ADB backs $100 million plan to grow Bangladesh’s rural economy
The project aims to expand access to long-term credit for rural entrepreneurs, create jobs, and promote green finance growth by 2030
DHAKA, Bangladesh (MNTV) — The Asian Development Bank (ADB) has approved a $100 million loan to strengthen Bangladesh’s cottage, micro, small, and medium-sized enterprises (CMSMEs), focusing on rural areas that remain underserved by commercial banks.
The initiative seeks to accelerate economic diversification, expand access to long-term financing, and empower women entrepreneurs across the country.
The agreement, signed in Dhaka on Thursday, supports the second phase of Bangladesh’s Small and Medium-Sized Enterprises Development Project. The program is designed to generate at least 15,000 new jobs by 2030, with a particular focus on women-led ventures that face structural barriers to credit and market access.
ADB said the financing will help rural CMSMEs secure medium and long-term loans for business expansion while enhancing the capacity of local financial institutions to deliver specialized credit products.
The project also includes training programs to equip women entrepreneurs with skills in business management, financial literacy, and digital tools.
Beyond direct lending, the program provides $950,000 in technical assistance to strengthen Bangladesh Bank and participating financial institutions. This support will help develop training modules, establish action plans for green finance, and encourage value chain-based financing for small businesses.
Analysts say the initiative could be transformative for rural economies, where small enterprises form the backbone of employment but struggle to grow due to limited access to capital. By integrating climate resilience and green innovation into the project, ADB aims to help local businesses expand sustainably while meeting global environmental standards.
The multilateral lender has long been a key development partner for Bangladesh, supporting infrastructure, energy transition, and private sector reforms. With this project, ADB is positioning small-scale entrepreneurs — particularly women — as central players in building a more inclusive and climate-resilient economy.
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