Ghanian Shea Butter Non-Profit Collective Shifts to For-Profit Model

Four years ago, SAP and PlaNet Finance joined forces on a multilateral partnership to improve Ghana’s shea butter supply chain. The result was the StarShea Network, a non-profit collective that provided a combination of mobile technology, education and microfinance to rural shea nut farmers and butter producers in Northern Ghana. Now the network has transitioned to an incorporated, stand-alone business, SAP announced yesterday.

Founded in 2009 to help 1,500 women manage and grow their shea nut business, the newly named StarShea Ltd.has grown to a network of more than 10,000 women, and emerged as one of the worldwide market leaders of organically produced and fairly traded shea butter.

Harvesting and processing shea nuts is arduous, but women shea nut farmers and butter producers in Ghana often get a low rate of return on their product. A lack of information on commodity markets, limited financing options and poor supply chain traceability means producers are subject to market instability and limited ability to negotiate on price.

“Shea is a great example of sustainability,” said Heino Kantimm, SAP’s chief expert on social sustainability and member of the StarShea Ltd. board of directors. “The trees grow naturally in the hearts of West Sahara…but there are huge inefficiencies in the supply chain.”

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