VEON proposes $1 billion investment initiative in Bangladesh

VEON, the parent company of Banglalink, has proposed a $1 billion investment initiative in Bangladesh, with an immediate commitment of $250 million, as the global digital operator seeks to expand its footprint in the country's digital economy.

The proposal was discussed during a meeting between Prime Minister Tarique Rahman and VEON Chairman Augie Fabela at the Prime Minister's Office in Jatiya Sangsad Bhaban yesterday, according to sources.

A Banglalink official requesting anonymity confirmed the development.

Dubbed "Invest in Bangladesh NOW!", the initiative is a joint public-private proposal in partnership with the Ministry of Post and Telecommunication and Information and Communication Technology Division, aimed at boosting foreign direct investment in Bangladesh's digital sector.

The initiative will focus on next-generation digital infrastructure, digital services, digital banking, artificial intelligence, and mobile financial services, a government official said.

Prime Minister Tarique urged Banglalink to make smartphones more affordable and reduce internet prices to improve digital access across all socioeconomic groups, according to a press release from the PM's Press Wing.

Post, Telecommunications, Information Technology and Science and Technology Minister Faqir Mahbub Anam, Prime Minister's Adviser on ICT Rehan Asif Asad, VEON board member Michiel Soeting, and Banglalink Chief Executive Officer Johan Buse were also present.

In a recent letter to the prime minister, VEON said it was exploring a possible strategic combination with state-owned operator Teletalk and a potential acquisition of Nagad from the Bangladesh Post Office.

"Building on more than $2.5 billion invested in Bangladesh over the past 21 years, we are keen to make significant investments in the near term, supported by a conducive and predictable regulatory environment," Banglalink CEO Buse said.

VEON has already applied for a digital bank licence and received a no-objection certificate from Bangladesh Bank to operate as a payment service provider.

Several foreign companies -- including Malaysia's Axiata -- and local firms have also explored acquiring a stake in Nagad, though no formal financial offer has been submitted.