The shea industry in Ghana, though full of potential, faces significant risks that could hinder its growth and long-term sustainability, according to the IMANI Centre for Policy and Education.
While government plans aim to transform the sector into a $640 million export powerhouse, IMANI cautioned that these ambitions will falter if pressing environmental, logistical, and market challenges are not urgently addressed.
One of the most immediate threats is the availability of raw materials, which directly affects production and processing.
Factories like the PBC Shea Factory in Buipe have already expressed concerns about the shortage of shea nuts needed to meet their operational capacity.
“Environmental degradation is steadily undermining the resource base, with shea trees cut for charcoal and bushfires destroying entire stretches of land.
“Climate change adds another layer of fragility: rising temperatures and erratic rainfall are not only lowering yields but also causing some trees to die prematurely, reducing long-term supply.”
IMANI Centre for Policy and Education
At the grassroots level, small-scale producers, many of whom are women, are vulnerable to price volatility.
Sudden shifts in global demand can drastically reduce incomes for rural families who depend on shea production for their livelihoods.
In addition, the continuous export of raw nuts drains local processors of the inputs they need to compete, further weakening the domestic value chain.
Environmental And Market Challenges Threaten Sustainability
The combination of environmental destruction, climate change, and unstable market conditions presents a complex challenge for the industry.
IMANI warned that unless policies are reformed to address these issues, the government’s ambitious targets for the shea sector could remain out of reach.
Trade data from the 2024 Non-Traditional Exports report underscores the urgency of these reforms. Raw shea exports nearly doubled, jumping by 93.7 percent from $42.3 million in 2023 to $82.1 million in 2024.
This made shea the country’s second-largest agricultural export. In contrast, processed shea oil exports rose by a more modest 28.9 percent over the same period.
These figures reveal that the international market currently rewards raw exports more than local processing.
Without strong incentives and regulatory enforcement, Ghanaian processors will continue to struggle to compete with buyers offering higher prices for unprocessed nuts.
Pathways To Revitalize The Shea Industry
IMANI further emphasized that while the risks are serious, there are clear solutions that could secure the future of the shea industry.
A top priority is investment in climate-resilient shea tree varieties, which would help maintain yields despite rising temperatures and erratic rainfall. Such innovations would protect the resource base and provide stability for future generations of producers.
Another crucial step is the enforcement of the government’s plan to phase out raw shea nut exports by 2026.
By limiting raw exports, more nuts would remain available to local processors, creating jobs and boosting value addition within the country.
“This must be accompanied by market reforms that make domestic sales more attractive than smuggling nuts abroad.”
IMANI Centre for Policy and Education
Logistics and infrastructure improvements are equally vital. The development of modern storage facilities, better transportation networks, and efficient supply chain systems would reduce post-harvest losses and enhance productivity across the value chain.
Government’s Ambitious Goals For Shea Growth
Despite these risks, the government has laid out an ambitious vision for the shea industry as part of its 24-hour economy agenda.
At the World Shea Expo held in Tamale, Dr. Peter Boamah Otokunor, Director of Presidential Initiatives on Agriculture and Agribusiness, announced plans to expand annual production from the current 130,000–150,000 metric tonnes, valued at approximately $118 million, to 400,000 metric tonnes within a few years.
The recently reopened Buipe Shea Factory, which had been dormant for several years, serves as a cornerstone of this initiative.
With a capacity to process 60,000 metric tonnes annually, the factory could triple its output under continuous operations. This expansion is expected to create thousands of jobs and strengthen Ghana’s push to add value locally rather than relying solely on raw exports.
However, IMANI cautioned that unless the underlying challenges are resolved, these production goals will remain aspirational rather than achievable.
Potential For Rural Development And Women’s Empowerment
Beyond its economic potential, the shea sector offers unique opportunities for rural development and women’s empowerment. In many northern communities, women are the backbone of shea nut collection and initial processing.
Strengthening the industry could provide sustainable jobs and income for thousands of households, lifting entire communities out of poverty.
“The shea sector remains one of Ghana’s most promising opportunities for rural development, women’s empowerment, and industrialization. But to move from promise to performance, government and stakeholders must tackle these vulnerabilities head-on.”
IMANI Centre for Policy and Education
IMANI highlighted that achieving this vision requires close collaboration between government agencies, private sector stakeholders, and development partners.
By addressing environmental risks, improving infrastructure, and promoting value-added processing, Ghana can turn the shea industry into a driver of inclusive growth.
The think tank concluded that while the sector’s future is bright, it will only be realized through deliberate, well-coordinated action.
Without bold reforms, the dream of building a thriving $640 million shea export sector could be lost to inefficiency and neglect.
READ ALSO: Tyla Wins Second MTV VMA
