Ghana’s Ministry of Food and Agriculture (MoFA) and AAK Ghana Limited have signed a memorandum of understanding (MoU) aimed at accelerating value addition, boosting competitiveness, and promoting sustainable growth in the country’s shea industry, officials announced Friday.
The agreement was signed in Accra by Ghana’s Agriculture Minister, Eric Opoku, and Lasse Skaksen, Vice President and Head of AAK West Africa. The ceremony was witnessed by Jakob Linulf, Denmark’s ambassador to Ghana, highlighting the strategic importance of the partnership to Ghana’s agribusiness and industrial development agenda.
AAK, one of the world’s largest producers and buyers of shea products, has operated in Ghana since 1958. The MoU formalises collaboration between the government and the company to strengthen local processing capacity, enhance participation of small and medium-sized enterprises, and improve Ghana’s position in global shea markets.
A key focus of the partnership is inclusive growth along the shea value chain, particularly supporting women collectors, youth employment, and sustainable sourcing practices. AAK’s existing Kolo Nafaso programme, recently certified under the FairWild standard the first such certification for shea supports more than 230,000 women collectors with access to financing, training, and guaranteed markets.
Under the MoU, AAK outlined four main priorities. The first is to expand Kolo Nafaso to reach an additional 70,000 women collectors in northern Ghana by 2028, bringing the total beneficiaries to over 300,000. The programme will also see increased investment in logistics, warehousing, and supply chain infrastructure.
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Second, the company plans to establish the AAK Ghana Innovation Academy, designed to strengthen the viability of small and medium enterprises, enhance youth employability, and build technical expertise in shea and other plant-based oils and fats industries.
Third, AAK intends to invest in local shea processing facilities in Ghana, applying world-class technology to increase domestic value addition, create over 100 jobs, and boost export competitiveness.
Lastly, the company will support shea reforestation and parkland preservation initiatives in partnership with the Tree Crops Development Authority and other stakeholders to ensure the sector’s long-term sustainability.
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Minister Opoku said the agreement aligns with the government’s strategic priorities, including the Agriculture for Economic Transformation Agenda (AETA) and the Feed Ghana Programme, which aim to strengthen agro-processing, tree crop development, and export-led growth. MoFA committed to creating an enabling environment to support AAK’s planned investments.
Speaking at the ceremony, Skaksen said: “Ghana has the potential to become a global reference point for value-added shea processing. AAK intends to be a long-term partner in realising this vision, through investment in local capacity, sustainable sourcing, and inclusive economic growth.”
The signing brought together senior government officials, including Deputy Minister John Dumelo, Chief Director Paul Siameh, and CEO of the Tree Crops Development Authority, Dr. Andy Osei Okrah, as well as representatives of the Danish Embassy.
Analysts note that the collaboration could transform Ghana’s shea sector from a largely raw commodity-based industry into a competitive, value-driven pillar of the national economy, supporting rural livelihoods while enhancing the country’s export profile in the growing global market for shea-based products.
