Bangladesh economic engagement with S Africa touches $4b

ফাইল ছবি

Staff Correspondent: As economic engagement with traditional USA and EU markets slows down, Bangladesh is working to increase economic engagement with the African continent and reached nearly 4.00 -billion US dollars, according to the data of Export Promotion Bureau (EPB), Bangladesh Bank and National Board of Revenue (NBR)  

The African countries exported goods worth 3757.8 million US dollars to Bangladesh in 2022-23 fiscal year, 2839.00 million US dollars in 2023-24 fiscal year, 2,900 million dollars in 2024-25 fiscal year and 2009.1 million US dollars (during July—January 2025-26 fiscal year.

Bangladesh exported goods worth 367 million US dollars to African countries in the 2022-23 fiscal year, 386.5 million US dollars in 2023-24 fiscal year.  417.7 million in 2024-25 fiscal year and 271 million US dollars during July-January period of 2025-26 (July-January) fiscal year      

Countries like Morocco (781.9 million US dollars), South Africa (189 million US dollars), Benin (474.5 million US dollars), Burkina Faso (217.7 million US dollars), Cameroon (310.6 million US dollars), Côte D’Ivoire (160.7 million US dollars), Egypt 113.5 million US dollars), Mali (269.5 million US dollars) and Algeria (7.4 million US dollars) major sources of import among the African countries.    

Former vice president of MCCI and now MCCI member Habibullah N. Karim while talking to this correspondent said that Bangladesh’s economic prospects with African countries are bright.

Habibullah N. Karim, also managing director of Technohaven Company Limited, said that Bangladesh will post higher growth in the African countries in the coming days compared to North American, Latin American, European and Asian countries.

He said that the IT and service and pharmaceutical sectors have bright prospects in the African countries as the growth in USA and EU countries are being saturated.

As the USA is imposing strategic, economic and political pressures on Bangladesh on increasing engagement with China since USA President Donald Trump came to power through the 2024 presidential election, Bangladesh should explore economic engagement with African countries, said a director of the Federation of Bangladesh Chambers and Commerce and Industry (FICCI).  

The United States is Bangladesh's largest single export destination, with exports reaching $8.69 billion in FY 2024-25, marking a 14.4% increase and accounting for 18% of total export earnings.

Bangladesh exported goods worth 5216 million US dollars ( 5216342716 US dollars ) during July-January 2025-26 fiscal year, according to the data of  Export Promotion Bureau (EPB).

Expat Bangladeshis living in African countries sent home remittances worth 436.18 million in 2021-22 fiscal year, 376.91 million US dollars in 2022-23 fiscal year, 507.79 million US dollars, 601.76 million US dollars and 490.99 million US dollars during July-January period of 2025-26 fiscal year         

“South Africa, an important member of BRICS, has emerged as an important country to us” said Bangladesh High Commissioner to South Africa Shah Ahmed Shafi to this correspondent.

He presented his Letters of Credence to South African President Matamela Cyril Ramaphosa in Pretoria on  March 29, 2025.

He said that a number of Bangladeshi entrepreneurs have set up export-oriented garment industries in South Africa generating employment of several thousand workers.

Shah Ahmed Shafi said that Bangladeshis, engaged in small retail business, are doing well and making good profit in the African country.

With a population of some 63.00 million and per capita Gross Domestic Product (GDP) of around 5700 US dollars, South Africa's GDP has been estimated at over 400 billion US dollars, the highest in Africa.

Shah Ahmed Shafi recently held a meeting with Premier of KwaZulu-Natal province of South Africa Thamsanqa Ntuli and briefed him about the high potential of Bangladesh pharmaceutical companies.

Referring to a meeting with Premier of the province, he said South Africa is not interested to invite Bangladeshi entrepreneurs to set up pharmaceutical companies in his country

He said the top Bangladeshi pharmaceutical companies can invest in this country and tap the African markets. In the past Bangladeshi companies sought permission to set up plants in South Africa only to be rejected.

KwaZulu-Natal (KZN) is a major economic hub in South Africa, ranking as the country's second-largest contributor to GDP after Gauteng.

Over the years Bangladesh has been working to increase economic engagement with African countries going beyond traditional countries like USA, EU countries, UK, Canada, South Asia Southeast, West and East Asian countries.

