Foreign Investments Surge in Renewables Energy

Experts at a recent seminar emphasized Bangladesh’s urgent need for a long-term financing roadmap to expand renewable energy and achieve net-zero carbon emissions by 2050. They highlighted the necessity for monetary policies that encourage commercial lenders to invest in renewables.

In 2024, net foreign direct investment (FDI) in Bangladesh fell to a five-year low at $1.27 billion, extending a downward trend that began after the 2021 post-pandemic surge. The drop—a 13.25% decrease from 2023—was highlighted by declining equity inflows and a sharp fall in reinvested earnings.

Bangladesh is drawing increasing interest from foreign investors, especially in technology and digital services, according to Mike Orgill, Uber’s Asia-Pacific head of public policy. He credits this to the government’s openness, proactive engagement with international businesses, and improvements in the investment climate. The recent Bangladesh Investment Summit attracted significant investment proposals and signaled the country’s eagerness to foster global partnerships.

The Asian Development Bank (ADB) has urged Bangladesh to simplify its licensing system and regulatory procedures to attract higher levels of foreign direct investment (FDI), which averaged only 0.8% of GDP from 2013–2023—far below Cambodia (9.4%), Vietnam (4.6%), and Indonesia (1.9%).

At the Bangladesh Investment Summit 2025, China expressed interest in establishing a Special Economic Zone (SEZ) in Mongla to boost trade and investment, as confirmed by the Bangladesh Investment Development Authority (Bida).

At the Bangladesh Investment Summit 2025, around 36 foreign investors from countries including China, Japan, the U.S., and India emphasized the need for policy consistency and a more business-friendly environment.