Attaining SDGs: Stanchart sees $132bn pvt investment option in Bangladesh

A Standard Chartered Bank macroeconomic study titled "Opportunity 2030: The Standard Chartered SDG Investment Map" reveals that private-sector investors have the opportunity of investing USD9.67 trillion across all emerging markets to help achieve the United Nations' Sustainable Development Goals (SDGs).

The study report was released in January, 2020.

It analyses 15 of the world's fastest-growing economies in Asia and Africa, and estimates the potential private-sector investment opportunities for investors to contribute to three infrastructure-focused goals between now and 2030: SDG 6: Clean Water and Sanitation, SDG 7: Affordable and Clean Energy and SDG 9: Industry, Innovation and Infrastructure across emerging markets.

Low Scoring Digital Access Demands Big Investment, lack of opportunity in Clean Water and Sanitation 

Currently, 32 percent of the population has mobile phone subscription and internet access (Digital Access). Bangladesh needs around USD55.5 billion investment to enable universal mobile phone subscription and internet access. Sixty percent of the total investment can be gathered privately.

The report also shows that as many as 27 percent of the people in Bangladesh have lack of access to safe drinking water and proper sanitation facilities, where particularly the private sector has an opportunity to contribute USD3.2 billion.

Meanwhile, USD31.7 billion investment is essential to ensure 100 percent access to safe drinking water and sanitation facilities. So, Bangladesh has an opportunity to share only 10.09 percent of total investment with the private sector.

Power and transport sectors have huge potentials for private investment

The research says that about 88 percent of the people have access to electricity, though national estimates say it is 95 percent. An additional USD164.2 billion is required to cover the 12 percent gap, where USD73.9 billion can be added from the private sector.

Meanwhile, Bangladesh ranked 100th among 161 countries, scoring 2.39 points out of 5 in the World Bank Logistics Performance Index 2018, and targeted to achieve 2.75 points by 2030. The transportation sector needs around USD61.6 billion for significant improvement. The private sector has the potential to invest USD21.6 billion in this sector.

Private Sector Involvement

The Bangladesh government established the Public Private Partnership Authority (PPPA) to pave the way for private investment with the hope that public-private partnership (PPP) endeavours will be increased. 

The government also aims to set up 100 special economic zones across the country to boost the economy and foreign investment in line with domestic investment.

Many major PPP infrastructure project planning and constructions are being carried out. With the help of Standard Chartered Bank and local banks, the government constructed the first utility scale solar power plant, which can provide 80 percent of the total electricity required in the Teknaf region. The project is guaranteed by GuarantCo (a Private Infrastructure Development Group).

15 Emerging Countries League Table

China, India and Indonesia are the top three countries among 15 emerging economies across Asia and Africa where the investment opportunity of the private sector is the highest.  

China, India and Indonesia have private sector investment opportunity of, USD2829 billion, USD1124 billion and USD280.7 billion respectively. Bangladesh is at 4th place in the table with a private sector investment opportunity of USD132 billion.

As China, Malaysia, Thailand and Vietnam have already achieved universal electricity access, private sector investment opportunity in this global goal is not considered. As a result, Bangladesh stands in 3rd position for greatest private investment opportunity in the global goal for access to electricity. The top two are India (701.5 billion USD) and Indonesia (147.5 billion USD) respectively.

China, India and Indonesia are ahead of other countries in other goals.