CES Sector Report

The Center for Enterprise and Society has published a Sector Report on E-Commerce in Bangladesh.

The report provides an overview of the e-commerce sector in Bangladesh, analysis of different types of e-commerce businesses, regulatory developments, business strategies, and challenges to the sector. Rapidly growing mobile phone and internet penetration in Bangladesh has spurred entrepreneurs to envision and implement a variety of online business platforms. This sector report highlights such growth trends and also shares findings from a focus group discussion of e-commerce practitioners and experts.

It has been featured in Dhaka Tribune as a three-part analysis series. Find out about it from our very own link:

E-Commerce in Bangladesh Sector report

and from these news articles:

E-commerce in Bangladesh (Part I) 

E-commerce in Bangladesh (Part II) 

E-commerce in Bangladesh (Part III) 
E-commerce in Bangladesh (Part IV) 
E-commerce in Bangladesh (Part V)  

Highlights Jan 24 - Jan 27

Last weeks highlights were predominantly on the telecom sector and the internet connectivity. Starting with a flashback of snapshots in 2015 for the telecom sector and the introduction of 3G, the blog featured recent happenings and growth in e-commerce in Bangladesh. Although the digital economy is growing, a World Bank study stated some statistics that speaks different about Bangladesh, which was featured. Lastly, a different topic was presented. The hyped Moghbazar-Mouchak flyover has significantly caused traffic trouble in the designated construction zones in the last couple of years. In addition to the paralyzing and extended timeline, the project is marred by debacle over design flaws.

Find out all of the news in the links:

Jan 24  :   3G and telecom in 2015
Jan 25  :   Internet "non"-penetration
Jan 26  :   E-commerce through smarphones rise
Jan 27  :   The Maghbazar-Mouchak flyover

Flyover update

Concrete block in city's heart

Upon the feature in the CES blog last week, there has been more news coverage previously of the discrepancies with Maghbazar-Mouchak flyover construction, which is taking eons to complete. Even which was blueprinted, there are significant design drawbacks, which cast a shadow over the pledged traffic congestion remedy. The image highlights at least 6 design flaws and few irregularities that contribute to the fiasco of flyover construction.

The Maghbazar-Mouchak flyover

Flyover fiasco runs up costs

The Maghbazar-Mouchak flyover is facing the music, while dabbling on excuses and extensions, making life in Dhaka city ever so in sync with the rest of the worst-livable city on the planet. One of the early flyover projects, it was approved in 2011 and started in February 2013 expecting a finish-line in December 2015, but now seeks extension till June 2017.

E-commerce through smarphones rise

86pc of users trust e-commerce: surveyStudy: Well-off consumers opt for online shopping
The combination of online marketplace and the affordability of smartphones are driving a strong sector to a steep growth curve: E-commerce. It is reported in a survey that 18% of the middle-class in Dhaka, Chittagong and Sylhet buy online, everyday. LightCastle Partners have reported that 86% of the the 450 respondants have a trustworthy perception regarding E-commerce. These respondants are young, between ages of 20-40, and belong to the middle class, with earning between US$251-US650.

Internet "non"-penetration

Bangladesh has fifth largest offline population globally: WB

In a recent World Bank study has found that Bangladesh has about 148 million population still out of the the reach of internet connection. This makes the country the fifth largest offline economy in the globe. India, China, Indonesia and Pakistan are ranking higher in the list above our country. The study also stated that 60% of the worldwide population are outside net of digital connectivity.

Bangladesh national statistics reports otherwise and have dismissed the World Bank's figures. BTRC has provided national statistics of total active internet connections to be 53.94 million as of November 2015, which is significantly different from the World Bank's estimates of 11.98 million. Internet penetration from BTRC is reported to be above 34% currently. This figure is accepted as official.

3G and telecom in 2015

3G brings a boom to telecom

In 2015, the Association of Mobile Telecom Operators of Bangladesh are greatly satisfied at the expanse of 3G distribution all over the country. Figures showed 40,000 new 3G connections being rolled out everyday. November 2015 final figures for the economy highlighted 2.47 crores (24.7 million) existing 3G subscribers, with internet connections to be 5.39 crores (53.9 million). Six mobile phone operators grew 1.28 crore (12.8 million) new SIM connections, while the government slashed SIM tax from Tk300 to Tk100, helping digital growth in the country. On that front, mobile phone imports in October only totaled 2.69 crores (26.9 millions), 46.7 lakh (467 thousand) of which were smartphones. Astonishingly for mobile phone growth statistics, the whole of 2014 managed imports of 2.59 crores (25.9 millions).

Headlines Jan 17 - Jan 21

Last week's headlines read a little bit about how banks should consider mergers, ICT expansion and possible revenue in future, RMGs to be setup in economic zones and neglecting lessons from Rana Plaza.

Here are the links:
Jan 17  :  Too many banks
Jan 18  :  ICT horizons
Jan 20  :  RMG in economic zones
Jan 21  :  Global supply chains did not learn from Rana Plaza
 

Global supply chains did not learn from Rana Plaza

Study: Global supply chains for multinational companies fail to detect serious

After the massive tragedy of the RMG factory Rana Plaza in April 2013, a study from the University of Sheffield still finds labor environment and working conditions are still dwindling. Labor abuse is widespread in global supply chains in places like North America, UK and China. These are factories which are labelled "certified" which means these, despite passing quality and commitment, have still exercising questionable treatment towards work standards.

