Ghana secures USD 4.7M funding to boost shea production

GHANA – The Ministry of Food and Agriculture (MoFA) in Ghana has committed a substantial investment of €4 million (USD 4.7 million) to revolutionize the country’s shea industry. 

This funding, in partnership with the African Development Bank (AfDB), aims to rebuild processing capacity, scale up production, and empower the rural communities that form the backbone of this sector. 

A significant focus of the investment is to revive the PBC Shea Limited processing plant located in the Savannah region, which has been dormant since 2019 due to challenges in raw material supply. 

Once fully operational, the plant is expected to process up to 200 tons of shea nuts daily, producing both shea butter and shea oil to meet domestic and international demand.

This initiative is beneficial for over 600,000 women engaged in harvesting and processing shea nuts across Ghana, as it promises to enhance their incomes and strengthen their economic security. 

The project also emphasizes sustainable practices to ensure environmentally responsible sourcing and processing of shea nuts. 

Minister of Food and Agriculture, Eric Opoku, stated, “Shea constitutes the major source of income, and so there is a need for us to ensure the establishment of a high-backed agreement between PBC Shea Limited and the farmers.”

This investment not only seeks to create jobs, particularly for women in northern Ghana, but also aims to align the shea industry’s growth with national development goals, promoting sustainable economic empowerment and maximizing the sector’s contribution to Ghana’s prosperity.

Reverend Fant Lambon Aaron, newly appointed Board Chairman of PBC Shea Limited, has affirmed the board’s commitment to revitalizing the company and aligning its operations with Ghana’s 24-hour economy initiative. 

He disclosed that the company aims to generate over 30,000 direct and indirect jobs, with a strategic focus on empowering women and youth in rural communities.

This move comes at a time when Ghana is positioning itself to become a global powerhouse in the shea industry by targeting an ambitious annual production output of 400,000 tonnes, valued at approximately USD 640 million. 

To achieve this target, Ghana is intensifying efforts across the entire shea value chain, from boosting raw nut production to expanding processing capacity and enhancing value addition. 

Investments and policy frameworks are being aligned to ensure sustainable growth, improved quality standards, and competitiveness in both local and international markets. 

Key initiatives include increasing support for smallholder women farmers, who constitute the bulk of shea nut collectors, through training, access to financing, and better market linkages.

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