Relationship, governance, and upgrading opportunities in the Shea value Chain: a descriptive analysis from Northern Ghana

Abstract

This study explores the relationships between value chain actors in the shea sector in Northern Ghana, the governance mechanism that pre vails, and the upgrading opportunities for upstream actors. The value chain analysis (VCA) framework was the main analytical tool employed for this assessment. Participating actors in the shea global value chain were shea kernel producers, shea butter processors, aggregators, and industrial processors and exporters of shea products. The results showed that, although women shea upstream actors (especially shea kernel producers) interface directly with aggregators, the relationship is weak and restricted to spot buying, and arms-length market govern ance relationship. Although the upstream actors are enthusiastic to upgrade their products, they are constrained by inadequate access to requisite assets, resources, capabilities, and skills. The shea upstream actors were confined to low value-adding segments and activities of the shea-GVC. Industrial processors and exporters appear reluctant to directly support upstream women processors to upgrade through offering credits, technology transfer and skills enhancement. Lowering barriers to upgrading opportunities in the value chain calls for intervention of the government, and support from international development organizations (NGOs), and midstream and downstream actors. Government must create an enabling policy environment that incentivize downstream actors to build capacities of upstream actors.