In a significant step toward empowering rural businesses, the Government of Bangladesh and the Asian Development Bank (ADB) have signed a $100 million loan agreement aimed at strengthening cottage, micro, small, and medium-sized enterprises (CMSMEs) outsidethe country’s major urban hubs of Dhaka and Chattogram.

The agreement was signed at the Economic Relations Division (ERD) offices in Dhaka by Md Shahriar Kader Siddiky, Secretary of ERD, and Hoe Yun Jeong, ADB’s Country Director for Bangladesh.

Speaking at the ceremony, Hoe Yun Jeong highlighted the importance of inclusive economic growth, noting, “Supporting CMSMEs—especially women-led enterprises in rural areas—is essential for diversifying Bangladesh’s economy, reducing poverty, and promoting regional equality.”

The project is expected to create at least 15,000 new jobs in rural regions by 2030 by easing access to credit, improving business capacity, and expanding financial services tailored to underserved entrepreneurs. Particular focus will be given to women-led businesses, which will receive targeted training and support.

The initiative also promotes climate resilience and green market development, encouraging rural businesses to adopt sustainable practices and explore environmentally friendly markets. ADB aims to reinforce financial institutions’ capacity to support CMSMEs through expanded green finance and value chain-based lending.

To bolster the program’s effectiveness, ADB is also providing $950,000 in technical assistance. This will support institutional strengthening for the Bangladesh Bank and participating lenders, while also enhancing training, technical standards, and pilot projects for innovative financing approaches.

Established in 1966, ADB is a multilateral development bank with 69 member countries, 50 of which are from the Asia-Pacific region. The bank continues to partner with governments to promote inclusive and sustainable development, focusing on infrastructure, innovation, and climate adaptation.