The West African Development Bank (BOAD) has approved a 6 billion CFA franc (approximately €9 million) loan to Label d’Or SA, a Togolese company specializing in organic shea processing, in a move aimed at modernizing its operations and expanding production capacity. The decision was taken at the bank’s board meeting in Dakar on March 25–26.
The financing will support industrial upgrades at Label d’Or’s plant in Gbatopé, Zio prefecture, and is expected to benefit 33 women currently engaged in the company’s shea value chain. Authorities say the investment will strengthen Togo’s position in the certified shea butter market, particularly for exports to Europe and the United States.
Built at a cost of 1.8 billion CFA francs and inaugurated in February 2023, the Label d’Or facility was co-financed by the company and USAID. The plant has a processing capacity of 30 metric tons of shea nuts per day, producing roughly 4,300 metric tons of shea butter annually, with a target turnover of €7 million per year. Despite these capabilities, the company has yet to operate at full capacity due to challenges in sourcing sufficient nuts, meeting export certification requirements, and securing working capital for short-term bulk purchases.
Label d’Or has also received technical support from the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, which has provided guidance on financial management, environmental, social and governance (ESG) compliance, and access to financing. The new BOAD loan forms part of a broader strategy to move the company further up the shea value chain by shifting from raw nut exports toward higher-value processing and certified products.
Togo is one of Africa’s leading shea nut producers, with annual output estimated at 20,000 to 25,000 metric tons. However, the majority of production is still exported in raw form, limiting the country’s ability to capture value-added revenue from processed shea products. Label d’Or aims to reverse this trend by targeting high-demand markets in cosmetics, food, and natural health industries abroad.
The loan from BOAD is expected to help the company modernize its machinery, improve efficiency, and expand production. “This financing is a critical step for Label d’Or as it seeks to scale operations and meet growing international demand for organic and ethically sourced shea butter,” said a spokesperson from BOAD.
By enabling the company to secure more raw materials and achieve consistent quality standards, the loan will also have a direct impact on smallholder shea nut producers, particularly women, who form the backbone of the local supply chain. Increased demand for processed shea could translate into higher incomes and more sustainable livelihoods for these communities.
The project aligns with broader regional and international efforts to promote value addition in agricultural commodities. Organizations like USAID and IFC have highlighted the importance of building processing capacity in West Africa to capture greater economic returns, boost employment, and foster gender-inclusive development.
Industry observers say the expansion of Label d’Or reflects a growing trend of supporting women-led and small-scale enterprises in West Africa’s agribusiness sector. With increasing global demand for natural and organic products, companies that can meet certification requirements and maintain high-quality standards are well-positioned to benefit from international markets.
Once operational at full capacity, Label d’Or expects to significantly increase its turnover and strengthen Togo’s reputation as a hub for certified organic shea butter. The BOAD loan is thus seen as a strategic investment not only in the company but in the broader development of Togo’s shea industry.
As Togo continues to diversify its agricultural exports, initiatives like Label d’Or’s modernization underscore the potential for value addition, sustainable production, and inclusive growth in West Africa’s dynamic agribusiness landscape.
