2:36 am, Friday, 10 October 2025
BREAKING NEWS
Reviving the Rural Economy: $100 Million ADB–Bangladesh Agreement The Journey Begins for Cox’s Bazar’s First Plastic Recycling Plant Why the world’s biggest food company is stepping back Nestlé has withdrawn from a high-profile international alliance to cut methane from dairy supply chains, a move that instantly sharpened debate over how fast and by what methods the sector should decarbonize; the company says it will keep pursuing on-farm emissions cuts through its own programs while reassessing the group’s approach and governance, but the exit deprives the coalition of its most recognizable member and risks slowing peer benchmarking, shared pilot data, and pooled purchasing that can bring down costs for farmers. Methane from cattle is a potent, short-lived climate pollutant, and many governments have leaned on voluntary industry compacts to accelerate adoption of feed additives, manure management, and breeding strategies; critics of Nestlé’s decision warn that a fragmentation of efforts could reduce transparency and make it harder for buyers, lenders, and regulators to compare progress across brands, whereas supporters counter that company-led projects tied to local agronomy and subsidies often deliver faster, measurable gains than broad global charters. The policy backdrop is shifting as well: several markets are moving from pure carrots to a mix of incentives and performance-based conditions on grants and export supports, and that pivot raises stakes for how milk processors document emissions baselines and third-party verification, because the credibility of Scope 3 targets rests on comparable methodologies rather than marketing claims alone. Practically, much of the abatement economics hinge on who pays for early-stage inputs like methane-reducing feed supplements and slurry lids; with farm margins tight, a coordinated model—blending buyer premiums, public cost-shares, and green-finance instruments—is usually needed to avoid penalizing smaller producers, and Nestlé’s departure complicates the coalition’s ability to aggregate demand and negotiate lower unit costs at scale. What changes on the farm, for financiers, and across supply chains For producers, the near-term signal is mixed: one major buyer is still funding on-farm pilots but no longer inside the alliance’s shared roadmap, which could slow knowledge transfer between regions that differ on climate, feed, and herd structure, even as individual Nestlé programs continue to trial seaweed-based additives, nitrification inhibitors, covered lagoons with biogas capture, and pasture rotations to improve enteric and manure outcomes; in parallel, veterinarians and breeders stress that fertility and animal health gains can cut emissions intensity without shrinking output, though activists argue absolute reductions are needed if national targets are to be met. Financiers and insurers will keep pressing for comparable disclosures because the cost of capital increasingly reflects climate-risk metrics: banks baking “sustainability-linked” terms into dairy loans need clear, auditable KPIs, and exporters eyeing tariff-free access to markets with carbon-border rules will face tougher paperwork if standards splinter, which is why industry groups are urging a minimum common MRV (measurement-reporting-verification) framework even when brand strategies differ. For consumers—and for downstream brands in chocolate, infant formula, and ice cream—the implications will show up more in labels and price architecture than in the taste of products: if buyers pay farmers for verified methane abatement while feed and equipment remain pricey, some costs may pass through, but over time biogas revenue, fertilizer substitution, and efficiency gains can offset outlays and stabilize retail pricing. The political risk is that today’s corporate exit becomes tomorrow’s cultural flashpoint, especially in countries where farmer protests have already shaped election cycles; to avoid backlash, climate policy designers are experimenting with “pay for performance” that rewards measured reductions rather than prescribing a single technology path. The bottom line is not that dairy decarbonization stalls, but that governance gets messier: Nestlé’s solo track keeps momentum on pilots yet raises coordination costs for everyone else, and the outcome to watch is whether competing alliances converge on interoperable data, verification, and crediting rules so that farmers can sell a ton of avoided methane once—and get recognized for it across buyers, banks, and border regimes. SOFTBANK BUYS ABB’S ROBOTICS UNIT FOR $5.4B, BETTING ON A NEW WAVE OF FACTORY AUTOMATION Nurul Majid Humayun’s Death and the Placement of Prisons under the International Red Cross IEA TRIMS U.S. RENEWABLES OUTLOOK AS FEDERAL POLICIES SHIFT; GLOBAL SOLAR STILL SURGES GAZA TALKS ENTER DAY THREE IN EGYPT AS MEDIATORS TEST PATH TO FULL CEASE-FIRE OCTOBER PRIME DAY 2025: THE TECH DEALS THAT ARE ACTUALLY WORTH YOUR MONEY PRIME DAY, AGAIN: WIRED’S BIG LIST SHOWS HOW TO SHOP SMART AND SKIP THE DUDS TIMOTHÉE CHALAMET TEASES ‘MARTY SUPREME’ AFTER NYFF PREMIERE, KEEPING PLOT UNDER WRAPS
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Reviving the Rural Economy: $100 Million ADB–Bangladesh Agreement

Sarakhon Report

To accelerate rural entrepreneurship, women-led businesses, and green investment, the Government of Bangladesh and the Asian Development Bank (ADB) have jointly signed a major agreement worth US$100 million. The project aims to boost capital flow in rural economies, generate employment, and establish a sustainable development framework.

