral pill to treat Covid-19 patients, at a fraction of the cost compared to other international markets. And that’s just one of over 300 generic medicines produced by the Bangladesh-based company.
Over the past few decades, local manufacturers like Beximco—the first Bangladeshi company to list on the Alternative Investment Market (AIM) of London Stock Exchange—have driven the country’s pharma sector and made healthcare more affordable and accessible for the domestic market, fulfilling 98% of the total pharmaceutical requirements and exporting to more than 100 countries worldwide.
Pharma is one of the most technologically advanced sectors in the country, and the industry has witnessed excellent growth in recent years with double digit compounded annualized growth rates to reach a projected $8 billion by 2030.
With the aim to achieve self-sufficiency in the production of pharmaceutical raw materials, the government of Bangladesh has recently established the Active Pharmaceutical Ingredients (API) Industrial Park and implemented a national policy to ramp up API production, decrease the reliance on raw material imports, lower the cost of locally manufactured drugs, and create 500,000 jobs in this sector.
In addition to tax exemptions, companies producing API molecules domestically also enjoy a competitive advantage to boost their pharmaceuticals exports on the back of the intellectual property rights waiver for the LDC countries under TRIPS agreement of World Trade Organization (WTO).
According to pharmaceutical intelligence firm Scrip, the industry’s top companies are forecasted to lose $200 billion between 2022 to 2030 due to the patent expiration of many drugs. This patent cliff opens up the market for the entry of generic medicine, with Bangladesh already positioned as an attractive hub backed by an established manufacturing base and skilled manpower.
Road to Success
The successful development of Bangladesh’s pharmaceutical industry is aided in part by the National Industry Policy, set forth by the Bangladesh Investment Development Authority to increase the contribution of select priority sectors, which also include infrastructure and automobiles.
As a key driver of sustainable growth, infrastructure is needed to ensure the efficient and safe movement of people and goods, and the provision of an inclusive energy and communication network. The Center for Research and Information, a not-for-profit policy research organization based in Dhaka, estimates an annual investment of $10 billion for infrastructure development—including roads, railways, bridges, embankments, and dykes, as well as energy and information and communication technology infrastructure—is needed to translate the vision of Perspective Plan 2041, the country’s long-term development plan of eliminating poverty, to reality.
The country’s investment drive in infrastructure projects include the Padma Multipurpose Bridge, inaugurated in 2022 as the largest infrastructure project to date in the country, and the Bangabandhu Satellite-1, which helped expand communications coverage after it launched in 2018.
Though still in its infancy, the automobile industry in Bangladesh has gained traction in recent years with the rise in purchasing power and demand for personal transport. Global automakers are also expanding their footprint in the country. In early 2023, a Hyundai car manufacturing factory was inaugurated with sole distributors Fair Technology starting to produce one of the South Korean automobile giant’s SUV models, while Japanese automaker Mitsubishi Motors is also looking to set up an auto assembly plant in partnership with state-owned Bangladesh Steel and Engineering Corporation (BSEC).
To Bangladesh and Beyond
To showcase investment opportunities in Bangladesh, the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), in partnership with the Government of Bangladesh, hosted the Bangladesh Business Summit in March 2023, inaugurated by the Honorable Prime Minister Sheikh Hasina of Bangladesh.
During the three-day event, local business leaders had the opportunity to meet with investors and policymakers and exchange ideas over dedicated sessions including on: Infrastructure, Pharmaceuticals and Healthcare, Public Private Partnership, Special Economic Zone, and Hi-Tech & Automobile.
In 2022, Bangladesh’s Ministry of Industries issued an update to the National Industrial Policy with the aim of increasing the contribution of the industrial sector to the gross domestic product to 40% by 2027 by enhancing skills, productivity and generating employment.
As one of the largest exporters in the country, Beximco Pharmaceuticals will continue to contribute through our competitive workforce, cost advantages, global partnerships and alliances to accelerate Bangladesh’s trillion-dollar journey.
A SMART WAY OF LIFE
Inclusive solutions
driving the journey to a
digital Bangladesh.
Ever since the vision of Digital Bangladesh was introduced in 2008, the government of the South Asian nation has made it a key priority to build a robust digital infrastructure and promote the adoption of information and communication technologies across multiple sectors. This rapid digital transformation, coupled with the country’s young and tech-savvy workforce and a burgeoning consumer economy, is paving the way for a smarter future for Bangladesh.
