Govt launches $7.5m Covid response fund
Entrepreneurs will now get financial support from the federal government to create medical and personal protective equipment (MPPE) for both local and international markets as the fight Covid-19 continues.
Commerce Minister Tipu Munshi yesterday launched a $7.5 million Covid-19 response fund to greatly help private enterprises procure the necessary equipment in this regard as the demand for MPPE products has ballooned amid a continuing second wave of infections.
The fund, styled "Covid-19 Enterprise Response Fund (CERF)", is an initiative of the Export Competitiveness for Jobs (EC4J) project which is currently being implemented by the commerce ministry with support from World Bank Group.
"Beneath the CERF, grants ranging between $50,000 and $500,000 will be provided to private enterprises for procuring manufacturing plants, equipment, materials, and the know-how for rapid repurposing of capacity to create MPPE products on a sustainable basis," said Md Hafizur Rahman, project director and extra secretary of the commerce ministry. About 50 applications for the grant will be accepted on a competitive basis, he added.
Speaking as chief guest, Munshi said the objective of producing these health insurance and medical safety products is not only to utilize the domestic market, but also the international ones.
"We hope our producers will take good thing about the fund to successfully utilize a fresh product segment which is crucial to face Covid-19. I really believe the CERF will work for the interest of the persons as well as the world," he added.
Salman F Rahman, private industry and investment adviser to the prime minister, said the government has taken various steps in its fight against the current crisis.
The CERF is one particular initiative to build the resilience of domestic producers of MPPE within an ever-changing world.
"It will fortify the government's plan to raise the exports," Rahman added.
Dr Md Jafar Uddin, senior secretary of the commerce ministry, urged local entrepreneurs to come forward and apply for this grant on a first-come-first-serve basis.
"The CERF will push to strongly integrate Bangladesh with the global value chain," Uddin said.
Highlighting some salient top features of the CERF, World Bank's Country Director for Bangladesh Mercy Tembon said the CERF would boost production of MPPE by local entrepreneurs, increase domestic supply and subsequently exports.
The EC4J project was initially a $10 million matching-grant programme that provided financial support to eligible Bangladeshi organizations in four targeted sectors -- Leather goods, footwear, plastics, and light engineering -- to identify gaps, catalyse investment and improve environmental, social and quality standards in order to enhance their competitiveness in export markets.
The objective of the EC4J is to integrate Bangladesh in the global value chain. The Export Readiness Fund, another section of the EC4J, provides grant-based incentives to firms to aid exports.
