EU, Germany contribute € 33m to strengthening Bangladesh’s social security

The European Union (EU) and Germany today, Wednesday, transferred € 33 million, equivalent to around Tk 330 crore, to the Bangladesh government to support the Covid-19 pandemic-affected workers in export-oriented industries, said a news release.

The grant will feed the ‘Social protection programme for unemployed and distressed workers in the ready-made garment, leather goods and footwear industries’–a programme that was launched in October 2020.

The EU ambassador in Bangladesh, Rensje Teerink, said, “Beyond the immediate Covid-19 response, this programme represents a concrete first step towards the longer-term objective to establish adequate and sustainable social security for workers addressing different risks.”

This is the second disbursement from the joint € 113 million grant by the EU and Germany as part of the Team Europe’s response to help Bangladesh fight Covid-19 and its consequences.

This contribution will provide budgetary support to national social security strategy reforms in Bangladesh.

In June, the budget support steering committee of the European Commission's directorate general for International Cooperation and Development approved the second disbursement.

The German ambassador in Bangladesh, Peter Fahrenholtz, said that Germany is pleased to join forces with the EU and support Bangladesh in mitigating the negative effects of the covid-19 pandemic on vulnerable workers in key export sectors like the RMG and leather sectors.

“We hope that the support will reach as many eligible workers as possible and we count on the joint efforts of the government, the associations and the factories to achieve this,” Peter Fahrenholtz added.

It provides direct cash allowances to unemployed workers who meet the eligibility criteria and whose data is verified as per the guidelines.

The labour department transfers the cash on the beneficiaries’ bank or mobile account.

By the end of May 2021, over 6,000 beneficiaries have been enrolled and paid under the programme.

Eligible workers are identified in coordination with the employers’ associations including Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh and the Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association.