Cluster and Value Chain financing for MSEs in Bangladesh

Innovision has signed a contract with the Business Finance for the Poor in Bangladesh (BFP-B) project to conduct a Research Study on “Cluster and Value Chain financing for MSEs in Bangladesh: Current practices and what can be done.”

The study will be conducted by Innovision in partnership with Mennonite Economic Development Associates of Canada (MEDA). BFP-B is a five-year programme funded by UKaid to promote innovative finance and financial services for micro and small enterprises in Bangladesh. Bangladesh Bank is the implementing agency, and the Bank and Financial Institutions Division of the Ministry of Finance is the executing agency. Nathan Associates London Ltd. is the management agency for the programme.

The study will provide policy recommendations to Bangladesh Bank, the Micro-credit Regulatory Agency (MRA) and other relevant stakeholders to strengthen cluster and value chain financing schemes in Bangladesh. On the process it will also highlight some of the critical challenges with regards to MSME financing in 10 selected subsectors in Bangladesh which includes- light engineering, plastics, knitwear, agro processing.

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