As many of the items do not fulfill the sanitary and phytosanitary standards necessary for sale, the World Trade Organization urged Nigeria and other African nations on Tuesday to improve the quality of their shea exports. It also became evident that a large portion of the potential of this commodity remained unrealized, even with the obvious advantages and benefits of shea cultivation. With its headquarters located in Geneva, Switzerland, the World Trade Organization (WTO) is an international organization that deals with international trade regulations. It was founded in 1995.
The shea nut is produced by the shea tree, which is indigenous to the savannas of West Africa. For local populations, the shea tree is an invaluable resource since its nuts may be used to make shea butter, which can be consumed medicinally and as a source of money. In a virtual speech at the 2024 Shea Annual Conference in Abuja, organized by the Global Shea Alliance, the Director-General of the World Trade Organization Dr. Ngozi Okonjo-Iweala stressed the need to look at the shea value chain beyond butter cultivation and processing.
"Shea is one of our members' primary agricultural exports to the WTO, along with Benin, Burkina Faso, Côte D'Ivoire, Ghana, Mali, Nigeria, and Togo," the spokeswoman stated. Exports of shea butter from Ghana alone were worth over $92 million in 2022, and more than a million women work in this industry. But even with the obvious advantages and benefits she offers our ladies, a large portion of this industry's potential remains unrealized.
Many of our shea products don't adhere to the sanitary and phytosanitary standards needed for export, which makes it difficult for many nations to export. Furthermore, we must examine the shea value chain as its whole, going beyond butter processing and cultivation. How can we in Africa start producing more completed shea products?
According to Okonjo-Iweala, her organization has been helping Nigerians and other nations increase their shea product exports since doing so would benefit the respective countries' economies. "I met with a group from an Oyo State shea cooperative that took part in an event organized by the Nigerian Export Promotion Council when I first took office as WTO DG."To increase the cooperative's ability to produce high-quality shea butter that complied with international safety and quality requirements, the WTO, International Trade Center, and NEPC collaborated.
The women's incomes increased by almost three times. "This cooperative had previously been prohibited from exporting, but with the work done by all the agencies, they were able to receive the international safety certification that allows them to export to the United States, United Kingdom, Middle East, and South Africa." And a lot of them shared with me how they had invested in side ventures in addition to funding their kids' college educations. The WTO chief said, "This is the power of trade and how it can work for people."
She informed conference attendees that the World Commerce Organization was established to facilitate commerce to improve living standards, generate employment, and advance sustainable development. She went on to say that “trade in shea butter, in particular, can help with these objectives.” Shea butter has long been known as women's gold, according to Okonjo-Iweala. Shea nut cultivation and processing currently employs over 16 million women in West Africa.
It is estimated that the direct income earned by women from shea is $237 million. 15% of all shea exports are used for cosmetics, while 85% are utilized as an equivalent for cocoa butter. By the end of 2027, the shea butter market for cosmetics is projected to have grown from its present valuation of over $600 million to over $850 million. Therefore, we need to consider how African women might profit from this industry even more. According to Nonye Ayeni, CEO of the Nigerian Export Promotion Council, Nigeria is one of the world's leading producers of shea. The following nations produce 60% of the world's shea, making them the biggest producers in the world. This information may be of interest to you.
Burkina Faso, Mali, Ghana, Nigeria, and Cote D'Ivoire are these nations, the speaker said. According to Ayeni, a quick examination of the worldwide value of shea production and export revealed that, in 2023, shea production and value along the value chain totaled $2.17 billion, and by 2030, it was predicted to expand at a Compound Annual Growth Rate of 7.1 percent, or $5.8 billion. "The value of the chocolate market is projected to grow from $113.16 billion in 2021 to $156.74 billion in 2030.
The cosmetics market is now valued at $380.2 billion and is projected to grow to $453 billion by 2026. "There is a ready market for quality shea butter in the international market as more countries, including China, Italy, and the Netherlands, that are among the leading importers of shea butter, are approving its use as an equivalent to cocoa butter these days, including India, Japan, and South Korea."Nigeria is a global leader in the production of shea butter.
According to records, there are now five million hectares of shea trees in the nation, mostly spread among 21 states and the Federal Capital Territory. These states include Niger, Kebbi, Oyo, Kwara, Benue, and Oyo. The head of NEPC stated that the development of jobs, value addition, and women's empowerment were three areas where shea nut could significantly impact Nigeria's economy. She informed conference attendees that the NEPC was working hard to improve the commodity's production in Nigeria so that it would reach international standards.
