A Multi stakeholder Approach to Building Sustainable Shea Businesses

A Multi stakeholder Approach to Building Sustainable Shea Businesses

A key aspect of developing the business acumen of shea cooperatives and transforming them into sustainable micro and small enterprises has to do with building the capacity of the cooperatives to access and manage financing, allowing them to invest in their shea businesses, for continuous growth and expansion. However, access to capital remains a critical challenge for shea cooperatives, not least because of the perception of high risk and low creditworthiness associated with agricultural lending.
Shea cooperatives rely on pre-financing from buyers, which is rarely available and further engenders an over dependence on buyers. Similarly, credit from Village Saving and Loans Associations (VSLAs) tends to be relatively low, compelling women shea collectors to access credit from high interest and exploitative sources such as loan sharks.

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