Okonjo-Iweala tasks Nigeria, other African nations to improve on Shea Butter global standards

The World Trade Organisation (WTO) has urged Nigeria and other African countries to improve the quality of their shea exports because many of them do not meet the sanitary and phytosanitary requirements required for export.

The international agency also made clear that a large portion of the potential of the Shea butter commodity remained unrealized, even with the obvious advantages and benefits of shea cultivation.

This was stated by WTO, Director-General, Ngozi Okonjo-Iweala during a virtual speech at the Global Shea Alliance’s 2024 Shea Annual Conference in Abuja.

WTO is a multinational agency with its headquarters located in Geneva, Switzerland that oversees worldwide trade regulations. It was founded in 1995.

Iweala stated in a News article that it was critical to include the shea value chain in addition to butter production and farming.

She said, “At the WTO, shea is one of the main agricultural export of over eight of our members including Benin, Burkina Faso, Côte D’Ivoire, Ghana, Mali, Nigeria and Togo. In Ghana alone, shea butter exports were valued at over $92million in 2022, and over one million women are involved in this sector.

“However, despite the clear benefits and advantages that shea brings to our women, much of the potential of this sector is still untapped. A lot of our shea products do not meet the sanitary and phytosanitary measures required for export, and this is hindering many countries from being able to export.

“In addition, it is crucial that we look at the shea value chain beyond farming and processing for butter. How can we in Africa begin to manufacture more finished shea products?”

Okonjo-Iweala added that her organisation has been aiding Nigerians and other countries in improving the export of shea products, since this would benefit the economies of the relevant countries.

She informed conference attendees that the WTO was established to assist increase living standards, generate jobs, and promote sustainable development, and that “shea butter, specifically trade in shea butter, can help with these objectives.”

Okonjo-Iweala said, “Shea butter has been referred to as women’s gold for centuries. Currently over 16 million women in West Africa make a living from farming and processing of shea nuts.

“It is estimated that women make $237 million in direct income from shea. 85 per cent of all shea exports are used as cocoa butter equivalence and 15 per cent are used for cosmetics.

“The cosmetics shea butter market is currently worth over $600 million and it is expected to reach about $850 million by the end of 2027. So we have to look at how African women can further benefit from this sector.”

Chief Executive Officer of the Nigerian Export Promotion Council, Nonye Ayeni,stated that Nigeria is one of the world’s leading shea producers.

“It may interest you to know that the following countries account for the largest producers of shea in the world, representing 60 per cent of global production. These countries are Burkina Faso, Mali, Ghana, Nigeria and Cote D’Ivoire,” she stated.

Ayeni noted that a brief glance at the worldwide value of shea production and export revealed that in 2023, the output and value of shea along the value chain was $2.17 billion, while it was predicted to expand at a Compound Annual Growth Rate of 7.1per  cent by 2030, totaling $5.8 billion.

“Global market value for chocolate is estimated to be approximately $113.16bn in 2021 and expected to reach $156.74billion in 2030. For the cosmetics industry, it stands at $380.2bn and is expected to reach $453billion in 2026.

“Presently, more countries like India, Japan and South Korea are approving the use of shea butter as cocoa butter equivalent, apart from China, Italy and Netherlands, that are among the leading importers of shea butter, there is therefore ready market for quality shea butter in the international market.

“Nigeria is one of the major producers of shea in the world. It is on record that presently, the country has about five million hectares of shea trees which are grown in about 21 states of the federation especially in Niger, Kebbi, Oyo, Kwara, Benue and Federal Capital Territory,” Ayeni stated.

The NEPC chief stated that shea has the potential to alter Nigeria’s economy through employment development, value addition, and women’s empowerment.

She informed conference attendees that the NEPC was working hard to improve commodities production in Nigeria so that it met international standards.