A New Commitment to Sustainable Growth

The Government of Bangladesh and the Asian Development Bank (ADB) have signed an important agreement for US$100 million to expand financing capacity for cottage, micro, small, and medium enterprises (CMSMEs) in rural and semi-urban areas.
The project’s goal is not merely loan disbursement—it seeks to foster entrepreneurship, create jobs, and promote investment in green businesses to build a sustainable development structure.

Project Framework and Objectives

Under the “Second Small and Medium-Sized Enterprises Development Project (Phase 2),” the goal is to create at least 15,000 jobs by 2030.
The funding will be used to:

  • Provide long-term credit access for rural entrepreneurs.
  • Enhance financial inclusion for women entrepreneurs.
  • Support climate-resilient production and green innovation;
  • Strengthen the capacity of participating banks and financial institutions; and
  • Assist Bangladesh Bank in policy training and technology enhancement.

ADB will also implement a technical assistance program of about US$950,000 in collaboration with the central bank and the Economic Relations Division (ERD). This program will include banker training, formulation of green finance guidelines, and development of value-chain-based credit models.

Potential Impact on the Rural Economy

Most small enterprises in Bangladesh still operate outside metropolitan areas, but their access to bank credit remains limited. ADB’s initiative could significantly increase the flow of capital into rural economies, thereby reducing regional disparities, alleviating poverty, and promoting women’s entrepreneurship.
At the same time, through “green business” initiatives and climate-resilient systems, the project will help establish a sustainable business environment.

IMF Context: Link with Broader Economic Policy

In June 2025, the International Monetary Fund (IMF) approved new loans for Bangladesh—US$884 million (ECF/EFF) and US$453 million (RSF)—to support monetary reforms, improve revenue management, and enhance flexibility in external transactions.

According to the IMF Bangladesh Country Report 2025:

  • The country’s economy remains at moderate debt-risk levels.
  • Inflation and foreign currency shortages are pressuring growth, and
  • Without reforms to taxation and banking supervision, investment flows could be disrupted.

In this context, ADB’s CMSME funding aligns closely with the IMF’s recommended policies to increase financial inclusion and accelerate private-sector growth.

Current Reality of Small and Medium Enterprises

According to Bangladesh Bank and World Bank data:

  • About 78% of total employment in Bangladesh comes from the SME sector;
  • This sector contributes 25–30% of national GDP;
  • Yet, only 16–18% of bank loans reach CMSMEs.

In recent years, stricter central bank reserve and provisioning policies have discouraged many commercial banks from extending CMSME credit. As a result, access to affordable loans remains a major challenge for rural entrepreneurs.
ADB’s project could help fill this gap—especially for women-led and climate-conscious businesses.

Women Entrepreneurs and the Green Economy: A New Horizon

The agreement places special emphasis on training and enhancing financial literacy for women entrepreneurs.
ADB Country Director Hoe Yun Jeong stated:
“This project is not just about financing—it will strengthen women’s entrepreneurial capacity and develop managerial skills.”

Moreover, considering climate risks, the initiative will encourage enterprises to invest in “green products,” boosting the global competitiveness of Bangladeshi goods.

Challenges and Policy Recommendations

Several challenges remain in the project’s implementation:

  • Bureaucratic complexity and slow loan disbursement in the banking sector.
  • Limited financial literacy and record-keeping among entrepreneurs;
  • Administrative delays and project-level complications.

Policy recommendations include:

  • Tax reform and improved revenue transparency;
  • Creation of a CMSME database and digital loan-scoring system;
  • Establishment of guarantee funds and low-interest schemes for women entrepreneurs;
  • Tax incentives and stimulus policies for green investment.

Toward Coordinated Development

The US$100 million ADB agreement is not just financial assistance—it represents a structural step toward sustainable growth for Bangladesh.
If implemented effectively and aligned with the IMF’s financial reform agenda, this fund could turn the country’s small and medium enterprises—the lifeblood of the rural economy—into the main drivers of economic revival.