With its continued digitalization and upgrading of technology, consistent rise in per capita income, demographic dividend, and geographic location, Bangladesh today is increasingly vital to global trade and international supply chains with a world of opportunities.
The Future of Finance
At the forefront of the country’s digital transformation is the financial services sector. According to the UN-based Better Than Cash Alliance’s latest analysis with Bangladesh’s flagship Aspire to Innovate (a2i) program, one in five financial transactions in the country are now digital, compared to just one in 19 in 2016. Financial inclusion over the same period has also more than doubled to 79%.
As part of one of the world’s leading banks, HSBC Bangladesh has played a pivotal role in bringing the future of finance to the country. Since opening its Dhaka main office in 1996, the bank has pioneered a number of digital solutions to support smarter businesses. For example, the bank was the first in the country to offer e-payment solutions for VAT and customs duty through its online platform, HSBCnet. It also launched its HSBC Supply Chain Finance platform, a digital solution that allows corporate clients to manage the seamless end-to-end financing process to suppliers.
“The growth of digital services and the shift to a cashless society is enabling the bank and its customers to connect with opportunities, potential prospects, and suppliers from further afield,” says HSBC Bangladesh CEO Md Mahbub ur Rahman.
And in an important milestone in the digitalization of Bangladesh’s financial sector, HSBC Bangladesh completed the country’s first international blockchain transaction in 2020, and has since been offering the technology to businesses looking for an alternate platform to carry out trade finance transactions.
Growing and Learning with Technology
Beyond financial services, Bangladesh is promoting digital ecosystems in other sectors. In particular, the adoption of technology in agriculture has been recognized as key to achieving food security, boosting productivity, and stimulating economic growth—all of which contribute to Bangladesh’s vision of becoming a developed nation by 2041. Among its many initiatives in this sector, the government has been working with the United Nations’ Food and Agriculture Organization on the Digital Villages program to provide digital services and support to farmers across the nation. It has also rolled out various online resources, including apps and websites, to empower those working in the agriculture sector.
Farmers are not the only ones reaping the benefits of digitalization. The transformation of Bangladesh’s agriculture sector has also presented plenty of opportunities for investments, especially with the country being fertile ground for agritech startups such as iFarmer—a digital platform which creates access to financing, advisory services, and distribution channels for farmers—which raised over $2 million in investments in 2022.
Another key focus in Bangladesh’s drive for digital transformation is education. Initiatives in this field have been especially notable for being collaborative, multidimensional, and focused on human-centric learning experiences. Ample efforts have also been made to address the digital divide in education to make sure no student is left behind.
“One of the key focuses of our corporate sustainability efforts is working towards empowering women with future skills development for employability,” says Rahman. As such, HSBC has been working with the British Council on the EDGE: English and Digital for Girls’ Education program to provide 21st-century skills to marginalized or out-of-school adolescents in Bangladesh so they can achieve brighter futures. The bank also recently joined forces with the Asian University for Women to launch the HSBC-AUW School of Apparel and Retail Management master’s program, which aims to equip women with the skills and resources to become tech-savvy and sustainably-minded leaders in Bangladesh’s fast-evolving textiles and garments industry.
To Bangladesh and Beyond
This tech-driven transformation has given rise to plenty of investment opportunities in the digital sector. To showcase these opportunities, the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) hosted the Bangladesh Business Summit in March 2023. The event was organized in partnership with the Government of Bangladesh and was inaugurated by the Honorable Prime Minister Sheikh Hasina of Bangladesh.
The three-day event provided a platform for local business leaders, policymakers, and investors to meet and exchange ideas on various topics, including key investment opportunities, the potential of the digital economy, long-term finance, modern agriculture, high-tech manufacturing and more.
An Innovative, Inclusive Bangladesh
Driving the nation’s digitalization efforts across multiple sectors is the vision of creating a Smart Bangladesh. This nationwide initiative is about more than just futuristic gadgets and software. Rather, it’s about leveraging technology to create inclusive digital solutions and services from which businesses and citizens from all socioeconomic backgrounds can benefit.
In his keynote speech at the panel discussion titled “Harnessing Digital Economy to Unlock New Frontiers for a Smart Bangladesh” at the Bangladesh Business Summit, State Minister for Information and Communication Technology Zunaid Ahmed Palak highlighted the four pillars on which Smart Bangladesh 2041 is built: Smart Citizens, Smart Government, Smart Economy, and Smart Society.
In order to achieve these targets, we have identified a number of transformational initiatives that will transform Bangladesh into a digitally developed, knowledge-based, and innovative Smart Bangladesh.