Bangladesh’s total exports to South Africa stood at  119.0 million US dollars in 2022-23, 119.5 million US dollars in 2023-24 and 124.2 million US dollars in 2024-25 fiscal year respectively, according to provisional  data of statistics department of Bangladesh Bank.

South Africa’s total exports to Bangladesh  stood at  129.8 million US dollars in 2022-23, 206 million US dollars in 2023-24 and 176 million US dollars in 2024-25 fiscal year respectively, according to provisional  data of statistics department of Bangladesh Bank.

Bangladesh exported goods worth 38 million US dollars ( 38703512.52) to South Africa during the months of July-August of 2025-26 fiscal year .

The growth of two months of 2025-26 fiscal year shows that Bangladesh’s export to South Africa is to post solid and sound growth in the coming month, said a member of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) while talking to this correspondent.

Bangladesh exported goods worth 119 million US dollars (119461870.7) to South Africa during the months of July-August of 2024-25 fiscal year.

The official economic engagement with South Africa has crossed over 800 million US dollars in 2024-25 fiscal year –Bangladesh’s export to South Africa stood at 124.2 million US dollars, South African export to Bangladesh stood at 189.1 million US dollars and remittance worth 402.91 million US dollars came to the country.  It is to be mentioned here that as some 30 per cent remittance that comes through beyond banking systems is counted, said a Bangladesh official.

Expat Bangladeshis living in South Africa sent remittances worth 395.44 million US dollars to Bangladesh during July—January period of July-January period of 2025-26 fiscal year, setting a new record in contemporary time, sources said.

Expat Bangladeshis living in South Africa sent over 402.91 million US dollars home during July-June 2024-25. Sources said, some 30 per cent remittances come to the country beyond the banking system, said the Bangladesh diplomat.

Considering current export growth to South Africa and remittance flow to Bangladesh, the country can attain the 1.00 billion-dollar mark in 2026, provided proper policy support are extended, said a banker.

 Bangladesh diplomats who worked and are now working said that Bangladesh Bank can give proper guidelines and incentives that will turn the African country into a major source of remittance.

Though reliable and credible statistics are unavailable, some half a million Bangladeshis live in South Africa and are engaged in small and medium businesses, according to rough estimates.

Meanwhile, a delegation of the Bangladesh government held a meeting with Commonwealth Observer Group Chair and former President of Ghana Nana Akufo-Addo recently who headed a 23-member delegation during the election period in Bangladesh. Commonwealth Observer Group Chair and former President of Ghana Nana Akufo-Addo invited Bangladesh to invest in the jute sector of African countries.

Meanwhile, South African High Commissioner to Bangladesh Professor Anil Sooklal laid emphasis on boosting trade and strengthening people-to-people contact between Bangladesh and South Africa, noting that the bilateral relationship remains below its potential, particularly in the economic sphere.

“I think the relationship lacks visibility on both sides. We need to give greater visibility. We don't know what each other's markets have to offer. It's out of ignorance that businesses suffer,” he said while talking to the press during his visit to Bangladesh.

Prof Sooklal, who is also concurrently accredited to India and Nepal, said trade, investment, education, culture, sports and pharmaceuticals are among the sectors where the two countries can deepen collaboration through joint efforts.

“I firmly believe the private sector must drive economic relations. As a government, we create the enabling environment. I think the enabling environment is there. There are some challenges. The visa issue is something that has been raised,” he said.

Prof Sooklal acknowledged that while economic engagement has expanded over the past three decades, it needs a renewed push, particularly at the institutional level.

The envoy noted that an estimated 400,000 Bangladeshis are currently living in South Africa. “It’s a sizable presence. And I believe that is also an opportunity for us in terms of the relationship,” he said.

Md Solaiman Alam Seth, Honorary Consul of South Africa in Bangladesh, said that Bangladesh’s multilateral engagement with South Africa holds tremendous potential as the latter, a member of BRICS, is going to be an economic giant in the world economy in the coming days, said diplomats, business leaders and policy makers.

Bangladesh holds tremendous potential to increase engagement with South Africa in multilateral sectors as the latter, a member of BRICS, is going to be an economic giant in the world economy in the coming days, said Md Solaiman Alam Seth, Honorary Consul of South Africa in Bangladesh in an interview.

Solaiman  praised steady economic growth of Bangladesh over the years, empowerment of women specially by the readymade garment sector, increasing enrollment of girls’ education, success in tackling disaster management and improvement in primary health and sanitation.