El proyecto

Read the information document of the issuer here

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.

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.

Bwera Farmer’s Cooperative Society Limited has been in operations since 2012 and is currently running two milk collection centers located at Ntusi and Bugoobe Trading centers.  A third collection center is currently being set up in Kiruhura District in western Uganda.  The coop is steadily growing and is presently servicing over 200 farmer members who deliver raw milk on a daily basis. 

The milk is then tested for quality, chilled and supplied in its raw form to the Brookside Dairy Uganda Ltd Kampala plant.

The farmers are based in districts that are 180 km to the west of Kampala, and are amongst the most fertile in Uganda – with open rolling grasslands, adequate rainfall and a variety of different crops.

Through the FACTS Supply Chain Finance facility, Bwera can carry out early payment to its farmers as it awaits invoices from Brookside to be settled - which can stretch from 15-30 days after delivery.

As such this is a high impact transaction – working capital shortage at farmers level is a big obstacle towards increased dairy productivity and yield.