"Gov’t to implement phased ban on raw shea nut exports by 2026" – Dr. Otokunor

The Government of Ghana has announced a bold policy shift aimed at revamping the country’s shea industry, with a phased ban on the export of raw shea nuts set to take effect by 2026.

The move, which forms part of the Mahama administration’s renewed industrialisation agenda, is targeted at boosting local processing, enhancing value addition, and increasing Ghana’s stake in the lucrative global shea market.

The announcement was made by Dr. Peter Boamah Otokunor, Director of Presidential Initiatives on Agriculture and Agribusiness, during the official press launch of the 2025 World Shea Expo in Accra.

“The Mahama-led administration is taking bold policy steps to correct structural imbalances in the sector,” Dr. Otokunor said. “By 2026, the government will implement a phased ban on the export of raw shea nuts. Ghana must move from being a raw material exporter to a nation of value-added exports.”

According to him, the decades-long reliance on exporting raw shea nuts has deprived the country of enormous economic benefits tied to processed shea products such as butter, cosmetics, and pharmaceutical derivatives.

The new policy, he explained, would open the door for domestic processors to scale operations and enter high-value markets.

“This ban will allow local processors to expand, build capacity, and develop export-ready brands that capture higher earnings in the international market,” he emphasized.

Rehabilitating Buipe Shea Factory to Anchor Industrial Growth

As part of government’s wider strategy to create a thriving shea industry, Dr. Otokunor revealed that major rehabilitation works are currently ongoing at the Buipe Shea Processing Factory in the Savannah Region.

Once a flagship industrial facility in northern Ghana, the factory had been neglected for years.

“Today, rehabilitation efforts are underway to revamp its operations. When fully operational, it will have the capacity to process over 60 metric tonnes of shea nuts annually and scale up to 180,000 metric tonnes under a 24-hour cycle,” he stated.

He added that the factory will become a crucial hub for value addition in the sector, while generating between 300 and 1,000 direct jobs and over 10,000 indirect jobs.

The facility is expected to drive the growth of smallholder shea cooperatives across the northern regions, reinforcing inclusive economic participation.

Sustaining a Strategic National Resource

Dr. Otokunor also drew attention to the ecological and economic importance of the shea tree, calling for its sustainable management and protection.

He cautioned against the indiscriminate felling of shea trees, especially for firewood.

“The shea tree is not merely a source of income; it is an ecological and economic treasure. It must be preserved and invested in wisely,” he said. “It takes nearly 20 years for a shea tree to reach full maturity — it is not a resource we can afford to misuse.”

Global Eyes on Ghana Ahead of World Shea Expo 2025

The policy announcement comes ahead of the World Shea Expo 2025, a major industry event scheduled to take place in Tamale.

The Expo is expected to attract a wide range of local and international stakeholders, including agribusiness investors, development partners, researchers, and government policymakers.

The event will serve as a platform to promote opportunities within Ghana’s shea value chain and showcase the government’s commitment to making the country a regional hub for shea processing and export.

A Strategic Economic Shift

With the phased export ban, Ghana is taking a decisive step to transform its raw shea nut trade into a globally competitive, value-added industry.

The policy aligns with broader efforts to diversify the country’s export base, improve foreign exchange earnings, and create sustainable livelihoods, particularly in the northern regions.

Industry experts believe that if properly executed, the move could reposition Ghana as a global leader in high-quality, processed shea products, rather than a mere supplier of raw materials.

Story by: Joshua Kwabena Smith