Govt to unify Bida, Beza, other investment promotion bodies under one roof

Infographic: TBS

Highlights:

• A committee will be formed to review the proposed integration of these agencies
• A final decision will be made based on the committee's recommendations
• Jica is also in favour of this one-point investment promotion agency
• The goal is to streamline processes for foreign and domestic investors 

The government plans to form a central Investment Promotion Agency (IPA) by unifying existing investment facilitation bodies such as Bida, Beza, Bepza, and others, in a bid to attract more foreign and domestic investment.

The decision was taken at the 3rd meeting of the Bida Governing Board held on 13 April, chaired by Chief Adviser and Bida Governing Board Chairman Muhammad Yunus.

According to meeting sources, a committee will be formed soon to review the proposed integration of the agencies thoroughly. A final decision will be made based on the committee's recommendations.

Currently, multiple government agencies are involved in investment promotion in Bangladesh — the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza), Bangladesh Export Processing Zones Authority (Bepza), Bangladesh Small and Cottage Industries Corporation (Bscic), the Public Private Partnership (PPP) Authority, and the Bangladesh Hi-Tech Park Authority.

Beza, Bepza, Bscic, and the Hi-Tech Park Authority – they all allocate industrial plots. Investors must approach each of these agencies separately to obtain plots, which complicates the process.

Officials from some of these agencies said that the presence of so many bodies often confuses foreign investors interested in Bangladesh. They struggle to understand what these agencies are and what their specific functions entail.

According to Bida sources, the proposed unification of these existing agencies into a single, master Investment Promotion Agency (IPA) is expected to act as a one-stop solution centre for investors.

At the 13 April meeting, Chowdhury Ashik Mahmud Bin Harun, executive chairman of both Beza and Bida, emphasised the need to unify all investment bodies. He said that operating these agencies separately hinders the overall coordination of investment activities.

During the meeting, arguments were presented both in favour of and against the proposed integration. Advisers from the finance, planning, industries, and other ministries participated in detailed discussions and recommended forming a committee to prepare a comprehensive report.

According to meeting sources, the chief adviser said, "This will be a mega authority. A mega authority can be good, but if the wrong person leads it, it could lead to disaster."

Last week, Bida held a meeting with the Japan International Cooperation Agency (Jica), where Jica stated that a single investment authority streamlines the investor journey and reduces bureaucracy.

Among other key recommendations made by Jica to improve the investment climate were: Creation of a single entry point for all investors, a simplified and well-defined investor journey with a streamlined approval process, consistent service-level agreements (SLAs) and proper monitoring, a unique, interoperable business ID to access all services throughout the investment process and data-driven interoperability among all IPAs and permitting agencies.

Prof Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), told TBS that investors currently have to run from one agency to another. To bring all of these under a central agency and provide One Stop Service (OSS), structural reforms are necessary.

He noted that among the various agencies, some perform well while others do not. "It's important to ensure that the effective elements of the well-performing agencies are retained. One concern is that agencies that were functioning well may become ineffective after being merged — this risk must be carefully considered," he added.