India’s Manorama Industries is assessing investment opportunities in Chad’s shea sector as global demand for shea butter continues to expand and African producers seek to capture more value from natural resource-based industries. The potential investment comes as Chad positions shea as a strategic non-oil export opportunity under its long-term economic diversification agenda, leveraging one of the world’s largest but largely undeveloped shea tree populations.
A delegation from Manorama Industries, led by Director of External Affairs Singh Kumara, met officials from Chad’s Ministry of Agricultural Production and Industrialization on 2 July 2026 to discuss potential opportunities within the country’s shea value chain. The discussions focused on exploring investment possibilities, with the Indian company expected to visit southern Chad to assess cooperatives involved in shea processing and value addition. While details of the proposed investment have not yet been disclosed, the move signals growing international interest in Chad’s agricultural potential and reflects a wider shift among global processors seeking reliable supplies of plant-based ingredients for industries including cosmetics, food manufacturing and pharmaceuticals.
Manorama Industries’ interest in Chad follows a similar investment pathway in Burkina Faso, where the company received government approval in 2025 to establish a shea butter processing plant. The company specialises in vegetable fats and specialty butters used by global manufacturers, particularly in the cosmetics and chocolate industries. For Chad, attracting a major international processor could represent an important step towards transforming shea from a largely informal rural activity into a structured commercial value chain capable of generating jobs, increasing farmer incomes and contributing to export diversification.
The country has significant natural advantages. According to a 2025 study by the International Finance Corporation (IFC), Chad is home to approximately 82 million shea trees, placing it among the countries with the largest recorded shea resources globally. The IFC estimates that Chad could produce between 380,000 tonnes and 800,000 tonnes of shea nuts annually. This production potential places Chad among the world’s emerging shea markets. By comparison, Nigeria, currently the largest global producer, harvests between 350,000 tonnes and 500,000 tonnes of shea nuts annually. Despite its resource base, Chad’s shea sector remains largely underdeveloped. Limited organisation among collectors, fragmented cooperative networks, inadequate aggregation systems and limited processing capacity have prevented the country from fully benefiting from international demand.
Much of Africa’s shea production continues to be exported as raw nuts or minimally processed products, meaning that a significant share of the value generated through refining, branding and manufacturing occurs outside producing countries. Developing domestic processing capacity has therefore become a priority for several African governments seeking to increase industrial participation in agricultural value chains. The potential Manorama investment comes at a time when global demand for shea butter is increasing. The ingredient has become increasingly important in the cosmetics sector due to its use in skincare and personal care products, while the food industry also uses shea-based products as alternatives to cocoa butter in chocolate manufacturing.
According to research firm Grand View Research, the global shea butter market is estimated to reach approximately US$2.56 billion in 2025 and is projected to grow at an annual rate of 9.2%, reaching around US$5 billion by 2033. Rising consumer demand for natural ingredients and sustainable sourcing practices is expected to continue supporting market expansion. For African producers such as Chad, the growth of this market presents both economic opportunities and policy challenges. Capturing more value locally requires investment not only in processing facilities but also in farmer organisation, quality standards, logistics, research and market access.
The Chadian government has identified the shea sector as part of its broader economic diversification strategy, known as “Chad Connexion 2030.” The strategy aims to reduce dependence on oil revenues by strengthening non-oil sectors and increasing export earnings. Under the strategy, Chad has set a target of increasing non-oil exports to US$3 billion by 2030, up from approximately US$1 billion in 2024. Developing agricultural value chains such as shea, livestock, gum arabic and other natural products is expected to play a role in achieving that objective. The involvement of the Chadian Institute for Agricultural Research for Development (ITRAD) in discussions between Manorama and government officials highlights the importance of technical support in developing the sector. The institute is expected to contribute through improved planting materials, production mapping and research support aimed at strengthening shea productivity.
For rural communities, particularly women who dominate much of Africa’s shea collection and processing activities, increased investment could create opportunities for higher incomes and improved participation in formal markets. However, the economic benefits will depend on whether producers are integrated effectively into commercial supply chains and whether local communities retain a meaningful share of value created. Across West and Central Africa, governments are increasingly seeking to move beyond commodity exports by promoting local processing and industrialisation. Shea represents a significant opportunity because the resource is renewable, linked to rural livelihoods and connected to fast-growing global consumer markets.
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However, developing competitive shea industries requires addressing longstanding structural constraints. Reliable supply systems, access to finance, modern processing infrastructure and compliance with international quality standards will determine whether countries can move from being suppliers of raw materials to producers of higher-value finished goods. Chad’s engagement with Manorama Industries therefore reflects a broader trend in Africa’s agricultural transformation: attracting strategic investment to unlock value from natural resources while strengthening domestic industries. If successfully developed, the shea sector could become an important contributor to Chad’s economic diversification efforts and demonstrate how traditional rural commodities can support industrial growth.
The coming years will determine whether Chad can convert its vast shea resources into a globally competitive value chain that delivers stronger export revenues, rural employment and greater participation in the international market for sustainable natural products.
