IFC eager to invest in agriculture

The International Finance Corporation (IFC) has expressed interest in investing in Bangladesh's agriculture for the first time.

The IFC, a member of the World Bank Group, is looking to invest $1bn in Bangladesh, a portion of which it wishes to invest in agriculture, said Finance Minister Abul Maal Abdul Muhith.

Muhith informed bdnews24.com of the IFC's decision following a meeting with IFC Executive Vice President and CEO Philippe Le Houérou on the last day of the IMF and World Bank Spring Meetings on Sunday.

“The IFC is quite active in Bangladesh,” said Muhith.

“So far the IFC has focused on investing in the electricity sector and a bit in communications. They have now expressed their interest in investing in agriculture, logistics and finance.”

This is the first time they have expressed an interest in agricultural investment, he said.

“This is very good news for us. We are doing very well in the agricultural sector. This is why they wish to invest. With their help the sector will develop even further.”

According to the Bangladesh Bureau of Statistics, between 1971 and 2015 Bangladesh’s rice yield has increased 3.16 times despite an 18 percent decline in land used for rice production.

Data from the UN Food and Agriculture Organization indicates Bangladesh’s vegetable production is the third highest in the world.

Fourteen point seven five percent of Bangladesh’s GDP comes from the agricultural sector, says the Agricultural Ministry. This number was significantly higher in the past.

The IFC provides assistant for private sector development. In FY 2015-16, Bangladesh received $635 million in IFC investment.

Asked about Bangladesh’s previous desire to release IFC ‘taka bonds’, Muhith said “It is no longer happening. Now we wish to use our own reserves to build an investment fund, so we will not need their taka bonds.”

The IFC is ready to provide assistance in setting up this investment fund, said Muhith.

Bangladesh Bank Governor Fazle Kabir, Finance Division’s Senior Secretary Hedayetullah Al Mamoon, Economic Relations Division’s Acting Secretary Kazi Shofiqul Azam and Bangladesh’s Alternate Executive Director to World Bank Muhammad Musharraf Hossain Bhuiyan accompanied the finance minister as part of Bangladesh’s delegation to the IMF-World Bank meeting.