Soap Making Level 3

Who it is for. People who have finished Soap Making Level 2, or who can show the same skills. Ghana's TVET framework has eight levels. National Proficiency II is for mostly routine work with limited supervision. National Certificate I is for "complex and varied activities under minimum supervision", and National Certificate II adds considerable responsibility and guiding others. This module is written at an advanced level, comparable to National Certificate I, reaching toward National Certificate II where you supervise staff. That is the author's matching, not an official ruling.

Bridge from Level 2: what you already know

Level 2 did not cover free-alkali checks, preservation, premises layout, effluent, the GSA mark, a full set of books or a 12-month forecast. This manual does. For general bookkeeping and venture basics see the hub's Money Skills Level 2 and Entrepreneurial Thinking Level 2; this manual goes deeper for soap only.

How the module works

Each unit has learning outcomes, performance criteria, the range and the evidence your assessor needs. You are judged Competent or Not Yet Competent. Units 1 to 4 are technical. Units 5 to 7 are about your own business.

Competency standard

Range. Two batches of 10 kg or more; one liquid or black soap batch. Evidence. Batch records; test sheets; troubleshooting log.

Scale up with the lye sums

Use the SAP figures you know, then correct for purity. Caustic soda is often about 97% pure. Level 1 gave palm oil 0.142, palm kernel oil 0.173 and shea 0.128 g of caustic soda per gram of oil.

Pure lye needed = oil weight × SAP × (1 − superfat) Lye to weigh = pure lye ÷ purity

Example batch (example numbers): 14 kg palm oil, 4 kg palm kernel oil and 2 kg shea butter, 5% superfat, lye 97% pure.

(The sums are the author's, from the figures above.) A bigger lye pot gets hotter and stays hot longer, so always cool it before use.

Control points

Calibration means checking a measuring instrument against a known value. Test your scale each day with a known weight.

Tests you can do, and tests you must send away

On the bench: the plate test and pH strip from Level 1, hardness by thumb, and weekly weight. Handmade bars tested at about pH 9–10.5. The immersion test in the East African toilet-soap standard: a bar is kept in 1 litre of distilled water for 1 hour at 25–30 degrees C and, after drying 25 hours, must not crumble, crack or break.

In a laboratory: that standard sets, as a comparison, TFM at least 76.0%, free caustic alkali as NaOH at most 0.1%, total free alkali as Na2O at most 0.2%, matter insoluble in ethanol at most 2%, chlorides at most 0.8%, free fatty acids at most 0.3% and unsaponified fatty matter at most 0.5%. Results are corrected for moisture lost in storage. It needs 3 packages sampled from a lot of 4–15 and 10 from a lot of 111 or more, with at least 2 kg of cakes in total. Ghana's own figures sit in the GSA standards you buy.

Weight loss and net content

Bars lose water as they cure. A bar of 120 g on day 1 and 105 g at week 6 has lost 15 g, which is 12.5% (author's arithmetic). The label must show net content. So weigh bars on packing day and print that weight, or print a lower weight that the bar will not fall below.

Troubleshooting

Decide: sell when all tests pass; rework only with the quality person's approval; reject when the fault is unsafe. A decision to reprocess must be approved by the person responsible for quality.

Records, traceability and complaints

FDA's premises guideline expects out-of-specification results to be investigated, deviations to be authorised with data and fixed so they do not repeat, complaints to be reviewed and followed up, and a documentation system of specifications, procedures, instructions and records. For a small plant that means:

Competency standard

Range. Four products: bar, KOH liquid soap, shea soap, black soap. Evidence. Formula sheets; stability notes; packaging plan.

Design from the customer back

Start with who buys and why: a hotel wants a small, scented guest bar; an office wants bulk liquid hand soap; a market buyer wants black soap; a family wants a hard laundry bar. SoapCalc's target ranges for body bars are hardness 29–54, cleansing 12–22 and conditioning 44–69. Laundry bars use 0% superfat and often all coconut oil and are not for skin.

Compare blends by cost. Accra listings in October 2026 gave palm kernel oil at GH¢600–650 per 25 litres and red palm oil about GH¢400 per 25 litres. Use GH¢625 and GH¢400: that is GH¢25.00 and GH¢16.00 a litre (calculated).

