The Ministry of Food and Agriculture (MoFA) has signed a strategic Memorandum of Understanding (MoU) with AAK Ghana Limited to facilitate and improve value addition, competitiveness, and sustainable growth within Ghana’s shea industry.
The agreement was signed at the Ministry of Food and Agriculture in Accra by the Minister for Food and Agriculture, Eric Opoku, and Lasse Skaksen, Vice President and Head of AAK West Africa.
MoFA announced that the partnership formalizes a $90 million investment focused on transitioning the shea sector from a raw commodity-based industry into a high-value industrial pillar.
“Central to this initiative is the establishment of a world-class shea processing factory in Ghana, leveraging advanced technology to increase local value addition and create over a 100 direct jobs,” it said.
Under the terms of the MoU, AAK outlined four critical priorities:
- Sourcing Expansion: The expansion of the Kolo Nafaso direct sourcing programme to support over 300,000 women shea collectors in northern Ghana through financing and guaranteed markets.
- Skills Development: The establishment of the AAK Ghana Innovation Academy to strengthen SME viability and enhance youth employability within the plant-based oils and fats sector.
- Industrial Infrastructure: Significant investment in logistics, warehousing, and supply chain infrastructure to boost export competitiveness.
- Environmental Sustainability: A commitment to shea reforestation and parkland preservation in partnership with the Tree Crops Development Authority (TCDA).
The signing was witnessed by H.E. Jakob Linulf, Ambassador of Denmark to Ghana, highlighting the strategic importance of the partnership to Ghana’s industrial development agenda.
According to MoFA, the collaboration aligns with the Agriculture for Economic Transformation Agenda (AETA) and the Feed the Industry sub-programme.
“Ghana has the potential to become a global reference point for value-added shea processing,” said Mr. Lasse Skaksen during the ceremony. “This partnership reflects our confidence in Ghana’s shea sector and our commitment to investing in local capacity and inclusive economic growth.”
The event was attended by senior government officials, including Hon. John Dumelo, Deputy Minister for Food and Agriculture; Mr. Paul Siameh, Chief Director of MoFA; and Dr. Andy Osei Okrah, Chief Executive Officer of the Tree Crops Development Authority.
