AAK Ghana Limited has signed a Memorandum of Understanding (MoU) with the Ministry of Food and Agriculture (MoFA) aimed at driving value addition, competitiveness, and sustainable growth within Ghana’s shea industry. The agreement was formalized in Accra by Minister for Food and Agriculture Eric Opoku and AAK West Africa Vice President Lasse Skaksen, with Denmark’s Ambassador to Ghana, Jakob Linulf, witnessing the ceremony.
The partnership formalizes collaboration between the Government of Ghana and AAK, one of the world’s largest producers and buyers of shea products, to enhance local processing capacity, strengthen participation of small and medium-scale enterprises, and improve Ghana’s competitiveness in global shea markets. The agreement is expected to promote inclusive growth across the shea value chain, with particular focus on women collectors, youth employment, and sustainable sourcing.
Speaking at the signing ceremony, Skaksen stated that Ghana has the potential to become a global reference point for value-added shea processing. He emphasized that AAK intends to remain a long-term partner in making that vision a reality, adding that the partnership reflects the company’s confidence in Ghana’s shea sector and commitment to investing in local capacity, sustainable sourcing, and inclusive economic growth.
Under the MoU, AAK outlined four key priorities to support development of Ghana’s shea industry. The first is expansion of Kolo Nafaso, AAK’s sustainable direct sourcing programme, which currently supports over 230,000 women shea collectors through access to financing, capacity development, and guaranteed markets. Over the coming years, the company plans to expand the programme by approximately 70,000 additional women, mainly in northern Ghana, increasing the total number of supported women to more than 300,000.
The second priority involves strengthening market linkages for smallholder shea butter processors, with focus on connecting them to formal markets and enhancing their competitiveness. This initiative aims to increase income opportunities for small and medium-scale enterprises operating within the shea value chain.
As its third priority, AAK expressed intention to invest in local shea processing in Ghana, leveraging world-class technology to increase local value addition, create over 100 jobs, and boost export competitiveness. The company further committed to supporting shea reforestation and parkland preservation initiatives in partnership with the Tree Crops Development Authority and other stakeholders to ensure long-term sustainability of the sector.
The Ministry of Food and Agriculture noted that the MoU aligns strongly with government’s strategic priorities, including the Agriculture for Economic Transformation Agenda (AETA), the Feed Ghana Programme through the Feed the Industry sub-programme, and national efforts to strengthen agro-processing, tree crop development, and export-led growth. The Ministry expressed commitment to support AAK’s priorities by creating an enabling business environment to secure success of these investments.
AAK, which has maintained operations in Ghana since 1958, reaffirmed its long-term commitment to the country and confidence in Ghana’s potential to serve as a regional hub for value-added shea processing. This commitment is further demonstrated by the recent FairWild certification of AAK’s Kolo Nafaso programme, the first ever for shea, transforming ethical sourcing in the shea sector and setting a new industry benchmark while assuring impact of empowering the families of more than 230,000 women collectors across the region.
The signing ceremony was attended by senior government officials and key stakeholders, including Deputy Minister for Food and Agriculture John Dumelo, Chief Director of MoFA Paul Siameh, Chief Executive Officer of the Tree Crops Development Authority Dr Andy Osei Okrah, and representatives of the Danish Embassy in Ghana.
Under the MoU, AAK and the Government of Ghana reaffirm their shared commitment to transitioning the shea sector from a largely raw commodity-based industry into a competitive, value-driven pillar of Ghana’s agricultural and industrial economy. The partnership comes at a time when Ghana’s government has announced plans to inject substantial capital into the shea industry to build capacity of producers and processors along the shea value chain, leading to increased production.
Ghana is one of the world’s leading producers of shea nuts and butter, with the industry providing livelihoods for millions of people, particularly women in the northern regions. However, the sector has historically been characterized by export of raw materials rather than value-added products, limiting economic returns for producers and the country. The new partnership aims to reverse this pattern by developing local processing capabilities that can compete in international markets.
The shea industry has gained increasing attention from policymakers as part of Ghana’s broader strategy to diversify agricultural exports beyond cocoa. The Tree Crops Development Authority, established to oversee development of crops including shea, cashew, and coconut, has been working to strengthen value chains and attract investment to the sector.
Recent data from the Ghana Commodity Exchange indicates growing interest in trading commodities such as shea through formal market mechanisms. Industry stakeholders have appealed for policy support to mandate key crops including shea to be traded through the Exchange, alongside expansion of warehousing and information technology infrastructure to strengthen the commodity market.
The partnership announcement follows Denmark’s continued support for agricultural development in Ghana, with bilateral cooperation spanning several decades. Danish companies have maintained significant presence in Ghana’s agribusiness sector, contributing to technology transfer and capacity building initiatives.