True liquid soap at larger size

Liquid soap uses KOH, not NaOH: KOH needed = SAP (KOH) ÷ 1000 × oil weight. Make a paste, cook it until translucent, keep superfat at 2–3% or less for clear soap and dilute about 1 part paste to 1–3 parts distilled water. Potash is often about 90% pure. A pH of 9–11 is normal for true liquid soap.

Preserve it and test it

Water-based products such as shower gels and liquid soaps need a preservative: it is "necessary and not optional". A challenge test of preservative efficacy is "usually necessary", and other ingredients such as fragrances can weaken a preservative. A bar soap has little free water, so it needs a different kind of care (dry curing). A simple home stability test is to freeze and thaw a sample three times and keep another at 100 degrees F (about 38 degrees C) for two months; a product that looks and smells right after that is likely to last a year. That is a blogger's rule of thumb, not a standard.

Black soap and shea products

Traditional black soap is about pH 8–10. A study found local black soap held far more moisture than factory soap and less fatty matter. For a market product: fix the ash source, the oil blend and the boil time on paper (Level 2), dry every batch to the same firmness and pack it to the same weight. Ghana's black soap standard is GS 289. A project at Senase organised more than 1,300 women in 48 groups with a shared warehouse. Shea butter has a caustic soda SAP of 0.128 g per gram.

The medicated line

If a product claims to treat or prevent disease, it is a drug, not a cosmetic. Mercury, steroids and hydroquinone are banned. A household chemical substance includes a product for a home or office sold as a germicide, antiseptic or disinfectant. How Ghana treats an "antibacterial" soap was not verified. As a foreign comparison, the US FDA treats antibacterial soaps as drugs. In 2016 it banned 19 active ingredients from them, including triclosan and triclocarban, and it says there is not enough evidence that they prevent illness better than plain soap and water. That is US law, not Ghana law, but it shows that a good plain soap needs no germ claim. Do not sell medicated or antibacterial soap, and do not print a health claim, until the FDA tells you in writing which category applies.

Packaging and shelf life

Labels must not fade in sunlight and must show batch, manufacture and best-before dates. Samples sent to the FDA must have most of their shelf life left. Dry, cool, airy curing reduces orange spots. Set the best-before date from your stability notes, not from hope.

Competency standard

Range. A plant of 1–5 production staff. Evidence. Stock register; layout drawing; induction record; waste plan.

Caustic soda: storage and the law

Storage. Use HDPE or other suitable containers and avoid aluminium, zinc, galvanised metal, tin, glass, copper and brass. Solid caustic soda soaks up moisture and carbon dioxide, so keep it airtight and reseal after each use. Keep it away from acids and reactive metals. Label it with the chemical name, hazard pictograms, "DANGER", first aid and the supplier. Where you hold solutions, use a containment tray that holds at least 110% of the largest container, and never drain spills to the street. Keep it locked.

Issue and count. Keep a stock register: opening, received, issued to each batch, spilled, closing. Count the drum each month.

The law. The Environmental Protection Act 2025 (Act 1124) replaced Act 490 and requires registration of pesticides and industrial chemicals that are used, sold, imported or exported. No Ghana rule that names caustic soda, or limits how much a business may hold, was found. Buy from a dealer who gives receipts, keep them and ask the EPA and the Fire Service what applies to your site. Older papers cite Act 917 or Act 490; whether Act 917 duties moved into Act 1124 was not verified.

Layout and equipment

FDA's guideline says premises must be designed to protect the product, allow easy cleaning, and reduce mix-ups of products and materials; they must be well ventilated and clean. Equipment must suit its job and be easy to clean. Use stainless steel, enamel, heat-proof or lye-safe plastic and no aluminium.

Supervise and protect staff

The Labour Act requires the employer to give a safe and healthy workplace, training and supervision, protection from toxic fumes and PPE at no cost to the worker; failing without good reason is an offence. A worker who reasonably believes there is serious danger may leave, and may not be dismissed for it. Report accidents within seven days. Pregnant workers and mothers of babies under eight months cannot be made to work at night or overtime without consent. Under-18s must not handle lye.

