The role of financial and marketing services on rural shea-producing women

Published: Jul 1, 2024

Abstract:

Purpose: This study aims to empirically investigate the impact of financial and marketing services on shea butter production, with an emphasis on the Tolon district of Ghana, to inform evidence-based policies and practices.

Research methodology: This study employed a quantitative research design, utilizing a survey approach to collect data from a sample of shea butter producers in the Tolon District of Ghana. In total, 151 Shea nut processors from Tolon, Dimabi 1, and Dimabi 2 were selected using a combination of purposive and simple random sampling techniques. Data were collected through structured questionnaires, which were subsequently analyzed using quantitative methods. Furthermore, the study employed linear regression analysis with an endogenous treatment effect model in STATA version 17 to examine the relationship between financial and marketing services, and shea butter production.

Results: The empirical evidence derived from the linear regression with the endogenous treatment model indicates a statistically significant and positive relationship between financial and marketing services and shea butter production, indicating that financial and marketing services are significant factors in predicting the productivity of shea butter production.

Limitations: The sample size of the study was small, which may restrict the generalizability of the findings.

Contribution: This study provides novel insights into the dynamics of shea butter production in Ghana’s Tolon District by highlighting the quantitative effect of financial and marketing services on shea butter production, and the importance of improving access to these services. This study also provides evidence-based recommendations for collaborative synergies between government and non-governmental organizations to establish microfinance programs and marketing service centers to facilitate easier access to these essential services for shea butter producers.

Keywords:
1. shea butter production
2. financial services
3. marketing services
4. Linear Regression with Endogeneous Treatment Effect
5. Tolon district
Authors:
1 . Safianu Chakilia
2 . Hillary Edinam Ahado
How to Cite
Chakilia, S., & Ahado, H. E. (2024). The role of financial and marketing services on rural shea-producing women. International Journal of Financial, Accounting, and Management, 6(1), 93–104. https://doi.org/10.35912/ijfam.v6i1.2032

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References

    Abdullahi, A. N., & Baba, J. M. (2020). Unlocking the Potentials in Shea Butter Value Chain: Mapping and Profit Share of Key Actors in Katcha Local Government Area, Niger State Nigeria. Equity Journal of Science and Technology, 7(1), 82-82.

    Adams, E. (2015). Carbon Dioxide (CO 2) Emissions, Human Energy, and Cultural Perceptions Associated with Traditional and Improved Methods of Shea Butter Processing in Ghana, West Africa.

    Adekambi, S. A., Ingenbleek, P. T., & Van Trijp, H. C. (2018). Integrating bottom-of-the-pyramid producers with high-income markets: Designing institutional arrangements for West African shea nut butter producers. Journal of Public Policy & Marketing, 37(2), 327-341.

    Al-hassan, S. (2012). Market access capacity of women shea processors in Ghana. European Journal of Business and Management, 4(6), 7-17.

    Al-Hassan, S. (2015). Ghana’s Shea Industry: Knowing the Fundamentals.

    Alain, K. Y., Christian, K. T. R., Emmanuel, B. O. D., Avlessi, F., Dahouenon-Ahoussi, E., & Sohounhloue, D. (2022). Valorization of Vitellaria paradoxa butter in cosmetics and agrifood in Africa. GSC Advanced Research and Reviews, 10(1), 096-104.

    Ali, B., Agbo, F., Ukwuaba, I., & Chiemela, C. (2017). The effects of interest rates on access to agro-credit by farmers in Kaduna State, Nigeria. African Journal of Agricultural Research, 12(43), 3160-3168.

    Aniah, P., Dumayiri, M., & Banleman, K. (2014). An analysis of factors affecting womens’ capacities as traditional shea butter processors in northern Ghana. International Journal of Development Research, 5(1), 942-948.

    Anoke, A. F. (2023). Microfinance services and the growth of women entrepreneurial businesses in North Central Nigeria. Management, 4(4), 379-393.

    Anoke, F., Ngozi, N. H., Uchechukwu, E. S., & Joyce, I. (2022). Entrepreneurial Marketing And SMEs Growth In Post Covid-19 Era In Awka, Anambra State, Nigeria. International Journal of Financial, Accounting, and Management, 4(2), 115-127.

