BRAC Bank and BIFFL Unite for SME Growth

BRAC Bank PLC has formalised a strategic partnership with the Bangladesh Infrastructure Finance Fund Limited (BIFFL) to significantly broaden access to affordable financing for Small and Medium Enterprises (SMEs). This collaborative effort specifically targets the enhancement of the country’s food value chain, a sector critical to national food security and economic stability. By aligning their resources, the two institutions aim to empower local entrepreneurs with the capital necessary to modernise operations and scale their businesses.

Under the terms of the agreement, BRAC Bank has been designated as a participating financial institution (PFI) in a specialised low-cost loan programme. This initiative is backed by the Japan International Cooperation Agency (JICA) and is part of the broader “Food Value Chain Improvement Project.” The programme is designed to address the historic shortage of long-term, low-interest credit available to smaller businesses, which often struggle with the high costs of traditional commercial lending.

Strategic Objectives and Financial Framework

The primary goal of this partnership is to provide SMEs in priority sectors with competitive, long-tenure financing. This allows businesses to invest in essential infrastructure—such as cold storage, advanced processing machinery, and efficient distribution networks—without the burden of immediate, high-repayment cycles.

A Milestone for the SME Ecosystem

The partnership agreement was officially signed on 17 December at the BRAC Bank head office in Dhaka. The document was executed by Md Shaheen Iqbal, Deputy Managing Director and Head of Wholesale Banking at BRAC Bank, and SM Anisuzzaman, Chief Executive Officer of BIFFL. The ceremony was attended by the bank’s top leadership, including Managing Director and CEO Tareq Refat Ullah Khan, and Additional Managing Director Syed Abdul Momen, who heads the SME banking division.

Tareq Refat Ullah Khan remarked that this collaboration is a milestone in building a resilient and inclusive ecosystem for small businesses. He noted that SMEs often find it difficult to secure sustainable growth without access to patient capital. By leveraging JICA’s development funding through BIFFL’s structured framework, BRAC Bank is positioned to channel vital resources into the hands of entrepreneurs. This infusion of capital is expected to bolster investment, encourage expansion, and ensure long-term resilience in an increasingly volatile global business environment.

The project highlights a shift towards sector-specific financing, ensuring that the agricultural and food processing industries—which form the backbone of the rural economy—receive the technological and financial support required to meet international standards.