Sarafu Model

Sarafu Model

  1. Asset Development Phase
    1. Investment/Donation
      1. From community, donors and/or investors
      2. Investment in the form of bank transfer or (Sarafu-Coin) – initial coin offering (ICO) block chain enabled smart contract.
    2. Key Asset Development and Construction:
      1. Training on business efficiency and equity
      2. Value addition, equipment, stocking, renovation, etc.
    3. Operating Costs and Sales
      1. Sales of products or services to non-local markets
      2. Sales of products or services to local markets
      3. Operating Costs in non-local markets
      4. Operating Costs in local markets
    4. Debt Repayment
      1. Return on investment will be accelerated in the next phase.
      2. For a donation debt repayment = Social Return on Investment (SROI) generally via community and environmental services.

 

  1. Community Currency
    1. Audit of capacity
      1. The key asset value, debt, productive capacity as well as Community and environmental well being are assessed and valued in Sarafu-Credit.
      2. This amount of Sarafu-Credit is issued to local businesses, schools and clinics as an interest free consumption credit.
      3. This credit can be used as change, to pay school fees and can be accepted and used by anyone. It is backed by the cooperative in general (at everyone’s shops who received a credit), and finally always accepted for goods and services at the Key Asset.
    2. Local Market creation and circulation
      1. This credit fills a gap in liquidity and helps connect supply and demand. This creates a more stable local market, and increased networking, food security and trust
    3. Local Sales of Cooperative products to  community
      1. The resulting profits are used for local operating costs as well as community services
    4. Community Services
      1. The community services are organized by the cooperative or partners and involve the whole community.
        1. Education: School fees
  1. Local Asset Ownership and Regional Markets
    1. A limited amount of Sarafu-Credit and national currency can be converted to Sarafu-Coin and used to purchase externally owned shares at fixed rate.
      1. This allows locals to be able to buy back shares from foreign investors and assists in debt repayment.
    2. Sarafu-Coin (Shares of local assets) can also be traded in external markets via crypto currency exchanges.