The regional director of IFC for South Asia, Hector Gomez Ang, after a 5-day visit to Bangladesh, has announced the plans to invest $5 billion within the next five years, focusing on creating new jobs and spurring green growth. The new flow of funds aims to better the energy mix & transmission process, a sector where IFC already contributes to 20% of the private power generation—followed by exploring new opportunities in healthcare, education, climate, and economic zones. Besides this, IFC will hold a particular focus on green and affordable housing.
In light of the upcoming LDC graduation of Bangladesh, the regional director pointed out the challenges that come with it and suggested that the country starts exploring foreign direct investment and external commercial borrowing to ensure sustainable growth during this transition. He also pointed out the private sector’s pivotal role, which was fundamental to ensuring a smooth transition.
The gist of the investment is to create a sustainable city adjacent to the growth. Since 2010, IFC has invested over $3.5 billion to help the private sector grow in Bangladesh, investments which were especially crucial in the wake of the COVID-19 pandemic where it helped businesses stay afloat and retain jobs.
Source: The Daily Star