NORTHERN GHANA SHEA ENTERPRISE (NGS) The inclusive business experience BY: Juliette Lampoh International conference: The Practice of new business models in West Africa Abidjan 2018 1
Outline • Description of the inclusive business • Results and socio-economic impact • Challenges • lessons 2
Introduction • NGS – A social enterprise with focus on economic empowerment, social & environmental viability. • NGS seeks to provide sustainable avenue for wealth creation & employment to rural women through processing, purchase and marketing of high quality shea butter and shea nuts from local women shea nuts pickers. 3
Location – operational area Ghana, Upper West Region Shea butter production: 4 communities Supply of Shea nuts – 16 communities 4
Purpose • Inclusive business viability - For NGS - For the participants/clients • Increased income for rural women 5
What we do Production & market linkage Shea butter production, purchase and sales Market search and intermediation for fair prices Investment support for butter production Conservation for sustainable shea commercialization & climate change mitigation 6
Key Results Production & Market linkage Year Quantity of Value of butter USD butter sold sold (Ghc) (MT) 2014 20.625 69,760.00 14,842 2015 40.525 244,627.50 52,048 2016 22.00 111,350.00 23,691 2017 65.953 279,367.50 59,440 2018 185.825 833,995.00 177,447 Total 334.928 1,539,100.00 327,468 • Number of customers = 10 >8x 7
NGS &Women socio-economic empowerment • Employment generation for 436 women processors • Access to independent income by more than 1,200 women (incl. 777 nut pickers) • 2017/18 women nut pickers made av.GHC1,633 (~US$347) per woman in additional income • Beneficiaries have multiple income avenues – labour, sale of nuts, profit from butter sales • women investing in key assets e.g. building 8
Examples of social Impact Women contributing to community development A Shed constructed and Chairs donated by Naro donated by Kperisi Women Women Group to the Group to the community community. clinic. 9
Examples of social Impact • A producer in Kperisi who is in the process of building a house through increased income from shea butter production. 10
Socio-political impact Self organized women group advocating for conservation shea tree. Women group in Naro on a Women Group in Naro street match to campaign appealing to traditional authorities to help conserve against felling of shea trees shea trees. 11
Challenges • Difficult intermediating between a very demanding market and a not so sophisticated supplier/clientele base • Funding the initial development phase • Aligning the perception, orienting and buy-in of all key stakeholders • Slow & learning process. 4years to hit 20MT/month target • Challenging external environment – very sharp raw nut price increases, macro-economic context 12
Lessons • You may not have all the control but you make more impact • Be deliberate in the choice of business/sector suitable for your ultimate goal/target e.g. women, youth etc. • Allow time for growth; be measured in your expectations of financial returns in early years • Need for patient capital 13
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