The six-year $200 million project, jointly financed by PKSF, the International Fund for Agricultural Development (IFAD), the Danish government was launched on Sunday, IFAD said on Monday.
The Rural Microenterprise Transformation Project (RMTP) will support 450,000 microenterprises representing two million rural women, men and youth.
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 on 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 Honor.
Besides, members of PKSF’s Governing Body and officials of PKSF and its Partner Organizations (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.
Highlighting Denmark’s experience in working Bangladesh as a development partner, Danish Ambassador 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."
PKSF Chairman Dr Qazi Kholiquzzaman Ahmad said that Bangladesh's economy is still largely rural and agriculture-based, and 80 percent 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 said.
Referring to the March 7 speech of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman, Dr QK Ahmad said PKSF’s operations in the grassroots are helping ensure the socio-economic emancipation of people as enunciated in the historic speech.