Shea butter industry losing millions to raw shea nut to exports – Shea Butter Employers Association

The Ghana Shea Butter Employers Association has warned that the country is losing millions of cedis annually due to the exportation of raw shea nuts instead of processing them locally. The president of the association, Rabiatu Abubakari, is advocating for stronger government support to bolster the local shea butter industry and generate more economic opportunities for farmers and processors.

The industry is grappling with numerous challenges, including limited access to finance, inadequate storage facilities, and the exportation of raw shea nuts. Abubakari highlighted that the situation results in Ghana losing significant revenue and employment opportunities. She pointed out that attempts by local producers to obtain loans for business expansion have frequently been unsuccessful, citing high interest rates and frequent rejections from banks.

Additionally, around 70% of Ghana's raw shea nuts are exported, leaving local processors with insufficient supplies. To address these issues, Abubakari proposes leveraging the 24-hour economy initiative to boost local processing and reduce the exportation of raw shea nuts. She also emphasizes the need for government intervention in providing storage facilities, as shea is a seasonal crop.

The association has already received some assistance from the Tree Crops Development Authority, but Abubakari calls for more substantial investment in financing, storage, and local processing to ensure the industry's long-term sustainability and retain more value within Ghana.