Prime Minister Sheikh Hasina formally inaugurated ten new economic zones on Sunday. They are part of a plan to establish 100 economic zones in phases over the next 15 years to create new opportunities for investment, industrialisation, and employment. BEZA officials predict these have the potential to increase export earnings by $40 billion and generate up to 10 million additional jobs. It is vital to ensure reliable energy supplies and transport links are developed as an integral part of all new development zones. Lack of reliable and sufficient electricity and gas supplies have been major bottlenecks, slowing down investment in past such projects. Guaranteed power supplies and the availability of tax incentives for investors are key to increasing the investment which economic zones need to drive growth. It is a positive indicator then that investors laying foundation stones this week for development at the 229-acre Kaliakoir Hi-Tech Park in Gazipur have plans to double their current commitment of over $230m.
This zone is already expected to create 70,000 new jobs which can indirectly support employment for a further 100,000 people. With around 2 million young people entering the workforce each year, facilitating more investment in SEZs is vital to create new high value jobs and make the most of the country’s economic potential. The demographic dividend and Bangladesh’s location at the crossroads between the growing markets of South and South-East Asia means there is still a lot of untapped potential for growth. The government needs to press ahead with ambitious targets to help future industrial development proceed in a planned way around special economic zones and support a virtuous cycle of new investment creating new jobs and opportunities.