    Aryeetey, E. (2005). Informal finance for private sector development in Sub-Saharan Africa. Journal of Microfinance/ESR Review, 7(1), 3.

    Bello-Bravo, J., Lovett, P. N., & Pittendrigh, B. R. (2015). The evolution of shea butter’s “paradox of paradoxa” and the potential opportunity for information and communication technology (ICT) to improve quality, market access and women’s livelihoods across rural Africa. Sustainability, 7(5), 5752-5772.

    Boffa, J.-M. (2015). Opportunities and challenges in the improvement of the shea (Vitellaria paradoxa) resource and its management. Occasional paper, 24, 54.

    David, A. Q. (2019). The Impact of Micro Credit Finance on Poverty Alleviation in Ogun State. Development, 9(1).

    Elias, M., & Arora-Jonsson, S. (2017). Negotiating across difference: Gendered exclusions and cooperation in the shea value chain. Environment and Planning D: Society and Space, 35(1), 107-125.

    Elias, M., & Saussey, M. (2013). ‘The Gift that keeps on giving’: unveiling the paradoxes of fair trade shea butter. Sociologia Ruralis, 53(2), 158-179.

    Garba, I., Sanni, S., & Adebayo, C. (2015). Analyzing the structure and performance of Shea butter market in Bosso and Borgu Local Government Areas of Niger State, Nigeria. International Journal of u-and e-Service, Science and Technology, 8(2), 321-336.

    Goreja, W. (2004). Shea butter: the nourishing properties of Africa's best-kept natural beauty secret: TNC International Inc.

    Hammond, J., van Wijk, M., Pagella, T., Carpena, P., Skirrow, T., & Dauncey, V. (2019). Shea butter: a pro-poor, pro-female route to increased income. The Climate-Smart Agriculture Papers: Investigating the Business of a Productive, Resilient and Low Emission Future, 215-226.

    Hananu, B., Abdul-Hanan, A., & Zakaria, H. (2015). Factors influencing agricultural credit demand in Northern Ghana. African Journal of Agricultural Research, 10(7), 645-652

    https://doi.org/10.5897/AJAR2014. 9330

    Issahaku, H., Al-Hassan, R., & Sarpong, D. B. (2011). An analysis of allocative efficiency of shea butter processing methods in the northern region of Ghana.

    Jasaw, G. S., Saito, O., & Takeuchi, K. (2015). Shea (Vitellaria paradoxa) butter production and resource use by urban and rural processors in Northern Ghana. Sustainability, 7(4), 3592-3614

    Kavaarpuo, A. V. E. (2010). Development implications of the shea industry as a lead cash crop for Northern Ghana: Case studies in bole, Wa-West and Bongo Districts. Citeseer.

    Kent, R., Bakaweri, C., & Poole, N. (2014). Facilitating entry into shea processing: a study of two interventions in northern Ghana. Food Chain, 4(3), 201-224.

    Kombiok, E., & Agbenyega, O. (2017). The characteristics of financing arrangements for the production and marketing of shea (Vitellaria paradoxa) butter in Tamale in the Northern Region of Ghana. Southern Forests: a Journal of Forest Science, 79(2), 153-160

    Ky-Dembele, C., Bayala, J., Boffa, J.-M., Kalinganire, A., & Minang, P. A. (2021). Shea Tree Crop Management in West Africa. Tree Commodities and Resilient Green Economies in Africa. Nairobi, Kenya: World Agroforestry (ICRAF).

    Mawa, B. (2008). Impact of micro-finance towards achieving poverty alleviation. Pakistan Journal of Social Sciences, 5(9), 876-882.

    Mbowa, H. S., Businge, M. P., Ssemaluulu, P., & Eton, M. (2023). Effect of women empowerment on women-owned business performance in Wakiso District, Uganda. International Journal of Financial, Accounting, and Management, 5(3), 343-358.

    Mensa, N., & Turvey, C. G. (2023). Women’s Gold: The Shea Butter Industry in Ghana and how Empowerment influences Employment. Available at SSRN 4636397.

