COCOBID secures $10m loan for sheabutter factory

Centre spread, July 1, 2010
Story: Emmanuel Adu-Gyamerah
THE Ghana Cocoa Board (COCOBOD) has secured a $10 million loan on behalf of the Produce Buying Company (PBC) to establish a factory in Ghana to process shea-nuts into butter, the Minister of Food and Agriculture, Mr Kwesi Ahwoi, has disclosed in Parliament.
Answering a number of questions on the floor of the House yesterday, the minister stated that the move, to be effected from the first quarter of 2011, was to find a permanent solution to the glut problem associated with the shea-butter industry.
The Member of Parliament for Bole/Bamboi, Mr Joseph Akati Saaka, who posed the question, wanted to know what steps the ministry was taking to clear the glut of shea-nut in the three northern regions since 2008.
He said to facilitate the industry’s rapid development, a stakeholders forum was held in Accra in 2009 to finalise a shea-nut development strategy, explaining that the strategy sought to make the industry vibrant by creating internal and external marketing opportunities for buyers to export their shea-nuts and make the industry commercially viable.
Mr Ahwoi said records from the Ghana Export Promotion Council indicated that annual exports of shea-nuts ranged from 32,000 to 45,000 metric tonnes, adding that USAID in 2004 estimated that Ghana had a potential to produce 200,000 metric tonnes and an actual collection of 130,000 metric tonnes.
He noted that since shea-nut had become the source of livelihood of most people in the savannah part of Ghana, an increase in the collection to a 100,000 metric tonnes per annum would considerably alleviate poverty in that part of the country.
He gave an assurance that legislation, guidelines and regulations on the shea-nut industry would be reactivated and enforced to ensure the growth of the industry.
Mr Ahwoi added that extension education would be intensified to disseminate information on good agronomic practices on shea harvesting, processing, pricing and market information.
In an answer to another question, the minister indicated that approval had been given by the Office of the President for the existing Export Development Investment Fund (EDIF) Fund to be amended and called the Export Development and Agricultural Investment Fund (EDAIF).
He said the board of EDAIF would have two additional members nominated on the board by the Ministry of Food and Agriculture while an additional five per cent levy would be charged on non-oil imports for the purpose of supporting investment in agricultural activities.