Silatech has announced a partnership with BRAC, the world’s largest development organisation, to promote youth income generation through financial inclusion and unlock access to finance for 684,212 youths in Bangladesh to become self-employed.
The project, Unlocking Financial Solutions for Youth Enterprise Development was signed on the sidelines of the 78th edition of the United Nations General Assembly (UNGA) in New York on Monday.
Silatech said in a statement that the project aims to address the lack of access to traditional financing resources for the youth of Bangladesh who seek to sustain, start, or expand their income-generating ventures.
The statement added that over the course of three years, the project will provide financing products to young people who do not have access to traditional banking services. Moreover, it will offer financial literacy and entrepreneurial training programmes to enhance the sustainability of their ventures and improve the financial literacy and capabilities of youth entrepreneurs.
The lack of access to formal financing is a significant challenge for small and medium enterprises (SMEs) in Bangladesh, with the World Bank estimating a financing gap of USD 2.8 billion. This gap is particularly pronounced for women-led SMEs, as 60 percent of them lack collateral.
In this context, Silatech CEO Hassan Al Mulla said: “By promoting youth income generation through financial inclusion and empowering Bangladesh’s youth, we are confident that this project will significantly improve their livelihoods, create more employment opportunities within their ventures, and drive sustainable economic growth. Bangladesh has a huge youth population with few opportunities as it is the densest country in the world.”