Written by The Banking Post
The Asian Development Bank (ADB) has signed a $100 million loan agreement with the Government of Bangladesh to expand financing access for cottage, micro, small, and medium-sized enterprises (CMSMEs) operating outside Dhaka and Chattogram.
The deal was inked on Tuesday at the Economic Relations Division (ERD) office in Dhaka by Md Shahriar Kader Siddiky, ERD Secretary, and Hoe Yun Jeong, ADB Country Director for Bangladesh.
“As Bangladesh strives to diversify and transition its economy, developing CMSMEs is key to accelerating growth and reducing poverty, income inequality, and regional disparity,” said Mr Jeong. “This project will support rural CMSMEs—especially women-led ones—through improved access to long-term capital.”
He added that the project will also help strengthen financial institutions’ capacity to better serve rural entrepreneurs and enhance business management skills among women.
Titled the Second Small and Medium-Sized Enterprises Development Project (Phase 2), the initiative aims to create at least 15,000 jobs by 2030 and boost rural economic activity by making long-term financing more accessible.
Beyond expanding finance, the project will promote the growth of commercially viable CMSMEs, support employment generation, and build resilience through climate risk management and green product development.
ADB has also attached $950,000 in technical assistance to strengthen institutional capacity at Bangladesh Bank and partner financial institutions. The assistance will fund training, workshops, and action plans on green finance, value-chain financing, and technical standards.
The initiative complements ADB’s non-sovereign operations, reinforcing its long-term commitment to inclusive and sustainable private sector development in Bangladesh.
