The recent inauguration of the Ghana Shea Employers Association (GSEA) and the Ghana Shea Workers Union (GSWU) represents a milestone in Ghana’s shea industry.
Launched in collaboration with the International Labour Organization (ILO) under its Productivity Ecosystems for Decent Work Programme, funded by the governments of Switzerland and Norway, along with other key partners, the new organisations aim to address challenges within the shea sector while fostering growth, sustainability, and empowerment.
The launch event in Tamale brought together key stakeholders in the shea sector, including traditional authorities, public institutions, representatives of labour unions, academics, women’s groups, and processors. This gathering underscored a shared commitment to building a thriving shea industry.
A Growing Global Market
Speaking at the launch of GSEA, Mr Michael Bozumbil, First President of the Ghana Employers Association, highlighted the growing global demand for shea butter, which has positioned it as one of Ghana’s leading export commodities.
“Ghana has witnessed a growing global demand for shea butter in recent years. This demand has positioned shea as one of Ghana’s leading export commodities,” he noted.
Statistics back this assertion: Ghana’s shea butter exports were valued at approximately US$92.6 million in 2022, while kernel exports were worth US$20 million in 2021, according to the Ghana Export Promotion Authority.
Globally, the shea butter market was estimated at US$2.75 billion in 2023 and is projected to grow to US$5.58 billion by 2033, highlighting the immense potential of the sector.
The Challenges
The shea sector is a cornerstone of the rural economy in northern Ghana, employing approximately one million women. Despite its economic significance, the sector faces numerous challenges.
Women, who form the backbone of the industry by performing labour-intensive tasks such as nut picking and butter processing, are often the lowest earners and do not benefit proportionately from the high value of finished products.
The industry also struggles with fragmentation, limited access to markets, and competition from foreign buyers. These buyers, armed with greater financial resources, dominate the trade and often drive down prices, disadvantaging local workers and producers.
Chief Adam, a traditional ruler and farmer, voiced his concerns: “The biggest traders of shea are foreign businesses. They have the resources and the money, being able to influence a lot of activities in the sector.”
This inequity has far-reaching effects. Pickers are paid poorly, while local processors, unable to purchase in bulk, are forced to pay higher prices for smaller quantities.
The establishment of the Ghana Shea Employers Association and the Ghana Shea Workers Union represents a significant step towards addressing these issues. These organisations aim to unify the sector and advocate for fair treatment and equitable benefits across the value chain.
Dr Vanessa Phala, ILO Director for Nigeria, Ghana, Liberia, and Sierra Leone, emphasised the significance of these organisations: “Fragmentation in the industry has long prevented stakeholders from championing common interests. The formation of these new organisations is intended to fill this gap.”
Prof. Abukari Alhassan, Director of the West African Centre for Shea Innovation and Research, echoed this sentiment, noting the potential of GSEA and GSWU to amplify the voices of women in the sector. He explained, “These organisations enable women to have a voice to advocate for better benefits, better pay, and fair rights.”
The Chairperson of GSWU also shared her perspective on the importance of collective representation: “A union is very important because now our voices can be heard, and we have a collective voice to fight for our rights such as good working conditions.”
Chief Adam also highlighted the value of collaboration: “By working together, stakeholders can identify new opportunities and hold the value chain accountable, so that the picker can benefit from the entire value chain. The issue about fairness in terms of pricing will come in.”
Conclusion
The formation of the Ghana Shea Employers Association and the Ghana Shea Workers Union marks a significant step towards systematically addressing and organising Ghana’s shea industry.
As global demand for shea butter continues to rise, empowering workers and improving industry standards will not only enhance livelihoods but also position Ghana as a leader in the global shea sector.
This is more than an economic opportunity—it is a chance to uplift the women who are the backbone of this vital industry and ensure a fairer and more sustainable future for all stakeholders.