Ele Agbe is a Ghanaian phrase meaning “God is alive.” Founded as a small and medium enterprise (SME), in Ghana in 1996, Ele Agbe Company is currently a dynamic business operating in the downstream shea export sector. Demand for shea is increasing for skin and hair products on the foreign market. Ele Agbe’s artisans use traditional Ghanaian tools and methods, and the highest quality materials available, including unique scents.The protected knowledge build up of unique scents in its shea product mix has given Ele Agbe its trade secret.
At Ele Agbe, artisans pass on their skills to younger generations, conducting workshops for school groups and accepting apprentices from throughout Ghana. The business is confronted with challenges partly as a result of non-existent working policy for shea and breaks or gaps in the shea supply chain preventing it from achieving full potential. The company needs to consider how to improve on its’ rm and business networks given its internal and external environment in order to expand
Ele Agbe is one of the leading names in Ghana’s shea processing sector. Fourteen years ago, when they began exporting, they had six full time workers and 150 casual workers (wood carvers). Today, the company has 10 full time workers and about 300 casual workers. They have remained sustainable through strong marketing, innovation and diversifying products based on consumer needs and expectations in both domestic and international markets. In the past five years, 20 new product lines have been introduced by the company to include shea varieties of soap, lotion bars and lip balm. Other shea products include: body oil, hair pomade and cream for babies. New product lines are driven by market testing and by the young staff who come up with ideas they find interesting and which peers perceive as the trend. All these inform product development. Ele Agbe’s success may be attributable to its networks and initiatives management. For example, the company has received several international recognitions.
Comfort Adjahoe-Jennings is the founder and CEO of Ele Agbe Company Ltd. She is a social entrepreneur, engaged in reaching out to the rural women in particular, and creating opportunities for them to make a living. Comfort is also president of the Africa Women’s Entrepreneurship Program (AWEP) in Ghana. With an optimistic view1 of its potential, Ele Agbe remains undaunted by the seeming lack of a regulated shea sector and breaks in the shea supply chain. The company now needs to consider which of its firm and business networks it can leverage to achieve its potential given both its internal and external environment. Ele Agbe, an SME2, established in 1996, began full operations in 1998 focusing mainly on producing ornamental beads, original jewelry designs and handmade home decor which they started exporting in 1999. Shea butter products were introduced to its export product line sometime in 2004. The expansion was made possible through the use of retained earnings (equity) in the amount of $400 in order to launch a range of shea butter products. One of the purposes of this expansion was to provide a higher market profile for the products of rural women to afford them a more sustainable livelihood. The vision of Ele Agbe is to satisfy a demand in local value-added products and create jobs for rural and urban women; and youth which can help them earn a living by targeting domestic and international markets. Comfort’s leadership and vision are fueled by 18 years of export and work experience gained in another company, self-learning and feedback from buyers. Other contributing factors are her high involvement in export trade and frequent travels abroad.
Today, the company targets the domestic market, sub-regional markets through trade fairs, exhibits and international markets, primarily in the USA, Japan and occasional orders to the UK. The quality of products is very high and is assured through work relations requiring maintenance of Fair trade practices and standards.
The company has one top level CEO, Comfort Adjahoe-Jennings, four mid-level, and five junior-level staff.
Reporting is centralized around the CEO. The mid-level staff supervise the casual workers which are primarily shea pickers represented by an association. They work seasonally during shea harvesting and processing. The
junior staffers perform the mixing, packaging and labeling of products
The company has a weak board with low internal controls although management is expedient in meeting
regulatory and monitoring requirements. The CEO provides the directives. The centralized structure for this
small company has been effective in delivering timely export orders especially resulting from the familial work
rapport established with casuals and contractors who provide input supplies.
KEY SUCCESS FACTORS
Entrepreneurship, product chain characteristics and social capital are the driving forces for the business sustainability and export performance of Ele Agbe. These, forces coupled with direct linkages are what have improved the company’s reputation. Comfort Adjahoe-Jenning’s connections to world leaders and renowned personalities have put Ele Agbe in the limelight. Comfort Adjahoe-Jennings was selected to participate in African Women’s Entrepreneurship Program (AWEP) an outreach, education, and engagement initiative that targets African women entrepreneurs that are making a positive impact. AWEP was an initiative founded by former US Secretary of State, Hillary Clinton as a support to boost trade under the Africa Growth Opportunities Act (AGOA)3 in Africa. Comfort also had an opportunity to join the Cherie Blaire Foundation Mentoring Program 2012. Her final blog gave her the opportunity to meet Cherie Blaire and develop a business linkage. These two programs were instrumental in boosting the image of the company worldwide. The outcome is in line with the company’s vision to support sustainable jobs for rural-urban women and youth,which it does through its community business-based model for shea-pickers and processors. The company has developed bonds with over 300 shea pickers and processors belonging to about 10 groups or associations,which provide downstream input supplies of raw shea butter. The community business model concept provides
the shea pickers and processors a market for their produce at competitive prices. The women and youth are also taught to apply Fair trade practices and quality standards as part of their work.
Although the company has not yet registered its trade secret4 as intellectual property, it has closely guarded it. It has an agent in the United States who provides other input supplies (oils, fragrance) not available locally.
The quantity mix of various inputs and the processing forms a part of the trade secret that gives Ele Agbe the competitive edge in its final products.
A strong network alliance with its suppliers and buyers has developed a formidable bond. This has been achieved through the CEO’s long term vision to maintain familial relations, built solidly from the foundation of relationship to ensure sustainability. Work relations do not end with one generation but is carried to their younger generations as well. There is also the desire to remain in business to mentor young people who aspire to start their own businesses. The pillars for these relationships are good work ethics, trust, and, sound principles. The strong alliance has opened up different markets which provide valuable consumer feedback which has enabled the CEO to make optimal buying choices. The strong network alliance creates a buffer for the company from
the unregulated and seasonal shea sector; and strong competition. Ele Agbealso considers the welfare of its suppliers. The competition evolves from large companies (local and foreign) including their agents that move to buy huge volumes of the shea nut (unprocessed). The price offered by these large companies, though cheap, is higher and distorts local market prices. The shea pickers are rationally attracted by better prices since shea is seasonal and not available year round. Shea grows in the wild and is not farmed. Shea processors (some of whom are shea pickers) process the shea nuts into shea butter using a local rudimentary approach. Because of the increasing demand, the government has received requests to regulate this sector similar to the cocoa sector.
