In order to support severely impacted businesses, particularly those that depend on imports for raw materials, the International Finance Corporation (IFC) is investing US$30 million in Pran Dairy Limited (PDL) and Habiganj Agro Limited (HAL), both of which are a part of the PRAN Group, a major player in the food and beverage (F&B) industry in the nation.
The goal is to increase the food processing market’s resilience while boosting employment, encouraging gender diversity, and bolstering the national economy.
The IFC will continue to assist PRAN Group in enhancing women’s involvement and inclusion in the workplace by implementing pertinent policies and procedures. A vital economic pillar in Bangladesh is the food and beverage industry.
With a predicted compound annual growth rate of 12 percent, the food processing industry employs 19 percent of the industrial manufacturing workforce and contributes roughly 13 percent of the value of manufacturing production.
However, the country’s power problems, increased energy costs, and present lack of foreign cash have hindered the country’s ability to purchase raw materials while limiting the lending capacity of local commercial banks.
In light of this, IFC’s longer-term US dollar lending will facilitate better foreign exchange access and aid Bangladeshi businesses in navigating the current crisis.
Director of Finance at PRAN-RFL Group Uzma Chowdhury stated: “Having consistent access to US dollars is essential for us as a net importer. However, we have had trouble getting USD dollars for working capital in a timely way because of the current shortage. IFC will assist guarantee the long-term stability of the business’s operations and enable us to contribute to the economic stability of the nation by providing working capital denominated in US dollars, which is a limited resource.”
IFC will assist PRAN Group in growing its smallholder sourcing supply chain in Bangladesh and finding ways to decarbonize its agro-processing operations as part of its consultancy services.
Martin Holtmann, IFC country manager for Bangladesh, Bhutan and Nepal said, “Reiterating our commitment to supporting clients during a crisis, IFC’s financing aims to ease the current lack of access to foreign exchange while enabling private sector growth in Bangladesh.”
“We are optimistic it will help improve food security while prioritizing support for strategically important industries through innovative solutions. By backing PRAN Group, IFC will also contribute to diversifying Bangladesh’s export base, key to creating jobs, expanding market opportunities, and enhancing economic resilience,” Holtmann added.
IFC has made approximately US$3.8 billion in investments to support Bangladesh’s private sector expansion since 2010.
