Palli Karma-Sahayak Foundation (PKSF) on Sunday launched a six-year project titled "Rural Microenterprise Transformation Project (RMTP)" to boost the country's microenterprise sector.
PKSF, the International Fund for Agricultural Development (IFAD) and the Danish government will jointly finance the project, says a press release.
Md Ashadul Islam, senior secretary of the Financial Institutions Division of the Ministry of Finance, was chief guest at the RMTP’s virtual launching ceremony.
PKSF Chairman Dr Qazi Kholiquzzaman Ahmad presided over the program.
Describing the RMTP as a time-befitting project, Senior Secretary Md Ashadul Islam said that development of microenterprises is very important for the country’s overall economy.
Ensuring adequate financing for marginal producers and micro-entrepreneurs is a big challenge and this project, which goes in line with the government’s development strategy, will help address this challenge, he commented.
Highlighting Denmark’s experience in working Bangladesh as a development partner, Danish Ambassador Winnie Estrup Petersen said supporting small farmers to increase agricultural productivity and output have positive impacts on household income growth, poverty reduction and food security.
“The RMTP supports marginal and small farmers, farmer groups, micro-entrepreneurs and agri-businesses to improve their operation and develop commercially beneficial linkages within selective commodity value chains. The RMTP will combine financial and non-financial services to create the best possible impact to enhance incomes and reduce poverty,” she noted.
IFAD country director Omer Zafar said: ‘The RMTP will strengthen the rural microenterprise sector by applying a value chain approach bringing together all actors – microentrepreneurs, input suppliers, technical services, microfinance institutions, non-banking financial institutions, agribusinesses, processors, wholesalers and retailers.’
PKSF chairman Qazi Kholiquzzaman Ahmad said that Bangladesh’s economy was still largely rural and agriculture-based with 80% of the people working in the informal sector.
To transform this situation, appropriate financing along with technology transfer, training, market expansion, and forward and backward linkage are required, he said.
PKSF managing director Mohammad Moinuddin Abdullah said that PKSF had been implementing the microenterprise program as one of its core programs since 2001 to expedite poverty reduction by creating self and wage employments.
PKSF deputy managing director Md Fazlul Kader said that the total fund of the project, which will directly benefit 450,000 micro-entrepreneurs across the country, stood at $200 million in which IFAD’s contribution was $81 million while Danida, a co-financier, would provide $8.30 million.