Shariah-Compliant Social Business Trading
Cattle Growth Project – Shariah-Compliant
This initiative is a Shariah-based social business designed to empower marginalized farmers in Noeth-West region of Bangladesh through cattle rearing. Implemented by Nexus and Devx, both sister concerns, the project aims to address long-standing challenges in rural livestock development.
| Business Type | Shariah-Compliant Social Business Trading |
|---|---|
| Project Start Date | |
| Project End Date | |
| Investment Duration | 6 Months to 1 year cycle |
| Investment Target | 1000 cow/ox |
| Raised Amount | ৳0.00 |
| In Waiting | ৳0.00 |
| Minimum Investment | ৳50000.00 |
| ROI | Annually 36% |
| Projected Profit | 6% only on Profit |
| Status | Open |
Project Overview
Project Background
This initiative is a Shariah-based social business designed to empower marginalized farmers in Noeth-West region of Bangladesh through cattle rearing. Implemented by Nexus and Devx, both sister concerns, the project aims to address long-standing challenges in rural livestock development.
Key Challenges – Nexus & ACDI/VOCA Findings in 2025
Farmers lack awareness of existing loan and livestock insurance facilities are insufficient to sustain cattle rearing. In many cases, farmers rely on formal and informal loans for urgent needs, further increasing financial stress. High-interest loans from some organizations worsen their socio-economic conditions, with feed, medicine, labor, and other essential costs often not considered in repayment schedules. Additional barriers include weak market access, poor veterinary services, high feed costs, and inadequate infrastructure. Market linkages to end customer/consumer to ensure fair prices. Marginalized farmers frequently face refusal from traditional lenders and formal financing institute that makes social and financial discrimination.
Project Rationale
Nexus and Devx recognize the urgent need for affordable, ethical, and sustainable financing for marginalized farmers. This project will be implemented under Islamic Shariah principles with social business, ensuring Halal income generation, equitable profit-sharing, and socio-economic upliftment.
Project Goal:
The goal is to support 1,000 cows across participating farmers, providing them with ethical capital, training, veterinary and advisory support, and market linkages.
Investment Model & Profit Sharing
How It Works
- Investors’ funds are used to purchase cattle.
- Farmers nurture the cattle until sale.
- Investment cycles: 6 months or 1 year.
- Minimum investment: 1 unit = BDT 50,000.
- Estimated ROI: 18% for 6 months /36% annually.
- Service charge: 6% on profit portion only.
- Net profit (after service fee) is shared equally in the following way:
- Investor: 1 part (⅓ of net profit)
- Farmer/grower: 2 parts (⅔ of net profit)
Profit Sharing Example
|
Investment (BDT) |
Gross Profit (18% for 6M / 36% Annually) |
Service Fee (6% on Profit) |
Net Profit (After Fee) |
Investor Share (⅓) |
Farmer Share (⅔) |
Total Return to Investor |
|
50,000 |
9,000 / 18,000 |
540 / 1,080 |
8,460 / 16,920 |
2,820 / 5,640 |
5,640 / 11,280 |
52,820 / 55,640 |
|
100,000 |
18,000 / 36,000 |
1,080 / 2,160 |
16,920 / 33,840 |
5,640 / 11,280 |
11,280 / 22,560 |
105,640 / 111,280 |
- For Farmers: Improved income stability, reduced dependence on high-interest loans, access to veterinary care, and better market opportunities.
- For Investors: Ethical investment with transparent Shariah-compliant profit-sharing, contributing to rural economic development.
- For the Community: Stronger livestock sector, enhanced food security, and sustainable rural livelihoods.
