The SME Foundation will provide Tk 125 crore in loans to cottage, micro, small, and medium entrepreneurs in Bangladesh’s agro-based and food processing sectors. The financing, supported by the Japan International Cooperation Agency (JICA), will be distributed through banks and financial institutions at a maximum interest rate of 9 percent. The agreement was signed on March 31, 2026, at the headquarters of Bangladesh Infrastructure Finance Fund Limited (BIFFL) in Dhaka.
Under the agreement, funds from BIFFL’s Food Value Chain Improvement Project will be used to finance entrepreneurs on easy terms. The initiative, operated with JICA’s assistance, aims to strengthen the food value chain, ensure food security, and enhance entrepreneurial skills. Women entrepreneurs will receive special priority. The program covers fruit, vegetable, and spice processing, rice and pulse milling, edible oil and seed processing, organic fertilizer, and biopesticide production, along with related wholesale, logistics, and retail sectors.
The initiative also includes financing for machinery purchase, factory upgrades, and warehouse construction, as well as training and technical support. It is expected to strengthen the food value chain, reduce import dependence, expand export opportunities, and create rural employment.