The Ministry of Food and Agriculture (MoFA) has officially transitioned Ghana’s shea sector into a high-value industrial frontier following a landmark $90 million agreement with AAK Ghana Limited. The strategic Memorandum of Understanding (MoU), signed in Accra, marks one of the largest single-ticket investments in the nation’s tree crop history.
By establishing a world-class processing factory, the partnership aims to end Ghana’s historical reliance on raw nut exports, pivoting instead toward high-standard industrial oils and fats that command premium prices on the global market.
“Witnessed by the Danish Ambassador, H.E. Jakob Linulf, the agreement was formalized by the Minister for Food and Agriculture, Hon. Eric Opoku, and the Vice President of AAK West Africa, Mr. Lasse Skaksen. The move is a central pillar of the Agriculture for Economic Transformation Agenda (AETA), specifically the ‘Feed the Industry’ sub-programme”
MoFA
According to the Ministry, the $90 million capital injection will fund the construction of an advanced shea processing facility equipped with cutting-edge technology to handle local value addition.
This industrial hub is expected to create over 100 direct jobs, providing a specialized employment avenue for youth in the plant-based oils and fats sector. Beyond the factory walls, the economic ripples are designed to “reach deep into the Savannah and Northern regions,” where the shea tree remains a primary economic lifeline.
“The partnership formalizes a $90 million investment focused on transitioning the shea sector from a raw commodity-based industry into a high-value industrial pillar. Central to this initiative is the establishment of a world-class shea processing factory”
MoFA
By processing shea locally, Ghana retains the “value-added” profits that were previously captured by foreign refineries, ensuring that the wealth generated from the “women’s gold” stays within the domestic economy.
Empowering 300,000 Women Collectors
At the heart of the MoU is the massive expansion of the Kolo Nafaso direct sourcing programme.
MoFA noted that this initiative is set to scale up its operations to support over 300,000 women shea collectors in Northern Ghana. By providing interest-free pre-financing and guaranteed markets, AAK is removing the middleman-induced volatility that has long plagued smallholder incomes.
This would facilitate the expansion of the “Kolo Nafaso direct sourcing programme,” to support women shea collectors in northern Ghana through financing and guaranteed markets. This model ensures that the female-led workforce at the base of the supply chain benefits directly from the $90 million investment, turning seasonal collection into a stable, bankable livelihood.
Furthermore, recognizing that industrialization requires technical expertise, the partnership includes the launch of the AAK Ghana Innovation Academy – an institution that will serve as a center of excellence, focusing on SME viability and enhancing youth employability.
It is designed to bridge the skills gap in specialized agribusiness, ensuring that Ghanaian workers are equipped to manage the sophisticated logistics, warehousing, and quality-control systems required for global export competitiveness.
“Ghana has the potential to become a global reference point for value-added shea processing. This partnership reflects our confidence in Ghana’s shea sector and our commitment to investing in local capacity and inclusive economic growth”
Mr. Lasse Skaksen, Vice President of AAK West Africa
By combining top-tier infrastructure with human capital development, MoFA and AAK are positioning Ghana to compete with major players like Burkina Faso and Ivory Coast for dominance in the $2 billion global shea market.
“The agreement also mandates a rigorous environmental agenda of sustainability. In collaboration with the Tree Crops Development Authority (TCDA), AAK has committed to shea reforestation and parkland preservation”
MoFA
For the Ministry, this is a critical defensive measure against the twin threats of land degradation and unsustainable fuel use that jeopardize the long-term supply of raw shea nuts.
As the global demand for ethical and traceable cosmetic ingredients surges, this sustainability commitment ensures that Ghana’s shea remains attractive to high-end European and American brands.
Through this $90 million deal, MoFA is not just building a factory; it is securing a sustainable, industrial future for the entire Northern economy.
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