EU commits to boost investment in Bangladesh under Global Gateway Strategy

The European Union has reaffirmed its commitment to supporting Bangladesh's socio-economic development by leveraging investments under its Global Gateway strategy.

In the 10th meeting of the EU-Bangladesh Subgroup on Development Cooperation held in Dhaka on 20 February, EU aims to strengthen its investment footprint in the country, in collaboration with EU Member States, development agencies, and financial institutions as part of Team Europe.

The Bangladeshi side emphasized the Interim Government's commitment to fostering a conducive environment for investment in the country, reads a press release today (22 February).

Photo: Courtesy

They highlighted that increased investment from the EU would be highly beneficial in supporting economic growth and development.

The EU and Bangladesh agreed on the importance of decisively establishing a predictable and sustainable business climate that will make it easier to trade and invest, removing market access barriers and promoting diversification of its economy.

To this end, the EU and Bangladesh remain committed to pursuing and further strengthening the Business Climate Dialogue.

The meeting was co-chaired by Md Shahriar Kader Siddiky, secretary, Economic Relations Division (ERD) of Ministry of Finance, and Mario Ronconi, head of Unit, South Asia and South-East Asia, European Commission, director-general of International Partnerships.

EU Ambassador Michael Miller also attended the meeting and delivered the opening remarks.

Both sides exchanged information about the latest progress of their cooperation partnership aiming to ascertain the strategic direction and future priorities for development.

"The Government of Bangladesh values its strong partnership with the European Union, which continues to play a vital role in our journey towards sustainable growth, inclusive development, and social progress. The impactful investments by the European Investment Bank in key sectors like renewable energy sector, water supply, and transport further strengthen this collaboration. Together, we are committed to advancing reforms that align with our national priorities and the aspirations of our people", said ERD Secretary Md Shahriar Kader Siddiky.

Bangladesh and the EU recognised that the transition presented a unique opportunity to make decisive progress in stabilising the economy taking the recommendations of the economic reform committees into account and simultaneously working on good governance, human rights and access to justice.

Mario Ronconi recalled the EU strong commitment to Bangladesh, highlighting its support for key sectors such as primary education, TVET and skills development, social protection and Public Finance Management while mobilizing investments in line with the EU Global Gateway strategy.

He also noted that EU cooperation with Bangladesh could play a pivotal role in supporting the Interim Government and advancing its reform agenda".

EU Ambassador Michael Miller emphasised that the EU stands firmly with Bangladesh on its path to reform. "We welcome the reform orientation of the interim government led by Muhammad Yunus. We recognise the political will for positive change and look forward to the adoption of a focused set of priority reforms built on broad political consensus."

He also said, "The implementation of the National Action Plan on Labour Rights is a key area where urgent progress is needed, and where the EU and its Member States provide substantial and continued support to Bangladesh".

The EU urged Bangladesh to use the reform momentum and increase efforts to implement the NAP commitments.

The EU will continue to explore with Bangladesh the possibilities for more cooperation and support in these areas. Bangladesh side informed that steps have been taken to digitalize trade union registration, pre-registration services and training to facilitate union activities, establishing a high-powered Labour Reform Commission and facilitating landmark 18-point agreement and joint declaration between labour representatives and employers.

Bangladesh highlighted its significant progress in achieving the UN Sustainable Development Goals (SDGs), particularly in poverty reduction, education, health, and gender equality. However, challenges remain in addressing inequality, improving governance, and enhancing climate resilience.

Bangladesh updated the EU on its LDC graduation process and emphasized the need for an extended period of duty-free market access, alongside support for export diversification, innovation, technology, and skills development to boost trade competitiveness. Bangladesh also called for EU support in addressing issues such as corruption, asset recovery, and banking sector reforms.

The EU side provided an update on the policy framework and the Multi-annual Indicative Programme (MIP) 2021–2027, reiterating their continuous commitment to sectoral support in education, social protection, and Public Financial Management. This support combines funding with EIB investments in renewable energy, transport, digital connectivity and water sectors.

The EU and Bangladesh reiterated their joint commitment to empowering youth, promoting gender equality, and strengthening civil society.

The EU expressed deep appreciation for Bangladesh's continued generosity in hosting over a million displaced Rohingyas and reaffirmed its support for a voluntary, safe, and dignified return to Myanmar only when conditions allow.

Bangladesh raised concerns over the prolonged presence of Rohingyas, which strains its economy and social fabric, urging the EU and the international community to apply diplomatic pressure on Myanmar and consider third-country resettlement to share the responsibility.

Other delegates of EU and representatives of different Ministries and departments also attended the meeting.