Sustainable Shea Butter Production




Business Model Description
Build processing plants or establish integrated production by acquiring land to transform shea nuts ("karité") collected from local producers, notably women cooperatives, into products such as raw shea butter that are used in organic personal care products, particularly for moisturizing impact, and as high-quality confectionary ingredients.
Expected Impact
Create jobs, generate tax revenues, and lead to better outcomes for women shea producers.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Côte d'Ivoire: Savanes
- Côte d'Ivoire: Denguélé
- Côte d'Ivoire: Zanzan
- Côte d'Ivoire: Vallée du Bandama
Sector Classification
Food and Beverage
Development need
Agriculture and deforestation driven by agricultural expansion are the primary contributors to greenhouse gas emissions in Côte d'Ivoire. From 2010 to 2022, the intensive cultivation of cash crops (cocoa, rubber, palm oil, and coffee) on forested lands led to the degradation of 11% of the land, resulting in significant productivity losses (1, 11).
Policy priority
The National Agricultural Investment Program II seeks to elevate agriculture as Côte d'Ivoire's economic powerhouse, as Côte d'Ivoire remains dependent on imports to meet its nutritional needs. It targets 7.8% annual growth in agricultural production, supported by new agricultural clusters. In addition, the Pacte pour l'Alimentation et l'Agriculture aims to achieve national self-sufficiency in rice and fish by 2025, improve mechanization, reach 70% of private investment in the agricultural sector, and transform locally half of the crops (4, 8, 16).
Gender inequalities and marginalization issues
Agricultural production, including market gardening, cocoa, and rice, remains male-dominated, with access to land and credit for women remaining difficult. Women are underrepresented among farm owners, representing 10% of the total but accounting for almost 80% of food production. They are often employed as unpaid labor (2, 3, 5).
Investment opportunities introduction
Accounting for 28% of Côte d'Ivoire's GDP, the agricultural sector is one of the driving forces behind the economy. Côte d'Ivoire is the world's largest producer of cocoa and cashew nuts, 5th producer of palm oil, 7th producer of natural rubber and 4th producer of cotton. In addition, agriculture has forward linkages with the manufacture sector by providing inputs, including the agro-industry (e.g. chocolate) and textiles (cotton), thereby playing a key role for structural transformation (7).
Key bottlenecks introduction
Climatic hazards can have a major impact on food prices, as can logistical difficulties. The 2022/2023 season was affected by a rise in fertilizer prices due to the war in Ukraine. The amplitude of variations is set to increase with global warming (9, 17).
Food and Agriculture
Development need
Climate change poses risks to labor productivity and forest cover, threatening agricultural sustainability, notably cocoa, which contributes 40% to export earnings. Additionally, the degree of transformation is low - over half of cocoa beans are exported unprocessed, while the country depends on imports of fish and rice to cover its consumption (1, 10, 13).
Policy priority
The government aims to increase local processing of key crops (100% of cocoa beans by 2030, 2 MT of rice per year). It supports sustainable production under the National Agricultural Investment Plan II (2017-2025), promoting climate-smart agriculture. In its NDCs, it targets a 30.4% reduction in greenhouse gas emissions between 2021 and 2030 compared to a reference scenario (12, 14, 15).
Gender inequalities and marginalization issues
There are significant spatial inequalities in Côte d'Ivoire, with agricultural districts such as Montagnes having extreme poverty rates largely superior compared to urban areas, such as San Pedro and Abidjan (17).
Investment opportunities introduction
Côte d'Ivoire is the world's leading cocoa and cashew producer, with 2.4 million tons of cocoa to be produced by 2022. However, climate change is likely to cause major disruptions, cocoa production is expected to drop by 30% in the early 2023/2024 season. Further investments in staple food production are needed to reach self-sufficiency (6).
