The Bangladesh Export Processing Zones Authority (Bepza) accounted for 29% of the country’s total foreign direct investment (FDI) in the 2023-24 fiscal year, underscoring its vital role in the economy despite its relatively small footprint.
Md Ashraful Kabir, Bepza’s Member for Investment Development, revealed at a press briefing in Dhaka on 27 January that the eight export processing zones (EPZs) and the Bepza Economic Zone, covering a mere 3,445 acres (13.95 square kilometres), attracted $424.29 million in FDI out of Bangladesh’s total $1,468.17 million during the fiscal year.
Bepza’s contribution to exports remained significant, accounting for 16% of the national total.
Of the country’s $48.84 billion in exports, $7.07 billion originated from Bepza-operated zones.
Historically, Bepza has consistently contributed between 15-20% of Bangladesh’s total exports.
Mixed Performance in Investment and Exports
Providing a comparative analysis of export and investment trends, Bepza Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman reported a 22.41% year-on-year rise in EPZ industrial exports, increasing from $3,371 million in July-December 2023 to $4,126 million in the same period of 2024.
However, investments in EPZs declined by 22.33%, falling from $162.66 million to $126.33 million over the same period.
Addressing the downturn, Ziaur attributed it to global economic uncertainties, Bangladesh’s overall financial climate, and the ongoing dollar crisis.
“Investment in Bepza has slightly declined in the past six months due to external challenges,” he noted.
“However, we anticipate a rebound, as both domestic and foreign investors are actively engaging with us.”
Foreign Companies Eye Bangladesh Amid Global Shifts
Ziaur highlighted an emerging trend of foreign companies considering relocation from China to Bangladesh, citing recent interest from investors wary of potential trade barriers following the US presidential transition.
“Several foreign companies have approached us, including one proposing a $150 million investment.
Investors are particularly keen on manufacturing solar panel components and chemicals in Bangladesh,” he added.
Future Prospects and Investment Pipeline
Despite challenges, Bepza remains committed to driving investment and export growth.
Ziaur stressed the strategic importance of EPZs in sustaining Bangladesh’s economic trajectory, acknowledging that uninterrupted energy supply remains a critical hurdle.
“If we can address energy constraints, there will be no obstacles to investment. Currently, we have nearly 50 investment proposals under consideration,” he stated.
Diverse Production and Economic Impact
Bepza’s EPZs manufacture a wide range of products, including tents, bicycles, cosmetics, movie masks, golf shafts, energy-saving bulbs, camera lenses, mobile parts, car seat heaters, bamboo coffins, PPE, safety shoes, and bridal gowns.
Since its inception, Bepza has attracted a cumulative investment of $6.91 billion and facilitated exports worth $114.91 billion as of 2024.
With ongoing investor interest and strategic positioning, Bepza remains a cornerstone of Bangladesh’s industrial and export landscape, poised to navigate future economic shifts.
