In a significant move to strengthen the nation’s agricultural and industrial infrastructure, BRAC Bank PLC has entered into a strategic partnership with the Bangladesh Infrastructure Finance Fund Limited (BIFFL). This collaboration is specifically designed to enhance the food value chain by providing Small and Medium Enterprises (SMEs) with access to low-cost, long-term credit. By addressing the funding gap in this critical sector, the initiative aims to foster sustainable economic growth and improve food security across the country.
Under this newly formalised agreement, BRAC Bank will operate as a participating financial institution (PFI) within a dedicated loan programme funded by the Japan International Cooperation Agency (JICA). The “Food Value Chain Improvement Project” focuses on elevating the capacity of SMEs by offering competitive interest rates and extended repayment periods—financial products that are traditionally difficult for smaller enterprises to secure in the commercial market.
Strategic Collaboration and Funding Dynamics
The partnership leverages the strengths of three distinct entities: JICA’s development-focused capital, BIFFL’s specialized infrastructure mandate, and BRAC Bank’s extensive SME network. This synergy ensures that capital reaches the “missing middle”—enterprises that are too large for microfinance but struggle to meet the collateral requirements of traditional corporate banking.
| Operational Element | Partnership Specifics |
| Principal Partners | BRAC Bank PLC & BIFFL |
| Primary Beneficiaries | SMEs in the Food Value Chain |
| Funding Source | Japan International Cooperation Agency (JICA) |
| Strategic Goal | Modernisation of Food Processing and Logistics |
| Financial Advantage | Low Interest Rates and Long Tenure |
Leadership Commitment to Inclusive Growth
The agreement was signed on 17 December at BRAC Bank’s head office in Dhaka. The signatories were Md Shaheen Iqbal, Deputy Managing Director and Head of Wholesale Banking, and SM Anisuzzaman, CEO of BIFFL. The ceremony was overseen by the bank’s Managing Director and CEO, Tareq Refat Ullah Khan, alongside Syed Abdul Momen, Additional Managing Director and Head of SME Banking.
Speaking at the event, Tareq Refat Ullah Khan emphasised that access to “patient capital” is the most critical enabler for sustainable enterprise growth. He noted that SMEs across the food value chain—ranging from cold storage operators to food processors—require affordable financing to invest in the technology needed for long-term resilience. By channeling JICA-backed funds through BIFFL, BRAC Bank is reinforcing its commitment to an inclusive financial ecosystem. This initiative is expected to drive efficiency, reduce post-harvest losses, and ensure that Bangladeshi SMEs remain competitive in an increasingly globalised market.