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The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 46 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.

The Ready-Made Garment (RMG) sector in Bangladesh serves as a fundamental driver of the country's export industry and overall economic growth. With a workforce of approximately 4.22 million people, including 2.5 million women, spread across 5,000 factories, its significance cannot be overstated (Haque and Bari, 2020; BGMEA, n.d.).

However, a recent study conducted by UNCDF highlighted significant challenges, particularly for women RMG workers. The study identified a lack of digital and financial literacy, as well as insufficient financial capability, as major hurdles to overcome. It also shed light on notable gender gaps in smartphone ownership, internet access, and awareness of digital and financial services, with women workers lagging behind their male counterparts. To address these issues, the UNCDF report stresses the importance of coordinated efforts to enhance digital and financial literacy, focusing on crucial topics such as financial well-being, customer protection, and data privacy and security. It is worth noting that existing initiatives by some large factories on financial literacy are sporadic and often overlook gender nuances.

In light of these findings, it is imperative to take comprehensive action to bridge the digital divide and empower women RMG workers. By providing access to affordable modern financial products (e.g. savings, loans, insurances, digital payments etc.) to female RMG workers, we can create a path of inclusive growth opportunities for all stakeholders.

For these reasons, UNCDF is looking for up to two partners who can come up with innovative sustainable solutions and with appropriate formal financial products for female RMG workers that can enhance their financial health and empower them in decision making process in terms of managing their own finance. Priority will be given to digital innovation solutions that establish linkages to primary healthcare and enhance access to quality nutrition.

The initiative is focused on major RMG clusters in Dhaka division (Savar, Gazipur, Narayanganj) and eligible applicants should be registered entities with at least one year of operation in the country.

UNCDF will provide a grant to the partners to carry out the activities.

Selected applicants will be signing a Performance-Based Agreement (PBA) with UNCDF.

UNCDF’s contributions can be up to $40,000 and UNCDF will award up to two applications depending on the investment readiness level, outreach potential of the solution proposed.

Selected applicants will be expected to fund at least 30 percent (30%) of the total project cost in cash (for costs such technical resources, staff, and operational expenses). Applicants may apply independently or in a consortium, provided that the consortium has a pre-established partnership prior to when this request for applications was issued.

Inquiries to this request for applications may be submitted by email to rfa.ide.asia@uncdf.org cc uncdf.rfa@uncdf.org

All applications must be submitted by 13 August 2023 through the UNCDF e-investment platform. The deadline for applications has been extended to 13 August 2023 from the original 6 August 2023 deadline.

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