Our 3rd local partner in Kenya
Financial Access Capital Partners (FA) is an Amsterdam-based investment and advisory firm specialized in financing, as well as advisory services and technology (fintech) for the financial sector in emerging and frontier markets. The firm is particularly active in Africa (with offices in Nairobi and Kampala) and Southeast Asia (Jakarta and Bangkok). Peter van der Krogt (see picture) is co-founder of FA and chairman of FACTS.
FA trades under the name FACTS (Financial Access Commerce & Trade Services). FACTS aims at bridging the so-called ‘Missing Middle’: the working capital gap of small producers and suppliers who must wait long periods to get paid for delivered products or services in domestic supply chains. This problem is particularly acute in the Food and Agriculture (F&A) sectors. FA believes in the application of proven methods to ‘de-risk’ agricultural financing that already exist, mainly based on Supply Chain Finance (SCF) principles.
The Dutch Good Growth Fund (DGGF), a €750 million development finance programme of the Dutch Foreign Ministry, has committed early-stage loans and grant funding to support the development of an innovative financing platform in East Africa. FA benefits from Seed Capital investment and Technical Assistance support.
- Full nameFinancial Access Capital Partners
- Head officeAmsterdam
- Founded in2006
- Active on Lendahand since February 2017
Financial indicators per March 31 2017
- Number of SMEs in loan portfolio7
- Total assets€ 466,910
- Leverage ratio40%
- Loan portfolio€ 428,425
- Write-off ratio last 12 months0%
- % loan amount in arrears (>90 days)0%
- % loan amount in arrears (>180 days)0%
About risks of factoring via Financial Access
Note: this type of loan involves risks. Factoring is still in its infancy in Africa and the track record of such products is therefore limited.
Financial Access focusses primarily on the stronger parties within the chain, but the funding goes directly to the farmers and small traders who are struggling to attract funding themselves. Also, short-term credit is provided to 'processors' to enable them to purchase more supllies from farmers. Examples of companies that are being financed by Financial Access are a dairy producer in Nairobi, an animal feed company, an exporter of cocoa beans in Uganda, an exporter of green beans (available in Dutch supermarkets) and a honey producer. In 2017 Financial Access expects to expand its portfolio to 50 clients, who in their turn will support thousands of farmers directly and indirectly.
Credit risk is hedged through a combination of pledged invoices, credit guarantees and a 20% deposit, which the client builds up with Financial Access over a period of six months.
Kenya has the highest income per capita and the largest economy of East Africa, making the country the financial center of the region. This is partly due to its convenient location at the coast, allowing the country to be the regional trade center. Kenyans are typically higher educated compared to people in neighboring countries. There is a free market and low import and export restrictions. All of these factors lead to Kenya being the main location for foreign companies to settle in after South Africa. Important sectors are agriculture, industry and services, including the financial sector. The increase in export of tea and flowers also contributes to an influx of foreign currency.