The Agri-Business Capital Fund (ABC Fund) has signed an agreement for a $2 million revolving credit facility to FACTS Advance BV (FACTS) to provide short-term trade finance solutions for SMEs in Kenya and Uganda primarily operating in the agriculture sector.
- FACTS provides short-term working capital loans to SMEs, agribusinesses, and emerging entrepreneurs in Africa through supply chain finance.
- The transaction provides the ABC Fund with an entry point to engage in further risk-sharing programs in the future.
FACTS has established the Advance Platform as an efficient way to offer short-term supply chain financing to SMEs, agribusinesses, and entrepreneurs in Africa. ABC Fund is now one of the most important debt providers to the platform in Kenya and Uganda, allowing a clear focus on the target clients of the ABC Fund.
FACTS targets an underserved segment of the market with limited access to finance. Through the FACTS Advance Platform, the ABC Fund has access to a cost-efficient and transparent vehicle to provide loans to a sector that is often considered too large for traditional microfinance institutions and below commercial banks’ radar. FACTS’ long experience of operating in East Africa helped build a solid pipeline of transactions with strong risk management considerations.