LightCastle Signs Agreement with iDE to Provide Business Development Assistance and Credit Accessibility to MSMEs in Bangladesh

LightCastle Partners and International Development Enterprises (iDE) have recently signed a contract to collaborate in the financial need assessment of Agriculture-based Light Engineering Enterprises (also known as MSMEs) and Machine Service Providers (MSPs), business development assistance for MSMEs and MSPs to increase investment readiness, and loan disbursement on alternative financing models in the agricultural mechanization and agri-based light engine industries. 

The Feed the Future Cereal Systems Initiatives for South Asia Mechanization Extension Activity (CSISA-MEA) is a five-year USAID-funded and CIMMYT-led initiative. The contract duration for LightCastle Partners’ intervention in CSISA-MEA is April 2023 to September 2023.

The Opportunity

The goal of CSISA-MEA is to increase agricultural resilience, productivity, and profitability by enhancing the competitiveness and effectiveness of agricultural machinery lead firms and generating business opportunities for collaboration with U.S. manufacturing companies, technical institutions, and financial advisory firms.

The activity will also concentrate on training a gender-inclusive workforce, with a particular emphasis on the linked support market actors and manufacturing micro, small, and medium-sized enterprises (MSMEs) in Bangladesh and crisis-affected areas.

Our Intervention

LightCastle Partners and iDE will collaborate to finance non-bankable MSMEs and MSPs in Bogura, Jashore, Faridpur, Barisal, and Cox’s Bazar. In this regard, LightCastle will conduct an in-person needs assessment with fifty MSMEs and MSPs. Following this, BDS support events will be conducted for thirty MSMEs and MSPs chosen based on the results of the needs assessment. Lastly, LightCastle will fund the chosen MSPs and MSMEs.

1. Conduct needs assessment and prepares investment profile of 50 MSMEs and MSPs

2. Provide Business Development Service (BDS) support for 30 MSMEs and MSPs.

3. Follow up with the MSPs and MSMEs to make them credit worthiness of financing.

The Future

With this collaborative intervention, it is anticipated that at least 50% of the MSPs and MSMEs who have received business development services (BDS) will receive credit/investment support.