RSF Social Finance Makes a Loan to Madécasse
Thursday, October 9, 2014
RSF is pleased to announce a new loan to Madécasse, a social enterprise that makes chocolate and vanilla products in Africa. RSF provided a line of credit that will allow Madécasse to finance their inventory purchases and assist with cash flow gaps throughout the year.
Madécasse was founded in 2008 by Tim McCollum and Brett Beach. As Peace Corps volunteers in Madagascar, the pair fell in love with the country and wanted to do more to help its economy after their PCV service. Troubled by the fact that Africa supplies 70% of the world’s cocoa but less than 1% of its chocolate, they crafted a mission to create real change in Madagascar by keeping the entire chocolate production process local. Madécasse buys cocoa from local farmers and provides them with skills training and above-market wages. The company takes advantage of the full production capacities of Madagascar: From grinding and processing the cocoa, to making the chocolate, to wrapping and packaging. This creates additional jobs and helps build industries to drive sustainable economic development in one of the poorest countries in the world. By keeping all manufacturing in Madagascar, local farmers benefit four times more than they would have from the fair trade system.