The World Bank has approved $150.75 million for Bangladesh to help create economic opportunities for low-income youth

The World Bank has approved $150.75 million in additional financing to help Bangladesh expand support for job creation among low-income youth and microentrepreneurs, with a particular focus on women and people living in climate-vulnerable areas.

The new funding for the Recovery and Advancement of Informal Sector Employment (RAISE) Project is expected to generate employment and income opportunities for around 176,000 more young people nationwide, adding to the 233,000 beneficiaries already covered under the project.

According to a World Bank press release, participants will receive a comprehensive package of support, including skills training, apprenticeships, entrepreneurship development, and access to microfinance, aimed at helping young people and microentrepreneurs overcome barriers to employment and business expansion.

The financing will also introduce innovative measures to promote women’s empowerment, such as access to quality childcare, alongside climate-resilient livelihood initiatives to help communities better cope with climate shocks.

“A good job can transform a life, a family, and a community. Yet every year, many young Bangladeshis entering the labor market struggle to find work,” said Gayle Martin, World Bank Acting Division Director for Bangladesh and Bhutan. “The country also faces challenges related to job quality, skills shortages, and mismatches. This additional financing will help more young people from low-income families—especially women and those in vulnerable communities—gain market-relevant skills, resources, and training for improved employment and livelihood opportunities,” he added.

The funding will allow the project to expand beyond urban areas into rural communities, ensuring broader access to targeted support for marginalized youth and microentrepreneurs across the country.

It will also pilot affordable, high-quality home-based childcare services by offering training and start-up grants to women. By addressing both childcare supply and demand, the initiative aims to increase female labor force participation, create jobs in the care sector, and support early childhood health and development.

In addition, women will receive life-skills training to boost confidence and empowerment. The project will further strengthen job placement efforts through job fairs, employer-candidate matching, and support in marketing and contract negotiations.

“The RAISE project has demonstrated that targeted interventions can deliver meaningful results for youth and microentrepreneurs,” said Aneeka Rahman, World Bank Senior Social Protection Economist and project team leader. “With this new financing, we can scale up effective approaches, expand access to microfinance, and introduce innovative solutions like quality childcare, enabling more young people and women to realize their potential and build resilient futures.”

The project has already delivered strong outcomes, with more than 80 percent of graduated apprentices securing jobs within three months of completing the program, while young microentrepreneurs reported improved earnings and business practices.

Since its launch in 2021, the RAISE project has supported over 50,000 COVID-affected microentrepreneurs through recovery loans and training, registered more than 250,000 returning migrants for reintegration support, and provided economic inclusion services to over 122,000 beneficiaries, 55 percent of whom are women.

With the latest approval, the World Bank’s total financing for the RAISE project now stands at $350.75 million.