    Naangmenyele, Z., Banye, E. Z., Bekoe, E. M. O., Zakaria, I., & Amuah, E. E. Y. (2023). Fundamentals of shea butter production; input–output analyses and profit maximization in Northern Ghana. Research in Globalization, 6, 100113.

    Nahm, H. S., Juliani, H. R., & Simon, J. E. (2013). Quality characteristics of shea butter, Vitellaria paradoxa African Natural Plant Products Volume II: Discoveries and Challenges in Chemistry, Health, and Nutrition (pp. 167-184): ACS Publications.

    Nanpuan, B. (2021). MOBILE PHONE ADOPTION FOR SUPPLY CHAIN MANAGEMENT PROCESSES: A CASE STUDY OF RURAL SHEA PROCESSORS IN NORTHERN GHANA.

    Naughton, C. C., Lovett, P. N., & Mihelcic, J. R. (2015). Land suitability modeling of shea (Vitellaria paradoxa) distribution across sub-Saharan Africa. Applied Geography, 58, 217-227.

    Nwankwo, C., & Daodu, B. T. (2021). Antimicrobial and antihelminthic properties of shea butter (Vitellaria paradoxa). Global Journal of Pure and Applied Sciences, 27(3), 263-271.

    Osewa, S., Alamu, O., Inegbedion, G., Abegunrin, O., & Jolaiya, O. (2020). Assessment of constraints facing Shea butter processors among rural dwellers in Oyo State, Nigeria.

    Pouliot, M. (2012). Contribution of “Women’s Gold” to West African livelihoods: The case of shea (Vitellaria paradoxa) in Burkina Faso. Economic botany, 66, 237-248.

    Pufaa, F. E. (2010). Financing the Production and Marketing of Shea Butter in Tamale Metropolis.

    Quainoo, A. K. (2019). Unearthing the Hidden Potentials of the Shea Tree (Vitellaria Paradoxa).

    Robinson, A. (2020). Aromatherapy and Essential Oils for Healing: 120 Remedies to Restore Mind, Body, and Spirit: Callisto Media, Inc.

    Sikpaam, I., Mintah, S., & Fearon, J. (2019). Prospects and constraints of shea butter processing: Evidence from Tamale Metropolis, Ghana. Ghana Journal of Horticulture (JHORT), 14(1), 22-37.

    Tijani, S. (2018). Determinants of market participation among small scale shea butter processors in Kwara State, Nigeria. Tanzania Journal of Agricultural Sciences, 17(1).

    Tweneboah Kodua, T., Ankamah, J., & Addae, M. (2018). Assessing the profitability of small scale local shea butter processing: Empirical evidence from Kaleo in the Upper West region of Ghana. Cogent food & agriculture, 4(1), 1453318.

    USAID. (2004). The Shea Butter Value Chain Refining in West Africa: WATH Technical Report No. 3. Retrieved from

    Zeller, M., & Sharma, M. (1998). Rural finance and poverty alleviation. Retrieved from