Waste and effluent

Never put soap-making waste in drains or streams: caustic soda is harmful to water life. Ghana's effluent standard is GS 1212:2019, organised by sector. A government safeguards paper lists a pH of 6–9 for discharge, but that is a general figure, not a soap-sector limit. Ask the EPA for the soap and detergent limits and whether you need a permit; Ghana's old environmental regulations listed "soaps and cleaning compounds" among businesses needing EPA registration. Whether the 1999 regulations still apply under Act 1124 was not verified.

Competency standard

Range. One product, one inspection plan. Evidence. Inspection checklist; GSA plan; corrected label; distribution plan.

FDA licensing and inspection

No one may manufacture cosmetics or household chemicals except in premises licensed by the FDA, and each product must be registered. Inspection follows ISO 22716 and is risk-based; the licence is valid for one year and must be renewed at least 3 months before it ends. The FDA says it will inspect within 90 days of an application, give findings within 21 days, expect your answer in about 15 working days and issue the licence or certificate after your corrections are accepted. The documents include a Certificate of Incorporation and Certificate to Commence Business, a Site Master File where it applies, an EPA permit where it applies, a floor plan and a local-authority permit where it applies. Ask the FDA what a sole proprietor must show.

Progressive licensing. Micro businesses have 1–5 permanent staff. The Progressive Licensing Scheme helps firms with 1–5 production staff. The licence you get depends on your inspection score: green 75–100% compliant; yellow 45–74%, with a year to comply fully; pink 30–44%, with two years. The guideline lists no licence below 30%.

Fees. The 2023 fee law (L.I. 2481), as the text could be read, shows locally made cosmetics registration at GH¢100 for micro, 200 small, 300 medium and 500 large; inspection at GH¢50 micro, 100 small, 200 medium and 400 large; and yearly licences at GH¢60 micro, 120 small and 140 medium. The FDA's local-cosmetics form gives a cottage figure of GH¢50 for the licence and GH¢300 for registration. A consultant lists other numbers.

GSA standards and the Ghana Standards mark

Ghana has standards for toilet soap (GS 131), laundry soap (GS 167), liquid detergent (GS 229) and alata samina (GS 289). A GSA notice says locally made products made by an industrial process must get a licence for the Ghana Standards Certification Mark before being offered for sale or exported, with the mark shown on the label. Whether a small hand-made soap counts as "industrial process" was not verified; ask GSA. Certification means an application, a signed agreement and fee, a preliminary inspection, a factory audit with samples tested by an approved laboratory, a decision, and then surveillance with tests on factory and open-market samples. Fees were not verified.

Check a label

The label must show product name, ingredients by INCI name, net content, batch number, manufacture and best-before dates, directions, warnings, storage, the maker's name and address, country of origin, "keep out of reach of children", "for external use only" and the FDA number; it must not claim to cure and must not fade.

Distribution and wholesale

Put trade terms in writing: price by quantity, delivery, credit days, returns for damaged goods and who pays. Keep a price list, an invoice book and a dispatch book. Hotels, supermarkets and wholesalers often pay late, so set a credit limit and send a statement each month. Never give goods on credit to a new buyer without a deposit (the author's advice). Ghana exported over 66,000 tonnes of soap in 2022 but still imports 50,000–55,000 tonnes a year, so there is room for good local brands.

Export basics

The FDA's 2025 guideline asks for ORC registration, FDA product registration and an electronic permit for each shipment. Selling soap into the EU needs a responsible person there and a safety report. In the United States, plain soap with no claims is treated differently from soap that claims to moisturise or kill germs. Start with a nearby market and a small shipment.

Competency standard

Range. The trainee's own planned business in Sekondi-Takoradi. Evidence. Registration checklist; start-up budget; one-page plan; pitch.

Choose the legal form

A name search costs GH¢30. Most solo soap makers start as sole proprietors, then move to a company when they hire many staff, sign large contracts or take outside owners (the author's advice).

Register step by step

Tax: under the Modified Taxation Scheme, turnover of GH¢20,001–750,000 pays 3% of annual sales or tax on earnings after expenses; VAT registration for goods starts at GH¢750,000. Ask GRA before you start.

Premises and location

A small production room needs water, ventilation and a quick road to buyers. Hotels, supermarkets and offices along the coast of Takoradi and Sekondi are the likely customers (the author's view; no study ranks sites). Check with the Assembly before paying rent and keep the layout from Unit 3 in mind.

