World's 2nd Largest Cocoa Farm - Ghana

WhiteCap Logo - Cocoa Holdings.png

Deal Summary:

Minimum Investment:  $20,000

Targeted Returns:           84% IRR

Target Hold:                     6 years

Eligibility:                         Accredited investors only

Harvest Returns is pleased to present an opportunity to invest in the world's second largest cocoa farm sponsored by WhiteCap Cocoa Holdings. WhiteCap's management plans to boost traditional yields through economies of scale, technology integration, irrigation, and farming best practices while using only hybrid cocoa tree seedlings. 

Investment Drivers:

Market considerations: Cocoa (sometimes known as cacao) is the primary ingredient in chocolate products enjoyed by people all over the world. Cocoa beans are grown in equatorial climates, with the two largest suppliers in the West African countries of Ivory Coast and Ghana. Globally, over 4.5 million tons of cocoa beans are consumed annually. The Ghana Cocoa Board (GCB) will purchase all product at a guaranteed floor of $1,600 per metric ton and initially handle all processing and export of the cocoa beans. Expected production cost on this farm is $335 per metric ton, well below the fixed price floor. GCB will also provide the hybrid seedlings and other farm inputs to WhiteCap. The price of cocoa has recently risen dramatically. 

Project Location - The property is located on an old coffee plantation of 3,000 acres in the Dormaa East District in the Brong Ahafo Region of Northern Ghana and is controlled by a 25-year land lease where the landowner receives rent, a share in gross cocoa sales, and a transfer of ownership of the farm at lease end.

Ghana's $45 billion economy is the seventh biggest in sub-Saharan Africa and, according to World Bank projections, will expand by 8.3% this year and 9.5% in 2019.  This rise gives the small West African country the fastest growth rate on the continent. In order to improve the investment climate for international investors, Ghana has implemented several ambitious reforms. To date, these efforts are paying off as Ghana was ranked the best place for doing business in West Africa, ahead of Nigeria and Cote d’Ivoire, according to the 2017 Ease of Doing Business Report. Ghana is one of the most politically stable countries in West Africa and has been a multiparty democracy since 1992. The country ranks 26th globally and second in Africa in the 2016 World Press Freedom Index. According to Henry Kerali, World Bank Country Director for Ghana,“the macroeconomic outlook was largely positive based on the 2017 performance."  GDP growth for 2017 is estimated to have almost doubled from 3.7% in 2016, and is expected to stay at that elevated level through 2018.

Experienced Sponsor -WhiteCap Cocoa Holdings team has offices in the US, United Kingdom, and Ghana. The team has successfully developed 250 megawatts of solar power projects in Ghana and has a strong presence and relationships in the country.

Sustainability Factors - WhiteCap’s corporate mission is to have a positive and sustainable impact with an economical, social, and environmental bias towards improving the lives of women and children while achieving superior returns on investment. Job training and a zero gender wage gap are at the forefront of the farm's fair labor practices. Laborers will also be provided free transportation to the job site and childcare.

Agriculture in Ghana is the main catalyst for rural development and increasing environmental sustainability. Agriculture production provides structure for the country's social stabilization and an economic buffer during economic shocks. This project will employ 190 local laborers in a region where jobs are hard to come by. 

This project will involve a re-forestation component where mahogany trees will be planted as a long term shade crop for the cocoa trees. Though this project is not organic for pest control reasons, the cocoa husks will be processed to provide ground cover and fertilizer.

Listen to a recorded webinar with WhiteCap Cocoa Holdings to learn more about an opportunity to invest in the world's 2nd largest cocoa farm. Harvest Returns' webinar hosted Mr. Lawrence Kunkel, President and Chief Strategy Officer of WhiteCap Cocoa Holdings, who has a track record of successful project development in Ghana and a strong management team on the ground.

Note: Investing in agriculture involves certain risks. Please review the offering documents for a full set of risk disclosures.