Inclusive rural finance

The Kassena Nankana Baobab Cooperative Union (KANBAOCU) brings together more than 10,500 producers across the savannah zone of Ghana’s Upper East region. Formed in 2016, the cooperative supports smallholders – mostly women – who harvest and cultivate shea, baobab and vegetables for local and regional markets.

For its first three years, KANBAOCU sold only raw produce, limiting members’ earnings and market opportunities. The cooperative aspired to move into processing but lacked the skills, equipment and capital to do so. That changed with support from the Forest and Farm Facility (FFF).

Forest and Farm Facility activities

FFF grant funding enabled KANBAOCU to acquire a multipurpose oil-pressing machine and train members – particularly women and young people – in processing raw shea into high-quality shea butter and raw baobab pulp into premium baobab oil.

FFF support also facilitated the upgrading of the Navio shea butter processing centre and the Kuliyaa baobab oil processing centre to meet standards suitable for export and consistent supply contracts.

Training further professionalised the enterprise, enabling KANBAOCU to meet quality standards required by international buyers and to establish a reputation for reliable, market-ready products.

Significance of impact

These improvements catalysed a dramatic leap in value addition. KANBAOCU now produces between five and ten tonnes of shea butter and 100-500kg of baobab oil each year, entirely based on client orders.

This generates an additional 24,000 Ghanaian cedis (around US$2,000) annually for the union, with 1,129 members each earning an estimated 21 Ghanaian cedis more per year through processing activities.

The new enterprises have created employment across the entire value chain – from raw material collectors and sorters to machine operators and packaging assistants – with women and young people benefiting most. Reliable demand from international buyers and domestic firms has strengthened the union’s financial base and positioned it for expansion.

Conclusion

FFF support enabled KANBAOCU to transition from selling raw products to operating profitable, women-centred processing enterprises that boost incomes, strengthen market access and create sustainable livelihoods for thousands of savannah producers.

This model demonstrates that targeted investment in processing capacity can transform the economic prospects of rural cooperatives across Northern Ghana, and that women-led enterprises are viable, competitive and ready to grow.