#ADB #IMF #CMSME #BangladeshEconomy #GreenFinance #WomenEntrepreneurship #SarakhonReport #BangladeshDevelopment

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07:34:01 pm, Thursday, 9 October 2025

Reviving the Rural Economy: $100 Million ADB–Bangladesh Agreement

The Journey Begins for Cox’s Bazar’s First Plastic Recycling Plant

Why the world’s biggest food company is stepping back Nestlé has withdrawn from a high-profile international alliance to cut methane from dairy supply chains, a move that instantly sharpened debate over how fast and by what methods the sector should decarbonize; the company says it will keep pursuing on-farm emissions cuts through its own programs while reassessing the group’s approach and governance, but the exit deprives the coalition of its most recognizable member and risks slowing peer benchmarking, shared pilot data, and pooled purchasing that can bring down costs for farmers. Methane from cattle is a potent, short-lived climate pollutant, and many governments have leaned on voluntary industry compacts to accelerate adoption of feed additives, manure management, and breeding strategies; critics of Nestlé’s decision warn that a fragmentation of efforts could reduce transparency and make it harder for buyers, lenders, and regulators to compare progress across brands, whereas supporters counter that company-led projects tied to local agronomy and subsidies often deliver faster, measurable gains than broad global charters. The policy backdrop is shifting as well: several markets are moving from pure carrots to a mix of incentives and performance-based conditions on grants and export supports, and that pivot raises stakes for how milk processors document emissions baselines and third-party verification, because the credibility of Scope 3 targets rests on comparable methodologies rather than marketing claims alone. Practically, much of the abatement economics hinge on who pays for early-stage inputs like methane-reducing feed supplements and slurry lids; with farm margins tight, a coordinated model—blending buyer premiums, public cost-shares, and green-finance instruments—is usually needed to avoid penalizing smaller producers, and Nestlé’s departure complicates the coalition’s ability to aggregate demand and negotiate lower unit costs at scale. What changes on the farm, for financiers, and across supply chains For producers, the near-term signal is mixed: one major buyer is still funding on-farm pilots but no longer inside the alliance’s shared roadmap, which could slow knowledge transfer between regions that differ on climate, feed, and herd structure, even as individual Nestlé programs continue to trial seaweed-based additives, nitrification inhibitors, covered lagoons with biogas capture, and pasture rotations to improve enteric and manure outcomes; in parallel, veterinarians and breeders stress that fertility and animal health gains can cut emissions intensity without shrinking output, though activists argue absolute reductions are needed if national targets are to be met. Financiers and insurers will keep pressing for comparable disclosures because the cost of capital increasingly reflects climate-risk metrics: banks baking “sustainability-linked” terms into dairy loans need clear, auditable KPIs, and exporters eyeing tariff-free access to markets with carbon-border rules will face tougher paperwork if standards splinter, which is why industry groups are urging a minimum common MRV (measurement-reporting-verification) framework even when brand strategies differ. For consumers—and for downstream brands in chocolate, infant formula, and ice cream—the implications will show up more in labels and price architecture than in the taste of products: if buyers pay farmers for verified methane abatement while feed and equipment remain pricey, some costs may pass through, but over time biogas revenue, fertilizer substitution, and efficiency gains can offset outlays and stabilize retail pricing. The political risk is that today’s corporate exit becomes tomorrow’s cultural flashpoint, especially in countries where farmer protests have already shaped election cycles; to avoid backlash, climate policy designers are experimenting with “pay for performance” that rewards measured reductions rather than prescribing a single technology path. The bottom line is not that dairy decarbonization stalls, but that governance gets messier: Nestlé’s solo track keeps momentum on pilots yet raises coordination costs for everyone else, and the outcome to watch is whether competing alliances converge on interoperable data, verification, and crediting rules so that farmers can sell a ton of avoided methane once—and get recognized for it across buyers, banks, and border regimes.

SOFTBANK BUYS ABB’S ROBOTICS UNIT FOR $5.4B, BETTING ON A NEW WAVE OF FACTORY AUTOMATION

Nurul Majid Humayun’s Death and the Placement of Prisons under the International Red Cross

