The Ugandan shea industry presents a significant opportunity for economic growth and development, particularly in Northern Uganda. Efforts have been made by the Government of Uganda and NGOs (non-governmental organisations) to develop the Ugandan shea value chain, but with minimal progress. CSJ is eager to understand the opportunities to develop this value chain to benefit communities in Northern Uganda. To that end, CSJ commissioned this comprehensive study to strategically identify the key challenges impacting shea value chain in Uganda. The study identifies key opportunities and provides strategic recommendations aimed at enhancing the shea value chain, including establishment of the Uganda National Shea Association to drive market awareness, innovation, social protection, and shea resource sustainability. Basic business plans are provided for each of the core recommendations. The scope of work included a review of existing shea information, focused on Uganda – its parkland management practices, crop volumes, constraints, products, markets, and actor’s roles. A field visit was conducted to collate data on the current situation and assess quantities, qualities, and pricing of commercially available shea kernels. Local to global market segment mapping was assessed with profitability and value chain analyses. Existing infrastructure was evaluated, to identify gaps and opportunities for improving market access and value addition. Institutional efforts on shea propagation and parkland restoration were assessed and details on regulatory processes and potential for market impact are provided. The study also aimed to determine socio-economic and ecological impacts of the shea sector, particularly on women and smallholder farmers (SHFs). The shea industry in Uganda is underdeveloped, contributing less than 1% to international shea trade. There is robust local and regional demand for shea butter, especially in the confectionery and cosmetics sectors. The West African shea crop is estimated at 1.6 million SETs (Sheanut [shea kernel] Equivalent Tons), and the East and Central African (ECA) shea crop potential is estimated at 0.8 million SETs. Annual exports of shea kernels and butter from West Africa have risen significantly over the past two decades, primarily driven by increasing global demand for speciality fats (chocolate confectionery ingredients). The major challenges in Uganda include demand for shea charcoal, lack of processing technologies (refining and fractionation), inconsistent product quality, and competition from other vegetable oils. Additionally, poor export infrastructure and market access issues hinder efficient product distribution. However, significant investment opportunities exist in market development, parkland restoration, and enhanced processing methods. The global trend towards natural, ethical, and organic products, particularly in food industries and cosmetics, drives demand for shea butter. There are strong prospects for financing shea resource restoration using Nature Based Solutions, e.g., carbon credits for regenerative shea agroforestry and indigenous tree growing. The study recommends: 

1. Form Uganda National Shea Association (UNSA) with a professional secretariat to drive sustainability of the sector – People, Planet and Profit – and develop systems that support shea community members’ welfare and economic activities; 

2. Restore shea parklands with improved shea propagation techniques. Use Nature Based Solutions to finance: agroforestry carbon credits; 

3. Enhance extraction, refining and fractionation. Improve quality and value addition. New Product Development: local and global markets; 

4. Revise shea standards and improve quality assurance. Develop marketing and branding strategies to increase awareness and Nilotica demand.