Start-up budget (example)

Only the registration fees come from sources: the FDA 210 is micro inspection 50 plus licence 60 plus registration 100; the laboratory figure and the equipment figures are examples.

Funding options

• Savings groups. Government is linking savings groups to banks.
• Loans. Check that the lender is licensed and ask for the APR in writing (see Money Skills Level 2).
• Ghana Enterprises Agency. It has given over GH¢700 million to small businesses. Its programme for persons with disabilities gave grants to 150 businesses in 2023. Current rounds were not verified.
• Assemblies' disability fund. It rose to 5% in 2026 and aims at skills training, assistive devices and start-up capital.
• Women's programmes. NEWIG and the Coca-Cola Foundation trained 54 women in Sekondi-Takoradi with start-up kits.

Staff and apprentices

The Labour Act requires a written contract for a job of six months or more and a written statement of main terms within two months, and gives at least 15 working days of annual leave and a maximum of 8 hours a day and 40 hours a week. The 2026 national daily minimum wage is GH¢21.77. With SSNIT, the worker pays 5.5% and the employer 13% of basic salary, 18.5% in total, remitted within 14 days after month end; the sources disagree on the Tier 1 and Tier 2 split, so ask SSNIT. This is not legal advice.

Insurance, marketing and safety

Ghana's law requires business premises to be insured against fire and other risks; section numbers were not verified. Get three written quotes. Market with a WhatsApp Business profile, a free Google Business Profile, clear signage, a portfolio of photos, sample bars for hotel managers and referrals. Show your FDA number once you hold it: buyers trust registered products.

Accessibility

Ghana's Persons with Disability Act, 2006 (Act 715) is reported to give employers a tax rebate for hiring disabled people. The Mpohor-Fiase District Assembly trained persons with disabilities in liquid and solid soap, branding and marketing, and a visually impaired graduate needed seed capital to start. Practical changes (the author's suggestions): talking or tactile scales, raised-dot labels on lye drums, a seated work bench, a step-free floor and a buddy for any lye work.

The one-page business plan

Competency standard

Range. One month of sample records and one of the trainee's own. Evidence. Cash book; stock sheet; debtors list; profit and loss; balance sheet; reconciliation.

See the hub's Money Skills Level 2 for the basics of cash books, profit and loss and balance sheets. This unit applies them to a soap plant.

The daily set of records

An income statement shows sales minus the cost of goods sold, giving gross profit, then other costs, giving net profit. A balance sheet shows assets equal to liabilities plus equity. Working capital is current assets minus current liabilities.

A month for Ama's Soap Works (example numbers)

Production. Eight batches of 20 kg oil, 200 good bars each: 1,600 bars. Direct cost per batch: oils and lye GH¢400, packaging GH¢0.60 × 200 = GH¢120, fuel GH¢30, total GH¢550, so GH¢2.75 a bar.

Sales. 950 bars wholesale at GH¢4.30, 350 retail at GH¢5.00 and 250 to hotels at GH¢4.50 on credit: 1,550 bars. There was no opening stock, so 50 bars remain.

Depreciation here is straight line: cost minus scrap value, divided by years of use. The helper's wage is the 2026 minimum wage times 27 days. The employer's 13% is the SSNIT rate.

Why did profit stay positive while cash fell? Profit kept was GH¢549.50, yet cash fell by GH¢513. Bridge: 549.50 + depreciation 124 (not a cash cost) + SSNIT unpaid 76 − new stock 137.50 − hotels still owing 1,125 = −513. Profit is not cash.

The two sides match. That is the trial-style check: if they differ, look for an entry recorded once, in the wrong column or missing.

Pricing: margin and mark-up

Margin is profit as a share of the price; mark-up is profit as a share of cost. At a cost of GH¢2.75, a wholesale price of GH¢4.30 gives a margin of 1.55 ÷ 4.30 = 36.0% and a mark-up of 1.55 ÷ 2.75 = 56.4% (author's arithmetic). Break-even bars = fixed costs ÷ (average price − cost per bar). Ama's fixed costs with her wage are 1,348 + 800 = 2,148; her average price is 6,960 ÷ 1,550 = GH¢4.49, so each bar gives GH¢1.74 and break-even is 2,148 ÷ 1.74 = about 1,235 bars (round up). Annual costs, such as the Assembly permit of GH¢1,000, are divided by 12 and set aside each month.

