The government introduced a US$7.5-million Covid-19 Enterprise Response Fund (CERF) on Sunday to facilitate private sector firms in procuring plant tools as well as producing medical and personal protective equipment (MPPE) in the country.
The Ministry of Commerce (MoC), through a virtual event, launched the fund under its export competitiveness for job project with the financial support of the World Bank (WB) Group.
Enterprises operating in Bangladesh can use fund ranging between $50,000 and $500,000 from CERF to produce MPPE along with clinical care and diagnostic equipment, targeting both domestic and overseas markets.
Launching the fund, Commerce Minister Tipu Munshi said eligible SMEs would contribute 40 per cent and large enterprises would contribute 50 per cent, while the remaining portions would be financed from the unique fund.
"This is a matching grant. Maximum amount of the grant is $500,000 and the minimum amount is $50,000."
The minister noted that the Covid-19 pandemic adversely affected the global economy, including Bangladesh, and protective measures were required to fight against the deadly virus.
"CERF will give an opportunity to our producers to manufacture quality MPPE for both local and overseas markets. I hope our producers will take the opportunity and help tackle the viral disease outbreak," Mr Munshi added.
Speaking as a special guest, private industry and investment adviser to the prime minister Salman F Rahman termed the special funding option one of the pragmatic initiatives of the government to contain the ongoing second wave of the coronavirus.
He hoped that CERF would support local firms to repurpose and build their resilience in an ever-changing economic environment.
Hailing the initiative, Mr Rahman, also vice chairman of Beximco Group that is exporting MPPE, said the MoC initiative would strengthen the government plan to explore new export markets with new products.
He noted that the country is becoming a middle-income economy, and one of the key challenges to reach the position is to alleviate poverty through generating jobs, which is the target of the project.
Talking about Bangladesh's export performance, Mr Rahman said ready-made garment (RMG) earns around 80 per cent of the country's total exports. In terms of compliance, the apparel sector achieved remarkable progress over the years.
"We're now in a position to penetrate the global value chain and establish products of other sectors," he added.
MoC senior secretary Dr. Md. Jafar Uddin called upon the entrepreneurs to apply for grant from CERF, as it would be given on a first-come-first-served basis.
"Let's fight against the virus pandemic and overcome the crisis jointly."
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