UNCDF in Bangladesh
Asia and the Pacific Region
Concessional loans
Investment grants
Our work
Since 1982, the United Nations Capital Development Fund (UNCDF) has supported Bangladesh's development, focusing on inclusive digital economies, sustainable local development, and resilience building. Aligned with the country's Sustainable Development Goal (SDG) priorities, UNCDF works to enhance access to financial services and digital resources for vulnerable communities, including women, farmers, Micro, Small and Medium-sized Enterprises (MSMEs), migrant workers, and marginalized groups.
UNCDF applies catalytic financing instruments such as concessional loans, guarantees, grants, and technical assistance to unlock public and private capital at the local level. By strengthening financial ecosystems, promoting inclusive policies, and supporting climate-resilient infrastructure and services, UNCDF helps reduce poverty, increase financial inclusion, and support economic empowerment in "last mile" communities.
Building an inclusive digital economy
The “Leaving No One Behind (LNOB) in the Digital Era in Bangladesh” programme promotes a more inclusive digital economy in Bangladesh by ensuring that marginalized groups have access to digital and financial services. The initiative addresses the barriers that prevent underserved communities from fully participating in the digital economy.
UNCDF’s key areas of work in the country include tailored digital literacy and financial education programmes; awareness campaigns focused on women’s empowerment; and support to small businesses to strengthen their digital and financial capabilities. It also promotes open and affordable digital infrastructure, such as interoperable payment platforms like Bangla QR, and supports the development of inclusive and secure digital finance policies and regulatory frameworks.
By partnering with private sector actors and regulators, LNOB enables innovation, fosters equitable access to services, and promotes green finance. The programme strengthens both user capacity and provider readiness to ensure that no one is left behind in the digital transformation.
Empowering women in the workforce
UNCDF promotes women’s economic empowerment in Bangladesh by expanding access to finance, entrepreneurship, and social protection. In the ready-made garment (RMG) sector, UNCDF partnered with the H&M Foundation to implement the Collective Impact on the Future of Work in Bangladesh project, which focused on strengthening the financial independence and resilience of women garment workers.
Through partnerships with Bank Asia, Zaynax Health Limited, Apon Tech Ltd., and BRAC Bank, the project introduced innovative solutions addressing digital financial literacy, healthcare access, credit, and savings. It aimed to increase women’s control over financial decisions, reduce the gender gap in financial inclusion, and connect workers to health and nutrition services. Additionally, the project raised awareness of existing welfare and social protection schemes through mass campaigns and digital tools. As of 2024, it has reached over 143,239 RMG workers (80% of whom are women), resulting in tangible improvements in financial inclusion, the adoption of digital services, and increased awareness of social protection programmes.
Supporting sustainable enterprise development
UNCDF supports private sector innovations in Bangladesh by de-risking the development and expansion of digital business models and solutions that address constraints faced by women-led enterprises and underserved communities. Through catalytic grants and technical assistance, UNCDF helps unlock financing from both public and private sources to support inclusive digital solutions delivered by local governments, cooperatives, fintech, and social enterprises.
In Bangladesh, UNCDF collaborates with service providers to build the financial and digital capabilities of MSMEs. It promotes the adoption of tools, such as digital payments, digital insurance, e-commerce platforms, bookkeeping applications, literacy tools, and online lending services. Special attention is given to developing tailored solutions for garment workers to support financial inclusion.
Since 2021, over 110,000 small and micro businesses (25% women-led) have received training under the “Build Back Better – Enhancing Recovery and Resilience of Small and Micro-Businesses” project, leading to improved digital adoption and financial practices in more than 2,500 businesses.
Expanding access to digital finance through systems development
From 2016 to 2020, UNCDF contributed to strengthening Bangladesh’s digital financial services ecosystem by addressing systemic barriers that limit financial access for women, small businesses, and migrant families. Through digital and financial literacy campaigns, UNCDF empowered individuals to adopt and benefit from digital tools, while promoting awareness of data security and customer protection.
Efforts also focused on building the e-commerce readiness of small businesses by enhancing digital marketing, mobile banking, and online operations skills. In collaboration with banks, fintechs, and platforms, UNCDF supported the design of gender-responsive, customer-centric financial products tailored to underserved groups.
