The shea industry in Ghana’s has a rich history, deeply embedded in the culture and tradition of the country’s northern regions. Rural women are the primary producers of shea butter in northern Ghana, where they pick the fruit and extract its “butter.” It is an important natural resource that could be adequately exploited as a tool for poverty reduction. This valuable crop, often referred to as “woman’s gold,” is a source of income for these women.

Shea butter, derived from the nuts of the shea tree, has become a global commodity. Approximately 16 million women across 21 African countries are involved in shea nut harvesting.

In northern Ghana, women play a central role in every stage of the shea value chain, from harvesting the nuts in rural communities to processing and selling shea butter in local and international markets. Participation in the shea business empowers then economically, socially, and entrepreneurially, offering opportunities for income generation, skills development and increased decision-making power within their families and communities.

Income from shea butter sales contributes significantly to household livelihoods. It helps cover basic needs, school fees, healthcare expenses, and other essentials. Women often form cooperatives or work collectively to increase their bargaining power and access to markets. This activity provides them with economic independence and a voice within their communities.

The economic importance of shea nuts and shea butter cannot be overstated, as they are not only valuable commodities for export but also play a significant role in the local economy. 

Shea butter has gained popularity worldwide. It is used in cosmetics, skincare products, a major ingredient in lotions, moisturizers, and balms and as a cooking ingredient. Investing in the sheanut industry is rewarding especially considering the growing global demand for shea butter which is booming and set to exceed $3.5 billion by 2028. The beauty industry is a large driver behind this growth.

The global shea butter market is valued at US$2.75 billion and is expected to reach US$5.58 billion by 2033. shea is one of the export commodities in Ghana, with shea butter exports worth US$92.6 million (38,792 tonnes) in 2022 and shea kernels worth US$20 million (36,162 tonnes) in 2021.

Ghana is also a major shea processor with an estimated kernel extraction capacity of 226,000 MT per year. Ghana is the world’s fourth largest shea producer supplying 94,000 metric tons (MT) of shea annually and is known for its high-quality nuts.

The Ghanaian shea sector has experienced rapid development. Considered a politically and economically safe nation, Ghana has received multi-million-dollar investments into several shea extraction plants.

Approximately 600,000 MT of shea are collected globally each year, constituting a global market of $500 million. North America, Europe, and Japan constitute the largest export markets.

Deliberate investment in the sheanut industry can yield positive returns while making a difference in the lives of those involved in its supply chain. Investing in women’s economic empowerment within value chains, such as shea in Ghana, is not only a matter of social justice but also a wise economic decision with far-reaching societal and generational benefits.

By breaking down systemic barriers and creating opportunities for women to participate fully and equally in value chains, we can unlock their potential as drivers of innovation and productivity, while reducing poverty and promoting gender equality.

Investment in the shea nuts industry should also focus on increasing production and improving quality. By providing modern equipment and techniques, farmers and processors can enhance their productivity and the overall quality of shea butter. Investment in infrastructure, such as processing facilities, storage, and road networks, is also critical. These improvements reduce post-harvest losses and ensure that the shea nuts reach markets in optimal condition.

 Investment should be directed towards creating market linkages and supporting the establishment of cooperatives that can negotiate fair prices for their products. This will empower local farmers and ensure that they receive a fair share of the profits generated from the shea nut industry.

The shea nut sector is not just a source of income, but a cultural and economic treasure that must be preserved and nurtured. Investing in this industry can trigger a brighter future for the communities that rely on it.