VIDEO | Building Africa’s first solar-powered chocolate factory and pushing for fair trade rules - Trade Treasury Payments

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At the ITC SME Ministerial in Johannesburg, South Africa, Trade Treasury Payments (TTP) spoke with Michael Marmon-Halm, Managing Director of Fairafric Chocolates, to discuss the intersection of sustainable manufacturing, trade policy, and access to finance in Ghana’s cocoa industry.

Marmon-Halm explained, “Five years ago, we took a bold step to build the first solar-powered organic chocolate factory in a rural community in Ghana.” The project was launched at the height of COVID-19, and despite considerable headwinds, the company now employs more than 250 people and exports to five continents.

But that growth didn’t come easy.

“Access to finance from our jurisdiction is quite difficult,” said Marmon-Halm. Even with a compelling business case, early attempts to secure local funding were unsuccessful. The company ultimately turned to European partners – including the German development agency DEG – alongside crowdfunding and personal contributions.

The financing landscape in Ghana remains fraught with challenges. Marmon-Halm noted that interest rates have soared as high as 40%, which puts a strain on small and medium-sized businesses. “It becomes increasingly difficult for SMEs like my company to manage these – yes, I would say unnecessary – operating costs in the name of interest.”

Beyond cost, jurisdiction-specific criteria also create barriers. Marmon-Halm recalled being asked by a financial institution to rename the company as part of the collateral requirement. “Can you imagine? They were asking that our company be renamed just to qualify. Meanwhile, in Europe, I got this facility without any collateral. It’s a shame, and we’re hoping this changes.”

Trade policy adds a further layer of complexity. Despite the promise of the African Continental Free Trade Area (AfCFTA), intra-African trade remains costly.

“In South Africa, when South Africans import chocolates from Belgium or Switzerland, it’s zero tariff. But if they import the same quality chocolates from Ghana, they pay as much as 25%,” said Marmon-Halm.

Fairafric has been actively campaigning to address this imbalance. As a result of their advocacy efforts, the tariff has been reduced from 25% to 10%, but Marmon-Halm insists the work is not done. “We are still pushing the needle to get it to zero. How can SMEs be competitive with big brands from Europe, America, or China if this is what we are doing to ourselves?”

For Marmon-Halm, the message to policymakers is simple: “AfCFTA really wants to fix this problem? There’s too much talking – they need to wake up and start to work now.”