Founded in 2007, Access Capital is a premier full service investment company in Ethiopia providing investment research, investment advisory and investment management services. Founded in 2007, Access has more than 500 million ETB under management across its real estate and equity investments in sectors such as agro-industry, commercial farming, consumer goods and financial services sectors, employing around 20 professionals as well as several consultants in Addis Ababa, Ethiopia and Washington DC.
Our Investment Research team provides the most comprehensive insight on the economy, industry and markets. Access Capital’s analysts, economists and strategists have earned a strong reputation through timely, in‐depth analysis of sectors, industries, markets, and related policy analysis for both domestic and foreign business clients. Access Capital not only forecasts economic activity, inflation, interest and exchange rates but also provide insights into policy and economic trends providing the basis for an informed top‐bottom investment approach. The team also publishes an annual macroeconomic report, a forward looking analysis and makes strategic recommendations. This report is generally distributed to approximately four thousand businesses, government offices, embassies and institutions both within Ethiopia as well as the about one thousand members of the investment community in US, Europe and Middle East.
Access Capital is one of the leading alternative asset management firm, as well as a widely respected independent investment advisory firm. Through our Alternative Asset Management businesses – including private equity and real estate we have earned the trust of many of the leading businesses and industry leaders. Our Advisory Services provides advisory services along with a full spectrum of transaction execution capabilities in areas such as acquisitions, joint ventures, divestitures, restructuring and leverage buyout activities.
Access Capital’s greatest asset is the breadth and depth of its client base in Ethiopia. Leveraging our brand and reputation, we work with a broad range of clients, including corporations, institutions and governments, to provide comprehensive strategic advice and capital raising expertise. We strive to build trusted, long-term relationships by taking forward-looking view on our relationships, and identifying ways to help our clients and network of businesses to achieve their business objectives.
We provide our clients with the only in-depth, economic analysis and industry-specific expertise, serving the evolving needs of clients in and around the region and provide insight to institutional investors. We serve the evolving needs of clients across various industries and sectors including: agro-business, consumer goods, commercial farming, financial services, and real estate. We also work with international firms and investment institutions in a strategic partnership for opportunistic investments.
Access Capital primary objective is to manage Access Real Estate business—and our Limited Partners’ capital—with care, discipline and patience. We strive to deliver compelling risk-adjusted returns over the long term. Many of our investment vehicles, we strive for a 3 to 5 year life. This long range view enables us not only to ride out market cycles, but also to maximize value through operational improvements over time. While we are currently focusing on mixed-user residential housing development and hotels, we are looking to expand to industrial and commercial development as well as city centers.
Investments are guided by a senior team with extensive industry experience. Our team has performed through numerous economic cycles and is equipped to navigate the challenges and opportunities they present. Each partnership and transaction receives the attention of our Senior Managing Directors, and typically the involvement of our Chairman and Chief Executive Officer, Mr. Ermyas Amelga. We currently have over thirty five projects with more than 4,000 units in the City of Addis Ababa valued at over $350M USD.
Our Investment Advisory group looks for opportunities for our investment clients and offers long‐term capital deployment solutions of various sizes and sectors. The team has on‐the‐ground deal sourcing and execution expertise. The management team has 20 years collective experience in investment banking on Wall Street. Today, the division has various investment opportunities in the pipeline particularly in real-estate (hotels, commercial and residential market) consumer goods and agri‐business sectors. We also have forged strategic partnership with international broker dealers and investment houses to meet our clients’ capital needs.
We aim to provide institutional investors, private equity firms and foreign operators looking to enter into Ethiopia with strategic advice, on acquisitions and buyout. The firm’s in-depth expertise extends to a wide range of strategic M&A transactions, including asset purchases and dispositions, restructurings and reorganizations. As a sponsor, we are also able to help local businesses gain access to the growing pool of local equity financings and IPOs. In addition, the M&A business is not only a critical component underpinning our integrated growth strategy but also the growth of the private sector in general. We have dedicated corporate finance team also has significant expertise and experience in Western markets in providing advisory services to clients in public and private situations. In sectors and industries where there are acquisition is not possible, we have proven ourselves by funding innovative companies to become leaders in their perspective industries.
We offer a wide range of services, from origination to structuring, and execution for clients. Despite the country’s lack of capital markets, Access has originated initial public offerings and follow-on equity issues. Sponsor-backed IPOs have surged in Ethiopia in the last five years. In 2011, the IPO trend has continued, with the first quarter of the year posting almost the same number of sponsor-backed IPOs. To date, there have been almost fifty sponsor-backed IPOs in Ethiopia despite the lack of a regulatory framework. Importantly, the IPO market in Ethiopia withstood global market turbulence and credit crises. Below are some of the transactions history.
Zemen Bank. In 2007, Access Capital raised 150 million ETB from local equity market bringing 3000 share holders to what became one of the leading commercial bank in the market. Zemen Bank tailors its services for the growing affluent middle class and high‐net worth individuals as well as businesses clients. Today, Zemen Bank is one of the best performing commercial bank in the country with 2011 revenue of 218 million ETB, 62% increase from previous year, a gross profit of 121 million ETB and 85 million ETB net income with year over year growth of 100%. The Bank has 1.67 billion ETB deposits, total assets of 1.6 billion ETB with return to equity of 53% (versus industry average of 18.5%) and return on asset of 6.3% (versus industry average of 3%), paying out 57 million dividend this year. In 2012, Zemen went into the market with a follow-on offering. The shares were oversubscribed and were sold out in five hours, raising 35 million ETB.
Access Real Estate (ARE). Access Capital raised initial capital of 35 million ETB in 2008. Today, ARE has become the largest real‐estate development company in Ethiopia. Since its inception in 2009, ARE has been acquiring land in the most desirable locations in the Capital city of Addis Ababa for residential and commercial real estate development. ARE builds and sells mixed buildings (residential, retail and commercial offices). To date, the Company has acquired approximately 35 sites in prime location within Addis Ababa and vicinity building an approximately 4000 residential/retail mixed use properties. ARE has grown tremendously from its beginning in just over three years to becoming the Nation’s largest homebuilder with approximately 60% market share.
Access Capital continues to expand it capabilities in local market, constantly investing in innovative products and platforms that enable our clients to grow. We also advise on leveraged financing to companies to help them achieve objectives such as making an acquisition, effecting a buy-out, repurchasing shares or funding a one-time dividend or investment.
Today, Access is advising Access Real Estate on secondary financing by creating innovative financial product, securitizing pool of receivables—the first financial product of its kind in Ethiopia—worth $30 million USD.
Pioneer Agro Industries Plc. Established in 2010, PAI is one of the leading livestock export companies in Ethiopia. To date, PAI has already entered into agreements with several trading companies abroad to supply hundreds of camels, cattle and sheep to the Middle East and North African markets. In addition, PAI has entered an agreement with foreign firms to export chilled steer (castrated cow meat) by air to the same markets. In 2010, the Company began building robust logistics capabilities for supply chain management of dedicated overland transport and secured the use of maritime transport vessel to facilitate increased shipping to Middle East markets from Djibouti port. In 2011, the company began acquiring land for commercial farming and herding. Today, the Company has 3,000 hectors for commercial farming and several cattle fattening centers. With a focus on food production, PAI is looking to become animal protein processing company, particularly processed meat products. PAI is looking to capitalize on not only the growth of domestic meat demand but also the growth of export market to the Middle East. PAI is also looking to utilize its 2,000 hectors of commercial farm for cattle feed. Access Capital is looking to raise $30M USD for PAI from international institutional investors.
The following research has recently been released by Access Capital: (Research documents are downloadable PDF files)