Written by The Banking Post
Bangladesh and the Asian Development Bank (ADB) have signed a $100 million financing agreement to improve access to medium- and long-term credit for cottage, micro, small, and medium-sized enterprises (CMSMEs) operating outside Dhaka and Chattogram metropolitan areas.
The agreement was signed on Thursday at the Economic Relations Division (ERD) office in Dhaka by ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director Hoe Yun Jeong, according to a press release.
The initiative, titled Second Small and Medium-Sized Enterprises Development Project (Phase 2), aims to create at least 15,000 jobs by 2030 while accelerating rural economic growth and reducing poverty.
The project seeks to expand the number and size of commercially viable CMSMEs and strengthen employment generation in the sector, particularly in rural regions where access to bank credit remains limited.
It will also encourage innovation by helping CMSMEs integrate climate risk management into business operations and develop green products, opening up new market opportunities.
To support institutional capacity, the project includes $950,000 in technical assistance for Bangladesh Bank and participating financial institutions. The funds will be used to train entrepreneurs—particularly women-led CMSMEs—and develop action plans on green finance, value chain-based financing, and technical standards.
“As Bangladesh strives to diversify and transition its economy, developing CMSMEs is key to accelerating growth and reducing poverty, inequality, and regional disparity,” said ADB Country Director Hoe Yun Jeong.
“This project will help achieve these goals by supporting rural CMSMEs—especially those run by women—with better access to long-term capital and improved business management skills,” he added.
The initiative also complements ADB’s non-sovereign operations, enhancing the capacity of financial institutions to deliver sustainable credit solutions and support rural entrepreneurship.
