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Amitava Chattopadhyay
Emerging Market Multinationals - Amitava Chattopadhyay


Supply Chain

The AAK Kolo Nafaso programme – Securing an alternative shea supply chain

AAK, a Swedish company providing vegetable oils and fats for various industries for more than 140 years, has been a dominant player processing shea since the 1950s. In 2009 in Burkina Faso, AAK started a project to work directly with West African women with small farm holdings, to improve their productivity as well as pay them fair prices. This project evolved into an alternative supply chain. The shea nuts through this programme – called Kolo Nafaso – were traceable to the women’s group level in West Africa. Kept segregated, the shea was not blended with AAK’s conventional shea supply, such that clients could lay claim to having sustainable and traceable sourced shea, when using Kolo Nafaso shea in their products. This was becoming increasingly important, as focus on sustainability grew among end-consumers, employees, as well as investors. The Kolo Nafaso programme expanded to Ghana, as AAK realized the potential of this alternative supply source, especially in 2018 when there had been a global shortage of shea. The issue was how to significantly grow this alternative sourcing programme, and how to realize its value


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