Bida unveils municipal competitiveness index to strengthen local investment climate
Bida remains open to recommendations and stands ready to support initiatives that address institutional bottlenecks outside Dhaka, said Bida Executive Chairman Chowdhury Ashiq Mahmud Bin Harun
The Bangladesh Investment Development Authority (Bida) today (7 August) presented the findings of the Municipal Competitiveness Index (MCI) 2024, positioning it as a strategic instrument to bolster Bangladesh's local investment climate.
In collaboration with Swisscontact's PRABRIDDHI project, Bida hosted a high-level workshop titled "The Role of the Municipal Competitiveness Index in Strengthening the Investment Climate" in the capital.
The event brought together senior policymakers, development partners, and private sector stakeholders. It showcased the competitiveness and investment readiness of seven pilot municipalities, identifying reform pathways for unlocking economic potential at the subnational level, reads a press release.
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The Municipal Competitiveness Index, developed under the Bangladesh Investment Climate Improvement programme and implemented by Policy Exchange Bangladesh, reflects key insights from nationwide consultations and workshops held in 2024. The index aims to identify regulatory bottlenecks and offer a strategic roadmap for municipalities to attract investment, improve governance, and stimulate economic growth.
PRABRIDDHI – the Local Economic Development initiative – is jointly funded by the governments of Bangladesh and Switzerland, and implemented by the Local Government Division and Swisscontact.
Speaking as the chief guest, Chowdhury Ashiq Mahmud Bin Harun, executive chairman of Bida and Beza, lauded the initiative as "timely and transformative."
"Historically, much of our investment facilitation has remained Dhaka-centric," he said. "This index helps spotlight the potential of municipalities as viable investment destinations. If we can strengthen local capacities and improve inter-agency coordination at the grassroots level, these areas will become significantly more attractive to investors."
He further added that Bida remains open to recommendations and stands ready to support initiatives that address institutional bottlenecks outside Dhaka.
Presenting the MCI findings, M Masrur Reaz, chairman of Policy Exchange Bangladesh, stressed the importance of broadening the investment lens beyond Dhaka and Chattogram. "Earlier indices such as the World Bank's Doing Business report focused on just two cities," he said. "The MCI (Municipal Competitiveness Index), supported by Swisscontact, now gives us a deeper, data-driven understanding of the business environment at the municipal level."
The workshop also saw participation from representatives of various ministries, agencies, and development organisations.
Panel discussions focused on key reform priorities, including business entry, infrastructure, taxation, dispute resolution, and access to finance. Stakeholders underscored the need to remove local-level constraints that deter both domestic and foreign investment.
The event concluded with a collective commitment to leverage the Municipal Competitiveness Index insights for designing actionable local investment reforms and reinforcing coordination between national and subnational actors.
