VEON Group CEO, Kaan Terzioğlu, highlighted the potential for significant economic transformation in Bangladesh, emphasizing the country’s need for regulatory reforms to unleash its growth. VEON, operating in six countries including Pakistan, Ukraine, and Kazakhstan, has faced challenges in Bangladesh, where it lacks market leadership despite a $2.5 billion investment over the past two decades.
Terzioğlu pointed to the fragmentation in licensing schemes, unhealthy competition, and high taxes as key obstacles. However, he stressed that VEON has long believed in Bangladesh’s potential and is determined to continue its investment efforts in the country, despite these challenges. The company aims to become not just a telecom operator but also a provider of digital services, including financial services, entertainment, education, and healthcare, as it has successfully done in Pakistan. In Pakistan, VEON’s digital wallet and microfinance services have helped raise the country’s tax revenue to over 10% of GDP, with 20 million active users making digital payments, thus bringing small transactions into the tax purview.
Bangladesh’s fragmented market and regulatory restrictions, including the inability for mobile operators to provide mobile financial services or invest in fixed-line infrastructure, have made it difficult for VEON to fully capitalize on its potential. However, Terzioğlu remains optimistic, stating that the company’s strategic move into digital services can help overcome these challenges, driving profitability and market share.
“We are a digital business, and a digital country should be the objective,” Terzioğlu remarked, urging for a liberalized licensing regime that would allow VEON to introduce more innovative digital services. The company has already invested $350 million in Bangladesh over the past three years and is committed to expanding further, provided the regulatory environment becomes more conducive to business growth.
Terzioğlu also expressed his optimism for Bangladesh’s future, highlighting the country’s youthful population and the growing contribution of women in economic activities. With a projected population increase and the continued flow of remittances, Bangladesh presents immense opportunities for growth, and VEON is determined to play a leading role in the country’s economic transformation.
Reflecting on his recent discussions with government authorities, Terzioğlu believes that 2025 could be a critical year for Bangladesh’s economic activities, with reforms paving the way for a more profitable and competitive environment. VEON, with its long-term commitment, is poised to be a major player in Bangladesh’s digital future, provided the right regulatory changes are implemented.
