Bangladesh Export Drive Creates 180,000 Jobs Beyond Garments

While the RMG sector accounts for 82 percent of exports and has driven rapid economic growth, Bangladesh faces risks from overdependence on a single industry.

Bangladesh’s push to diversify exports beyond ready-made garments (RMG) has generated nearly 180,000 new jobs and driven an 83 percent surge in exports in targeted sectors, according to results from a World Bank Group–backed competitiveness program.

The Export Competitiveness for Jobs project, implemented through collaboration between the World Bank and the International Finance Corporation (IFC), helped non-RMG industries such as leather goods, footwear, light engineering and plastics break into new markets, strengthen compliance with international standards and attract private investment.

Tackling Poverty Through Better Jobs

Despite decades of poverty reduction, around 21 million Bangladeshis still live in extreme poverty. Nearly 90 percent of workers are in the informal sector, and three in five are in vulnerable employment.

While the RMG sector accounts for 82 percent of exports and has driven rapid economic growth, Bangladesh faces risks from overdependence on a single industry. Diversifying into higher-value manufacturing sectors is seen as critical to boosting earnings, productivity and long-term resilience.

However, non-RMG sectors have struggled to integrate into global value chains due to limited adoption of advanced technologies, skills gaps, and insufficient compliance with environmental, social and quality standards.

Exports and Jobs Far Exceed Targets

Between 2016 and 2023, exports in targeted non-RMG sectors grew by nearly 83 percent annually — almost triple the original 30 percent target.

The diversification effort created nearly 180,000 new jobs, far surpassing the initial goal of 60,000 positions.

More than 107,000 people directly benefited from skills upgrading and compliance training, with women representing 38 percent of beneficiaries.

A catalytic Export Readiness Fund (ERF) supported 570 firms — including women-led businesses — through grants designed to improve compliance, upgrade technology and access new markets.

Key results include:

• 260 internationally recognized compliance certificates obtained

• 59 percent sales growth among ERF firms, exceeding the 15.4 percent target

• Entry into 22 new export markets

• Participation of 73 firms in 14 international sourcing fairs

• Over $18 million in private co-investment mobilized

The Market Intelligence Platform, launched in May 2025, now provides exporters with real-time market information and connects Bangladeshi producers directly with international buyers.

Public–Private Collaboration at Scale

The project combined IFC advisory services — funded by the United Kingdom’s Foreign, Commonwealth & Development Office — with concessional financing from the World Bank’s International Development Association (IDA).

IFC supported sector-specific compliance guidelines and policy reforms, while IDA funding strengthened awareness programs and financed the ERF grants.

Private sector engagement from the design stage ensured the initiative addressed real bottlenecks. During the COVID-19 pandemic, the project introduced a special grant window enabling firms to pivot into medical and personal protective equipment production — products that later proved nearly four times more profitable in export markets.

Transparent Grant Management Model

A distinctive feature of the program was the appointment of an independent, internationally recruited third-party grant manager. The entity assessed eligibility, monitored milestone-based deliverables and disbursed funds on a reimbursable basis.

This model improved transparency and accountability, reduced risks of undue influence, and ensured that nearly 98 percent of funds were disbursed on time.

Real Stories Behind the Numbers

For Mim Akter, a floor supervisor at Energyplus Electric and Electronics in Dhaka, the transformation has been personal.

“Five years ago, I started working with only three employees in this section. Today, I lead a team of 50 to 55 workers. My salary increased by almost three times,” she said, crediting the Export Readiness Fund for enabling technology upgrades and advanced training.

Tasleema Miji, Managing Director of Leatherina Private Limited, said ERF support helped her company relocate and comply with environmental standards required for export.

“The support was not just financial; it was also a source of emotional strength,” she said. “Today, when I see our bags reaching beyond Europe to the markets of the United States, I feel proud—not only for myself, but for Bangladesh.”

Scaling the Model

With strong results across targeted industries, stakeholders are now looking to replicate the approach. The Bangladesh Economic Zone Authority plans to adopt similar mechanisms to improve environmental standards among firms operating in special economic zones.

The project underscores the central role of export diversification in advancing the World Bank Group’s jobs agenda — combining compliance reform, skills upgrading and catalytic financing to lift productivity and create better-quality employment.

As Bangladesh seeks to sustain growth and reduce vulnerability, the program demonstrates how targeted support to emerging sectors can unlock new markets, mobilize private capital and expand opportunities — especially for women and small manufacturers.