Our lending is expanding access to finance for up to 3,500 MSMEs and women-led businesses in Bangladesh.
There are around 10 million micro, small and medium-sized enterprises (MSMEs) in Bangladesh. These MSMEs employ 80 per cent of the population and are responsible for half of the country’s industrial output. The Central Bank of Bangladesh views MSMEs as indispensable for overall economic development and has identified women entrepreneurs as crucial for sustainable economic growth and poverty reduction. However, access to finance remains a major challenge, with only 20 per cent of total loans in the country going to SMEs, including women-owned enterprises.
In 2024, we announced a £40 million loan to BRAC Bank, which is sponsored by BRAC NGO, a leading non-government organisation with a mandate for impact investment and financial inclusion. BRAC Bank has served 1.5 million MSMEs since 2001. Half of our loan will be directed to MSMEs and the other half will target women entrepreneurs – mostly first-time borrowers – that qualify under the 2X criteria. In total, the loan is expected to help finance up to 3,500 MSMEs and women-led businesses in Bangladesh via BRAC Bank’s extensive local network.
