GH¢22.5m lost annually to unchecked rubber exports

Andrew Osie Okrah is the acting Chief Executive Officer of TCDA. He spoke after a stakeholder forum about tree crops regulation. The new directive took effect on May 2. It aims to ensure local factories receive raw materials before exports.

“We are not banning exports,” he clarified. “We want our factories well-fed first.” This is now the law.

Okrah noted that Ghana loses nearly GH¢22.5 million yearly from unprocessed rubber exports. This loss comes from about 3,000 metric tonnes exported at GH¢450 per tonne.

He warned that job losses could occur in the rubber processing industry. Currently, this industry employs over 1,400 workers and can create up to 6,000 jobs with full production.

Local industry players say enforcement has been weak in recent years. Emmanuel Akwesi Owusu leads the Association of Natural Rubber Actors of Ghana (ANRAC). He stated that side-selling and unregulated exports harm sustainable growth.

Farmers are defaulting on loans due to being undercut or robbed of produce. Processors face critical shortages of raw materials as a result.

“At least one factory has collapsed,” Mr. Owusu said. “Others operate at just 60% capacity.”

Ghana produces about 100,000 metric tonnes of rubber annually, but exports around 40%. Much of this is unprocessed rubber, leading to significant value loss.

With global prices around US$700 per tonne, exporting 40,000 tonnes unprocessed means missed opportunities for foreign exchange and local value addition.

The TCDA was established in 2020 under Act 1010 and recently began enforcing regulations across the sector. Okrah mentioned Regulation LI 2471 requires exporters to notify TCDA before shipping rubber, cashew, or shea abroad.

Stakeholders from various authorities have signed on to enforce these new rules at ports.

Mr. Owusu welcomed this move as it could revitalize the rubber industry. “With regulation in place, we can stabilize the industry,” he said.

The lack of regulation has also deterred commercial investment in recent years. Between 1995 and 2018, over 35,000 hectares were planted through government schemes but momentum has slowed since then.

Analysts believe enforcing this directive could reverse declines and boost lender confidence. Local processors can expand operations with steady access to raw materials.

“The more we process here, the more foreign exchange we earn,” Mr. Owusu added. “This can help stabilize the cedi.”

Ghana’s rubber quality is among the best in West Africa; however, reforms are needed for consistent supply and investment to compete effectively.

The TCDA’s directive marks a potential turning point for the industry. “If we all play our part,” Okrah said, “we can protect jobs and grow our industries.”