fairafric

fairafric Bond: invest in the chocolate revolution!

with your help we build a modern, solar-powered chocolate factory in Ghana

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reached (from 999,900€ bond volume)
  • 5,00% interest
  • 8 year duration

How it works:

Fill in the form

We need your postal address so we can send you the terms and conditions of the loan.

Sign the contract

If everything fits, you sign the contract and return a copy to us.

Deposit

You transfer the amount of money you lend us to our bank account.

Annual payments

Each year you will receive a payment from us. Interest in the first 2 years, followed by 6 repayments.

Already secured Funding

Equity

DEG-Loan
(Development Bank)

Miscelanous

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Dear investors,

I founded fairafric 2016 out of a simple motivation: Fighting a shocking injustice: Only 6% of global chocolate-sales reach West Africa, the region where cocoa grows! If an average bar of chocolate leaves six to eight cents in the country of origin (with Fairtrade it’s 1 cent more), for every bar of fairafric, the 10-fold flow goes to Ghana.

We now have the opportunity to create 50 direct jobs and a sustainable annual income of more than $1 million in a rural region in Ghana. All these have been achieved only three years after our foundation.

Without your support, we would’ve never have come this far. Throughout 7 crowdfunding campaigns you’ve been pushing us forward, not to forget the diligent chocolate buying! Only with such customers we can finally move away from the colonial structures of exporting raw materials into the right direction for Africa.

I am very proud to be part of this journey and look forward to continuing it with you in the future! I will keep going at full speed and make sure that each of your Euros will write a piece of chocolate history!

Sincerely yours,

Hendrik Reimers
founder fairafric GmbH
  • Short description
  • Total investment
  • Documents

Since 2016 fairafric has been producing chocolate in Ghana in cooperation with Ghanaian partners. The process is divided into two parts. In the first step, cocoa beans are cleaned, removed from their shells and then roasted. After roasting, cocoa mass is produced by grinding. This is indispensable for chocolate production. 

Our partners in Ghana manage this process up to perfection. Thanks to the Ghanaian government's greatest efforts, one third of all cocoa beans harvested in Ghana are already processed directly in the country. Until now, the resulting cocoa mass has always been exported. This processing means an increase in value of approx. 15%, more money flows into the country and jobs are created. 

Only the decisive step of producing chocolate is still taking place in Europe or the countries of consumption. Fairafric changes this. The value from bean to packed bar is five times higher! 

In 2018 we already reached our production limits. The used equipment is old and cumbersome. We urgently need to invest in new machinery, but our local partners cannot do this on their own. 

At the beginning of 2019, 'Weinrich Chocolate', a company rich in tradition, became our partner and will now actively support our expansion in Ghana. Together we have advanced the plans for a state-of-the-art chocolate factory. Weinrich also participated in a capital increase with a total of €1.4 million.

In addition to these funds, we are planning with €2 million of development loans. We are currently in the final phase of due diligence and expect to complete the process in November.

Regarding the outstanding funds for the construction, we need your help again. And this is how it works: You help us to build the factory, we pay you an attractive interest and the people in Ghana profit, Win-Win-Win!

In total, the investment will amount to almost €5 million. The DEG (Deutsche Investitions- und Entwicklungsgesellschaft), a german investment and development company, and the Crowd are each responsible for 36% of this investment. The funds from the crowd are collected via 2 bonds with a maximum volume of €9999,900 each. The sum of €2 million from DEG is granted as a 7-year loan with an interest rate of 7%. 

The shareholders' equity for the project, i.e. the money provided by the shareholders, amounts to almost a quarter (€1.3 million). Another part is covered by our chocolate certificates

In this section we provide you the most important documents which allow an insight into our history and our plans around the new factory:

Securities information sheet

Businessplan fairafric Ghana

Cash flow projection

Pitch deck

Jobs in Africa

50 direct, qualified jobs will be created.

In the countryside

We deliberately build in rural areas to fight rural depopulation.

Start of production

By the end of 2020, we will already be producing chocolate in the new factory.

Solar power

The factory will be powered by solar energy and is therefore independent.

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Interesting facts about our project

2015
First official meetings between Hendrik and cocoa farmers and processors in Ghana

2016
First Kickstarter Campaign
Foundation of fairafric GmbH
First production

2017
Second Kickstarter Campaign
Successful organic certification of the entire value chain
Start of cooperation with Yayra Glover Ltd.
Change from 20g bars to 100g bars

2018
Third Kickstarter Campaign
Certification: climate-neutral (both chocolate and company)
Establishment of fairafric Foundation, which holds shares of fairafric GmbH for our cocoa farmers
First Seedrs campaign (Seedrs enables startups to win their customers as shareholders) in which 264 private individuals participated fairafric

2019
Decision to build a larger chocolate factory on our own initiative (on the land of the founder of our cocoa cooperative, in the rural region where the cocoa beans grow)
Increase in shareholders to 348
Ludwig Weinrich and claro fairtrade AG join the fairafric family
Winner of the Lammsbräu Sustainability Award

The owners of fairafric are the founding team, our 348 shareholders, Ludwig Weinrich GmbH and claro fairtrade AG, as well as our employees and our cocoa farmers.

You can get to know our management team a little further down on this page. The team behind fairafric GmbH in Germany presents itself here

Some of our Ghanaian colleagues will be introduced here.

Most of the money (about €4 million) will be invested in new machines. The other big part involves the construction of the building, the supply of water and electricity as well as the commissioning, which will cost around €1 million.

