Govt to provide $10m export grant

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DHAKA, Sept 29, 2020 (BSS) – The government under a scheme would
provide US$ 10 million as grant to diversify and boost country’s
export.

To this end, Commerce Ministry’s Export Competitiveness for Jobs
(EC4J) Project with the support of World Bank (WB) is seeking
applications from prospective firms for the grants to be used to
improve their capacity in making products for overseas markets, said
officials.

The project is designed to enhance the growth and competitiveness
of four sectors and to create more and better job opportunities in
leather and leather goods, footwear, light engineering products and
plastics.

One of the components of the EC4J is the Export Readiness Fund
(ERF), a $10 million matching-grant programme, which provides
financial support to firms to identify gaps, catalyse investment and
improve environmental, social and quality (ESQ) standards, and thus
improve competitiveness on the export markets.

Launched in January, the ERF began providing support to Bangladeshi
firms with ESQ compliance assessments under its funding Window-1. The
funds will today roll out the Window-2 and Window-3, according to a
media invitation.

Under the Window-2, the maximum grant size is $ 40,000 and it would
be used to make improvement in business and technical services. Forty
percent of the project cost would have to come from the firms.

The Window-3 would provide up to $ 200,000 and will cover the
improvement projects in both services and fixed asset expenditures,
with half coming from the entrepreneurs.

The fund would be rolled out at a virtual programme today.

The new windows will support the up-gradation of production plants,
equipment and services, and help improve the design and quality of
products so they are ready for exports. They will also support
marketing and distribution to promote ESQ compliance and secure ESQ
certification.

The Window-1 aims to fund ESQ assessments for 400 companies. It has
already signed agreements with 165 companies and is in the process of
signing deals with 183 more companies.

Some 200 firms would receive support under the Window-2 and another
50 under the Window-3.

ERF grants are assisting firms to identify and address ESQ
compliance gaps, upgrade products and production process and support
firms to meet trade standards. This will be done in order to comply
with the laws and regulations of major export markets and requirements
of multinational brands, according to the website of the fund,
according to an official of the EC4J Project.

The fund will cover a period of three years.