(Ecofin Agency) - • Chad is home to one of the world’s largest shea tree reserves, with up to 82 million trees.
• The country could produce up to 800,000 tons of shea nuts per year if fully developed.
• Shea butter offers more value than raw nuts, giving Chad a strong reason to invest in local processing.

Chad could soon become one of the world’s leading exporters of shea butter. A new report by the International Finance Corporation (IFC), published March 20, shows the country has massive untapped potential in the shea sector—especially if it chooses to process shea locally instead of exporting raw nuts.

According to the IFC, Chad has around 82 million shea trees spread across seven regions in the south. This is one of the largest shea reserves in the world. Based on that, the country could produce between 380,000 and 800,000 tons of shea nuts every year. But that potential remains largely unused.

In 2019, Chad’s national investment agency (ANIE) estimated the number of shea trees at 50 to 60 million and said only 3.6 million were being used. That means just 4 to 5% of the country’s stock was actually productive. The big difference between the two reports may come from updated data or different research methods.

If Chad developed the full capacity of its shea sector, it could stand alongside top African producers like Nigeria, Mali, and Burkina Faso. In 2023, Nigeria harvested 345,000 tons of shea nuts, according to the FAO.

The real opportunity lies in processing the nuts into butter. IFC research shows that Chad is more competitive in exporting shea butter than raw nuts, especially when factoring in shipping costs from Douala port. With rising global demand, this could give the country an edge.

The shea butter market is booming. Grand View Research, a U.S. consulting firm, estimates it reached $2.4 billion in 2024. It is expected to grow at an average of 7.9% per year, reaching $3.7 billion by 2030. Demand is driven by the food and cosmetics industries.

Chad’s location within the African Shea Belt gives it a clear advantage. It could plug into major trade routes and value chains, especially given the size of its natural supply.

Still, the sector faces major roadblocks. The IFC points to weak organization among producers, poor market access, and limited visibility for investors. This lack of structure holds back progress.

To fix this, the IFC recommends legal reforms to support cooperatives and industry groups, technical training for women producers, and new financing tools to help small processors. It also suggests hosting trade fairs and investor events to attract partners. Similar approaches have worked in other countries like Burkina Faso and Ghana, where brands like L’Occitane and The Body Shop already buy shea.

With the right reforms, Chad could turn its natural shea wealth into a powerful economic engine. But the sector must be structured and supported before that vision can become reality.