http://www.thedailystar.net/newDesign/news-details.php?nid=114053

Germans keen on investment
German-Bangladesh chamber leader says

Refayet Ullah Mirdha

Economic theory shows every risk ushers an opportunity. The global recession has created openings for some countries, especially South Asia, a relatively consumer-driven market.

Many say the sub-prime mortgage crisis, the recession roots, deepened in the United States when major western investors targeted the South Asian region as an investment destination.

Bangladesh has remained resilient to this financial crisis worldwide, with maintaining of around 15 percent growth in readymade garment (RMG) exports last fiscal (2008-09).

The recent visit of a good number of prospective investors from Germany and other European Union countries to this country in a short span of time is an indicator to the fact that it is considered a more focused destination.

The Daily Star has had a conversation with the German-Bangla chamber leader at his office in Dhaka where the tour of a business team from Europe’s largest economy got prominence.

The German team was on a visit here on October 25-29.

Checking out the investment opportunities in Bangladesh was its goal, according to Saiful Islam, the president of Bangladesh-German Chamber of Commerce and Industry.

Islam coordinated this visit.

RMG, shipbuilding, inland transport system, solar power and chemical sectors are some key areas Germans keen to invest and for this purpose a feasibility study is now underway.

The investors from the West, now showing signs of recovering recession, are now busy in re-fixing their future strategies, says Saiful Islam.

Now they turn to South Asian countries who recorded a stable GDP (gross domestic product) growth over the last few years, the entrepeneurs’ trade body chief pointed out.

Profit factors outshine the risk factors of investment in Bangladesh, Islam says, and so is the observation of the team that visited Dhaka. German businesspeople are eager to visit here again to study investment climate.

However some loopholes they identified in the way of smooth investment, Islam says. Dhaka’s traffic congestion and weak infrastructure countrywide are the two major things they complained about, the German-Bangla chamber’s key person added.

Such gridlock causes a rise in transportation costs, the German team pointed out.

“A lot of homework is needed to lure foreign investment,” he also suggested.

On another query, Islam pointed his finger at German retail giant Metro Group’s interest in raising the volume of imports from Bangladesh. This globally renowned group registered a $58 billion turnover last year.

Metro Group, now outsourcing mangoes from Pakistan, has recently proposed imports of Bangladesh mangoes.

Stressing acceleration of uplift works here, Germans also complained that bad transportation system leads to the fall in merchandising quality, Islam further said narrating the German delegation’s visit experience.

He said shipbuilding is an emerging industry in Bangladesh and demand for small and medium ships in Germany is also on the rise, as at least 15,000 such water vessels lost their utility last year.

Germany is one of the major water vessel users in the world, Islam maintained. “So, we, as a shipbuilding country, have immense opportunity to grab German market,” he said.

He also pointed to Bangladesh’s widening export basket to Germany. “ Enhanced trade ties have contributed to this.”

Exports to Germany were recorded at $1.59 billion up to June 2009, while imports from Germany stood at $270 million during the period.

In FY 2008-09, Bangladesh posted a 24 percent growth in exports to Germany, while imports grew 10 percent. The export figure was $2.5 billion, while the import was $330 million, Islam said.

In FY 2008-09, finished leather goods exports to that country reached $177 million and leather and leather goods $204 million. Germany is one of the major leather and leather goods markets in the world.

Saiful Islam said Bangladesh’s main export item to Germany is RMG, while it imports mainly spare parts of vehicles.

Islam suggested the government deploy a trade expert in Germany as a trade commissioner from the private sector as government officials can hardly handle business scope efficiently.

Islam, an ex-mariner, also asked the government for providing two important things — primary healthcare facility and primary education — to raise workers’ capacity.

reefat@thedailystar.net

http://www.thefinancialexpress-bd.com/more.php?news_id=84431

Domestic market for ICT products may grow four times by 2014
FE Report

The country’s domestic market for ICT and ICT-related products and services is likely to grow by a robust 400 per cent by the year 2014, industry insiders said Saturday.