Find out all the interesting discrepancies reported, in the link.

RMG in economic zones

PM urges RMG makers to set up new factories in economic zones

The BGMEA Administration has called on the government and the Prime Minister to support the RMG expansion with planned and infrastructurally supported initiatives. The Prime Minister has herself urged manufacturers and exporters to set up new industries centered on the economic zones. The BGMEA believes in this call for structurization as it will benefit from those zones.

ICT horizons

Government plans to earn $5bn from ICT sector by 2021

The hope of US $5 billion earnings from the ICT industry is a part of the vision to springboard Bangladesh's growth rate by 2021 contributing 5% to GDP.

In a press conference, the ICT State minister summarized the developments of the ICT sector in the previous two years alongside expressing plans for the future of ICT. He outlined the security sector, to be receiving the promising support of the ICT Division. Digital security act and digital forensic labs are part of the plan, for this current year.

Too many banks

Merge weak banks with strong ones: analysts

In a burgeoning yet small economy of Bangladesh, there are an immense amount of business activities. To support these businesses, a total of 56 banks are in operation in the country. Fifty Six. Naturally, these banks are not large scale banks, which means their profit margin is limited. Consequentially, to survive in the banking business, profit making efforts are exerted: through high interest rates. In a
banking reforms forum, this fact was stated and many attested to having too many banks in the country.

Headlines Jan 10 - Jan 14

Last week, Center for Enterprise and Society blog has looked at various sectors including RMG, mobile banking and leather. How lives of women are changing through making a living in garments, what is the status of Mobile Financial Services, what are the updates of the much talked about tannery relocation to Savar; these were the features of the blog. An interesting post about climate change policy, which is disadvantageous to countries like Bangladesh shed a very different focus. Find them below:

Jan 10  :  Women in the RMG
Jan 11  :  Global climate change diplomacy
Jan 13  :  MFS milestone
Jan 14  :  Tannery relocation process

 

Tannery relocation process

25 tanners face legal notice as they fail to relocate factories

The relocation process of the Hazaribagh tanneries are going on to the more organized and better infrastructurally supported one in the industrial park in Savar. However, some factories are lagging behind and the government has decided to take action.

As of January 10, a 72 hour notice has been dispatched towards tanneries who were behind schedule, to express the seriousness of the matter. A list of 28 tanneries were documented. They are out of the 150 tanneries that have been pushing to be situated at the new site in Savar.

MFS milestone

Mobile banking clients cross 3cr mark

Last year's Novemeber was a milestone for Bangladesh's Mobile Financial Services. Since crosssing that, it kept on moving forward, paving the way for a more financially inclusive nation.

Crossing 30 million or 3 crore subscribers in October, it stood at 3.12 crore in November. Of above 2 crore mobile banking clients in November 2014, it rose 33% by 79 lakh over the year. The expansion of services were pronounced if we look at the last 2 years. From 50 lakh in April 2013, growth figures showed 524% increases to 3 crore in Novemeber 2015. Of the total 7 crore depsitors at the end of September, 42% could access mobile financial services. Around 5.5 lakh agents are involved with this business.

Global climate change diplomacy

 The grammar of climate change

Acknowledging that it is they themselves that are causing the major impact on the tremendously paced nature of climate change, developing countries agreed fervently to globally coordinate efforts to decline increasing carbon emissions. It is such a diplomatic world however, that a certain change in constitution, more precisely a single world, can make all the difference for the not-developed countries, the immediate victims of climate change. When "shall" was altered into "shall/should" for referring to measures of adaptation and mitigation towards vulnerable countries, it made the effort from being a responsibility to being voluntary. Vulnerable countries like Bangladesh, which is a prime model for climate change impacts, is one of those countries affected by these words.

Women in the RMG

How RMG women become decision maker in family


Starting with fables of a common housewife of a poor family, this article reports the status of the RMG industry, where even poor women can make a prosperous living relative to their previous state. From improvement to living standards, internal family status was also lifted. The woman felt more confident individually in their own families. This is what Asian Center for Development's survey expressed, while it was measuring "Garment Workers in Bangladesh: Social Impact of the Garment Industry".

2016's hopes for private investment

Jump-start private investment in 2016

2015's private investment challenges - infrastructure deficit, slow reforms, costly borrowing, sluggish global recover and political uncertainty - are hopeful to be a thing of the past year. The year better than 2014 had better political stability, better interest rates, stable inflation and improved supply of electricity. However, the better business climate did not still mean a positive one, since lesser political turmoil was not enough to transform into better private investments.

Headlines Dec 27 - Dec 31

The last headlines post was of the final week of 2015. We featured some of the initiatives and business sector improvements. The first Business Process Outsourcing Summit 2015 held in Dhaka was intensively covered as a highly emerging and lucrative sector in the economy. Follow the links for more.

Dec 27  : Government Incubator for Startups
Dec 27  : BPO Summit 2015
Dec 28  : Social media stats
Dec 30  : Toursim outlooks
Dec 31  : Major updates 2015