SwissPro | Frankfurt, 22.11.2015.
World Bank approves additional financing to raise electricity supply
World Bank (WB) approved an additional USD 177 million financing to increase reliable, low-cost electricity supply in Bangladesh. The additional financing will help the construction of a 335 megawatt (mw) combined cycle power plant at Siddhirganj, near Dhaka. The combined cycle technology allows the plant to produce higher energy with lower gas consumption. This cleaner technology reduces carbon emission while ensuring higher thermal efficiency. The plant will deliver at least 2.49 billion kwh annually, which accounts for 6% of the total electricity delivered to the national grid.
FBCCI suggested to cut interest rate for SME loans
The government should provide credit at 9% interest rate to small and medium entrepreneurs for sustainable growth of the sector, as suggested by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). Industrialization is the only way for Bangladesh to become a middle-income country by 2021, but bank loans remain the major barrier to it, especially in the SME sector. Although the interest rate in the SME sector has been declining over the decades, it is still 14-20%. There are many financial institutions that are willing to give SMEs credit, but the rate is the problem. Subsequently, it was recommended to keep the deposit rate at 5-6%, but bring down the interest rate for SMEs to 9%.
Top carmakers are the new Jute buyers
Bangladesh is strengthening its position as a major supplier of jute fiber to renowned car brands. Local exporters are supplying jute to top brands such as BMW, Ford, Mercedes-Benz and Toyota. Jute fiber is used for dash boards and other components for car interiors. Exporters sell raw jute to processing companies in the US, Japan, Turkey, Germany, China and India.
Sweater industry will help reach USD 50 billion export target
Sweater industry, a sub-sector of ready-made garments, has the potential to contribute USD 8 billion for reaching the USD 50 billion export target within 2021. Currently, the sweater industry contributes about USD 2.8 billion to RMG export with only 70% capable workforce. Manufacturers are looking for capacity building support to increase worker skill-set.
Telekomasia will invest USD 1 billion in hi-tech park
Telekom Asia, a Singapore-based telecom services company, is keen to invest more than USD 1 billion in Bangladesh for making tech-related products. The company, owned by Bangladeshi entrepreneurs, signed a deal with the government on Friday. The firm is mainly interested in investing in four major segments of the telecom and ICT sector.
Have a successful start to the week and best regards
Christian Forthuber
Managing Director
SwissPro Invest (BD) Ltd.
Walther-von-Cronberg-Platz 13
60594 Frankfurt, Germany
Direct: +49 69 380 97 52 97
cforthuber@swissproinvest.com
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