German Ambassador to Bangladesh Achim Troster
Md Mizanur Rahman Himadri –
Political stability, sustainability, transparency and containing corruption are some keys to attracting German investment in Bangladesh as the latter’s economy has been growing steadily in recent years.
German Ambassador Achim Troster expressed this view while speaking as the chief guest at the launching of the German Business Council (GBC) at his Gulshan residence recently , serving as an association of private German companies operating in the country.
According to available statistics, German entrepreneurs have so far invested 560 million euros in Bangladesh
Bangladesh’s economy is projected to reach $516.24 billion in the fiscal 2024-25, outperforming advanced economies such as Denmark, Singapore and Hong Kong along the way, says the International Monetary Fund (IMF).
As the both countries are celebrating 50 years of the diplomatic relations between the two countries this year, Achim Troster said German small and medium companies are showing deep interest to increase their engagement with Bangladesh.
Expressing deep concern over political violence in recent times, the German envoy has laid emphasis on congenial environment among political parties.
He also believes that political parties in Bangladesh will get a peaceful solution to the present crisis before the national election.
It is to be noted here that political violence in recent times cost lives and left properties damaged.
He also said that political violence may give the wrong signal to German investors that are showing deep interest to invest in Bangladesh and increase their engagement with local companies.
Achim Tröster clearly said that he does not like to meddle into the local issues, but as a friend of this country likes to see a prosperous, peaceful, beautiful and vibrant Bangladesh.
Achim Troster said that Bangladesh is set to leave the least developed countries (LDC) group to join the developing-country-club by 2026 and is likely to experience challenges unless trade-related international support measures are continued by the developed countries like the EU, USA, Canada, Australia and Japan.
He added that Bangladesh will have to comply with human rights, labour rights and environmental standards to get preferential treatment in the European Union (EU) under the GSP+ scheme after it comes out of the least developed country (LDC) status.
Achim Tröster further said Bangladesh should under no circumstances take for granted GSP+ facilities following LDC graduation as the EU is likely to be very inflexible in ensuring that all 27 conventions linked to the facility are fulfilled by Bangladesh.
The policy makers of the Bangladesh government several times said that Dhaka may seek German support in obtaining GSP+ trade privilege following LDC graduation in 2026 and the expiry of a three-year additional transition period.
The GSP+ conventions are a specific type of compliance with the 27 international conventions that refer to human rights, labour rights and environmental standards, all of which have been signed by Bangladesh. The key to availing of these is not necessarily tied to 100 % compliance with all the stipulations of the conventions right now but an ability to show and prove an upward trend overall.
Germany is an important business partner of Bangladesh and the second largest export destination of Bangladesh products among the EU countries after the USA. The USA is the top single top destination of Bangladesh exports
Ambassador Achim Troster welcomed the initiative and expressed his hope that the GBC will become the focal point for German business interests in Bangladesh and serve as an advisory body for German enterprises as well as for the German Embassy.
Meanwhile, the German Business Council (GBC) aims to encourage investment and trade with Bangladesh and provide a social environment for business networking for German companies.
GBC was formally registered as a trust on December 24, 2019.
It is currently managed by five board of trustees representing key German businesses in Bangladesh.
The Embassy of Germany in Bangladesh officially operates this platform.
At a press conference at the German ambassador’s residence on the day, GBC Chairman Md Sazzadul Hassan stated that this association will be much more active and focused to deliver its key objectives.
“GBC would be one of the key partners in strengthening the bilateral business relationship between Germany and Bangladesh,” he added.
Chairman and founder trustee of German Business Council (GBC) Md Sazzadul Hassan said that GBC is the brainchild of the embassy of the Federal Republic of Germany and the German Business community in Bangladesh. The main objective of this group is to encourage German investment in Bangladesh as well as to give a platform to German companies to develop business networks.
Md Sazzadul Hassan, also Managing Director and Chairman of BASF Bangladesh, said “the member companies of the GBC take pride to be part of this rising business relationship between two countries . We believe by partnering with key stakeholders, GBC would be able to support its members to run their operation in a conducive business environment . we are committed to extend our wholehearted support to incoming German companies that want to step into Bangladesh –a country of enormous business opportunities”.
Bilateral trade amounted to $9.3 billion in 2021. Around 60 German companies have permanent representations in the country.
Managing Director and founder trustee and Chief Representative of Commerbank AG Tawfiq Ali also laid emphasis on containing corruption as important in the context of gaining the confidence of the German investors.
