SMEs lack adequate funds for export: DCCI president
Staff Reporter :
Businesses on Saturday alleged that the Small and Medium Enterprises (SMEs) are not getting adequate funds needed to carry out foreign trade despite having the potential to help the country boost exports and overcome the foreign exchange shortage.
Technology advancement, access to finance, marketing facility, research and innovation, product diversification, cluster base, infrastructure are some of the important issues for the overall development of SME sector of Bangladesh, said Sameer Sattar, president of the Dhaka Chamber of Commerce and Industry (DCCI).
The DCCI president made the comments at a seminar styled “Improving Export Capabilities of SMEs: Succeeding Globally upon LDC Graduation” at the Westin Dhaka.
Referring to a recent study of the Bangladesh Institute of Bank Management on International Trade Finance and SME, Sattar said SMEs are not often properly catered to by banks due to a lack of collateral, high-interest rates, lack of previous transaction records, high risk, and lack of sufficient documents.
“The Bangladesh Bank may instruct and monitor all commercial banks to ensure the establishment of a cell for the SMEs at all branches of banks so that SMEs get better service,” he said.
“Besides, banks need to provide SME-tailored export financing like credit insurance, export development fund and working capital to help them address export-related financial challenges,” the DCCI president added.
In his key-note paper, SANEM Executive Director Dr Selim Raihan said that SMEs face few challenges like capacity constraints, lack of policies and regulatory issues, financing, infrastructure and skills gap.
He also said that import tariff for SMEs in Bangladesh is a bit high and emphasized faster customs and trade regulations.
He also urged for conducive and investment friendly tariff regime, consistent tax rates, predictable policy regime and stable macro-economic situation.
“We have to address the high rate of NPLs, weak capital market, high operational cost of SME financing and weak integration with financial system,” Raihan added.
Dr Lilly Nicholes, Ambassador of Canada to Bangladesh, said, “Canada is working with Bangladesh in the technology and vocational sector and underscored to sign FTAs with potential trading partners.”
Essa Yousef Alduhailan, Ambassador of Saudi Arabia in Bangladesh, said Saudi Arabia put more emphasis on SMEs.
“In the post pandemic time, Saudi Arabia facilitated their SMEs by supporting them to revive. These supports include implementation of new regulations, reform measures financial assistance by the Saudi Government,” he said.
“Bangladesh has a strong and diversified export market. Jute, shrimp, vegetables, pharmaceuticals and RMG are some of the major products of Bangladesh,” the ambassador added.
“Bangladesh is going to graduate into middle income country and this transition needs more investment in education, technology and innovation,” he said.
