UNIDO and Global Shea Alliance - Transforming Shea Industry through Quality, Formulas and Standards

March 7, 2024

The African market for beauty products is increasing by 10% annually. According to “The Exchange”, the African cosmetics and beauty goods sector will expand predicting a growth of US$1.26 billion between 2021 and 2025. The ECOWAS Trade Liberalisation Scheme (ETLS), and the Africa Free Trade Agreement, are further facilitating market access.

The WACOMP – Ghana project established a fruitful collaboration with the Global Shea Alliance to support over 50 SMEs engaged in the production of shea-based cosmetics to improve cosmetic product quality, increase business capacity, and facilitate market access.

Shea butter-producing SMEs were facing challenges to professionally position themselves in the national and international markets. This was mainly due to inadequate technical knowledge of the quality, packaging, labelling, and certification requirements needed to break into new and global markets. A strong need was felt to build their capacities for branding and marketing, leveraging digital channels for wider reach as well as integrating branding and marketing into their overall business strategies.

WACOMP – Ghana’s intervention targeted four essential areas: Shea-based formulation, packaging, branding and marketing, and Standards and these helped increase product quality, business facilities, capacities and facilitation of market access for the SMEs.

The technical assistance provided to SMEs allowed them to better understand the role of packaging in the cosmetic market, as well as to get acquainted with the mandatory packaging requirements in Ghana and the European Union.

One of the entrepreneurs who attended all four trainings is Abena Yanka, CEO of Shea Babe Enterprise.

“Before we attended the training organized by the Global Shea Alliance in cooperation with WACOMP-Ghana, we were unaware of what branding meant to the company. We learnt a lot and the knowledge acquired has really strengthened my company,” she declared.

“ Now we have integrated branding and marketing into our company strategy and we leverage social media for communication and product visibility. Also, new operational and manufacturing guidelines have been developed and integrated into our operational and manufacturing processes,” Abena revealed.

A Post training evaluation survey shows that:

Entrepreneurs are now producing improved products following standardized methods,
The range of products has increased;
32 companies also improved their branding and packaging, which reflected in sales and profit growth while increasing job creation in their various communities.

Thanks to these tangible and visible improvements, more than 100 market linkages were established and interaction with chambers of commerce representing six Shea export destination countries (Sweden, Canada, Germany, United Kingdom, India, and South Africa) was facilitated.

Suki Annan, CEO of Luv from Ghana Limited, a shea butter-producing company that participated in the standardized cosmetics formulation training shared her story on how the UNIDO support made her understand the right way of formulating shea-based products.

“Before the workshop, I was only producing purely made whipped butter. I was afraid to make lotions due to the addition of water. After the workshop, I am more confident as I have learnt how to master the use of different ingredients. Thanks to UNIDO I could start producing lotions and expand my product range”,

Suki says

Irene Djamah Bruce, CEO of Agriaccess Commodity Company Limited agreed with Suki on the level of knowledge and transformation UNIDO and the European Union support gave her business.

“The new knowledge acquired in the formulation has triggered a visible change in Agriaccess’s production of lotions. We produce today specific solutions for dry skin and this will surely expand our clients and the markets in which our products can be sold, and at the same time ensure a huge source of revenue growth"

The Global Shea Alliance is a non-profit industry association with 706 members from 36 countries including women groups, brands, retailers, suppliers, and NGOs. Through public and private partnerships, it promotes industry sustainability, quality practices and standards, and demand for shea in food and cosmetics. The Global Shea Alliance was established in 2011 and is headquartered in Accra, Ghana.