As a major boost to 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 on Sunday.
Md Ashadul Islam, Senior Secretary of the Financial Institutions Division, Ministry of Finance was the Chief Guest at the RMTP’s virtual launching ceremony presided over by PKSF Chairman Dr Qazi Kholiquzzaman Ahmad.
Mohammad Moinuddin Abdullah, the Managing Director of PKSF, delivered the welcome remarks, and Deputy Managing Director Md Fazlul Kader presented the different aspects of the project. 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 Honour.
Besides, members of PKSF’s Governing Body and officials of PKSF and its Partner Organisations (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. 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 Ms 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.
Omer Zafar, Country Director of IFAD said, “IFAD is delighted to invest in this project with its trusted partners PKSF and DANIDA. 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.
The RMTP will generate multiple social, nutritional, financial, economic and institutional benefits for some 450,000 microenterprises representing two million rural women, men and youth, and will create productive jobs for many more.”
PKSF Chairman Dr Qazi Kholiquzzaman Ahmad said that Bangladesh's economy is still largely rural and agriculture-based, and 80 per cent 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.
In the welcome speech, PKSF Managing Director Mr Mohammad Moinuddin Abdullah said that PKSF has been implementing the Microenterprise Program as one of its core programmes since 2001 to expedite poverty reduction by creating self and wage employments.
In his presentation on the new project, PKSF Deputy Managing Director Mr Md Fazlul Kader said that value chain development, financial services, and institutional capacity development support will be provided for the promotion of agricultural products under three major farm sectors -- livestock and poultry, crops and horticulture, and fisheries and aquaculture.
Prior to the RMTP, PKSF undertook four projects with the financial support of IFAD -- Microfinance and Technical Support Project (MFTSP), Microfinance for Marginal and Small Farmers Project (MFMSFP), Finance for Enterprise Development and Employment Creation (FEDEC) and the ongoing Promoting Agricultural Commercialization and Enterprises (PACE) project.
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