IFAD to finance project for scaling up micro enterprises

The International Fund for Agricultural Development (IFAD) has expressed its interest to provide a loan of US$ 80 million to promote rural micro-enterprises in different regions of Bangladesh, an official said.
The project, to be implemented in six years with an estimated cost of US$ 190 million, would target rural micro-enterprises with special emphasis on the women and youth.
The remaining amount will be provided by Palli Karma Sahayak Foundation (PKSF) and partner organisations (POs), non-bank financial institutions (NBFIs) and from the equity of entrepreneurs.
The details of the project would be finalised following a project mission, which is expected to be conducted in February, 2019. The amount of grants out of the total loan by the United Nations agency would also be determined during the mission.
IFAD proposed the project recently to the PKSF after completing its initial evaluation on taking the project. The finance ministry also sat with the IFAD in this connection.
According to a document, the IFAD expressed its interest to launch the new project for transforming cluster-based micro enterprises of rural areas into sustainable growth led rural enterprises by scaling up of these micro enterprises.
In this backdrop, the UN agency proposed this 'Rural Enterprise Transformation Project (RETP)' to promote selected rural micro enterprises in different geographical locations of the country.
The project is expected to very effective in expediting poverty reduction through creating self and wage employment in a sustainable manner, the PKSF documents mentioned.
The project's goals and objectives are fully aligned with the important targets adopted in the Sustainable Development Goals (SDGs).
Furthermore, the project is expected to help accelerate attainment of the objectives of seventh five year plan of the government.
The project activities would focus on up scaling of rural enterprises, economic and social empowerment of disadvantaged groups and connecting small producers with wider national and international markets, according to the documents.
The objective of the project will be to strengthen micro enterprises in the setting of business cluster selected on the basis of growth potential and generation to productive engagement.
Export based micro enterprises along with strong linkage to national market will be given priority under the project. Transparency technology will be used to provide tracing facilities.
Moreover, innovation in marketing with new product promotion will be a thrust area under the project.

[email protected]