The Export Competitiveness for Jobs (EC4J) project is a breakthrough initiative taken by the Government of Bangladesh to uplift the export capability of Bangladeshi manufacturers. The EC4J project aims to support the Government of Bangladesh’s export diversification targets. The project is designed to enhance the growth and competitiveness of selected sectors beyond Ready-Made Garments (RMG) and to create more and better job opportunities. Since the inception the project has been focusing on four priority sectors in which Bangladesh has a demonstrated comparative advantage, or sectors that provide essential inputs in export-oriented manufacturing value chains. These sectors are: (i) Leather and Leather Goods;(ii) Footwear; (iii) Light Engineering; and(iv) Plastics. The project objective is to contribute to export diversification for more and better jobs in targeted sectors.
The project is continuously supporting the private sector companies in these targeted sectors to address some of the key constraints they face in accessing export markets; enhancing productivity; improving environmental, social and quality (ESQ) standards; and collective infrastructure facilities. The project interventions have been designed to benefit companies that are in the export market or have the potential and are aspirations to access export markets. Small and medium enterprises in these sectors are also expected to benefit from the project, particularly those integrated into export value chains.
Key Highlights of the Project
The Key highlight of the EC4J project is to:
- Undertake programs to create awareness about markets; gather market intelligence, market, and product-specific branding initiative.
- Export Readiness Fund (ERF) – matching grant a challenge fund to directly assist firms with environmental, social, and quality (ESQ) assessments, and incentives to implement improvements.
- Sector-specific technical training on ESQ and reference materials such as compliance handbooks, etc.
- Establish four technology centers to enable enterprises to access modern technologies, advanced skills, and other relevant business development services.
The project consists of three major components. (i) Market access support program, which support firms to access international markets and integrate into global value chains. (ii) Productivity enhancement program, which supports the establishment of four technology centers (TCs) within proximity to existing production clusters. (iii) Public investment facility for infrastructure constraints, which support the development of selected infrastructures in industrial clusters of the targeted sectors.
Businesses Benefitting from EC4J
Businesses from various sectors are getting enormous amount of benefits from the EC4J project. One of them is Temakaw Fashion, an apparel manufacturing company established in 2010 transitioned to Medical and Personal Protective Equipment (MPPE) manufacturing. Temakaw Fashion’s story of transition is an incredible one. During the Covid-19 pandemic Temakaw Fashion started manufacturing coveralls and masks to give it away to the people in need as part of their corporate social responsibility. But being a manufacturing unit Temakaw fashion saw an opportunity and expanded their horizon. This is the point where the EC4J project’s Export Readiness Fund (ERF) was able to bolster the company’s export endeavor.
“We started small with medical protective equipment, as we already have a strong manufacturing line, the transition was actually easy for us. Then the EC4J project opened a new door of opportunity for us, they helped us in creating a manufacturing line for functional protective equipment. The ERF fund helped us in acquiring necessary machineries for MPPE production. But to be honest, it was not just the fund which was helpful, The EC4J project trained and helped us in acquiring certifications to maintain the ESQ standards and other compliance factors. As we were fairly new in this sector, this really gave us a boost in terms of exporting our products. As a result, we were able to meet the global standards and export our products in Europe and North American Countries” said Mr. Saiful Swapon from Temakaw Fashion. He also added “currently the business development activities are mostly done through our own developed channel, but if the Meet Bangladesh Show (MBS) initiative continues we will truly be able to expand our export horizon as this show gives our industry a unique networking opportunity”
Mr. Swapon expressed his hope that by 2030, 70% of company’s manufacturing line will emphasize on MPPE production.
MPPE is not the only sector which is savoring the benefits of EC4J project. The project left a positive footmark on the Leather and Footwear Industry as well. One of the company which received the benefit is Footmark Footwear Limited. The story of Footmark Footwear is a remarkable one. A company which started its journey in 2017 with a single assembly line. The founders had a plan of expansion within two-three years, but unfortunately Covid-19 pandemic stranded that endeavor. Right when the company was struggling, the EC4J project’s ERF fund not only ensure its survival but also paved a way for the company to become an export oriented footwear manufacturer.
“The EC4J project has been an extremely helpful initiative for us. Without their help my initial plan for expansion would have been obstructed. We started small with a single line of assembly. As we were fairly new in the industry, we thought of giving ourselves an opportunity to learn first and then focus on expansion. But the Covid-19 pandemic obstructed our endeavor. During 2020-2021 the business operation was interrupted. At that time, we received the grant from EC4J project, we were able to purchase machineries and expand. For a young company starting in a small space ensuring compliance and ESQ factors were very difficult. The EC4J project helped us through training and certification” said Mr. Emamul Ahsan founder of Footmark Footwear.
He also added, “there is a huge opportunity for Bangladesh in footwear industry, let alone export market, if we can make cost efficient footwear components in our own country the competitive advantage will increase, this surely will help us expand in the global arena”.
Another company in the footwear industry which were hugely benefitted through EC4J project is Italy Footwear Limited. Established in 2014 Italy Footwear Limited overcame numerous challenges and experienced exponential growth over the past decade and now has a market reach in countries like Italy, Canada, France, Turkey, Germany, Sweden, Poland and Japan. En route to its expansion Italy Footwear faced a challenge to meet the compliance and ESQ standards. However, EC4J Project made the task easy for the company.
“The EC4J project, helped us a lot. Firstly, with the fund, which was helpful in buying machineries and improving compliances, secondly they made the way easier for us to get the certifications. I believe for us, the training and assistance in meeting the compliance and ESQ standard was more helpful than the fund itself. I am really pleased and hopeful for this project, I am looking forward to its industry based skill development program cause that’s where people in our industry face the biggest challenge. We really need to develop skilled workers in the footwear industry. Also, most of us build a business network completely on their own, in this case, hopefully, initiatives like Meet Bangladesh Show (MBS) and Meet Bangladesh Exposition (MBX) will definitely open a new door of opportunity” said Mr. Mannan the owner of Italy Footwear Limited.
“Despite the fact that there is a huge opportunity in the global market for Bangladeshi manufactured footwear, we still have to overcome some challenges which will result in Improved compliance, Increased global recognition, Faster production times, lower costs, and improved product customization. Challenges like raw material sourcing, improving supply chain efficiency, enhancing workforce efficiency & retention and implementing sustainability & compliance measures must be addressed to get that result. I believe EC4J Project’s initiative is leading us in that path” Mr. Mannan added.
Along with MPPE and Footwear industry Light Engineering industry experienced fruitful benefits. One of the company is Khan Bakelite. Established 1999, Khan Bakelite is one of the few company to manufacture world class switch, sockets and electric components in the country. Khan Bakelite’s journey also started with a small factory in Wari, Dhaka. Step by step Khan Bakelite grew bigger and now it has its own manufacturing facility in Bagerhat, creating job opportunities for hundreds of local workers.
“I have been manufacturing electric components for many years and I always had a dream of exporting my products abroad. The EC4J Projects funding has made that endeavor easy. With the funds I received, I was able to buy some automated machineries for my factory. They also helped me in receiving relevant certifications and meet compliance standards. Now, I am looking forward to exporting my products very soon. That’s the reason why I am attending Meet Bangladesh Show (MBS) hoping to network with potential importers” said Mr. Khan Ali Ahmed the owner of Khan Bakelite.
With the Export Competitiveness for Jobs (EC4J) project paving the way, Bangladeshi businesses are not just stepping into the global arena, they are competing, thriving and redefining the country’s export potential for a stronger economic future.