However, the growth would largely depend on growing access to ICT services at the rural level and increased use of information technology in high school education, IT leaders said at a press conference in the city.

“Although a precise statistics about the overall ICT market is unavailable due to the wide ranges of products’ information technology cover, available data suggest that the import of microprocessor chips has posted an increase of 40 per cent during the last fiscal and the annual shipment now numbers around 250,000 units”, President of Bangladesh Computer Samity (BCS) Mostafa Jobbar told reporters.

“At the current pace, the local market for ICT may get expanded four times compared to its current size given the government policy of bringing the digital technology to the grassroots level is effectively implemented”, Jobbar added.

The view came at a press conference organised on the upcoming “BCS ICT World”- the annual mega showcasing of information and communication technology to be held in the city next week.

The national trade body of IT industries, BCS, would stage the event from November 17 to November 22 at Bangabandhu International Conference Centre. This year the event would also coincide with the first ever “Digital Bangladesh Summit” to be held on November 22.

Parliament Speaker Md. Abdul Hamid is expected to inaugurate the six-day long fair as the chief guest, the organisers said adding that Commerce Minister Faruk Khan, Foreign Minister Dipu Moni and State Minister for Science and ICT Yeafesh Osman would also be present.

President Md. Zillur Rahman, on the other hand, is expected to inaugurate the first ever “Digital Bangladesh Summit” on November 22. The day-long summit would be preceded by six pre-summit discussion meetings during the five days of the fair on various core issues about building of a Digital Bangladesh.

At the end of the summit, the organisers would come up with a set of recommendations for implementation of the National ICT Policy 2009.

A total of 65 brands and organisations are set to participate in this year’s ICT world fair through 83 stalls and 32 pavilions, the organisers disclosed. The entry fee for this year’s event has been fixed at Tk. 20.00 although the access will be free for the school students as usual.

The main theme of this year’s event will be “Way to Digital Bangladesh”.

Bangladesh Computer Samity has been organising the annual computer fair since 1993. Around 150,000 to 200,000 visitors are expected to visit this year’s event, organisers said.

http://www.newagebd.com/2009/nov/15/busi.html#2

Japan KDDI enters Bangladesh market
Takes over 50pc stakes in BracNet
Kazi Azizul Islam

Japanese telecom giant KDDI has forayed into Bangladesh market acquiring 50 per cent stakes of BracNet, a leading local ISP-internet service provider.

Sources in the trade diplomacy have confirmed the deal which has been regarded as a high value Japan-Bangladesh technology joint venture after the NTT Docomo’s taking over of Aktel stakes from Telekom Malaysia.

‘The KDDI-BracNet deal has already been done,’ the country head of the Japan External Trade Organisation Tomhiro Kinomoto told New Age Saturday.

He said the value of the deal was not disclosed by any one of the parties.

Earlier, in a brief statement in Tokyo Thursday, KDDI Corporation said it would acquire a 50 per cent stake in BRAC BD Mail Networks Limited of Bangladesh through a third-party allotment of new shares.

In Japan, KDDI operates the second largest mobile phone network under the brand name, AU and the fastest and large capacity internet connections branded “HIKARI-one”

KDDI, which has businesses in the USA and elsewhere, has partnership projects with the internet search giant Google.

According to Tokyo Stock Exchange, the Tokyo Electric Power Corporation, Kyocera Corporation and Toyota Motor Corporation have 8 to 13 per cent stakes each in the $50 billion plus KDDI.

Established in 1953, KDDI has operated international direct dialing services, mobile phone networks and board band internet services. KDDI also operates mobile banking services jointly with Bank of Tokyo.

According to the Japanese trade official, KDDI found potential future of business in Bangladesh due to its huge population and significant growths in telecom and internet service markets.

Entrance of KDDI in Bangladesh would give a further boost to the burgeoning telecom and ICT sector in Bangladesh, Kinomoto hoped.

