Global digital operator VEON and its Bangladesh subsidiary Banglalink have brought together international investors and development finance institutions in New York to promote a plan aimed at mobilising $1 billion in foreign investment for Bangladesh’s digital economy.
The investor symposium, held on the sidelines of the United Nations General Assembly, is the first major international event under VEON’s “Invest in Bangladesh NOW!” initiative, which is being developed as a proposed public-private partnership with the Bangladesh government.
VEON has committed an initial $250 million to the initiative, with the wider programme seeking to attract a further $750 million from international investors.
The closed-door meeting brought together Bangladesh government officials, global investors and development finance institutions to discuss opportunities in the country’s rapidly expanding digital economy.
Bangladesh’s Finance Minister Amir Khosru Mahmud Chowdhury, the Prime Minister’s ICT adviser Rehan Asif Asad, and Tanvir Ghani, special assistant to the Prime Minister for investment and capital market affairs, attended the meeting alongside senior government officials.
Representatives from the UAE government, the US Department of State, BlackRock, Rothschild, the International Finance Corporation and the World Bank also participated.
VEON chief executive Kaan Terzioglu said the company was seeking to use its own investment to help attract international capital into Bangladesh.“Bangladesh’s digital transformation creates a compelling opportunity for long-term investment,” Terzioglu said.
He said VEON’s $250 million commitment was intended to help mobilise $1 billion for the country’s digital economy, adding that Banglalink was expanding beyond telecommunications into digital services, including payments and other services aimed at increasing economic participation.
VEON chairman and founder Augie K Fabela II said Bangladesh’s population of more than 170 million and its young population presented significant opportunities for digital investment.
He said VEON’s decision to commit its own capital reflected its long-term confidence in the country’s digital economy.
Banglalink expands into digital services
The New York symposium also highlighted a series of recent developments in Banglalink’s digital expansion.
Banglalink has received approval from the Bangladesh Telecommunication Regulatory Commission (BTRC) to launch Starlink Direct-to-Cell, a satellite-to-mobile service that will allow compatible mobile phones to connect directly to satellites in areas without conventional network coverage.
The company says Bangladesh will become the first country in South Asia to introduce the technology.
The development is expected to extend mobile connectivity to areas where conventional telecommunications infrastructure is unavailable or difficult to deploy.
The Finance Minister also announced approval of a digital bank licence backed by VEON and Square Group.
Separately, Banglalink this week launched Mukto Pay, a digital payments platform offering money transfers, merchant and bill payments and disbursement services.