The government wants to raise the contribution of Bangladesh’s creative economy to 2-3 percent of gross domestic product (GDP), Finance Minister Amir Khosru Mahmud Chowdhury said on Monday, saying the sector could generate jobs for a large number of people, particularly women.
“Even if Bangladesh cannot reach 10 percent, taking the creative economy to 2-3 percent would allow a huge number of people to become involved in this sector,” he said.
The minister was speaking at the inauguration of the Small Business and Small Entrepreneur Financing Fund, organised by Karmasangsthan Bank at the Osmani Memorial Auditorium in Dhaka.
Khosru said the creative economy contributes up to 10 percent of GDP in some countries and Bangladesh has considerable potential in food, music, culture, theatre, films and online-based creative work.
He stressed the need to turn local creativity and products into commercially viable goods for global markets.
Many songs, foods and cultural products from rural Bangladesh have yet to be properly monetised, he said.
“We have creativity in our country,” Khosru said, noting that even a song by an ordinary person could become a commercially valuable product if it becomes popular.
He also highlighted the potential of freelancers and ICT professionals, saying their creative work should be upgraded through value addition to make it suitable for national and international markets.
Citing Thailand’s “One Village, One Product” initiative, the minister said government support could help rural producers meet international market standards.
Such support should cover raw materials, skills development, design, branding, packaging and marketing, he said.
A similar system in Bangladesh could connect rural entrepreneurs directly with global markets, increasing foreign exchange earnings, boosting reserves and creating jobs, Khosru said.
He urged Karmasangsthan Bank to go beyond providing loans and help entrepreneurs improve their products.
“Financing is not enough,” he said, stressing that borrowers need support in skills development, design, branding and marketing. “He is a partner, he is not a borrower,” he added.
Khosru said many educated, semi-educated and poor people possess creative potential but cannot turn it into businesses because of inadequate access to finance.
Many also hesitate to approach banks or lack access to formal banking services, making financial inclusion crucial, he said.
The minister said lending could be more effective than grants because entrepreneurs have to generate income to repay loans.
“Charity does not improve someone’s life. There has to be an economic return,” he said.
Karmasangsthan Bank has already helped create employment for around 1.3 million people, Khosru said. If the new programme creates another 900,000 jobs, the number would rise to around 2.2 million.
He called for greater attention to micro, small and medium enterprises and cottage industries, saying they could generate employment for a large section of the population.
Government support should help transform a Tk 100 product into one worth Tk 200-300 through better design, branding and marketing, he said. Successful products could then reach international consumers through platforms such as Amazon and Alibaba.
Khosru also urged the bank to finance promising entrepreneurs in music, culture, theatre, film and other creative sectors.
He said the bank’s non-performing loan ratio, currently around 4.8 percent, should be reduced to 1-2 percent to strengthen its credibility.
The minister said Tk 35 crore had been allocated for the pilot financing fund. If successful, it could be expanded on a larger scale.
Economic Relations Division Secretary Dr Md Khairuzzaman Mozumder said loans under the project would carry interest rates of 5-6 percent, compared with 24-25 percent often charged by conventional microfinance institutions.
Financial Institutions Division Secretary Nazma Mubarek said the project would initially be implemented in three districts before being expanded nationwide.
Karmasangsthan Bank Chairman Dr AFM Matiur Rahman said the bank could offer loans at even lower rates if Bangladesh Bank provided funds at 2 percent interest. The bank currently lends at a maximum interest rate of 9 percent.