The government’s integration plan for investment agencies

The government is aiming to consolidate all domestic investment promotion agencies into one corporation by February next year. This move is part of a larger strategy to streamline investment processes.

According to Nahian Rahman Lochi, an executive member of Bida and head of business development, the board for the new agency is already being formed.

Next month, an international consulting firm will be selected to design the agency’s structure and legal framework.

Currently, the domestic agencies involved in this transition are the Bangladesh Investment Development Authority (Bida), Bangladesh Export Processing Zones Authority (Bepza), Bangladesh Economic Zones Authority (Beza), Public Private Partnership Authority (PPPA), Bangladesh Small Cottage Industries Corporation (BSCIC), and Bangladesh Hi-tech Parks Authority.

Lochi mentioned that this initiative is part of the government’s efforts to attract both domestic and foreign investments. A high-level committee, chaired by Industrial Advisor Adirul Rahman Khan, is supervising the reform process, having already convened twice.

The committee has pinpointed two main objectives: to centralize decision-making through a board of directors and to appoint an independent consulting firm to design and manage the new structure.

Lochi added that a draft framework for the new agency has already been prepared. The consulting firm should be on board by the end of this month, starting work on November 1. The blueprint is expected in about three months, with the full integration finalized by February.

This consolidation addresses long-standing investor concerns. In discussions from the previous government, Bida engaged with 250 to 300 investors and development partners to gauge their needs.

Investors have often pointed out the absence of a unified authority for investment facilitation, noting the cumbersome process of multiple forms across different agencies.

Lochi noted that investors advocate for an integrated approach to address common problems. Various studies, including those from the Reform Commission, have underscored the necessity for a single investment promotion system.

Learning from past mergers that didn’t fully meet their goals, such as the combination of the Investment Board and the Privatization Board that formed Bida, could help shape the new structure.

The government believes this unified agency will enhance investment facilitation, improve cooperation among agencies, and create a more efficient single-window system for investors. This is a significant step in Bangladesh’s investment reform efforts.

Meanwhile, there are concerns from representatives of various government agencies regarding the consolidation. Officials from Beza and Bepza expressed that many investors prefer to work with well-performing agencies, and merging them with underperforming ones could deter investment.

They suggested that rather than a complete integration, a unified online platform might serve investors more efficiently. Efforts are already underway to establish such a platform with Bangrabiz for a one-stop service in investment promotion.

The topic was thoroughly discussed in Bida’s recent board meeting, chaired by Bida Board Chairman Mohammad Yunus.

There are warnings about the significance of appointing the right leader for this new agency, as an unsuitable choice could lead to serious issues, as noted by sources close to the matter.