The Export Readiness Fund (ERF) in Bangladesh will launch new funding opportunities on September 30 for businesses in various sectors.
Those include the leather and leather goods, footwear (both leather and non-leather), plastics, and light engineering sectors (electronics and electrical goods, automobiles and parts, bicycles, accumulators and batteries, foundry and dye and mould), according to a press release.
The ERF is a program under the Export Competitiveness for Jobs (EC4J) project, under the Ministry of Commerce and funded by the World Bank Group.
The four sectors covered by the ERF have immense potential for export, and they are a prime focus of the government’s export diversification plans, the release added.
The ERF launched in January earlier in the year and provides funding and guidance to businesses to meet environmental, social, and quality (ESQ) compliance standards so they can compete in global export markets.
The fund helps businesses to identify constraints, upgrade products and processes, and diversify products to have better access to export markets.
From Wednesday, two types of funding will be available.
ERF Window 2 provides smaller grants that cover business and technical services to meet ESQ standards.
The maximum grant size is $40,000, with 40% minimum as recipient’s contribution
On the other hand, ERFWindow 3 provides grants that cover both service and fixed asset expenditures to meet ESQ standards.
The maximum grant size is $200,000, with 50% minimum as recipient’s contribution.
Both the windows will support the upgrade of production plants, equipment, and services for target industries, as well as improvement of design and quality of products so they are ready for export.
Additionally, they will also support marketing and distribution to promote ESQ compliance and environmental and social benefits of products, internal management and also help companies to receive ESQ certification.
ERF Window 1 will fund ESQ assessments for 400 companies.
It has already signed agreements with 165 companies and is in the process of signing with 183 more companies.
These assessments will identify gaps in production processes and management capabilities that prevent applicants from meeting export standards
Experts also provide guidance to meet these standards. Window 1 started in January 2020 and will continue until January 2021.
The EC4J project aims to boost high-potential sectors and diversify the country’s exports beyond ready-made garments, which account for over 80% of export earnings.
