France’s development agency AFD has proposed making Bangladesh’s readymade garment (RMG) industry green while ensuring factory safety and standards of products, officials said. They said the French donor Agence Française de Développement (AFD) has come forward with its proposal for making the $25-billion-industry green and has recently placed the proposal with the Ministry of Commerce (MoC). “The French donor agency wants to conduct a study on the RMG factories. After getting study report, it is likely to provide some financial support to the RMG factories for improving their standards,” the MoC official told the FE. Additional secretary of the Economic Relations Division (ERD) Abul Mansur Md Faizullah told the FE that the ministry was scrutinising the AFD’s proposal positively. “If we find it feasible for Bangladesh, we will allow them to proceed.” According to the AFD proposal, it will bankroll 120,000 Euros as grants to conduct the study on the country’s main export-earning sector. The French development agency in its proposal also offered to do pre-feasibility study for urban development and coastal town protection. Financial and legal capacity enhancement of the ministry of finance is also incorporated into the package proposal. AFD would provide 380,000 Euros as grants for funding the three above-mentioned works. Bangladesh’s RMG industry got massive attention from the international community after the Rana Plaza collapse in Savar in April 2013 that left more than 1100 workers dead. The major buyers from the United States and the European countries blamed Bangladeshi RMG makers for poor safety standards at their factories. Two western coalitions-Accord, backed by European buyers, and US buyers-backed Alliance-are working in Bangladesh’s RMG sector on issues of fire and building safety and workers’ safety. Many factories have already closed down as those failed to stand the test of factory compliances and safety standards. The ERD additional secretary said they welcomed the new donor, AFD, for coming forward to help in Bangladesh’s garment-sector improvement through turning the factories into green manufacturing units. AFD has assured the government of providing nearly 50 million Euros upon getting results of the study for improving the safety standards at the on-track RMG factories, he said. “We are scrutinising the AFD proposal. If it is feasible for Bangladesh, then we will allow them to come forward for the financial support,” he added. Meanwhile, the local RMG owners are working to improve the safety standards and compliance in their factories as per the recommendations of the buyers. The Accord-Alliance duo has been inspecting all the garment factories in Bangladesh. They also help the factory owners to improve their standards. The French funding agency, AFD, entered Bangladesh as a lender few years back. It has so far invested in a couple of projects in infrastructure development in the country.