IEA TRIMS U.S. RENEWABLES OUTLOOK AS FEDERAL POLICIES SHIFT; GLOBAL SOLAR STILL SURGES

GAZA TALKS ENTER DAY THREE IN EGYPT AS MEDIATORS TEST PATH TO FULL CEASE-FIRE

OCTOBER PRIME DAY 2025: THE TECH DEALS THAT ARE ACTUALLY WORTH YOUR MONEY

PRIME DAY, AGAIN: WIRED’S BIG LIST SHOWS HOW TO SHOP SMART AND SKIP THE DUDS

TIMOTHÉE CHALAMET TEASES ‘MARTY SUPREME’ AFTER NYFF PREMIERE, KEEPING PLOT UNDER WRAPS

News Title :
Reviving the Rural Economy: $100 Million ADB–Bangladesh Agreement The Journey Begins for Cox’s Bazar’s First Plastic Recycling Plant Why the world’s biggest food company is stepping back Nestlé has withdrawn from a high-profile international alliance to cut methane from dairy supply chains, a move that instantly sharpened debate over how fast and by what methods the sector should decarbonize; the company says it will keep pursuing on-farm emissions cuts through its own programs while reassessing the group’s approach and governance, but the exit deprives the coalition of its most recognizable member and risks slowing peer benchmarking, shared pilot data, and pooled purchasing that can bring down costs for farmers. Methane from cattle is a potent, short-lived climate pollutant, and many governments have leaned on voluntary industry compacts to accelerate adoption of feed additives, manure management, and breeding strategies; critics of Nestlé’s decision warn that a fragmentation of efforts could reduce transparency and make it harder for buyers, lenders, and regulators to compare progress across brands, whereas supporters counter that company-led projects tied to local agronomy and subsidies often deliver faster, measurable gains than broad global charters. The policy backdrop is shifting as well: several markets are moving from pure carrots to a mix of incentives and performance-based conditions on grants and export supports, and that pivot raises stakes for how milk processors document emissions baselines and third-party verification, because the credibility of Scope 3 targets rests on comparable methodologies rather than marketing claims alone. Practically, much of the abatement economics hinge on who pays for early-stage inputs like methane-reducing feed supplements and slurry lids; with farm margins tight, a coordinated model—blending buyer premiums, public cost-shares, and green-finance instruments—is usually needed to avoid penalizing smaller producers, and Nestlé’s departure complicates the coalition’s ability to aggregate demand and negotiate lower unit costs at scale. What changes on the farm, for financiers, and across supply chains For producers, the near-term signal is mixed: one major buyer is still funding on-farm pilots but no longer inside the alliance’s shared roadmap, which could slow knowledge transfer between regions that differ on climate, feed, and herd structure, even as individual Nestlé programs continue to trial seaweed-based additives, nitrification inhibitors, covered lagoons with biogas capture, and pasture rotations to improve enteric and manure outcomes; in parallel, veterinarians and breeders stress that fertility and animal health gains can cut emissions intensity without shrinking output, though activists argue absolute reductions are needed if national targets are to be met. Financiers and insurers will keep pressing for comparable disclosures because the cost of capital increasingly reflects climate-risk metrics: banks baking “sustainability-linked” terms into dairy loans need clear, auditable KPIs, and exporters eyeing tariff-free access to markets with carbon-border rules will face tougher paperwork if standards splinter, which is why industry groups are urging a minimum common MRV (measurement-reporting-verification) framework even when brand strategies differ. For consumers—and for downstream brands in chocolate, infant formula, and ice cream—the implications will show up more in labels and price architecture than in the taste of products: if buyers pay farmers for verified methane abatement while feed and equipment remain pricey, some costs may pass through, but over time biogas revenue, fertilizer substitution, and efficiency gains can offset outlays and stabilize retail pricing. The political risk is that today’s corporate exit becomes tomorrow’s cultural flashpoint, especially in countries where farmer protests have already shaped election cycles; to avoid backlash, climate policy designers are experimenting with “pay for performance” that rewards measured reductions rather than prescribing a single technology path. The bottom line is not that dairy decarbonization stalls, but that governance gets messier: Nestlé’s solo track keeps momentum on pilots yet raises coordination costs for everyone else, and the outcome to watch is whether competing alliances converge on interoperable data, verification, and crediting rules so that farmers can sell a ton of avoided methane once—and get recognized for it across buyers, banks, and border regimes. SOFTBANK BUYS ABB’S ROBOTICS UNIT FOR $5.4B, BETTING ON A NEW WAVE OF FACTORY AUTOMATION Nurul Majid Humayun’s Death and the Placement of Prisons under the International Red Cross IEA TRIMS U.S. RENEWABLES OUTLOOK AS FEDERAL POLICIES SHIFT; GLOBAL SOLAR STILL SURGES GAZA TALKS ENTER DAY THREE IN EGYPT AS MEDIATORS TEST PATH TO FULL CEASE-FIRE OCTOBER PRIME DAY 2025: THE TECH DEALS THAT ARE ACTUALLY WORTH YOUR MONEY PRIME DAY, AGAIN: WIRED’S BIG LIST SHOWS HOW TO SHOP SMART AND SKIP THE DUDS TIMOTHÉE CHALAMET TEASES ‘MARTY SUPREME’ AFTER NYFF PREMIERE, KEEPING PLOT UNDER WRAPS

Reviving the Rural Economy: $100 Million ADB–Bangladesh Agreement

07:34:01 pm, Thursday, 9 October 2025

To accelerate rural entrepreneurship, women-led businesses, and green investment, the Government of Bangladesh and the Asian Development Bank (ADB) have jointly signed a major agreement worth US$100 million. The project aims to boost capital flow in rural economies, generate employment, and establish a sustainable development framework.

