Bangladesh and KOICA Sign $13 Million Grant to Foster AI Technology Experts

🤝 Bangladesh and the Korea International Cooperation Agency (KOICA) have signed a $13 million grant agreement to develop technology experts with a focus on artificial intelligence (AI) in Bangladesh. The agreement was reported by The Daily Star on August 26, 2026.

📝 Project Details

The Record of Discussion (RoD) and Terms of Reference (TOR) for the project, titled "Fostering Innovative Technology Experts with a Focus on Artificial Intelligence (AI) in Bangladesh," were formally signed at a ceremony in Dhaka. The project will be implemented by the Bangladesh Hi-Tech Park Authority under the Information and Communication Technology (ICT) Division.

• 💰 Grant amount: $13 million from KOICA
• 📅 Project period: 2026 to 2029 (3 years)
• 🏢 Implementing agency: Bangladesh Hi-Tech Park Authority (ICT Division)
• 🧠 Focus area: Artificial Intelligence and emerging technologies
• 📰 Source: The Daily Star, August 26, 2026
• 📜 Documents: Record of Discussion (RoD) + Terms of Reference (TOR)

🧠 Building AI Capacity

The project aims to build a pool of skilled AI professionals in Bangladesh, addressing the growing global demand for technology experts. With the rapid advancement of AI technologies globally, Bangladesh has been seeking to position itself as a competitive player in the digital economy. This grant represents a significant step towards that goal.

The initiative will focus on multiple areas:

• ✅ Developing specialised AI training programmes
• ✅ Creating infrastructure for technology innovation
• 🤝 Fostering collaboration between Bangladeshi and Korean technology institutions
• 💻 Building capacity in machine learning, data science, and AI applications
• 🏢 Establishing research and development facilities

🌏 Strategic Context for Bangladesh

The grant comes at a critical time as Bangladesh prepares for LDC graduation and seeks to diversify its economy beyond traditional sectors like RMG. The government has identified technology and innovation as key pillars for future economic growth, with AI expected to play a transformative role across industries.

Bangladesh's IT export industry has been expanding rapidly, and initiatives like this will help bridge the skills gap in emerging technologies. The country currently has over 180 million mobile subscribers, with smartphone penetration at 65.15%, and 5G-ready handsets growing 45.6% year-on-year to 14.68 million devices.

• 🌏 LDC graduation preparation
• 📊 Economic diversification beyond RMG
• 📱 180M+ mobile subscribers, 65.15% smartphone share
• 📱 14.68M 5G-ready handsets (+45.6% YoY)

🏛 Bangladesh-Korea Cooperation History

Bangladesh and South Korea have maintained strong bilateral relations, with Korea being a significant development partner. KOICA has been a long-standing development partner of Bangladesh, supporting projects in infrastructure, education, and technology transfer. Korea's own transformation into a technology powerhouse provides a valuable model for Bangladesh's digital ambitions.

• 🤝 KOICA: Long-standing development partner
• 📱 Korea's ICT sector experience supports Bangladesh's digital transformation
• 🌐 The project strengthens bilateral technology cooperation
• 🏢 Previous KOICA projects in Bangladesh: Infrastructure, education

📊 AI Industry Context

Globally, AI is reshaping industries including manufacturing, healthcare, finance, and agriculture. For Bangladesh, AI adoption could have transformative effects on:

• 👕 RMG: Smart manufacturing, quality control, supply chain optimisation
• 🌾 Agriculture: Crop monitoring, yield prediction, supply chain management
• 🏢 Finance: Risk assessment, fraud detection, digital banking
• 🗥 Healthcare: Telemedicine, diagnostic imaging, drug discovery
• 💰 Trade: Customs automation, trade finance, logistics optimisation

🚀 Hi-Tech Park Authority Role

The Bangladesh Hi-Tech Park Authority, under the ICT Division, will be the implementing agency for this project. The authority has been responsible for developing technology parks across Bangladesh, providing infrastructure and incentives for IT and technology companies. This project will leverage that infrastructure to build AI capacity.

💰 Investment Context

The $13 million KOICA grant represents one of the largest single-country AI development partnerships Bangladesh has secured. It signals growing international confidence in the country's technology potential. Combined with other tech investments — including the Bangladesh-Korea $13m grant for AI experts and growing private sector investment in digital infrastructure — Bangladesh is building momentum in the tech sector.

📊 This $13 million KOICA grant represents a significant investment in Bangladesh's technology future. By focusing on AI expert development through 2029, the project aims to position Bangladesh as a competitive player in the global digital economy, supporting the country's broader economic diversification goals as it prepares for LDC graduation.