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Government signs MoU to accelerate value addition in Ghana’s shea industry

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The MoU was signed by Eric Opoku, Minister for Food and Agriculture, on behalf of government

The Government of Ghana, through the Ministry of Food and Agriculture (MoFA), has signed a strategic Memorandum of Understanding (MoU) with AAK Ghana Limited (AAK) to accelerate value addition, competitiveness, and sustainable growth within Ghana’s shea industry.

The MoU was signed at the Ministry of Food and Agriculture in Accra by Eric Opoku, Minister for Food and Agriculture, on behalf of the Government of Ghana, and Lasse Skaksen, Vice President and Head of AAK West Africa.

The signing underscores government’s commitment to strengthening agro-processing, expanding industrial value chains, and positioning Ghana as a competitive player in global shea markets.

The ceremony was witnessed by H.E. Jakob Linulf, Ambassador of Denmark to Ghana, highlighting the international development and investment significance of the partnership.

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Under the agreement, the Government of Ghana and AAK, one of the world’s largest producers and buyers of shea products, will collaborate to enhance local processing capacity, deepen the participation of small and medium-scale enterprises, and promote inclusive and sustainable growth across the shea value chain.

Particular emphasis will be placed on empowering women shea collectors, creating employment opportunities for the youth, and strengthening sustainable sourcing practices.

Eric Opoku noted that the MoU aligns strongly with government’s flagship initiatives, including the Agriculture for Economic Transformation Agenda (AETA), the Feed Ghana Programme, specifically the Feed the Industry sub-programme, and national efforts to advance agro-processing, tree crop development, and export-led industrial growth.

The Ministry reaffirmed its commitment to creating an enabling policy and business environment to support the successful implementation of the partnership.

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Speaking at the signing ceremony, Lasse Skaksen said, “This partnership with the Government of Ghana reflects our shared ambition to unlock the full potential of the shea sector. Ghana has what it takes to become a global reference point for value-added shea processing, and AAK is committed to investing in local capacity, sustainable sourcing, and inclusive economic growth.”

As part of the MoU, AAK outlined four priority areas to support government’s vision for the development of the shea industry. First, the 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.

The programme is expected to expand by approximately 70,000 additional women, particularly in northern Ghana, bringing total participation to over 300,000 women. This expansion will be supported by further investment in logistics, warehousing, and supply chain infrastructure.

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The signing ceremony was attended by senior government officials and key stakeholders, including John Dumelo, Deputy Minister for Food and Agriculture; Paul Siameh, Chief Director of MoFA; Dr Andy Osei Okrah, Chief Executive Officer of the Tree Crops Development Authority; and representatives of the Danish Embassy in Ghana.

Source:
www.ghanaweb.com

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