The Asian Development Bank (ADB) has signed a $100 million agreement with the Government of Bangladesh to assist cottage, micro, small, and medium-sized enterprises (CMSMEs) outside the Dhaka and Chattogram metropolitan areas.
The agreement aims to provide these enterprises with better access to medium and long-term credit to help stimulate economic growth in rural regions.
Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), and Hoe Yun Jeong, ADB’s Country Director, signed the deal at a ceremony on October 9, 2025, in Dhaka.
Hoe Yun Jeong, ADB’s Country Director, said, “Developing CMSMEs is crucial for accelerating economic growth, reducing poverty, and addressing regional disparities in Bangladesh.”
The project will specifically target CMSMEs in rural areas, particularly those run by women, helping them gain access to capital and improve their business management skills.
It is expected to create at least 15,000 jobs by 2030, contributing to both economic growth and poverty reduction in rural areas.
The project also aims to increase the number of commercially viable CMSMEs in rural regions, where access to financial services is limited compared to metropolitan areas.
It will help CMSMEs expand into new markets by integrating climate risk into their business operations and by promoting green products.
The $100 million project will also support the capacity building of Bangladesh Bank and other participating financial institutions with $950,000 in technical assistance.
This assistance will strengthen the financial infrastructure, enabling CMSMEs, particularly women-led enterprises, to access more bank financing and financial services.
Training modules will be developed as part of the project, along with workshops aimed at improving CMSMEs’ financial management and fostering innovation in green finance.
The project will also assist in creating action plans on green finance, value chain-based financing, technical standards, and pilot projects to ensure the sustainable growth of CMSMEs.
ADB, established in 1966, continues to play a key role in supporting inclusive, resilient, and sustainable growth across Asia and the Pacific, leveraging financial tools and strategic partnerships.
With 69 member countries, ADB is working to address complex challenges, build quality infrastructure, and protect the environment for future generations.
