Close this search box.


Covid recovery Bangladesh

The COVID-19 Recovery for MSMEs in Bangladesh program

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:

  • Outcome 1: MSMEs meet their working capital needs to continue business operations. The fund will on-board a commercial bank and/or non-banking financial institution to provide uncollateralized debt financing at ‘zero’ interest rate.
  • Outcome 2: MSMEs have optimized and strengthened their business for adaptation in the changed environment. The program provides customized business advisory services to enterprises to preserve business continuity followed by business development services to build enterprises’ resilience.
  • Outcome 3: MSMEs are able to retain their employees. With the working capital support received, MSMES will be able to pay salaries, buy raw materials and cover other fixed costs.

Companies supported

Companies Truvalu has provided technical assistance to:

  • Fatema Plastic
  • Raisha Fishing Net
  • M/s Akanda oil mill
  • Star Tex Label & Accessories
  • Shadhinota Furniture & Interior
  • M/S Holy Enterprise
  • R.k International
  • Fair Mudron
  • Anjum Trade International
“Sagar used a bank loan from the Covid recovery fund in Bangladesh to pay his team of 15 employees with a view to survive the covid days. When we visited Sagar, the company was back on its feet and again assembling 3000 cooking stoves a month. Based on the credibility of the first time borrowing relationship Sagar applied for a second loan to grow the company – triple the first loan size without additional support! In my business that is called mainstreaming access to finance. It’s a small example but instrumental to increase the small and medium size company contribution to GDP, create jobs and ignite innovation in Bangladesh.” Willem Grimmink, OnetoWatch impact investor after visiting one of the companies supported by the Covid recovery program (January 2023).

The uniqueness of our service

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:

  • With Truvalu’s efforts, 33 MSMEs have been provided with loans to date. Additionally, the allocation of funds for interest subsidies has been utilized to a great extent, with 99.68% of the target already achieved.
  • In addition to the loans, MSMEs are also receiving services to support their growth and sustainability, such as business profile creation, social media management, financial statement preparation, and training on digital bookkeeping, payroll, and legal matters. These services are helping MSMEs improve their business processes and financial understanding, as well as their visibility and reach through marketing channels. Furthermore, the MSMEs are being connected to a greater market base through the use of online marketplaces and networking with suppliers, distributors, and retailers. Overall, these services are critical for the success of MSMEs in today’s digital age.
  • Truvalu has provided financing to 33 MSMEs, which has ensured the retention of 350 jobs in these enterprises. 41 of these employees are female, and Truvalu is conducting appropriate Labour Rights and Decent Work and safety training with these female workforces in focus. The loans have an average ticket size of BDT 1.8 million (around 15.884 euro) and have enabled the MSMEs to meet their capital requirements and grow their businesses, ensuring their survival in a challenging economic environment. Additionally, this financing will not only help retain current employees but also augment employment in the future. Truvalu’s intervention has played a significant role in supporting these MSMEs during the pandemic, especially first-time borrowers, and helped them access future financing.