Founded in 2017, Koa is disrupting the cocoa industry through its innovative upcycling of the cocoa fruit. Koa is the only company in West Africa that has created a new value chain from the cocoa pulp. Koa works closely with cocoa smallholders to reduce on-farm food waste and generate additional farmer income. It also brings unique ingredients to the food & beverage industry for use in a variety of applications, including chocolate, confectionery, and ice cream. We are thrilled to have found strong and reliable partners that will help us grow our business. This shows that our approach to responsible business and our value proposition meet the current pulse of the times. We will set up Africa’s largest chocolate pulp processing plant in West Africa, which is also the largest cocoa-growing region ,” stated Benjamin Kuschnik (Co-Founder and Group Finance Director at Koa).
‘People, Planet and Profit’
The investment round was led by Haltra Group, a Luxembourg-based family investment company which is joined by a group of other like-minded family offices all sharing Koa’s conviction to establish a business that creates real impact while being profitable and sustainable on the Triple Bottom Line: People, Planet and Profit.
“We are a family investment company that focuses on managing assets and making a positive impact. We also promote the development of sustainable and disruptive economic models for future generations. “We are thrilled to be part of this exciting venture at a the edge of Circular Economics and Food Transition, two core investment themes. We also want to make a positive impact on the local communities of Ghana ,” stated Matthieu Baumgartner (Co-Founder of Haltra).
The equity round will be complemented by a $3.5million long-term loan facility from impact funds, and $2.0million of shareholder loans.
Koa stated that it will use the proceeds from the debt financing to fund a new plant in Akim Achiase in the Eastern Region. This will be Koa’s second factory, which is already in construction and is planned to start its operations by the end of 2022. As the cocoa industry continues to discover the fruit, we must grow with our customers. Once fully operational, the new factory will increase our production capacity by tenfold, while generating 250 new jobs in rural Ghana and allowing us to extend our cocoa fruit upcycling to an additional 10,000 cocoa farmers ,” Daniel Otu, Production & Operations Director at Koa, explains.
The Landscape Resilience Fund (LRF) and IDH Farmfit Fund have also announced a $3.5 million investment in Koa, to set up a new processing facility in Ghana, increasing production capacity more than tenfold by 2024 and creating additional income for up to 10,000 cocoa farmers.