Ghana’s Shea Industry Holds Steady as Nigeria’s Export Ban Sparks Price Slump

While Nigeria’s shea nut export ban has sent prices tumbling by 33 percent, Ghana’s carefully balanced approach has helped shield its farmers and processors from such shocks, underscoring the benefits of regulation over restriction.

Nigeria, the world’s largest producer of shea nuts, recently halted exports for six months to push local processing, but the move backfired as prices crashed from ₦1.2 million (GH¢9,187.20) to ₦800,000 (GH¢6,124.80) per ton in days. Farmers, traders, and exporters now face losses and contract defaults.

Ghana, by contrast, has avoided outright bans. Through the Tree Crops Development Authority (TCDA), the country enforces a minimum farmgate price of GH¢9.01 per kilogram, (approximately GH¢9,010 per ton) tied to quality standards. This has ensured stability for farmers compared with the roughly GH¢6 per kilogram earned in neighboring markets with bans.

“It’s only in Ghana that shea farmers are smiling,” says Senyo Kpelly, founder of Eco Restore Ltd. “Our regulatory model balances farmer welfare and industry growth without distorting markets.”

Still, stability is not without challenges. Ghanaian processors struggle with borrowing costs among the highest globally of between 25 and 30 percent compared with 3 to 5 percent internationally. The lack of affordable credit prevents processors from stockpiling nuts, upgrading technology, or running plants year-round.

Beyond financing, the sector faces hurdles in technology adoption and global competitiveness. Investments in moisture meters, mechanized crushing, refining, and farmer training are vital for meeting buyer standards. Some firms, such as Asheba Enterprise, which partners with 600 women in Northern Ghana, demonstrate what is possible when entrepreneurship meets innovation.

The bigger opportunity lies in value addition. While Ghana exports large quantities of raw nuts and semi-processed butter, the most lucrative profits are captured abroad in finished cosmetics, food, and wellness products. Firms like Hanahana Beauty and Shea Yeleen show the potential of Ghana-made brands on global shelves, but they remain exceptions.

Experts argue that Ghana must act decisively to avoid being locked into a low-value role in the $6.5 billion global shea market. The path forward, they say, requires three priorities: cheaper financing, investment in science and technology, and strategic branding of Ghanaian shea products.

With shea often dubbed “women’s gold” because 95 percent of pickers are women, the stakes are not only economic but social. A stronger shea industry would boost rural livelihoods, empower women, and enhance foreign exchange earnings.

Nigeria’s policy gamble has exposed the risks of heavy-handed intervention. Ghana’s steadier hand, backed by reforms in finance, technology, and branding, could transform shea from a commodity into a flagship of industrial transformation and inclusive growth.

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