Bangladesh is known for having one of the highest remittance transfer costs among the least developed countries (LDCs), with an average transaction fee of 7-8 percent for sending money to the country. Recent information from the United Nations Conference on Trade and Development (UNCTAD) highlighted Bangladesh in a 2023 World Bank remittance transfer comparison.
With a significant number of migrant workers, particularly in the Middle East, Bangladesh ranks among the top 10 countries globally in terms of receiving remittances. These funds play a crucial role in meeting the country’s external payment requirements. The UNCTAD report noted that LDCs make up half of the countries with the highest remittance costs, with Benin and Angola having the highest rates, while Lao PDR and Haiti have the lowest among LDCs.
The UNCTAD report, released in early September, emphasized the progress made in Africa. It mentioned that mobile money usage among adults in sub-Saharan Africa had increased from approximately 27 percent in 2021 to about 40 percent in 2024. Additionally, initiatives like the Pan-African Payment and Settlement System (PAPSS) are aiding in reducing cross-border transaction expenses and minimizing reliance on foreign clearing systems.
While globally, there has been a significant growth in digitally deliverable services (DDS), LDCs have not kept up with this trend. The report highlighted that, over the past decade, global services exports expanded by an average of 6.7 percent annually, surpassing goods exports, and increased by 8.3 percent in 2025.
Digitally deliverable services have been a major driver of this growth, with DDS trade growing faster than total services exports, now constituting 56 percent of global services exports. However, LDCs have not fully capitalized on this expansion, with their services exports growing at a slower rate of 3 percent annually.
The report further emphasized the importance of services as essential inputs in the production and export of goods, affecting competitiveness and participation in global value chains. It noted that services account for a significant portion of global intermediate inputs, but in LDCs, including Bangladesh, this contribution is comparatively lower.
To fully harness the benefits of servicification and strengthen trade, the report recommended targeted measures to enhance data governance, digital infrastructure, regulatory frameworks, and participation in trade negotiations, especially for developing and least developed economies. It also highlighted the need for improved connectivity, reduced cross-border payment costs, and addressing skills gaps to enhance the participation of developing countries in global trade.
