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UNIDO Formalization of Shea Productions Empowers the “Good Woman” in Tamale Communities and Enhancing Export Competitiveness of Pagsung Shea Butter
The journey of empowering rural and urban women from Sagnerigu and its surrounding areas in Tamale, who are involved in shea butter processing and nut picking, started with the initiative of Safia Alhassan Andani.
She began with a financial cooperative, which has now evolved into the Pagsung Shea Butter and Pickers Co-operative Association. Today, the association has a positive impact on women and youths from over ten communities, all of whom come from diverse family backgrounds and face economic challenges.
With the support of UNIDO, the association has strengthened its production and administrative capacity, resulting in increased income and employment security for its 3500-plus members and their communities. This has contributed to the creation and maintenance of sustainable jobs for rural women in Sagnarigu and other rural communities in the Northern region
“When I gathered women and other community members to form a financial cooperative, known in Ghana as a 'Susu group', I never expected it to become so successful and serve as a model for many communities in Tamale and its surroundings. My initial goal was simply to encourage everyone to save a portion of their income to meet their most urgent needs,” said Safia, the Head of the Pagsung Shea Butter Processors And Shea Nut Pickers Association.
Pagsung is pronounced “pah – sun”, a dagbani word which, translated into English, means “good woman”.
PagSung started as a “Susu group” that met on market days of the Sagnarigu community to save and give loans to members. The cooperative was formally registered in 2008 and currently has more than 3,000 Shea pickers and processors to overcome poverty.
Hajia Safia Alhassan, Head of the Pagsung Shea Butter Processors and Shea Nut Pickers Association
Like many shea processing cooperatives in Ghana, Pagsung faced challenges validating and formalizing shea processes and standards. They lacked a structured business plan despite having potential demand for their products locally and internationally.
They lacked adequate machinery, resulting in inconsistent product quality and an inability to meet required standards. Manual soap moulding methods were labour-intensive and time-consuming, while manual inventory management hindered effective tracking of product performance and timely decision-making.
UNIDO Intervention:
UNIDO, funded by the European Union, invested in PagSung to enhance its export competitiveness by boosting production and operational capacities. They also provided support to help PagSung meet regulatory requirements, including obtaining organic certification for future market access.
The intervention by UNIDO addressed challenges faced by PagSung and enhanced the capacity of the cooperative, enabling them to increase shea butter production volume by 128%.
The project introduced advanced machinery, such as a heavy kneader, which streamlined production processes, reducing the time and labor required for shea butter processing.
UNIDO also provided the following support:
- Purchase and installation of upgraded production machinery to facilitate and enhance the PagSung production capabilities to meet market demands effectively;
- Purchased essential computing resources, including desktop computers with licensed Microsoft Office and antivirus packages for the group, streamlined their financial and inventory management processes, and developed their digital communication and online learning skills;
- Conducted comprehensive training sessions on inventory management principles and also empowered the production team leaders with the skills needed for efficient data preparation, workflow optimization, ledger maintenance, and cost analysis;
- Made payment for the costs associated with product testing, licensing, inspections, and quality analysis and facilitated the official certification of Pagsung's Shea butter and African Black soap products by the Ghana Standards Authority (GSA);
- Connected PagSung to international markets linking them to international cosmetics brands and opening new avenues for market expansion and collaboration.
"We had received support from others before joining the WACOMP – Ghana programme, but the technical support from WACOMP really helped us stand out. The training and technical support from the project team further developed my team's ability to produce quality shea butter and handcrafted soaps. Thanks to the training with WACOMP on various stages of cosmetics formulation, we are now able to create handcrafted soaps using a variety of body essential oils,
Safia Alhassan Andani (L) receiving certificate from Johnson Opoku Boateng, Head of Business Development Department of the Association of Ghana Industries (AGI) at a UNIDO Cosmetics Formulation Masterclass
"We have seen a significant increase in our Shea butter production output thanks to WACOMP's support. We have surpassed our initial target of 32 tons per year and are now producing and selling 73 tons of Shea butter per year. This improvement is due to the heavy kneader provided by the project, which allows us to produce an average of 255 kilograms (kg) of Shea butter paste and extract 85kg of shea butter in just 50 minutes. Previously, it would take five women nine hours over two days to knead the same 255kg of Shea butter paste," she added.
