Municipalities hold key to investment outside Dhaka: Bida chief

Bangladesh's towns and cities are stepping into the spotlight as new places to invest, thanks to the launch of the Municipal Competitiveness Index (MCI) 2024 — a tool that shows where local economies have room to grow outside Dhaka and Chattogram.

Unveiled at a workshop organised by the Bangladesh Investment Development Authority (Bida) in partnership with Swisscontact's PRABRIDDHI project, the MCI is positioned as a strategic instrument to transform subnational investment landscapes.

It assesses and ranks the competitiveness of seven pilot municipalities based on business-friendliness, regulatory efficiency, and infrastructure readiness.

"This index helps spotlight the potential of municipalities as viable investment destinations," said Chowdhury Ashiq Mahmud Bin Harun, executive chairman of Bida and the Bangladesh Economic Zones Authority.

"If we can strengthen local capacities and improve inter-agency coordination at the grassroots level, these areas will become significantly more attractive to investors."

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Rethinking our investment strategy

Developed under the Bangladesh Investment Climate Improvement programme and implemented by Policy Exchange Bangladesh (PEB), the MCI draws from extensive field consultations and offers tailored reform roadmaps for each municipality.

The workshop, titled "The Role of the Municipal Competitiveness Index in Strengthening the Investment Climate," gathered senior policymakers, private sector actors, and development partners.

M Masrur Reaz, chairman of PEB, emphasised the index's broader scope. "Earlier indices such as the World Bank's Doing Business report focused on just two cities. The MCI now gives us a deeper, data-driven understanding of the business environment at the municipal level."

Panel discussions highlighted pressing reform needs such as streamlining business entry, improving infrastructure, rationalising taxes, and enhancing local dispute resolution and access to finance, according to a statement.