ZCZC
BSS-42
PROJECT-LAUNCHING
PKSF launches project to boost microenterprise sector
DHAKA, Aug 23, 2020 (BSS) – As a major boost to the Bangladesh’s microenterprise sector, Palli Karma-Sahayak Foundation (PKSF), an apex development agency of the country, has floated a new project titled ‘Rural Microenterprise Transformation Project (RMTP)’.
The six-year project, jointly financed by PKSF, the International Fund for Agricultural Development (IFAD) and the Danish government, was launched formally today.
Senior Secretary of the Financial Institutions Division Md Ashadul Islam was the chief guest at the RMTP’s virtual launching ceremony presided over by PKSF Chairman Dr Qazi Kholiquzzaman Ahmad.
Mohammad Moinuddin Abdullah, Managing Director of PKSF, delivered the welcome remarks while Deputy Managing Director Md Fazlul Kader presented different aspects of the project, said a press release.
Winnie Estrup Petersen, Ambassador of the Royal Danish Embassy to Bangladesh, and IFAD’s Country Director Omer Zafar attended the meeting as the guests of honor. Besides, members of PKSF’s Governing Body and officials of PKSF and its Partner Organizations (POs) exchanged views at the event where they stressed on the need for proper implementation of the project for effective expansion of the country’s microenterprise sector.
Describing the RMTP as a time-befitting project, Senior Secretary Mr Md Ashadul Islam said that development of microenterprises is very important for the country’s overall economy.
He said 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.
Terming PKSF as ‘an iconic institution’ in development operations in Bangladesh, the Senior Secretary said PKSF’s POs have proven efficiency in implementing projects like the RMTP. He also hoped that this project will help to ensure sustainable expansion of marginal microenterprises.
Highlighting Denmark’s experience in working with Bangladesh as a development partner, Danish Ambassador Winnie Estrup Petersen said supporting small farmers to increase agricultural productivity and output has 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.
Omer Zafar, Country Director of IFAD, said, “The RMTP will strengthen the rural microenterprise sector by applying a value chain approach bringing together all actors – micro entrepreneurs, input suppliers, technical services, microfinance institutions, non-banking financial institutions, agribusinesses, processors, wholesalers and retailers.”
PKSF Chairman Dr Qazi Kholiquzzaman Ahmad said that Bangladesh’s economy is still largely rural and agriculture-based, and 80 percent people are working in the informal sector.
“To transform this situation, appropriate financing along with technology transfer, training, market expansion, and forwards and backward linkage are required,” he commented.
The eminent economist further said that the rural people won’t need to migrate elsewhere for work if appropriate employment opportunities through microenterprises can be generated in their areas.
In the welcome speech, PKSF Managing Director Mr Mohammad Moinuddin Abdullah said that RMTP would accelerate poverty alleviation by expanding microenterprise activities in the agricultural sector.
In his presentation on the new project, PKSF Deputy Managing Director Md Fazlul Kader said that the total fund of the project, which will directly benefit 0.45 million micro-entrepreneurs across the country, stands at $200 million, in which IFAD’s contribution is $81 million and DANIDA, a co-financier, will provide $8.30 million. PKSF, its POs concerned, non-bank financial institutions, entrepreneurs and private sector organizations will join hands to accumulate the rest of the fund.
This new project will use different innovative technologies to further widen the scope of agricultural activities. Apart from initiating farming activities based on Internet of Things (IoT) and Artificial Intelligence (AI), the project will adopt Blockchain technology to ensure more transparency in the management of financial services.
A crowdfunding platform will be launched to create opportunities for equity financing for the microenterprises, Kader informed.
He also highlighted the project’s key focus areas which include production and market expansion of safe agricultural produces and improvement of the nutritional status of the producers and the consumers alike.
BSS/PR/GM/KU/2020 HRS