SME Foundation to provide Tk 125 crore loan to agro-based industries

The SME Foundation will provide loan assistance of Tk 125 crore to cottage, micro, small and medium (CMSME) entrepreneurs in the country's agro-based industry and food processing sectors, with support from the Japan International Cooperation Agency (JICA). The loans will be disbursed through banks and financial institutions at a maximum interest rate of 9 percent.

A memorandum of understanding was signed between the two organisations at the head office of Bangladesh Infrastructure Finance Fund Limited (BIFFL) in the capital on Tuesday, March 31.

Anwar Hossain Chowdhury, Managing Director of SME Foundation, and S M Anisuzzaman, Chief Executive Officer of BIFFL, signed the agreement on behalf of their respective organisations.

Under the agreement, funding will be provided on easy terms to small and medium entrepreneurs in agro-based industry and food processing sectors from the Food Value Chain Improvement Project fund of BIFFL. The project, supported financially and technically by JICA, aims to develop food value chains, strengthen food security and enhance entrepreneur capacity.

Women entrepreneurs will be given special priority under the project. Funding will cover fruit, vegetable and spice processing; rice and pulse processing; edible oil production; seed processing; organic fertiliser and biopesticide production; and related wholesale, logistics and retail sectors.

As part of capital investment, financing will also be available for purchasing machinery and equipment, factory infrastructure development, warehouse construction, and other supportive infrastructure development. Additionally, entrepreneurs will receive assistance with technical knowledge, advisory services and training programmes. Support will also be provided for achieving international food safety standards such as ISO, HACCP and halal certification.

Senior officials from both organisations, including SME Foundation Deputy Managing Director Md Nazim Hasan Sattar, General Manager Mohammad Jahangir Hossain and Md Abdus Salam Sarder, were present at the signing ceremony.

The SME Foundation expects this initiative will strengthen the country's food value chain, reduce import dependence, increase export potential and create new employment opportunities in rural economies.