In the mid-1990s, "digital economy" was an abstract term associated with the emergence of the internet. But today, as technology rapidly evolves and becomes ubiquitous, it is widely agreed that the digital economy is beyond the traditional ICT sector and refers to a broad range of economic activities that use digitized infrastructure and knowledge as key factors of production or value creation.
Weaving the fabric of economic and social progress, the digital economy emerges as the new frontier of development. For Bangladesh, this frontier presents both an unprecedented opportunity and a vital pathway to sustainable growth and inclusive prosperity.
The digital economy today can be subdivided into three categories:
The core: The ICT sector, as defined by the Organization for Economic Cooperation and Development (OECD), includes manufacturing and service industries that capture, transmit, and display data electronically. This covers semiconductors, processors, devices like computers and phones, and enabling infrastructure such as the internet and telecom networks.
Digital economy (narrow scope): This refers to digital functions and applications that add economic value to business sectors and customers, including B2C and B2B services and platforms using devices, data, and connectivity infrastructure. Innovation in these areas widely drives spillover effects to other sectors.
The digitalized economy (broad scope): Non-digital sectors are being transformed by digital technologies, including e-health, e-commerce, and digital automation in manufacturing and agriculture, such as Industry 4.0 and precision agriculture, among others.
The digital economy is projected to reach $26.7 trillion by 2025, representing 25% of global GDP. Investments in digital transformation, including Al, yield high returns-$9.55 in digital output per dollar spent. Achieving a digital economy is essential for sustainable socio-economic progress.
Bangladesh stands at the cusp of a digital revolution. Digitization drives economic growth-according to the World Bank, Bangladesh's GDP is projected to grow by 4.8% in the 2025 fiscal year, buoyed by increasing ICT adoption. AT this moment, its economy is booming, and the adoption of digital technologies has accelerated rapidly. From Huawei's vantage point as a leading global ICT provider, the journey toward digital transformation is not just technological evolution but a holistic enabler-empowering businesses, governments, and citizens alike. And for the last 27 years, Huawei has always been with Bangladesh with its full effort.
4G technology has democratized internet access across Bangladesh, overcoming traditional barriers. Huawei's 4G deployment has bridged the gap between rural and urban areas, enabling digital services that reshape daily life. Mobile banking, online education, telehealth, and e-commerce now reach those previously underserved.
A key example is bKash, Bangladesh's largest mobile financial service provider. Huawei's advanced fintech solutions, optimized networking, and secure cloud platforms have been vital to bKash's growth. This partnership allows bKash to offer reliable, secure mobile wallet and payments services to millions, promoting financial inclusion and empowering small businesses. The banking sector also highlights digital adoption through mobile banking and digital transactions.
Yet, Bangladesh remains a Lower-Middle to Low-Income economy per the Global Digitalization and Intelligence Index 2025. Compared to higher-income economies, it faces barriers like weak infrastructure, high costs, and talent shortages, limiting digital progress and differentiation.
However, strategic and inclusive initiatives are essential to ensure that Bangladesh does not miss out on the immense potential of digital transformation for sustainable growth and inclusive prosperity. Here are some key recommended initiatives for Bangladesh to achieve a thriving digital economy despite current challenges:
Building Inclusive Connectivity:
To create a digital economy, Bangladesh must focus on universal connectivity by expanding broadband and 4G/5G nationwide to enable all citizens to access digital services. Collaboration with international partners can provide affordable, scalable cloud and computing resources essential for a robust digital infrastructure. These initiatives will bridge the digital divide and foster inclusive economic participation across all regions.
Accelerating Strategic Digital Investment:
Key sectors like banking face a critical moment to harness Al-driven growth through targeted digital investments. Strategies should focus on resilience against disruptions, enhancing agility, fostering ecosystem partnerships, and supporting intelligent decision- making. Such comprehensive investment approaches will enable businesses to innovate and thrive in a fast-changing digital world.
Promoting Adoption of Inclusive Digital Applications:
Speeding up access to inclusive finance and digital governance solutions is crucial. Bangladesh should collaborate with global tech firms to co-create platforms customized for local needs to improve accessibility and usability. This will extend vital financial and public services to underserved populations, promoting broader inclusion.
Expanding STEM Education and Talent Development:
A thriving digital economy depends on a skilled workforce. Expanding digital literacy and using online and global training will equip citizens with essential skills. This prepares the workforce for digital industry demands while nurturing innovation.
Strengthening Public-Private Partnerships for Digital Transformation:
Digital transformation success depends on public-private collaboration. Governments need private sector tech expertise and must establish regulations that balance innovation with data privacy protection. This cooperation is key to scaling digital initiatives and building trust in the ecosystem.
Enhancing Policy Guidance and Governance Frameworks:
Establishing clear digital policies and governance is vital for attracting investment and supporting pilot digital economy projects. Policies must encourage growth while ensuring cyber- security, trust, and resilience. This balance is essential for sustainable digital development and maintaining stakeholder confidence.
The interim government has laid out an ambitious roadmap to transform Bangladesh into a fully digital economy by 2030, emphasizing e-governance, Al-powered public services, and transparent citizen engagement. Huawei collaborates closely on these initiatives, supporting the development of national digital infrastructure and innovation ecosystems that will underpin this vision.
