Contribution of the Baobab Value Chain to Equitable Rural Livelihoods and Poverty Alleviation in Ghana

Abstract

ABSTRACT Non‐timber forest products (NTFPs) are central to income diversification and livelihood resilience in Sub‐Saharan Africa. However, the welfare implications of baobab commercialisation remain underexplored. This study addresses this gap by analysing the contribution of the baobab value chain to household income, poverty reduction, and income inequality across regions, actor groups, and genders in northern Ghana. Using household‐level data of 808 actors (collectors, processors, and traders) in the Northern and Upper East regions, we combine value chain analysis with income inequality and poverty measures. The results show that married and less educated women dominate the baobab value chain, underscoring its accessibility to socially and economically vulnerable groups. Although baobab enterprises are profitable, benefits are unevenly distributed among actors, with particularly high inequality among traders in the Northern region, suggesting a small number of actors capturing the largest profits. While women generate most baobab income (83%), they also experience higher income inequality within their group, particularly among traders, where earnings vary widely. Baobab income constitutes the largest share of household earnings across all actor categories in both regions. Overall, poverty and income inequality remain high, but actors' involvement in the baobab value chain is associated with lower poverty rates and reduced income inequality. These findings demonstrate the potential of baobab commercialisation to strengthen rural livelihoods and reduce poverty. They also underscore the need for targeted interventions, such as improving market access for female collectors and promoting community‐level value addition, to ensure a more equitable distribution of benefits.