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Bangladesh pushes pro-business reforms to boost startup ecosystem and foreign investment

BTJ News Desk
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Bangladesh pushes pro-business reforms to boost startup ecosystem and foreign investment

Key Highlights:

  • Tk900 crore equity fund announced for startups
  • Additional Tk500 crore for co-financing (equity + lending)
  • Trade license process to be simplified
  • Personal Data Protection Act to be finalized by May
  • Government moves to eliminate internet shutdown provisions
  • Initiatives underway to reduce internet costs and improve access

Bangladesh Investment Summit 2025 kicked off on 7th April at the Hotel InterContinental Dhaka, with a strong focus on fostering an enabling business environment, enhancing digital infrastructure, and unlocking investment opportunities for startups and international investors.

During the event, policymakers unveiled several strategic reforms to ease business operations and improve investor confidence in the country.

Startup Ecosystem: New Equity and Financing Support

In a major boost to the startup sector, Bangladesh Bank Governor Ahsan H Mansur announced a Tk 900 crore equity fund targeted at high-potential startups. The initiative will be rolled out within a week, with contributions from private commercial banks acting as equity partners.

An additional Tk 500 crore co-financing facility—a mix of equity and loan financing—will also be made available to ensure better access to capital for emerging businesses.

Licensing and Investment Climate Reform

BIDA Executive Chairman Ashik Mahmud Bin Harun emphasized the need to reform the outdated trade license system, calling for lifetime validity similar to a birth certificate.

“Annual renewals are burdensome for entrepreneurs. If we’re serious about supporting innovation, we must align our systems with the needs of modern businesses,” he said.

Ashik also pointed out that 2025 will be a defining year for policy transformation aimed at bridging the gap between Bangladesh’s domestic potential and global investment capital.

Internet Access and Legal Protections

Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser, announced that provisions under the Telecommunication Act 2001 allowing internet shutdowns will be permanently removed. The government has now officially recognized internet access as a civic right.

Taiyeb also confirmed the Cyber Safety Ordinance will be released next week and committed to reducing internet costs to levels comparable with other regional markets. “We’ve scrapped outdated SOPs to ensure internet continuity and stability,” he added.

Data Privacy Legislation in Progress

The long-anticipated Personal Data Protection Act is expected to be finalized by the end of May. The law is currently under review, with ongoing consultations involving business leaders, civil society, and human rights groups. Broader public consultations are also scheduled by the end of April.

A Fast-Growing Ecosystem

Bangladesh now hosts over 1,200 active startups, contributing to 1.5 million jobs across various industries. With increased access to funding, digital reforms, and international visibility through events like Bangladesh Startup Connect, the country is positioning itself as a rising destination for innovation and global capital.

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