Abstract:
This study assessed the empirical linkages between Non-Governmental Organisations’ capability and small scale Shea butter processors’ technical efficiency and poverty outcomes in the Northern Region of Ghana. Using a cross-section survey design, the study adopted a quantitative approach to construct a capability index for the NGOs in the Shea industry. The study also estimated
technical efficiency of the women small scale Shea butter processors using
stochastic frontier production function. It also assessed poverty outcomes of the
small scale Shea butter processors in the Northern Region and ascertains its
determinants including empirical linkages with capability index of NGOs and
technical efficiency of the women. The study found among other things that the
NGOs in the Shea industry had slightly above average capability based on the
computed capability index. They however lagged behind in terms of financial
transparency and accountability and compliance with relevant legal and regulatory
requirements. The women small scale Shea butter processors were also found to
have varying levels of technical efficiency across the districts. The study found high
level of consumption expenditure poverty among the women but less poverty using
other indicators. The study recommends inter alia financial transparency and
accountability of the NGOs, continuous training of the women small scale Shea
butter processors and for government to subsidize the main inputs in Shea butter
processing.
