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Bangladesh Agribusiness
Development Project

January 2006 to December 2011

Presented by
Anarul Kabir
Deputy Project Director

1
 Project Background

Overall Objective of the Project:

to reduce poverty by creating employment opportunity in
rural and semi-urban areas through increasing agribusiness
activities.

Outcome of the Project:

to expand activities of rural enterprises engaged in commercial
agriculture including production, input supply, marketing,
processing, and transportation. These will generate
employment in rural and peri-urban areas, raise the value added
of non-traditional crops and commodities, and increase rural
incomes.
 Project Background

Expected Outputs of the Project:

 Establishment, expansion, and successful operation of
agribusinesses by small- scale entrepreneurs.
Strengthened capacity of participating NGOs and Banks in
agribusiness lending.
Strengthened capacity of agribusiness associations in policy
dialogue and agribusiness information and technology
dissemination.
Improved policy environment enabling private sector
participation.
 Project Background

Executing Agencies of the Project:

 Finance Division of the Ministry of Finance (MOF) for
Component 1 (credit component)
 Ministry of Agriculture (MOA) for Component 2 - 5.

Implementing Agencies for the Project:

i. Eastern Bank Ltd. and BASIC Bank Ltd. through three
participating NGOs (ASA, BRAC, TMSS) for Component 1,
ii. Department of Agricultural Marketing (DAM) for
Component 2 - 5.
 Project Background

Project Components:
Component 1: Credit for Small Scale Agribusiness Enterprises
NGOs will provide 28,000 small-scale agribusinesses credit
amounting $500 to $5,000 equivalent.
Component 2: Technical and Marketing Support for Agribusiness
Enterprises-
NGOs will provide technical and marketing assistance
to the borrowers to promote agribusiness development.
Component 3: Strengthening Capacity of Participating NGOs
and Wholesale Banks in Agribusiness Lending
NGOs are assisted to improve business plans and strengthen
institutional capability to manage their loan portfolios. The
Project also strengthens the capacity of BASIC Bank and
Eastern Bank Limited to manage NGO loan portfolio.
 Project Background

Component 4: Improving the Enabling Environment for Agribusiness

The Project helps to remove inefficiencies in the
policy environment to make entry into agribusiness more
attractive for private sector entrepreneurs.

Component 5: Project Implementation Support

The Project Implementation unit (PIU) provides
implementation support. MOA set up a permanent
agribusiness cell for developing policy and regulations,
guiding agribusiness operations, and liaising with other
Ministries, PIU and ADB.
 Project Background

x. Financing Plan of the Project:

Amount
Source %
($ million)
Asian Development Bank 44.62 70.98%
Government of
02.00 3.18%
Bangladesh
Sub-borrowers 16.04 25.51%
Service Providers 0.21 0.33%
Total: 62.86 100.00%
 Gender Action Plan (GAP)

GAP Aims To:

 reduce poverty among women,
 increase women’s participation in agribusiness
development
 increase women’s economic and social benefits
 develop women as contributors to economic growth
 support women’s empowerment in decision making
and public life.
 Main GAP Activities/Targets
1. Credit for Small-Scale Agribusiness Enterprises
 30% of the credit goes to women by 2010.
 Former women micro-credit sub-borrowers are preferred
 Support ventures that create employment opportunities
(at least 2) for the poor and women
 NGOs support preparation of business plans to scale up
beneficiaries’ economic activities

2. Technical and Marketing Support for Small-Scale

Agribusiness Enterprises
 Raise awareness through periodic information campaigns
on business services and credit line using gender-friendly
dissemination methodologies
 NGOs provide technical training and guidance to women
borrowers; assistance in forming producer groups and
associations; and establish linkages to supply chains,
markets, and financial institutions.
 Main GAP Activities/Targets

2. Technical and Marketing Support for Small-Scale

Agribusiness Enterprises (Cont.)
 Identify agribusiness opportunities for women with a sub-
sector study.
 Identify capacity building needs of private sector business
associations and chambers to reach women entrepreneurs.

