SIDA’s current cooperation strategy with Bangladesh covers 2021-2025. In 2024, SIDA has disbursed nearly one billion SEK across various programs, including 127.7 million SEK in humanitarian aid, primarily for displaced Myanmar nationals (Rohingya) in Cox’s Bazar and the host community.
Muhammad Yunus, chief adviser of Bangladesh’s interim government, has urged Sweden to shift its development assistance strategy from grants to investments in social businesses. Yunus made the appeal during a meeting Sunday with Jakob Granit, director general of the Swedish International Development Cooperation Agency (SIDA), in Dhaka.
Yunus emphasised the potential of social business, particularly in sectors like healthcare, as a more sustainable and impactful approach to development compared to traditional grant aid. “What I have been promoting is social business as grant money is a charity,” Yunus stated, highlighting the distinction between philanthropic donations and investments that generate both social good and financial returns.
Beyond social business, Yunus also sought Sweden’s support in addressing Bangladesh’s energy crisis. He proposed importing hydroelectricity from ‘neighbouring’ Nepal, which possesses significant untapped resources. “We are an energy-starved country,” Yunus explained. “Nepal has a huge resource for producing hydropower, and we are willing to bring it. SIDA can collaborate with both of us to make that happen.”
Changed Geopolitical Situation
Granit acknowledged the “changed geopolitical situation” and the “critically important period” for Bangladesh, stating that SIDA is actively seeking ways to maximise the effectiveness of its assistance. “Also, we are looking for ways on how we can support the Bangladesh government and make sure that we have the right type of support,” Granit said. He also inquired about the interim government’s reform initiatives.
SIDA’s current cooperation strategy with Bangladesh covers 2021-2025. In 2024, SIDA has disbursed nearly one billion SEK across various programs, including 127.7 million SEK in humanitarian aid, primarily for displaced Myanmar nationals (Rohingya) in Cox’s Bazar and the host community.
Yunus welcomed Sweden’s commitment to supporting Bangladesh’s transformation. “As an interim government, we don’t have much time left, but we want to lay down the foundation,” he said. He described the challenges faced by the interim government in rebuilding the country after the previous regime, stating that “everything collapsed in Bangladesh during the past regime,” and the current administration is working to rebuild those “piece by piece.”
Nicolas Weeks, Sweden’s Ambassador to Bangladesh, acknowledged the urgent need to address the Rohingya situation and reaffirmed Sweden’s continued assistance. The discussions highlighted the evolving nature of international development cooperation and the growing emphasis on sustainable, market-based solutions like social business.
