WB, ADB confirm $300m funding for job creation, skill development

FE REPORT | Published: February 03, 2026 00:15:20

Bangladesh's ambition to become an upper-middle-income country gained significant momentum this week as the World Bank (WB) and the Asian Development Bank (ADB) confirmed over $300 million in funding.
The Washington-based lender confirmed $150.75 million in additional financing for informal sector employment generation on Monday, while the ADB confirmed $150 million to modernise technical and vocational training.
Together, these investments represent a strategic $300 million offensive against "skills mismatch" -- the gap between traditional education and the high-tech requirements of the modern global economy, says the Economic Relations Division (ERD).
ERD Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the loan agreement on Sunday in Dhaka.
The World Bank also signed a 0.75 million grant deal at the event.
Under the Recovery and Advancement of Informal Sector Employment (RAISE) project, the Palli Karma-Sahayak Foundation (PKSF), with the support of the WB's additional $150.75 million assistance, will facilitate the country's human capital by providing market-relevant skills training and entrepreneurship development for low-income youths and micro-entrepreneurs.
The funding aims to bridge the gap between education and the evolving job market, with a specific focus on women and climate-vulnerable communities.
The project expansion focuses on transforming the informal sector through several high-impact interventions, including providing technical training and hands-on apprenticeships to approximately 176,000
additional young people, bringing the total project reach to over 400,000 beneficiaries.
The World Bank loan will help the recipients access microfinance and business development services aimed at reviving small-scale businesses and growing in a post-pandemic economy.
By introducing innovative home-based childcare services to remove barriers for women entering the workforce, alongside targeted life-skills training, the loan will also help mainstream "climate-smart" livelihoods for young workers in flood-prone or cyclone-affected regions.
While Bangladesh has made significant strides in education enrolment, it continues to face "skills mismatch", whereby graduates often lack the technical proficiency required by modern industries.
"A good job can transform a life, a family, and a community," says Gayle Martin, World Bank acting division director for Bangladesh and Bhutan.
"This additional financing will help more young people from low-income families access the market-relevant resources they need for better employment."
After the confirmation of the $150.75 million fund, the World Bank's total support for the RAISE project has stood at $350.75 million.
Since its launch in 2021, the project has already shown tangible results.
According to recent data, over 80 per cent of apprentices who completed the training secured employment within three months.
Furthermore, the project has successfully registered over 250,000 returning migrants for reintegration support, helping them transition back into the domestic economy.
Meanwhile, the ADB's $150 million loan for the TVET Teachers for Future programme will focus on the instructors.
Some 10,000 technical and vocational education and training (TVET) teachers will be trained in the fourth Industrial Revolution (4IR) technologies.