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  2. Adams, E. (2015). Carbon Dioxide (CO 2) Emissions, Human Energy, and Cultural Perceptions Associated with Traditional and Improved Methods of Shea Butter Processing in Ghana, West Africa.
  3. Adekambi, S. A., Ingenbleek, P. T., & Van Trijp, H. C. (2018). Integrating bottom-of-the-pyramid producers with high-income markets: Designing institutional arrangements for West African shea nut butter producers. Journal of Public Policy & Marketing, 37(2), 327-341.
  4. Al-hassan, S. (2012). Market access capacity of women shea processors in Ghana. European Journal of Business and Management, 4(6), 7-17.
  5. Al-Hassan, S. (2015). Ghana’s Shea Industry: Knowing the Fundamentals.
  6. Alain, K. Y., Christian, K. T. R., Emmanuel, B. O. D., Avlessi, F., Dahouenon-Ahoussi, E., & Sohounhloue, D. (2022). Valorization of Vitellaria paradoxa butter in cosmetics and agrifood in Africa. GSC Advanced Research and Reviews, 10(1), 096-104.
  7. Ali, B., Agbo, F., Ukwuaba, I., & Chiemela, C. (2017). The effects of interest rates on access to agro-credit by farmers in Kaduna State, Nigeria. African Journal of Agricultural Research, 12(43), 3160-3168.
  8. Aniah, P., Dumayiri, M., & Banleman, K. (2014). An analysis of factors affecting womens’ capacities as traditional shea butter processors in northern Ghana. International Journal of Development Research, 5(1), 942-948.
  9. Anoke, A. F. (2023). Microfinance services and the growth of women entrepreneurial businesses in North Central Nigeria. Management, 4(4), 379-393.
  10. Anoke, F., Ngozi, N. H., Uchechukwu, E. S., & Joyce, I. (2022). Entrepreneurial Marketing And SMEs Growth In Post Covid-19 Era In Awka, Anambra State, Nigeria. International Journal of Financial, Accounting, and Management, 4(2), 115-127.
  11. Aryeetey, E. (2005). Informal finance for private sector development in Sub-Saharan Africa. Journal of Microfinance/ESR Review, 7(1), 3.
  12. Bello-Bravo, J., Lovett, P. N., & Pittendrigh, B. R. (2015). The evolution of shea butter’s “paradox of paradoxa” and the potential opportunity for information and communication technology (ICT) to improve quality, market access and women’s livelihoods across rural Africa. Sustainability, 7(5), 5752-5772.
  13. Boffa, J.-M. (2015). Opportunities and challenges in the improvement of the shea (Vitellaria paradoxa) resource and its management. Occasional paper, 24, 54.
  14. David, A. Q. (2019). The Impact of Micro Credit Finance on Poverty Alleviation in Ogun State. Development, 9(1).
  15. Elias, M., & Arora-Jonsson, S. (2017). Negotiating across difference: Gendered exclusions and cooperation in the shea value chain. Environment and Planning D: Society and Space, 35(1), 107-125.
  16. Elias, M., & Saussey, M. (2013). ‘The Gift that keeps on giving’: unveiling the paradoxes of fair trade shea butter. Sociologia Ruralis, 53(2), 158-179.
  17. Garba, I., Sanni, S., & Adebayo, C. (2015). Analyzing the structure and performance of Shea butter market in Bosso and Borgu Local Government Areas of Niger State, Nigeria. International Journal of u-and e-Service, Science and Technology, 8(2), 321-336.
  18. Goreja, W. (2004). Shea butter: the nourishing properties of Africa's best-kept natural beauty secret: TNC International Inc.
  19. Hammond, J., van Wijk, M., Pagella, T., Carpena, P., Skirrow, T., & Dauncey, V. (2019). Shea butter: a pro-poor, pro-female route to increased income. The Climate-Smart Agriculture Papers: Investigating the Business of a Productive, Resilient and Low Emission Future, 215-226.
  20. Hananu, B., Abdul-Hanan, A., & Zakaria, H. (2015). Factors influencing agricultural credit demand in Northern Ghana. African Journal of Agricultural Research, 10(7), 645-652
  21. https://doi.org/10.5897/AJAR2014. 9330
  22. Issahaku, H., Al-Hassan, R., & Sarpong, D. B. (2011). An analysis of allocative efficiency of shea butter processing methods in the northern region of Ghana.
