Businesses see export potential in Africa market  

With a large population, plenty of natural resources and a high import dependency, the African subcontinent can be a lucrative destination for Bangladeshi exports and investments particularly pharmaceuticals, readymade garments, footwear, agro and food-processing, said Bangladeshi business leaders. 

Despite 3% contribution to global trade, Africa turns more and more import dependent riding on a steady economic growth, they told a webinar titled "Trade & Investment Cooperation of Africa and Bangladesh: Towards a New Trajectory" on Saturday – the fifth day of Bangladesh Trade and Investment Summit.  

The programme arranged by the commerce ministry and Dhaka Chamber of Commerce & Industry (DCCI) also blamed tariff and non-tariff barriers slapped by the African nations on imports in exploring the market.

Muhammad Zahangir Alam, director at the Square Pharmaceuticals Ltd, said since Africa can meet only 25% of its drug demand, the populous continent mostly import the pharmaceutical products.  

Referring to "a very positive economic growth" in Africa in the last one decade, Zahangir said Square has been exporting medicine worth $10 million per year in ten African countries such as Kenya, Tanzania and Ruanda.

"Our venture to Africa was encouraging and we established a medicine plant in Kenya based on that experience," he said, adding the plant, which will be inaugurated shortly, has been established in an economic zone and the Kenyan authorities provided them with some attractive incentives.

While talking about the investment barriers, he noted a lack of infrastructure, weak regulatory framework, disrupted supply chain, a lack of direct flight and skilled local pharmaceutical professionals.

As the chief guest to the programme, Planning Minister MA Mannan said the private sector needs to carry out aggressive investment both at home and abroad.

He said food processing and agriculture have good prospects in the African subcontinent.

"Many Bangladeshi entrepreneurs are now entering the African market," said the minister, adding, "We need to grab it."

In a presentation, DCCI President Rizwan Rahman showed Bangladesh largely benefits from the $1.5 billion bilateral trade as African investment in Bangladesh is declining while Bangladeshi investment in the continent is on a gradual rise.

"The demand for low-cost agro-products is high in Africa. Besides, there are employment opportunities for around 40 lakh Bangladeshis in different sectors, especially in agriculture."

To put money into the African market, the DCCI president proposed joint ventures in pharmaceuticals, RMG, real estate, construction, footwear, energy, agro and food-processing, degradable packaging, light-weight manufacturing, ICT and telecommunications.

Echoing the DCCI president on joint ventures, M Mosaddek Hossain, managing director at UniMed UniHealth Pharmaceuticals Ltd, said, "There are huge opportunities for joint ventures with African investors to hold a significant chunk of the African market worth $50 billion in the next ten years."

AHM Ahsan, vice chairman and CEO at the Export Promotion Bureau (EPB) said "With exports only to 5-6 African countries, Bangladesh's trade with Africa is significantly low compared to other regions. Their high import tariff is an obstacle. But the service sector is a potential sector for investment."

Md Tarikul Islam, Africa Wing director general at the foreign ministry, said Africa is resourceful country having enormous potentials. African investment in Bangladesh is not remarkable due to their restrictions over foreign investment.