In the first 24 months of operation, we will primarily pay interest on the invested capital. Repayment will only begin after this period. This allows us to start without any losses and therefore we will be profitable (almost) from the very first chocolate bar. It is important that we expand our sales in Europe quickly after construction in order to be able to make the repayments later.

We’re going to build a transparent production facility. This will not only fit in our concept of transparency, it will also give our customers the opportunity to gain a deep insight into our business processes. The factory visit will be combined with a visit to our farmer communities, all in one day! Unique in the world!

We borrow your money as a tradable security. You can sell your securities (each with a nominal value of 100€) during the entire duration of the contract and thus also assign the interest and repayment to the buyer. Provided, of course, that you find a buyer.

The entire roof of the production and storage halls will be covered with solar elements. In total, we’ll be able to generate over 500 kW of peak power, which is comparable to the power consumption of 200 single-family houses (in Germany).

In order to have enough energy for our hot water supply during night, but also for cooling, our plan includes an electricity storage tank. To be flexible (e.g. to let the big machines run at night), we will also connect the factory to the public electricity grid.

This is where we build the new chocolate factory

"We were one of the first producers of Organic & Fairtrade Chocolate in Germany. For 'Made in Africa' I see a similarly good future."
Cord Budde
Owner Ludwig Weinrich​

Weinrich as partner

In May 2019, Ludwig Weinrich GmbH & Co KG became a shareholder of fairafric GmbH.

Weinrich produces chocolate brands like Vivani, GEPA, iChoc, Devine and many more. With a daily production of over 1 million bars at the company’s headquarter in Herford, Weinrich is the ideal partner to support us with the construction and operation of a modern production plant in Ghana.

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years of experience
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Weinrich's share of fairafric

Weinrich will train our Ghanaian key personnel in Germany. Since we will use very similar machines in Ghana, they will then be able to operate the plants in Ghana completely on their own!

FAQ

In the first two years we pay the interest (for example 50€ on 1.000€). 

Afterwards the repayment starts: another 6 equal installments consisting of interest and repayment, with 1.000€ these are e.g. annually 197,02€.

The total repayment on your original 1.000€ is therefore 1.282,10€.

The campaign runs until 30th of November or until we’ve collected all the money, which can happen earlier of course.

With the subscription form you can subscribe bonds. For example, if you want to lend us €2,000, you can “subscribe” to 20 bonds of €100 each, i.e. purchase them. 

We do not disclose information about our investors to any tax office. In your tax return, you simply state the interest you have received. With each payment we will inform you about the interest portion.

If you want to lend us money without interest, please send us a short e-mail. This is also possible and supports us even more.

Yes, absolutely! Whether in person, e-mail, telephone, social media, smoke signals… Spread the word!

Since the loan is unsecured, the total loss of your investment is possible. 

Do not invest money you absolutely need!

As part of the bond exactly 999,900 euros. That is due to German legislation on investor protection. Up to this limit, we can prepare a securities information sheet (SIS) instead of a comprehensive (and expensive) securities prospectus. This minimizes the costs of raising capital from approx. 15% to significantly less than 1%. You can download the SIS on this page under Documents.

Yes, you can! In this case the interest rate is even 7%! You can find this offer here.

In this case Weinrich has assured us the possibility to take over orders from its factory in Germany. As this plant is working at the absolute limit of its capacity and can hardly be expanded, this is an attractive option for both sides.

Yes, with pleasure. However, we are only allowed to advertise our campaign in Germany, as we have approved the underlying securities information sheet.

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Our customers say:

Best dark chocolate I´ve ever eaten!! Awesome chocolate, awesome project! Love it!

Marko Markovic​
customer

I support fairafric because the chocolate goes beyond what Fairtrade provides for the farmers. By producing the chocolate in the country where the cocoa is grown, a far larger percentage of the purchase price remains in Ghana.

Meg Dunn
customer

Yesterday I received my fairafric chocolate, completely produced in Ghana. I'm glad to have supported this yummy cause. Thanks a lot!

Bianca-Maria Rathay
customer

Fairafric's mission is so good that it's very hard not to support it. The chocolate is so good that it's very hard not to share it. Thank you.

Tamas Vincze
customer

I'm so happy I chose to support this company through Kickstarter, it's a great cause and development and the chocolate is AMAZING! I've been sharing mine with everyone and they LOVE it!

April-Mae McFarland-Smith
customer

This is some of the best chocolate I have ever had- the fact that it is sourced so well is an added bonus.

Keith Warter
customer

fairafric in the media

The Management Team

Hendrik Reimers

Founder

Before he founded fairafric, Hendrik gained a lot of experience in international sales.

Julia Gause

sales management

Julia has two Masters in Sustainability and manages our Key Accounts all over Europe.

Elisa Scheidt

marketing management

Elisa is a trained and award-winning filmmaker and gathered many years of marketing experience.

Michael Marmon-Halm

Managing Director fairafric Ghana

Michael has studied quality management and gathered more than 10 years of experience in the cocoa industry in Ghana.

Mustapha Yorda

CFO fairafric Ghana

Mustapha has been working in accounting in Ghana for 10 years and has a lot of export-experience in free trade zones.

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Convinced?

Then fill out this form with your data and we will send you a subscription form and the agreement details by post.
Filling in the form is not binding, you can look at all the documents at your leisure before making your decision.

Choose the amount you would like to lend here. It starts from 500€, the amount must be a multiple of 100€.

This website is advertisement for a bond for which a security information sheet (Wertpapier-Informationsblatt) was created. This sheet can be downloaded here. You are about to invest in a product which can be hard to understand.

Of course you can also give us an interest-free loan! Just write us an e-mail here.

It always seems impossible until it is done!
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