The Export Competitiveness for Jobs Project will improve competitiveness of existing and potential export-oriented industries such as leather, footwear, plastics and light engineering, where Bangladesh has demonstrated a competitive edge, the WB said in a statement on Sunday.
‘Bangladesh is the world’s second largest garments exporter after China and it can boost growth by diversifying its exports, and repeat the garment sector success story in other sectors,’ Qimiao Fan, World Bank country director for Bangladesh, Bhutan and Nepal after approval of the fund.
He said the project would help the economy to integrate further into the world trading system, and provide better jobs to Bangladeshi youth entering the labor market in the next decade, with a particular focus in improving female labor participation.
The project would also help firms to access international markets and enhance their ability to comply with international standards through awareness building and matching grants.
It will also support marketing and branding efforts to strengthen linkages to existing and new markets. It will also address the shortage of skills development, especially in industrial training for women, as well as in infrastructure and technology.
‘The project will enhance growth and competitiveness of selected sectors that have a demonstrated comparative advantage or that provide essential inputs in export-oriented manufacturing value chains,’ said Michael Olavi Engman, World Bank team leader for the Export Competitiveness for Jobs Project.
According to WB, non-RMG manufacturing sectors have been generating about 300,000 new jobs annually since 2010. Light manufacturing sub-sectors, which are labour intensive and employ women, have expanded employment by 4.3 per cent annually since 2010.
‘The project will build on this momentum and help increase the number of firms directly exporting in targeted sectors by about 29 per cent,’ the WB said.
The credit from the World Bank’s International Development Association, which provides grants or zero-interest loans, has a 38-year term, including a six-year grace period, and a service charge of 0.75 per cent.
Source: New Age