A New Commitment to Sustainable Growth

The Government of Bangladesh and the Asian Development Bank (ADB) have signed an important agreement for US$100 million to expand financing capacity for cottage, micro, small, and medium enterprises (CMSMEs) in rural and semi-urban areas.
The project’s goal is not merely loan disbursement—it seeks to foster entrepreneurship, create jobs, and promote investment in green businesses to build a sustainable development structure.

Project Framework and Objectives

Under the “Second Small and Medium-Sized Enterprises Development Project (Phase 2),” the goal is to create at least 15,000 jobs by 2030.
The funding will be used to:

  • Provide long-term credit access for rural entrepreneurs.
  • Enhance financial inclusion for women entrepreneurs.
  • Support climate-resilient production and green innovation;
  • Strengthen the capacity of participating banks and financial institutions; and
  • Assist Bangladesh Bank in policy training and technology enhancement.

ADB will also implement a technical assistance program of about US$950,000 in collaboration with the central bank and the Economic Relations Division (ERD). This program will include banker training, formulation of green finance guidelines, and development of value-chain-based credit models.

Potential Impact on the Rural Economy

Most small enterprises in Bangladesh still operate outside metropolitan areas, but their access to bank credit remains limited. ADB’s initiative could significantly increase the flow of capital into rural economies, thereby reducing regional disparities, alleviating poverty, and promoting women’s entrepreneurship.
At the same time, through “green business” initiatives and climate-resilient systems, the project will help establish a sustainable business environment.

IMF Context: Link with Broader Economic Policy

In June 2025, the International Monetary Fund (IMF) approved new loans for Bangladesh—US$884 million (ECF/EFF) and US$453 million (RSF)—to support monetary reforms, improve revenue management, and enhance flexibility in external transactions.

According to the IMF Bangladesh Country Report 2025:

  • The country’s economy remains at moderate debt-risk levels.
  • Inflation and foreign currency shortages are pressuring growth, and
  • Without reforms to taxation and banking supervision, investment flows could be disrupted.

In this context, ADB’s CMSME funding aligns closely with the IMF’s recommended policies to increase financial inclusion and accelerate private-sector growth.

Current Reality of Small and Medium Enterprises

According to Bangladesh Bank and World Bank data:

  • About 78% of total employment in Bangladesh comes from the SME sector;
  • This sector contributes 25–30% of national GDP;
  • Yet, only 16–18% of bank loans reach CMSMEs.

In recent years, stricter central bank reserve and provisioning policies have discouraged many commercial banks from extending CMSME credit. As a result, access to affordable loans remains a major challenge for rural entrepreneurs.
ADB’s project could help fill this gap—especially for women-led and climate-conscious businesses.

Women Entrepreneurs and the Green Economy: A New Horizon

The agreement places special emphasis on training and enhancing financial literacy for women entrepreneurs.
ADB Country Director Hoe Yun Jeong stated:
“This project is not just about financing—it will strengthen women’s entrepreneurial capacity and develop managerial skills.”

Moreover, considering climate risks, the initiative will encourage enterprises to invest in “green products,” boosting the global competitiveness of Bangladeshi goods.

Challenges and Policy Recommendations

Several challenges remain in the project’s implementation:

  • Bureaucratic complexity and slow loan disbursement in the banking sector.
  • Limited financial literacy and record-keeping among entrepreneurs;
  • Administrative delays and project-level complications.

Policy recommendations include:

  • Tax reform and improved revenue transparency;
  • Creation of a CMSME database and digital loan-scoring system;
  • Establishment of guarantee funds and low-interest schemes for women entrepreneurs;
  • Tax incentives and stimulus policies for green investment.

Toward Coordinated Development

The US$100 million ADB agreement is not just financial assistance—it represents a structural step toward sustainable growth for Bangladesh.
If implemented effectively and aligned with the IMF’s financial reform agenda, this fund could turn the country’s small and medium enterprises—the lifeblood of the rural economy—into the main drivers of economic revival.

#ADB #IMF #CMSME #BangladeshEconomy #GreenFinance #WomenEntrepreneurship #SarakhonReport #BangladeshDevelopment

Editorial : Swadesh Roy

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