A program, supported by the Embassy of Switzerland in Bangladesh and implemented by Truvalu Bangladesh (in close cooperation with OneToWatch). Truvalu worked with 33 pandemic affected MSMEs across Bangladesh. Truvalu connects the MSMEs that require financing with partner financial institutions for interest subsidized financing.
Approximately 6 million MSMEs contribute about 25% to Bangladesh’s total GDP, employing around 31 million people and providing around 75% of household income. When combined, different categories of MSMEs contribute about 85% to industrial employment and about 23% to Bangladesh’s total employment.
To support the MSME sector affected by the pandemic, Truvalu Bangladesh with support from the Embassy of Switzerland in Bangladesh, launched a project called “COVID-19 Recovery for MSMEs in BD.” This project aims to provide working capital finances, interest subsidies, and relevant business development services to pandemic-hit MSMEs, to ensure the sector’s recovery, which is essential for the economy’s overall survival.
As of now, 92 applications have been received under the project, and 33 MSME applications have received financing, with a total fund disbursed of BDT 66.5 million. The interest subsidy allocated was BDT 4,111,881 according to the loans disbursed (99.68% achieved), and technical assistance (BDS) delivery is ongoing.
The program has three outcomes:
Companies Truvalu has provided technical assistance to:
Truvalu.enterprisesLimited and the Embassy of Switzerland in Bangladesh have been supporting the MSME sector in the country. The provision of working capital financing and the delivery of appropriate Business Development Services (BDS) have helped these businesses stay afloat during the difficult Covid period. The hope is that this support will continue to help these businesses as they strive to navigate the challenges posed by the pandemic and emerge resilient in the long run.
The COVID-19 Recovery for MSMEs in BD project is a crucial initiative that aims to support the survival and growth of MSMEs severely impacted by the pandemic in Bangladesh. Through partially subsidized loan facilities from banks or NBFIs and business development services provided by Truvalu, the project offers a comprehensive approach to help these businesses recover and revitalize the industry. These service are extensively provided by Truvalu: