After years of working overseas, many Bangladeshi migrant workers return home with valuable skills, professional experience and savings. Yet for many, turning those assets into a sustainable business remains difficult because access to affordable finance is limited.
A new BDT 50 million financing initiative launched by SME Foundation and Karmasangsthan Bank aims to change that by helping return migrant entrepreneurs access the capital they need to establish or expand businesses and rebuild their livelihoods at home.
Supported by the International Labour Organization (ILO) Bangladesh and the Embassy of Switzerland in Bangladesh, the initiative was formalized through an agreement signed under the SME Foundation's Credit Wholesaling Programme. The programme is designed to promote sustainable economic reintegration by enabling returnees to transform the knowledge and experience gained abroad into productive enterprises that create jobs and contribute to Bangladesh's economic growth.
© ILO
For entrepreneurs like Mr Pradip Kumar Das, who returned to Bangladesh after working overseas, access to affordable finance can be the difference between an idea remaining a dream and becoming a thriving business.
I returned with skills, confidence and a vision for my future, but finding affordable financing was my biggest challenge. Support like this gives returnee migrants the opportunity to invest in ourselves, support our families and create jobs in our communities.
Pradip Kuman Das, Return migrant enterprenure
Addressing the event, Khandaker Abdul Muktadir, Minister for Industries, Commerce, Textiles and Jute, highlighted the initiative's contribution to national development.
Our migrant workers have made an immense contribution to Bangladesh's economy. By investing in their entrepreneurial potential when they return home, we are creating opportunities to transform remittances into productive investment, generate employment and promote inclusive economic growth. Women and young returnees must have equal access to these opportunities.
Khandaker Abdul Muktadir, Minister for Industries, Commerce, Textiles and Jute
Speaking at the signing ceremony, Max Tuñón, Country Director of ILO Bangladesh, said that successful reintegration goes beyond returning home.
"Return is not the end of the migration journey. It is the beginning of a new chapter. When returnee migrants have access to finance, business development services and an enabling environment, they can transform the skills and experience gained abroad into sustainable enterprises that create decent jobs and strengthen local economies. This initiative demonstrates how partnerships between government, financial institutions and development partners can unlock that potential".
© ILO
The programme offers concessional loans at an interest rate of seven per cent, with financing of up to BDT 2.5 million available for eligible returnee migrant entrepreneurs. Loans of up to BDT 1 million will be available without collateral, while repayment periods of up to four years and grace periods of up to six months will provide greater flexibility for new businesses.
The financing initiative particularly targets returnees who are using the skills, knowledge and savings acquired through overseas employment to establish productive, service-oriented or trading enterprises in Bangladesh. Special consideration will also be given to newly returned migrants who have not previously accessed formal financing, helping overcome one of the most common barriers to entrepreneurship.
The initiative will prioritize entrepreneurs who have already participated in reintegration programmes, entrepreneurship training and business development services through government institutions and partner organizations, including the Ministry of Expatriates' Welfare and Overseas Employment, the Wage Earners' Welfare Board, Bureau of Manpower, Employment and Training, Technical Training Centres and other organizations supporting migrant reintegration.
SME Foundation will oversee the programme through regular monitoring and field verification to ensure that financing reaches intended beneficiaries transparently and effectively.
The agreement signing ceremony was attended by senior representatives from the Government of Bangladesh, Bangladesh Bank, financial institutions and development partners, reflecting a shared commitment to strengthening entrepreneurship, financial inclusion and sustainable reintegration for returnee migrant workers.
The initiative forms part of the ILO's broader efforts, supported by the Embassy of Switzerland in Bangladesh, to promote safe labour migration, productive employment and decent work. By expanding access to finance and strengthening entrepreneurship opportunities, it seeks to empower returnee migrants to build resilient livelihoods, create employment for others and contribute to inclusive and sustainable economic development in Bangladesh.
