Editorial: Export of raw shea nuts growing threat to local processors, value chain actors

The Association is concerned about foreign buyers in rural areas. These buyers are purchasing raw shea nuts in bulk for export. This practice leaves local processors without materials to work with.

As a result, the local shea industry is suffering. Small-scale processors are being pushed out of business. Countries like Togo, Benin, Burkina Faso, and Nigeria have banned raw shea nut exports to protect their industries.

Foreign demand has caused significant price increases at the community level. A bowl (2kg) of shea nuts sold for GH¢12 in 2023. By early 2024, it rose to GH¢14 and now sells for GH¢60 due to middlemen and unregulated markets.

“This situation harms pickers, processors, and local businesses,” the Association stated. Many affected businesses are led by women. The market distortion is collapsing the local shea economy.

“When we export raw nuts, we lose up to 300 percent of potential value,” said the Association. This leads to lost jobs and reduced industrial growth. It also means less tax revenue for Ghana's development needs.

Women make up over 90 percent of the shea nut collection workforce. They remain at the lowest end of the value chain. This situation perpetuates poverty and limits economic mobility for them.

The GSEA urges the government to ban raw shea nut exports immediately. This would secure supply for local processors. They also call for investment in processing infrastructure through grants and low-interest loans to boost competitiveness.