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Ghana Moves to Ban Raw Shea Nut Exports by 2026 to Boost Local Value Addition

July 9, 2025
Stephen M.Cby Stephen M.C
in Agribusiness
0
Ghana Moves to Ban Raw Shea Nut Exports by 2026 to Boost Local Value Addition

Dr. Peter Boamah Otokunor, Director of Presidential Initiatives on Agriculture and Agribusiness

The government of Ghana has announced plans to implement a phased ban on the export of raw shea nuts by 2026 as part of a broader strategy to strengthen the agro-industrial sector and promote value addition in the shea industry.

The announcement was made by Dr. Peter Boamah Otokunor, Director of Presidential Initiatives on Agriculture and Agribusiness, during the official press launch of the 2025 World Shea Expo.

According to Dr. Otokunor, the bold policy move is a key step toward correcting structural imbalances that have long hindered the growth of Ghana’s shea industry.

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“The Mahama-led administration is taking bold policy steps to correct structural imbalances in the sector. By 2026, the government will implement a phased ban on the export of raw shea nuts.”

Dr. Peter Boamah Otokunor

Ghana, a significant producer of shea nuts, has traditionally exported large volumes of raw nuts to international markets, losing out on potential earnings from processed shea butter and related products. Dr. Otokunor emphasized that the time has come for Ghana to transition from a raw material exporter to a nation focused on value-added exports.

“This ban will allow local processors to expand, build capacity, and create export-ready brands that capture higher earnings in the international market,” he said, adding that the shea tree is not just an economic asset but a strategic national resource that must be preserved and optimized for long-term value.

Building Local Processing Capacity

To support the shift toward value addition, Dr. Otokunor also announced the ongoing rehabilitation of the Buipe Shea Processing Factory—once a critical industrial asset in northern Ghana that had fallen into neglect.

“Today, rehabilitation efforts are underway to revamp its operations. When fully operational, the factory will have the capacity to process over 60 metric tonnes of shea nuts annually and can peak at 180,000 metric tonnes under a 24-hour operation.”

Dr. Peter Boamah Otokunor

The factory’s revival is projected to create between 300 to 1,000 direct jobs and more than 10,000 indirect jobs, serving as a critical anchor for a network of smallholder cooperatives across the five northern regions. The move is seen as a game-changer for inclusive growth, especially for rural women who form the backbone of shea nut harvesting and preliminary processing.

With the upcoming ban and renewed industrial focus, the government aims to empower local shea businesses to compete globally.

“This policy shift gives our local processors the breathing space and security they need to scale operations and invest in innovation. It’s about time we saw Ghanaian-branded shea products dominating global shelves.”

Dr. Peter Boamah Otokunor

By limiting the export of raw materials and channeling resources toward domestic processing, Ghana hopes to capture more value across the shea value chain. This includes producing refined shea butter, cosmetics, soaps, and other high-end derivatives which command better prices and improve foreign exchange earnings.

World Shea Expo 2025: A New Chapter for the Industry

The announcement comes ahead of the highly anticipated World Shea Expo 2025, an international event that will bring together shea industry stakeholders, investors, policymakers, and development partners. The expo is expected to serve as a platform for sharing best practices, showcasing innovation, and attracting investment into Ghana’s growing shea sector.

The event is also aimed at strengthening collaboration among key players to drive inclusive and sustainable growth across the industry. “We are creating the environment for dialogue, partnerships, and strategic investment. Shea is not just a crop; it’s a national economic pillar,” Dr. Otokunor emphasized.

The move to ban raw shea nut exports by 2026 aligns with Ghana’s broader vision of industrial transformation and agro-based economic resilience. It reflects the Mahama administration’s focus on building competitive, homegrown industries that generate employment, preserve natural resources, and diversify the export base.

As the countdown to 2026 begins, the success of this policy will depend on the full mobilization of public-private partnerships, technical support for local processors, and sustained investments in infrastructure and capacity building.

Ghana’s shea sector, if well harnessed, holds immense potential not only for national growth but also for positioning the country as a continental leader in shea-based exports.

READ ALSO: Health Minister Assures Unposted Nurses of Deployment

Tags: Dr. Peter Boamah OtokunorexportsRaw Shea NutValue AdditionWorld Shea Expo 2025
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