Germans say energy deficit sets back investment
The German business delegation sees Bangladesh's energy deficit and difficulty in faster transportation as bottlenecks in an increased investment and accelerated economic growth here.
A 21-member mission of OAV- German Asia Pacific Business Association is now on a six-day visit to Bangladesh.
Uninterrupted power supply and developed infrastructure could graduate this country to a more competitive one than other Asian nations, they said, pointing to an advantage of a quick-learning and hard-working labour force.
At a press conference in Dhaka yesterday, the team from Europe's largest economy however spelt out some plans about big investments in renewable and traditional energy sectors.
In this context, they also pointed to the joint venture between a German electrical conglomerate and a local partner on manufacturing energy saving bulbs.
Once these projects are finalised, the German team leader Peter Clasen said, other companies in his country will follow suit.
“But without necessary framework, important initiatives cannot be successful,” he said.
The press meet was organised as the German team, comprising representatives from sectors such as shipping, energy and textiles, wrapped up meetings with top government functionaries, including Prime Minister Sheikh Hasina and various business bodies.
Germany is the second largest importer of Bangladesh products.
German Ambassador Holger Michael and Bangladesh German Chamber of Commerce and Industry President Md Saiful Islam also spoke on the occasion.
“There are some pre-requisites to development. You have to ensure regular supply of power without any load shedding,” said Clasen, adding: “Of course you have to improve your infrastructure.”
The German ambassador said Bangladesh's development suffers from two great bottlenecks--- transportation and energy.
He said traffic congestion hurts economic activities, while deficit in energy supply hampers faster growth of the economy.
“If you want 1 percent growth in economy, you need 1 percent growth of energy production,” he said.
But addressing the problems of infrastructure and power will not be enough to lure investors, as Clasen said.
“Decision makers will have to change their attitude to encourage economic life instead of regulating it,” the visiting team leader said, suggesting cutting down red tape and wiping out excesses of bureaucracy.
German-Bangla chamber President Saiful Islam listed some government steps aiming to boost power generation and improve road and waterways transportation systems.
He said although infrastructure is not in favour of Bangladesh, political and business atmosphere offers a bright prospect.
Pointing out the global recession fallout on business in western economies, Islam called upon German investors to look to the East.
“Now time has come to think twice that should you come to the East to make our fortune,” he said.
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