It is no secret that Bangladesh's non-leather footwear industry has the potential, as well as the favourable conditions, to be one of the country's great export success stories.
Yet, at a time when global brands are actively diversifying their supply chains and facilitating emerging manufacturing hubs, it is unfortunate that Bangladesh has failed to capitalize on the opportunity, with export growth slowing to just 1.6% in the last fiscal year.
The reasons behind this disappointing performance are both familiar and frustrating: High borrowing costs, limited access to bank financing, rising production expenses, unreliable utility services, delays in importing raw materials, and lingering political uncertainty have combined to stifle investment and expansion.
While manufacturers report that demand exists, many factories are already operating at full capacity and cannot expand because financing has become increasingly difficult to obtain.
This is particularly concerning because Bangladesh possesses many of the ingredients needed to become a globally competitive footwear exporter. The country has a sizable workforce, years of manufacturing experience, and growing recognition among international buyers.
What is lacking, however, is an enabling business environment that allows enterprises to scale up confidently and compete with regional rivals that have captured a far larger share of the global footwear market.
The government must, therefore, treat the non-leather footwear industry as a strategic export sector. Improving access to affordable finance, ensuring uninterrupted gas and electricity supplies, streamlining customs procedures, and reducing unnecessary regulatory bottlenecks should become immediate priorities.
At the same time, policy-makers must provide a stable and predictable investment climate that inspires confidence among both domestic manufacturers and foreign buyers.
With the right policies and timely reforms, the non-leather footwear sector could generate billions in export earnings, create thousands of quality jobs, and help diversify the country's export basket beyond garments.
The window of opportunity is open, but not indefinitely -- and Bangladesh cannot afford to let another global opportunity slip away.