  23. Jasaw, G. S., Saito, O., & Takeuchi, K. (2015). Shea (Vitellaria paradoxa) butter production and resource use by urban and rural processors in Northern Ghana. Sustainability, 7(4), 3592-3614
  24. Kavaarpuo, A. V. E. (2010). Development implications of the shea industry as a lead cash crop for Northern Ghana: Case studies in bole, Wa-West and Bongo Districts. Citeseer.
  25. Kent, R., Bakaweri, C., & Poole, N. (2014). Facilitating entry into shea processing: a study of two interventions in northern Ghana. Food Chain, 4(3), 201-224.
  26. Kombiok, E., & Agbenyega, O. (2017). The characteristics of financing arrangements for the production and marketing of shea (Vitellaria paradoxa) butter in Tamale in the Northern Region of Ghana. Southern Forests: a Journal of Forest Science, 79(2), 153-160
  27. Ky-Dembele, C., Bayala, J., Boffa, J.-M., Kalinganire, A., & Minang, P. A. (2021). Shea Tree Crop Management in West Africa. Tree Commodities and Resilient Green Economies in Africa. Nairobi, Kenya: World Agroforestry (ICRAF).
  28. Mawa, B. (2008). Impact of micro-finance towards achieving poverty alleviation. Pakistan Journal of Social Sciences, 5(9), 876-882.
  29. Mbowa, H. S., Businge, M. P., Ssemaluulu, P., & Eton, M. (2023). Effect of women empowerment on women-owned business performance in Wakiso District, Uganda. International Journal of Financial, Accounting, and Management, 5(3), 343-358.
  30. Mensa, N., & Turvey, C. G. (2023). Women’s Gold: The Shea Butter Industry in Ghana and how Empowerment influences Employment. Available at SSRN 4636397.
  31. Naangmenyele, Z., Banye, E. Z., Bekoe, E. M. O., Zakaria, I., & Amuah, E. E. Y. (2023). Fundamentals of shea butter production; input–output analyses and profit maximization in Northern Ghana. Research in Globalization, 6, 100113.
  32. Nahm, H. S., Juliani, H. R., & Simon, J. E. (2013). Quality characteristics of shea butter, Vitellaria paradoxa African Natural Plant Products Volume II: Discoveries and Challenges in Chemistry, Health, and Nutrition (pp. 167-184): ACS Publications.
  33. Nanpuan, B. (2021). MOBILE PHONE ADOPTION FOR SUPPLY CHAIN MANAGEMENT PROCESSES: A CASE STUDY OF RURAL SHEA PROCESSORS IN NORTHERN GHANA.
  34. Naughton, C. C., Lovett, P. N., & Mihelcic, J. R. (2015). Land suitability modeling of shea (Vitellaria paradoxa) distribution across sub-Saharan Africa. Applied Geography, 58, 217-227.
  35. Nwankwo, C., & Daodu, B. T. (2021). Antimicrobial and antihelminthic properties of shea butter (Vitellaria paradoxa). Global Journal of Pure and Applied Sciences, 27(3), 263-271.
  36. Osewa, S., Alamu, O., Inegbedion, G., Abegunrin, O., & Jolaiya, O. (2020). Assessment of constraints facing Shea butter processors among rural dwellers in Oyo State, Nigeria.
  37. Pouliot, M. (2012). Contribution of “Women’s Gold” to West African livelihoods: The case of shea (Vitellaria paradoxa) in Burkina Faso. Economic botany, 66, 237-248.
  38. Pufaa, F. E. (2010). Financing the Production and Marketing of Shea Butter in Tamale Metropolis.
  39. Quainoo, A. K. (2019). Unearthing the Hidden Potentials of the Shea Tree (Vitellaria Paradoxa).
  40. Robinson, A. (2020). Aromatherapy and Essential Oils for Healing: 120 Remedies to Restore Mind, Body, and Spirit: Callisto Media, Inc.
  41. Sikpaam, I., Mintah, S., & Fearon, J. (2019). Prospects and constraints of shea butter processing: Evidence from Tamale Metropolis, Ghana. Ghana Journal of Horticulture (JHORT), 14(1), 22-37.
  42. Tijani, S. (2018). Determinants of market participation among small scale shea butter processors in Kwara State, Nigeria. Tanzania Journal of Agricultural Sciences, 17(1).
  43. Tweneboah Kodua, T., Ankamah, J., & Addae, M. (2018). Assessing the profitability of small scale local shea butter processing: Empirical evidence from Kaleo in the Upper West region of Ghana. Cogent food & agriculture, 4(1), 1453318.
  44. USAID. (2004). The Shea Butter Value Chain Refining in West Africa: WATH Technical Report No. 3. Retrieved from
  45. Zeller, M., & Sharma, M. (1998). Rural finance and poverty alleviation. Retrieved from