UNIDO's support also benefits the surrounding communities in Tamale by improving the production machinery of PagSung Shea Butter Processors and Pickers Association, resulting in the installation of new machines at the production centre.
In addition, PagSung produces numerous cosmetic products for companies that export to the UK Market, USA, and Saudi Arabia. “WACOMP’s equipment is benefitting other members of the communities that are not direct members of the association and it is increasing our sales and profit margins and helping us process 27 bags of shea nuts in a day. We have helped women, mostly widowed in Tamale and its environs, to improve their livelihoods, and speak against all forms of violence. Our young girls in the Sagnarigu district are also learning the vast potential for exports of our processed high-grade shea butter. I believe If you are empowered economically, you have a voice to be heard by the community,” Safia revealed."Thanks to the support we received, our cosmetic products are now licensed and duly registered with the Ghana Standards Authority and Food and Drugs Authority. We have also established a documented Standard Operating Procedure (SOP) for cosmetics products, and our accounting and management information system is now structured, making it easier for data capture and processing of inventory and financial reports. I want to express my gratitude to the UNIDO team and the European Union for their support and empowerment of groups like ours in Ghana, and for helping to improve livelihoods in our small way,” she further added.
Recently, a team from Estee Lauder Companies, an international cosmetic brand based in the United States of America (USA), visited Pagsung Shea Butter Co-operative to explore the newly developed high-grade shea butter products. The team was led by the company's procurement and sourcing officer, and there are high expectations for potential orders.Before the project, manual moulding and pressing processes caused considerable production delays, impacting the cooperative's ability to fulfill large orders within short lead times. However, with the introduction of a hydraulic soap press by WACOMP, production lead times have been reduced by approximately 70%. This has strengthened the cooperative's export competitiveness and attracted increased orders from both local and international buyers.
The project facilitated the establishment of linkages between Pagsung and 15 Shea women cooperatives, expanding the cooperative network's supply capacity and increasing individual women members from 1,837 to 3,695.
This collaborative effort has enhanced the cooperative's ability to aggregate larger volumes of Shea nuts and butter, further boosting its export capabilities. Pagsung's cosmetic products, including African Black soap, Baobab toilet soap, Shea pomade, and Shea butter, have been certified by the Ghana Standards Authority, enhancing the cooperative's credibility and market competitiveness The UNIDO WACOMP project has significantly increased the production capacity and export competitiveness of the Pagsung Shea Co-operative, fostering collaboration and certification for sustainable growth and market expansion. The following statements were made by members of the Pagsung association, expressing their gratitude for the support they received:Madam Memunatu Alhassan, the Quality Control Supervisor at the Shea Butter Kneading Section, expressed her enthusiasm about the impact of the heavy-duty mechanical kneader donated by the WACOMP project. She mentioned that the machine has significantly increased their extraction of Shea butter fats and improved their working conditions, resulting in a stable source of income and secure employment. Madam Salamatu Abdul-Rahman, in charge of the Cosmetic Formulation and Marketing Section, acknowledged the support received from the UNIDO-WACOMP Ghana project, which helped in getting their products certified and recognized by the Ghana Standards Authority and Food and Drugs Authority. As a result, their cosmetic products are now in high demand, ensuring the future livelihood of the association.
Halidu Fatimata, the Production Manager of the African Black Soap Section, expressed her gratitude for the computer and accessories provided by the WACOMP Ghana project. She thanked UNIDO for the opportunity to use a computer for the first time in her life and for inspiring her to acquire digital skills to enhance the quality of her work.
H.E Ambassador Irchard Razaaly (R) interacting with Queen Safia Alhassan Queen Hajia Safia Alhassan, Head of Production at the Pagsun Shea Pickers and Processors on how the shea nut is processed
Some of the Pagsung members in a group photo with UNIDO team at the newly installed equipment centre