This approach, piloted under the regional “Shaping Inclusive Finance Transformations” (SHIFT) initiative, demonstrated that capacity development and private sector engagement in Bangladesh could expand access to responsible finance, improve resilience among marginalized populations, and promote inclusive digital economies.
Advancing locally led adaptation through performance-based grants
UNCDF supports Bangladesh in strengthening local climate adaptation through Performance-Based Climate Resilience Grants (PBCRG). After seven cycles, Bangladesh has institutionalized the PBCRG into its intergovernmental fiscal transfer system, enabling resource allocation using a Climate Vulnerability Index (CVI) to prioritize the most climate-affected communities.
The Local Climate Adaptive Living Facility and its PBCRG mechanism has informed the ISO 14093 standard on financing local adaptation to climate change. In addition, with support from UNCDF and UNDP, a Local Climate Financing Framework was established, incorporating digital systems for tracking adaptation investments and a national CVI covering every union parishad.
Under the LoGIC initiative, funded by Sida and the EU, 909 small-scale resilience schemes were implemented across 19 Upazilas (72 union parishads), benefiting around 1 million people. Community-led Operation and Management Committees have been formed, with beneficiaries contributing user fees and reporting co-benefits like wages earned, time saved, and reduced damages.
In 2024, Climate Risk and Vulnerability Assessments were completed in 29 Upazilas, informing the integration of local plans into Bangladesh’s National Adaptation Plan and the expansion of the mechanism. In 2025, a joint initiative led by ICIMOD deploying the PBCRG mechanism was awarded $10 million from the Adaptation Fund to support further expansion.
Girls on bridge going to school, (2023) 'Ashabaria Char' in Rangabali Upazila of Patuakhali district, Bangladesh. Photo: UNCDF.
Tending to the day’s harvest with care and dedication. Photo: Emdadul Islam Bitu.
Enhancing access to food and agricultural finance
UNCDF provided concessional financing to de-risk investment in a social enterprise for orange-fleshed sweet potatoes. This blended finance investment has unlocked a commercial loan and a contribution from the local government, providing job opportunities for 5,000 farmers (3,000 women) and increasing farmers’ income by 25%.
Promoting inclusive urban development
UNCDF worked with Narail municipality to set up a growth centre for marginalized women to provide market access to sell their products and encourage them to amplify their voices in decision making. As part of its SDG-cities initiative, UNCDF piloted the IncluCity Index and city scorecard in selected municipalities led by women mayors.
Facilitating SDG-aligned public financing
In partnership with the International Labour Organization (ILO), UNDP and UN Women, UNCDF is supporting the Government of Bangladesh in advancing the Integrated National Financing Framework (INFF) to align national financial planning with SDGs. A key focus is on SDG 7 (affordable and clean energy). UNCDF is working to develop a financing strategy roadmap and design a domestic savings mega-fund to channel household micro-savings into renewable energy investments.
Since 2020, UNCDF has contributed to the completion of the Development Finance Assessment (DFA) and supported the design of a full INFF aligned with the 8th Five-Year Plan and SDG priorities. The programme has also convened public and private sector stakeholders to promote integrated financing strategies, especially in the clean energy sector. These efforts aim to strengthen fiscal space and financial resilience, helping Bangladesh mobilize domestic resources sustainably as it prepares for graduation from LDC status in 2026.
Local farmers are busy with daily vegetable care. Barobazar, Jessore. Photo: Emdadul Islam Bitu.
Photo: UNCDF Bangladesh.
Latest news and stories
Our partners
UNCDF’s work in Bangladesh is made possible thanks to collaboration with: the Government of Bangladesh, the Embassy of Switzerland, the United Nations Development Programme (UNDP), The Swedish International Development Cooperation Agency (SIDA), and H&M Foundation.
Documents
This section brings together key documents related to UNCDF’s work in the country. It includes a curated selection of publications, papers, and reports that reflect the scope of engagement at country level, from programme design to implementation and outcomes.
These documents offer additional context on how initiatives are developed and delivered, and how partnerships contribute to advancing national priorities. They are intended to support transparency, facilitate knowledge sharing and serve as a practical resource for partners, stakeholders and others seeking a deeper understanding of UNCDF’s work.
| Title | Type | Date |
|---|
Contact us
For inquiries about UNCDF’s work in Bangladesh, including partnerships, investment opportunities, or ongoing initiatives, please contact: asiapacific.region@uncdf.org.