Seeking anonymity, a senior management official of BracNet said partnership with KDDI will enhance their company’s financial and technical strengths for further expansion of existing services and bringing new services and devices in Bangladesh’s ICT market.

BracNet, which is a sister concern of BRAC, has now more than 500 corporate clients and it provides data connectivity services and ICT solutions to different banks and organisations.

http://www.thedailystar.net/newDesign/news-details.php?nid=114088

BB to roll out strategy for efficient banking
Bss, Dhaka

Bangladesh Bank (BB) has prepared a five-year strategic plan to ensure efficient banking.

The plan, first of its kind in the country, focuses on stable monetary policy, automation, skilled development, capacity building and prudent credit policy.

BB Governor Atiur Rahman will disclose further details at a press conference at the central bank headquarters today.

The plan that received final touches at a weekend meeting at Jamuna Resort will be effective from January.

“We have prepared a strategic plan to face future challenges and make the central bank more efficient to support and develop the sector,” said Rahman who presided over the meeting.

“At the meeting, we have noticed that BB should continue its support to the agriculture sector and increase financial assistance to small and medium enterprises by two to three times than now,” the BB chief said.

Rahman said the overall investment would get more attention in the plan and BB will encourage more investment in agriculture and SMEs.

http://www.thedailystar.net/newDesign/news-details.php?nid=114096

Bangladesh trade fair in Malaysia in Dec
Unb, Dhaka

A three-day Bangladesh single country trade and tourism fair will begin in Malaysian capital Kuala Lumpur on December 4.

Dhaka International Exhibition Company Limited (DIEC) and Palli Bangla Unnayan Shahajogita Sangstha will jointly organise the Bangladesh Single Country Trade and Eco Tourism Fair 2009 at

Merdeka Square (Independent Square) in Kuala Lumpur.

Former Malaysian prime minister Dr Mahathir Mohammad is expected to inaugurate the exhibition, while Civil Aviation and Tourism Minister

GM Quader will attend the event as special guest, said a DIEC release yesterday.

A total of 70 manufacturing, service and tourism organisations of Bangladesh will display their products and services at the fair.

The main attraction of the fair is to launch vote campaign for the Sundarbans to nominate it as one of the seven wonders of nature in the world.

Business enterprises interested to take part in the fair have been asked to contact DIEC at 62/1, Puran Paltan, Dhaka (Tel: 9558318-9).

http://www.thedailystar.net/newDesign/news-details.php?nid=114089

ICT show kicks off Tuesday
Star Business Report

A five-day information and communication technology (ICT) fair will begin on Tuesday at Bangabandhu International Conference Centre in Dhaka.

Bangladesh Computer Samity (BCS), a national association of ICT companies, is organising the show styled BCS ICT World-2009.

BCS will also arrange the first-ever Digital Bangladesh Summit-2009 on November 22 at the same venue.

As many as 65 local and multinational companies will showcase their latest communication technology, including computer, laptop, software, hardware, telecom device and technology-based education services at the fair.

BCS President Mostafa Jabbar said these yesterday at a press briefing in Dhaka.

President Zillur Rahman is expected to inaugurate the summit, while Speaker Abdul Hamid is scheduled to open the fair.

The entry fee has been fixed at Tk 20. However, school students will be exempted from the fee at the show.

http://www.thedailystar.net/newDesign/news-details.php?nid=114092

Record target set for potato cultivation in the north

Bss, Rangpur

The Department of Agriculture Extension (DAE) has fixed a record target for producing 49,66,220 tonnes of potato from 3,00,983 hectares during the current Rabi season in all the 16 districts of the country’s northern region.

The target is higher by 5,58,284 tonnes this season than that of the last year as the farmers will bring more 51,383 hectares of land under cultivation. The last year’s target was 44,07,936 tonnes from 2,49,383 hectares, officials said yesterday.

The per hectare production target has been fixed at 16.50 tonnes this time.

