Non-Governmental Organizations’ Capability and Small Scale Shea Butter Processors’ Technical Efficiency and Poverty Outcomes in the Northern Region of Ghana

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.