By Victoria Ojeme

The World Trade Organisation, WTO, is building the capacity of African women to tap into the economic prospects of the $ 227 million shea butter market.

Dr. Ngozi Okonjo Iweala, the Director General of the World Trade Organization (WTO), disclosed this today in Abuja while addressing the Global Shea Alliance Conference in Abuja under the theme ‘SHEA 2024 Bridging the Gap.”

Dr. Iweala remarked that African women have generated an impressive $227 million from shea butter processing, supporting their livelihoods.

She said that 16 million women are currently engaged in farming and processing shea butter, with over 35,000 receiving specialized training in shea processing, quality practices, and value-added products.

The lucrative market sees 85% of shea exports used as cocoa butter equivalents and the remaining 15% dedicated to cosmetics. The cosmetics shea butter market alone is valued at $600 million, projected to reach $850 million by the end of 2027, offering significant opportunities for African women.

Highlighting the importance of shea butter on the global stage, Dr. Iweala revealed that Shea is a major agricultural export at the WTO, with eight African countries as members: Benin, Burkina Faso, Cote d’Ivoire, Mali, Nigeria, Ghana, and Togo. Ghana, for instance, has valued its shea butter industry at $92 million in 2022, but there is still vast untapped potential in the sector, with over one million women currently involved.

Nonye Ayeni, the Executive Director and CEO of the Nigeria Export Promotion Council (NEPC), emphasized the global impact of shea production and export. Ayeni disclosed that in 2023, the value chain reached an impressive $2.17 billion and is projected to grow at a Compound Annual Growth Rate (CAGR) of 7.1% by 2030, reaching a staggering $5.8 billion.

Ayeni credited the success in the Nigeria Shea sector to the collaboration between the Council, WTO, and Standards and Trade Development Facility.

The partnership, initiated through Project 172 in 2016, implemented a revolutionary free fatty acid (FFA) and impurities control system for shea butter. Additionally, four Shea butter model processing centers were established in Niger, Kebbi, Oyo, and Kwara States, marking a pivotal moment in the advancement of the shea industry.