The DAE officials said the farmers have already started sowing early-variety potatoes in many areas after harvesting short duration Aman paddies and the process will get momentum with the progress of T-Aman harvesting that just started in the region.

However, the farmers are expected to cultivate potato in more land than the fixed target this time for more profits following the recent reduction in non-urea fertiliser prices by about 36 percent as it will cut production costs.

Sharecroppers are also showing interest in farming potato on large scale after getting agri-loans without any deposits for the first time this year and the char farmers are also preparing for producing potato in the river basins this season.

Government departments including the DAE, Bangladesh

Agriculture Development Corporation, Bangladesh Agriculture Research Institute and a number of NGOs have taken steps for providing quality potato seeds among the farmers to make the programme a success, officials said.

The departments and administration concerned have taken adequate steps for ensuring smooth supply of chemical fertilisers, pesticides, technical assistance and other inputs to the potato growers at the grassroots.

The early-variety potatoes may appear in the local markets by mid-December as the farmers have cultivated those much ahead of the usual schedule in greater Rangpur, Bogra and Joypurhat and in some other places of the region, officials said.

Rajshahi Krishi Unnayan Bank, commercial banks, other financial institutions and a number of NGOs are providing easy-term agri-loans and the DAE and BADC have been distributing potato seeds and other inputs among the farmers.

A number of farmers told the news agency that prices of potato seeds are very high this time in the local markets because of higher prices of the commodity throughout the year and production fall during last year.

“We are facing some problems in purchasing potato seeds as the quantity of potato seeds being supplied by the BADC and DAE is not sufficient,” they said.

“The farmers will face no seed problems as they have their own stocks and private companies are selling imported seeds this time,” deputy director of DAE, Gaibandha Kamal Shariful Alam told the news agency yesterday.

http://www.thedailystar.net/newDesign/news-details.php?nid=114054

Biogas: Blue and beautiful

Cow dung — actually, lots of it — 30 kg per day, to be precise. That is the kind of manure you need to fire up a one-stove burner as an alternative means to the usual rice husk, wood and dung cakes used in our villages. And for that kind of manure to feed the smallest biogas unit of 1 cubic metre capacity, enough to cook for a farm family of four, you need to have three cattle-heads. You also have a choice of 6-biogas plant size to choose from, the largest being 5 cubic metres which is good for several families.

It was one of those chance meetings you have with strangers when you travel. I was returning from Bogra and as the bus stopped for a midway break, I got to chat with Nazmul Haque Faisal. An MBA from Darul Ihsan University, he explained how his organisation, Infrastructural Development Company Ltd (IDCOL), had already put 9,200 of these manure fed biogas stoves into operation. This is indeed a viable alternative clean energy proposition. Not only farm families who are their customers, get the benefit of gas stoves, but the daily slurry produced is rich in organic fertiliser content. A double win indeed. If you are clever enough, you can also use this gas to light up a special bulb.

Moreover, the blue and beautiful flame of a biogas stove is a lot more efficient in terms of energy produced than the usual cow dung, rice husk or wood used for cooking daily meals.

What also surprised me was that IDCOL is a government-owned company, and plays a major role in bridge financing medium and large-scale infrastructure and renewable energy projects in Bangladesh. IDCOL is implementing the National Domestic Biogas and Manure Programme with Faisal as its senior programme manager. Working through partner organisations, the objective is to have at least 60,000 of these stoves up and running by 2011 in as many villages as possible throughout Bangladesh. A study suggests that 3 million of these gas stoves can be installed in Bangladesh, a substantial conservation in terms of money as well as resources for the rural economy.

The entire project is funded by the government along with major donors, Netherlands Development Organisation and German Development Bank. It takes a fortnight to build a unit and you have ready to use gas before the month is out. Imagine the freedom a farmer’s wife gets out of using a biogas stove. It is not only the ease of convenience but also avoiding eyes and respiratory health hazards of a smoke filled kitchen that arise out of burning fuel like wood, rice husk, or cow dung. A study shows that using a biogas stove brings health benefits to womenfolk, saves them at least an hour, time they use for other household chores.

