Local Soap Production Business in Ghana

Soap plays an important role in our daily lives as it fights infections and diseases. It is used for bathing, washing clothes, and cleaning dishes.

Soap-making involves both art and science, as it requires a combination of chemicals (soda), fats (shea butter), and oils (palm kernel oil).

As more Ghanaians embrace entrepreneurship, it is important to consider the local soap business. Local soap in Ghana, popularly known as “Azuma Blows,” was named after Ghanaian three-time featherweight boxing champion, Azumah Nelson. This business is very common in Techiman in the Bono East Region.

The local soap business is highly lucrative, with a high profit margin that most entrepreneurs can venture into. However, the following measures must be taken before starting this business:

Permit

The first step is to obtain a permit from the Environmental Protection Agency (EPA), which serves as the regulatory body for this business.

Funding

Most entrepreneurs in this sector rely on microfinance for funding. However, some depend on proceeds from their farms, as Techiman is a farming community.

Structure

The business does not require a complex building or factory. To start, you can set up a simple wooden structure on a piece of land, which could even be on your compound if there is sufficient space. However, it should not be too close to your residence due to the smoke generated during production. The production of local soap does not require electricity or expensive equipment.

Raw Materials

The raw materials used in production include:

1. Shea Butter – This can be purchased mostly from factories in Tema or Ghana Nut Company in Techiman.
2. Palm Kernel Oil – This is a basic component of soap-making and can be sourced from villages and towns known for palm oil production. Twifo Praso is a popular location for palm oil in Ghana.
3. Caustic Soda – This whitish solid substance is key to soap-making and can be purchased from local markets.

Method

1. The soda is soaked in a barrel of water (usually blue plastic barrels) for three days.
2. The palm oil is boiled and then allowed to cool for three days.
3. After cooling, the shea butter is uniformly mixed with the palm oil.
4. The soda is then added to the mixture. This chemical reaction is known as saponification.
5. The mixture is stirred until evenly blended.
6. The soft mixture is molded into balls by hand while wearing gloves and left to dry in the sun.

Important: The drying process should be monitored carefully, as prolonged exposure to the sun can cause the soap to shrink in size. Once dried, the soap is bagged in white sacks and prepared for transportation.

Protection

When caustic soda is mixed with oil or fat, it causes a chemical reaction. As such, it is necessary to use protective equipment during production to prevent damage to the skin. Basic apparatus like gloves, stainless steel or plastic spoons, basins, and measuring cups can be used.

Marketing

In Ghana, about 80% of the local soap (“Azuma Blows”) produced is exported to Burkina Faso, where the market is large. The remaining stock is typically sold in local markets, especially in Tamale and Wa.

Conclusion

Local soap production is a lucrative business that does not require much capital or complex packaging. It provides employment to about 15% of the working population in Techiman and has a significant export market.