Bangladesh-ADB sign $100m deal to boost rural CMSMES

The Asian Development Bank (ADB) and the Government of Bangladesh have launched a US$100 million loan initiative targeting cottage, micro, small and medium-sized enterprises (CMSMEs) outside Dhaka and Chattogram, aiming to boost rural business growth through improved access to credit.

Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, Country Director of ADB, signed the agreement on behalf of Bangladesh and ADB, respectively, at a ceremony held at the ERD offices in Dhaka.

Hoe Yun Jeong emphasised that supporting CMSMEs, especially those led by women in rural areas, is vital for Bangladesh's economic diversification, poverty reduction and regional equality. The project directly addresses these goals through improved financial access, capacity-building for women entrepreneurs and support for financial institutions.

This project aims to create at least 15,000 jobs in rural areas by 2030, driving economic inclusion where access to finance is most limited. By increasing the number and scale of viable rural CMSMEs, it seeks to elevate their impact on employment and growth.

The initiative also strengthens financial institutions supporting CMSMEs and encourages climate resilience. It promotes expansion into green markets and seeks to equip businesses to capitalise on new economic opportunities.

In addition, the project includes US$950,000 in technical assistance to strengthen the institutional capacity of Bangladesh Bank and participating lenders, as well as to provide capacity support for CMSMEs—particularly women-led enterprises. It will develop training modules, conduct workshops and support the formulation of action plans for green finance and value chain-based financing, as well as technical standards and pilot initiatives.