It is not only cattle manure that feeds a biogas plant. A poultry farm of 200 birds and their droppings is a good enough source to fire up a biogas kitchen stove. Imagine the potential savings in terms of alternative fuel with more than 100,000 such poultry farms existing in Bangladesh. Not only birds or cattle, even human night soil contributes to the production of biogas. Thus, the family’s toilet can be fed into a biogas plant improving overall sanitation.

With an IDCOL subsidy of Tk 9,000 on the total cost of nearly Tk 22,000 per installation, the user has to finance the rest for which a microcredit loan is also available. The biogas plant pays back within five years. Other organisations including a major contributor BCSIR (Bangladesh Council of Scientific and Industrial Research) have been promoting biogas for years now, and it is estimated that more than 40,000 of these biogas units are installed. Do they work? According to Faisal, half do. The other half plants are underfed with manure and cannot produce enough gas. However as their experience curve has gone up, Faisal and his team are not making the initial teething mistakes and IDCOL’s success rate is 97.5 percent. This is because of their farmer selection process that ensures enough cattle heads to feed the biogas unit.

In the recent science fair of our Foundation School in Dhaka, I was amazed how our young students have become aware of the need for alternate and clean energy. One particular group led by Raimat Kibria had all the alternative energies to show, solar panel, wind turbine and of course biogas for a model village.

If there is anything that makes Faisal thrive, it is innovation. This innovative approach to help our folks use waste into a resource instills in him the energy to travel around and spread the gospel of blue and beautiful clean energy, indeed a great godsend for rural Bangladesh. As these biogas plants spread, rural Bangladesh can wean out of the faltering electrical gridline energy to these alternate means and eventually and truly build up these model villages.

The writer is managing director of Syngenta Bangladesh Ltd.

http://www.thefinancialexpress-bd.com/more.php?news_id=84373

Agrani Bank to finance sustainable energy projects

The board of directors of Agrani Bank Limited approved policy for a new loan scheme for setting up sustainable energy projects such as solar energy projects, bio-gas and effluent treatment plants (ETP), said a press release.

The approval came at its 139th board meeting presided over by Chairman of the bank Khondoker Bazlul Hoque recently.

Directors, Managing Director-cum-CEO Syed Abu Naser Bukhtear Ahmed, deputy managing directors, general mangers and company secretary of the bank were also present at the meeting.

With a target of implementing self-reliant and digital Bangladesh, the bank has adopted this loan scheme considering it a thrust sector of the government and to enhance utilisation of solar energy to meet up the shortage of electricity and gas as an alternative environment friendly fuel. Agrani Bank initiated this scheme first among the public banks.

The board advised the bank management to establish solar panel at the head office immediately and to introduce loan scheme for female entrepreneurs at easy terms.

http://www.thedailystar.net/newDesign/news-details.php?nid=114098

British-Bangla chamber points to red tape
Staff Correspondent, Sylhet

Red tape stands as a barrier to investment by non-resident Bangladeshis, said the chairman of British-Bangladesh Chamber of Commerce (BBCC).

“Expatriates are running low on confidence,” said Shahagir Bakth Faruk at a meeting organised by the Sylhet Chamber of Commerce and Industry (SCCI) on Friday. He also said demand for establishing a special economic zone in Sylhet is still unmet.

Faruk said 27 Bangladesh containers had recently been sent back by British authorities. He urged exporters to export quality vegetables and other items.

Faruk said Bangladesh would require huge public and private investments for economic growth. “A special economic zone in Sylhet will therefore be a timely solution.”

The BBCC chief referred to a series of meetings with business leaders and said NRBs are eagerly waiting for a “healthy investment opportunity” in the SEZ.

A lengthy and complex procedure of getting bank loan also slows efforts to set up new industrial units, he added.