3. Strengthening Capacity of NGOs and Wholesale

Banks in Agribusiness Lending
 Build capacity of financial intermediaries and NGOs to
support gender based needs and develop a gender-
disaggregated monitoring and reporting system with
indicators, outputs and results.
 Main GAP Activities/Targets

4. Improving the Enabling Environment for Agribusiness

 Identify regulatory and financial constraints to agribusiness
development with analysis on women entrepreneurs
 NGOs and PIU establish linkages with women entrepreneurs
and potential associations, markets, financial institutions
and private sector to promote women in agribusiness
through seminars, trade fairs, rallies and public meetings.
 Establish cooperation between Women Chambers of
Commerce and Industry, Women’s Associations and women
entrepreneurs in agribusiness at District/Upazila levels
 Main GAP Activities/Targets

5. Project Implementation Support

 Organize GAP orientation for all stakeholders (Including
PIU, DAM, PNGOs, Partner Banks, concerned Ministries).
 Orient relevant chambers and business associations’ staff
on gender issues in private sector development and
specifically in promoting gender equality through
agribusiness growth.
 Incorporate status of women entrepreneurs in newsletters
and stakeholder meetings.
 Achievements To Date

 35.86% sub-borrowers are women (Target 30%)

with loan sizes ranging from $500 to $5000
 68.61% women entrepreneurs invested loan for
Production
 5.84% women invested for Processing
 1.46% women invested for Inputs supply
 47.45% women invested loan for Marketing.
Capacity Building of Women Entrepreneurs

 400 women received training on Enterprise Development

and Management under PIU
 5 regional workshops were organized in Khulna, Barisal,
Chittagong, Sylhet and Rajshahi region on “Women in
Agribusiness”. Participants were from BCCI, KCCI, CCCI,
SCCI members from BWCI, borrowers from agribusiness
under concerned PNGOs, representatives from PNGOs,
other local NGOs, Banks (BASIC , EBL), DAM, DLO, DAE
DOF of all the concerned regions. Among total 265
participants, 55% were women.
 One newsletter “Krishi Katha’ was published and circulated
among all stakeholders which includes 2 (two) articles
related to women entrepreneurs.
Women’s Choice of Market, Backward and
Forward Linkages in Value Chain
 1.4% of total women preferred to sell their
products through middlemen

 22.5% of total women preferred to sell their

product by retail method

 53.6% total women preferred wholesale method

for product marketing.
 Improvement in Decision Making Role
(BME Report November 2010)

 61% borrowers operated by themselves

 33% husband operates their business
 6% business operated by other family members
 38.5% depend on husband for taking decision
 10% discussed with others
 74% spent business money by themselves
 81.7% social participation increased.
 Achievements To Date
 Four women’s associations composed of producers and
distributers of Jute, Mushroom and Cane & Bamboo
products have showed their interest to associate with
Bangladesh Agribusiness Development Project for
improving their capacity.

 Information is disseminated through newspapers about

success stories of women in agribusiness. A documentary
about family business on Nursery as well as Dairy farming
telecasted on Bangladesh Television.

 Modified training curriculum included issues on tax

payments, trade licenses etc.
 Challenges for Women Entrepreneurs

1. Social Barriers
2. Access to Finance (no bank accounts , lack
of record keeping system, unavailable land
ownership etc.)
3. Insufficient Information/Knowledge about
Product Markets
4. Insufficient linkages with different
Chambers of Commerce /Industries.
 Recommendations

1. Increase social awareness including legal/human

rights of women and their economic contributions
to household food security
2. Develop linkages between women entrepreneurs
and different local and national associations
(women’s associations, business associations,
trade unions, chambers of commerce, etc.)
3. Arrange skills development and business
management training for women entrepreneurs in
agribusiness
4. Increase collaboration with financial institutions to
ease women’s limited access to financial resources
and services