Key bottlenecks introduction
Agriculture requires increasing investment as soils are degraded in many regions, undermining productivity and posing a major environmental problem. In addition, the country's taxation system applicable to agriculture is complex and can inhibit the entry of new players (1).
Agricultural Products
Pipeline Opportunity
Sustainable Shea Butter Production
Build processing plants or establish integrated production by acquiring land to transform shea nuts ("karité") collected from local producers, notably women cooperatives, into products such as raw shea butter that are used in organic personal care products, particularly for moisturizing impact, and as high-quality confectionary ingredients.
Business Case
Market Size and Environment
250,000 tons of shea nuts per annum
Cote d’Ivoire’s annual shea nut production is 250,000 tons, making it the world’s fifth largest producer after Nigeria, Mali, Burkina Faso, and Ghana. However, only about 30% of the produced shea nuts are locally transformed despite the fact that shea butter might be sold from around two to five dollars, in domestic and international markets (51, 52).
The global shea butter market is valued at USD 2 to 2.75 billion, with a compound annual growth rate ranging from 6.6% to 8.6% (18, 32, 43, 44).
Indicative Return
20% - 25%
A shea nut processing plant investment to produce shea butter in northern Cote d’Ivoire is expected to generate returns between 22 to 25% with an investment cost of about USD 12.8 million (51).
Investment Timeframe
Short Term (0–5 years)
In northern Cote d’Ivoire an investment, comprising construction of the plant (in the first year), acquisition of equipment and machinery, and utilization of the plant (by the second year) is expected to generate positive returns in about five years (51).
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Market - Volatile
Market - High Level of Competition
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
About 70% of raw shea nuts harvested in Côte d'Ivoire are exported unprocessed, limiting local value-addition and job creation. As a result, the benefits from the production do not accrue to local farmers (21).
Climate change will cause a higher variability in annual rainfall, raising challenges for agriculture, threatening existing agricultural activities and calling for the development of more sustainable production (41).
Côte d'Ivoire has pressing needs to find alternative agricultural away from cash crops such as rubber, palm oil, and intensive cocoa production, as they cause environmental issues such as deforestation, soil degradation and greenhouse gas emissions (41).
Gender & Marginalisation
Despite women representing 95% of the shea production workforce, with an estimated 152,000 women shea producers in Côte d'Ivoire, they often do not have land ownership and a significant portion remains exposed to poverty (21, 32).
Poverty is particularly prevalent in the northern and northwestern regions of Côte d'Ivoire, with high youth unemployment rates and limited economic opportunities. The development of local industries is crucial to tackle exclusion (37, 48).
Expected Development Outcome
Local processing of nuts would create jobs, generate additional revenues for the populations and for the government and local administrations (50).
Shea trees, naturally drought-resistant and requiring minimal water and fertilizers, offer a resilient alternative as climate change increasingly limits the viability of other crops (42).
Gender & Marginalisation
Shea production is an important source of employment and income for women, who earn more than their husbands in rural areas. Concluding partnerships with women's cooperatives, or integrating women in the value-addition would translate into greater gender equality and improved rights (36, 50).
Rural northern regions, which are major shea producers, would benefit from an increase in activity, which would lead to greater economic opportunities (employment, higher wages) and benefit women and the youth (17).
Primary SDGs addressed

