Forest Capital acquires Kayvee Microfinance Bank
Sopuruchi Onwuka
Forest Capital has announced acquisition of Kayvee Microfinace Bank, saying it is a strategic move to broaden its influence into greater social and business spheres.
Forest Capital is the investment subsidiary of Farmforte limited, a valuechain development company that deploys technology and enterprise models to create greater market access, produce crops and add value to agricultural assets.
Head of Marketing and Corporate Communications at Farmforte, Mr Kevin Johnson-Azuara, stated Forest’s acquisition of Kayvee Microfinance Bank was part of its strategic imperative to create greater synergy between socio-economic empowerment, agriculture, and the finance sector.
Farmforte’s co-Chief Executive Officer, Osazuwa Osayi, said the acquisition would significantly improve the group’s business portfolio and drive sustainable growth across the agriculture value chain. He said the group’s business growth strategy leverages on financial and technological advancement of its expanding smallholder farmer network, adding that the groups has plans to hold a million smallholder farmer network by next year.
“This strategic acquisition demonstrates our commitment to continuously improve our portfolio and effect economically sustainable developments, primarily across the agri-value chain. Our multi-pronged enterprise growth strategy is ever-reliant on the financial and technological advancement of our growing 112,000 smallholder farmer network, which will be up to 1 million by the close of 2022.
“With a widely heralded generation of disruptive banking services, and wider sector focus on mobile-first, personalised banking, we are structuring a world class and formidable agriculture services ecosystem via Forest Capital.”
Formforte stated that Kayvee is a Central Bank of Nigeria (CBN) licensed Tier-1 digital microfinance bank that leverages technology to provide savings and lending platforms to support the government’s financial inclusion strategy.
The company stated that Forest’s short term strategic diversification plans include a ramp up of its investment advisory services, the development of high yield portfolio investments, and the build out of Forest Bank, a modern digital interface based on the rapidly evolving concept of API-driven embedded finance.
Managing Director of Forest Capital, Mr Paul Okunaiya, said: “As Africa’s digital financial services sector grows exponentially in the next few years, this transaction underpins our desire for a necessary symbiosis between the unbanked and private entities pertaining to access, relevance, and ultimately trust.
“With about 350 million adults un-served by the financial services industry in sub-Saharan Africa, there is more emphasis on financial inclusion, and Forest is poised to provide much-needed solutions to individuals and corporates, from farmers to entrepreneurs, and industries at large.”
Farmforte stated that Forest would bridge the access to requisite financing across the agriculture value chain for small to medium scale farmers, infrastructure and supply chain operations, distributors, wholesalers, and retailers, last mile delivery and tech-driven startups.
