Bangladesh moves to ease business operations with key reforms in licensing, finance

Summary:

• Cenbank to launch Tk900cr equity fund for startups
• Addl Tk500cr fund includes both equity and lending components
• Provisions in law allowing govt's internet shutdowns will be removed
• Personal Data Protection Act to be finalised by the end of May
• Govt simplifying trade license process, improving access to finance
• Efforts underway to reduce internet prices, improve accessibility and usability
• Bangladesh has 1,200 active startups, 1.5m jobs across various sector
• Bida's Ashik says 2025 will focus on reforming investment climate to help startups

The interim government is working to simplify business operations by streamlining the trade licence process, improving access to finance, enhancing internet usability, and lowering costs.

At the Bangladesh Investment Summit, senior officials and policymakers outlined ongoing efforts to strengthen data protection and amend laws preventing arbitrary internet shutdowns to boost investor confidence.

Equity fund for startups

At the summit's Bangladesh Startup Connect session, Bangladesh Bank Governor Ahsan H Mansur announced plans for a Tk900 crore equity fund exclusively for promising startups.

"We expect to issue a circular within a week," he said, explaining that private commercial banks will contribute to the fund and act as equity holders.

Additionally, the central bank will contribute Tk500 crore for co-financing, combining equity and lending options to help startups access loans.

Investment climate & global capital

Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of Bida, highlighted critical business challenges, particularly the trade licence renewal process.

"For young entrepreneurs, a trade licence can be a major hurdle. Do we even need annual renewals? Why can't it be like a birth certificate – valid for a company's lifetime?" he said.

Ashik, who joined the government after a career in investment banking, said Bangladesh is at a turning point: "We must bridge the gap between our domestic potential and global capital."

Internet access & legal protections

Special Assistant to the Chief Adviser Faiz Ahmad Taiyeb announced that internet shutdown provisions under the Telecommunication Act 2001 will be removed, ensuring no government can legally shut down the internet.

"We have officially declared the internet a civic right," he said, adding that the Cyber Safety Ordinance would be published by next week.

Taiyeb also noted efforts to reduce internet costs to match regional rates and enhance usability. Additionally, outdated SOPs for shutdowns have been scrapped to guarantee uninterrupted access.

Personal data protection act on the way

The Personal Data Protection Act is set for finalisation by May. Taiyeb confirmed the government is consulting businesses, human rights organisations, and civil society to address concerns.

By April's end, further public consultations will be held before the law is formally adopted.

Startup ecosystem & investment

In his keynote address, Tanveer Ali of Constellation Asset Management pointed to Bangladesh's high mobile data costs, which account for 2.4% of monthly income compared to 0.65% in India.

Despite low startup investment relative to GDP, Ali noted impressive ecosystem growth, with over 1,200 active startups – a tenfold increase in the last decade.

Bangladeshi startups have raised nearly a billion dollars from international sources, creating 1.5 million jobs across multiple sectors.