Stock, debtors and creditors

Count the stock each week: expected = opening + made − sold. If the count is lower, bars are missing. Age your debtors by days owed.

Month-end routine

Tax records

Keep records to prove your tax route. Under the Modified Taxation Scheme the GRA offers an instalment route for turnover up to GH¢20,000, a 3% turnover route for GH¢20,001–750,000 and a modified cash basis. At Ama's yearly sales of 6,960 × 12 = GH¢83,520 (example), 3% is GH¢2,505.60. Goods traders above GH¢750,000 need VAT registration. Employers must pay SSNIT within 14 days after month end. Ask GRA and a tax adviser for anything beyond this.

Competency standard

Range. The trainee's own business plan. Evidence. Quality procedures; price sheet; growth plan; business plan and forecast; panel score sheet.

A simple quality system

FDA expects an internal audit by someone who does not run the area, with findings shared and corrective action followed up. For a small plant:

Customer care and pricing strategy

Answer messages quickly, replace damaged bars, and ask hotels what they want next. Use price tiers (retail, wholesale, institution) and a written discount rule. Compete on quality, a registered label and reliable delivery, not only on price.

Scale, partners, contracts and tenders

Grow from within. Add one product or one new buyer at a time. Micro firms have 1–5 staff and small firms 6–30. The FDA's Progressive Licensing Scheme is meant to help you improve step by step.

Contract manufacturing. If you make soap for another brand, the FDA expects a written agreement between the product owner and the manufacturer, and written agreements for any outsourced process.

Contracts. A buyer contract states product, quantity, price, delivery, payment days and what happens when a batch fails. Have a lawyer read big contracts.

Public tenders. Suppliers bidding for government contracts must be registered with the Public Procurement Authority. Tenders are advertised on the GHANEPS e-procurement portal. One guide reports a registration fee of GH¢500 and renewal of GH¢300, while a 2018 announcement said GH¢300, so confirm with the PPA. Tender security rules were not verified.

Records for loans, succession and ethics

A lender wants: your registration papers, 12 months of cash book, profit and loss, balance sheet, bank or MoMo statements, a cash-flow forecast and a clear use for the money (see Money Skills Level 2). Name a successor who knows the recipes, the supplier list, the passwords and the customer list, and write the master recipes in a safe place. Ethics: never print a registration number you do not hold, never put a medical claim on a bar, never sell a rejected batch, pay staff on time and obey the Labour Act.

Your 12-month cash-flow forecast (example)

A cash forecast has opening cash, money in, money out and closing cash for each month. Ama's example, with materials at 60% of cash in and fixed costs plus her wage GH¢2,024 (rent 300, helper 588, SSNIT 76, transport 200, data 60, owner's wage 800):

Sales rise in December for gifts and fall in June and July (the author's example assumption; ask your own customers about slow months). Cash is lowest in August.

Capstone: present to a panel

You present a complete one-page business plan (Unit 5) with your 12-month cash forecast, price list, registration checklist and quality plan, in 8 minutes, then answer questions for 7.

1. How do you correct a lye weight for 97% purity?
2. Why weigh a bar on packing day?
3. Name three laboratory tests a toilet-soap standard asks for.
4. Why does liquid soap need a preservative?
5. Why must you not print a health claim without FDA approval?
6. How do you store caustic soda safely? Give three rules.
7. What does a yellow FDA licence mean?
8. Who must be 18 or over to handle lye?
9. Name four steps to register your soap business in Takoradi.
10. Margin or mark-up: which is profit as a share of price?
11. Why can a business be profitable and still run out of cash?
12. What is the first thing to do when a customer complains about a batch?

Best next reads: the FDA's premises and registration guidelines for cosmetics and household chemicals; the GSA catalogue and certification scheme; Money Skills Level 2 and Entrepreneurial Thinking Level 2 in this hub.

What this module does not cover: factory-scale saponification lines, detergent powders, pharmaceutical or medicated soaps, company audits, and payroll tax beyond the basics. It is not legal, tax or financial advice.

Every source used in this manual is listed, with links, in the Teacher Copy.