8.3.1 Proportion of informal employment in total employment, by sector and sex
8.5.1 Average hourly earnings of employees, by sex, age, occupation and persons with disabilities
In 2017, informal employment accounted for 90.06% of jobs held by women in the non-agricultural sector, including those in shea processing (22).
Men's monthly revenues averaged 128,016 FCFA (USD 200) and women 78,541 FCFA (USD 129) in 2019 (14).
N/A
The government targets equal pay between men and women by 2030 (20).

5.a.1 (a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure
Only 3 % of women own the land that they cultivate (26).
The Ministry of Women, Family, and Children aims to achieve at least 20% of land certificates allocated to women by 2025 (20).
Secondary SDGs addressed


Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
Overharvesting of shea nuts could lead to deforestation and loss of biodiversity if not managed sustainably. In addition, wastewater pits associated with the production of shea butter has been associated with animal falling, representing an further threat to the local fauna (45).
Shea butter production is associated with high use of water, which can exacerbate water stress (45).
If the increase in production is achieved at the expense of food crops, there could be a negative impact on food security, particularly in vulnerable areas in the north.
Gender inequality and/or marginalization risk: If the increase in production results in a sharp drop in prices, women producers could see their incomes fall.
Impact Risks
Without proper oversight, workers across the value chain, especially farmers, may reap little benefits from the extra value addition generated by shea processing and shea butter production.
Lowlands, and in particular bas-fonds, are fragile environment that require careful soil and water management. Improper exploitation could rapidly deplete the resources (over drainage) and lead to a lower productivity on the long-term (47).
The benefits may accrue primarily to larger producers, which are better positioned to negotiate contracts with shea processing firms, leading to increased inequality within communities if certain groups gain more from investment into shea processing than others.
Impact Classification
What
The transformation of raw shea nuts, which are predominantly exported raw, would provide benefits locally and nationally.
Who
Rural women are the primary beneficiaries, being traditionally underserved with limited access to financial and market opportunities.
Risk
Without proper oversight and resource management, value addition may primarily benefit larger producers, increasing inequality and depleting fragile lowland environments, ultimately reducing long-term productivity.
Contribution
Shea butter production supports additional growth as it has applications in the food and pharmaceutical sectors. It can also contribute to diversify exports away from coffee and cocoa.
How Much
Local plants have the capacity to process thousands of tonnes of shea butter a year. For instance, a new plant established by Sokarci is expected to produce 6,000 tonnes of shea butter a year starting from 2025 (58).
Impact Thesis
Create jobs, generate tax revenues, and lead to better outcomes for women shea producers.
Enabling Environment
Policy Environment
The Côte d'Ivoire Rural Land Tenure Management Strengthening Program (PRESFOR) aims to enhance women's land rights through the involvement of land advocates, who will incorporate equity and gender issues into the land registration process. Strengthening land tenure rights for women is essential for shea production, where they play a leading role throughout the value chain (23).
The National Development Plan (2021-2025) targets shea as a priority crop in the northern agri-pole. Shea nuts processing is a crucial component of the government's strategy to generate local value-addition and employment (12, 17, 54).
The National Agricultural Investment Program II (Programme National d'Investissement Agricole or PNIA II) prioritizes raw materials processing, including shea products, aiming to mobilize 4,200 billion CFA francs (USD 8 billion) from the public and private sectors between 2018 to 2025 (8, 21).
The National Climate-Smart Agriculture Strategy for Côte d'Ivoire addresses broad food security issues in Côte d'Ivoire, including access to nutritious food, resilience to shocks, and sustainable agricultural production, with shea production serving as a key example (19).
Financial Environment
Fiscal incentives: In 2014, Côte d'Ivoire suspended the single exit duty (DUS) on shea, which amounted to FCFA 50 (USD 0.08) per kg (40).
Other incentives: The Côte d'Ivoire Land Policy Improvement and Implementation Project (PAMOFOR) helped deliver over 33,000 land certificates, with 22 percent of these issued to female landowners. Secure land ownership encourages the planting of additional shea trees and investment in better harvesting practices, thus boosting yields over time (23).
Other incentives: UN Women's Climate-Smart Shea Production program has been launched in partnership with the Ivorian government. It aims to reduce deforestation and improve the economic empowerment of rural women (26).
Other incentives: Impact funds and financing initiatives provide funding to firms producing shea butter. In 2024, the Invest for Jobs facility awarded a grant of €1.01 million (USD 1.09 million) (24%) to Bio-Amandes to finance the purchase of an oil mill while the ABC fund allocated 800,000 euros (USD 865,000) to the same company (27, 33).
Regulatory Environment
Organic and fair trade certifications are essential for accessing certain international markets, particularly in Europe and North America. These include organic (ECOCERT) and fairtrade (Fair for Life) standards (27).
Note No. 00212 issued on August 3, 2022, indicates that honey and shea butter are no longer classified as wood products. As a result, honey and shea butter are no longer subject to authorization from the Ministry of Water and Forests for transportation and commercialization (38, 39).
Marketplace Participants
Private Sector
Bio Amandes, L’Oréal, Sokarci, ABC Fund, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Agrikraft, Bouna's women cooperative, Filière karité de Côte d’Ivoire (FIKACI).
Government
Ministry of Agriculture, Ministry of Water and Forests, National Rural Development Agency (ANADER), Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).
Multilaterals
International Fund for Agricultural Development (IFAD), Food and Agriculture Organization (FAO), United Nations Development Programme (UNDP), World Bank, UN Women.
Non-Profit
Global Shea Alliance, Université Peleforo Gon Coulibaly, Nitidae, Invest for Jobs, Kreditanstalt für Wiederaufbau (KfW), Association des Femmes Productrices de Karité du Nord (AFPK-Nord), United States Agency for International Development (USAID), Institut de Recherche pour le Développement (IRD).
Target Locations

Côte d'Ivoire: Savanes
Côte d'Ivoire: Denguélé
Côte d'Ivoire: Zanzan
Côte d'Ivoire: Vallée du Bandama
References
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