The Association of Ghana Industries (AGI) has raised concerns over the imminent collapse of rubber processing plants across the country due to acute shortages of raw materials.
Speaking at the Association’s 22nd Annual General Meeting for the Western and Central Regions in Takoradi, AGI Chief Executive Officer, Seth Twum-Akwaboah, revealed that most rubber factories are now operating at less than 50% of their installed capacity.
He warned that six out of the seven plants currently in operation risk shutting down entirely if urgent measures are not taken.
According to him, Ghana produces enough rubber to feed local processors. However, large volumes of raw rubber are being exported in breach of existing regulations, leaving domestic factories starved of materials. “The law is clear that exports should only cover excess production, but that is not what is happening. Unfortunately, raw materials are being shipped abroad through Tema Port, bypassing checks and leaving factories without access,” Mr. Twum-Akwaboah lamented.
He noted that factories that previously ran 24-hour production cycles have been forced to scale down to single shifts, while some have suspended operations altogether.
“Instead of running on three shifts, we are barely managing one. This is undermining industrial growth, threatening jobs along the value chain, and weakening our economic sustainability,” he added.
The AGI boss called on the Tree Crop Development Authority (TCDA) and the Ministry of Trade and Industry to step up enforcement of the law and ensure that farmers and agents prioritize selling to local processors at fair prices.
“They should act swiftly to prevent a total collapse of the rubber processing industry. Inaction could have dire economic consequences,” he cautioned.
A manager of one of the processing plants, who spoke on condition of anonymity, confirmed the crisis.
He explained that farmers were not necessarily earning higher prices from exporters, since both international and local prices are regulated by the TCDA. “It is not about incentives. Exporters are simply bypassing enforcement measures, and this is crippling the factories,” he stressed.
Mr. Twum-Akwaboah further warned that without immediate intervention, more factories could shut down or shift to processing other crops.
“For a 24-hour economy to thrive, industries must have consistent access to raw materials. At the moment, that is a huge challenge, and if it continues, factories may not survive,” he said.
The AGI’s warning comes at a time when government is pushing its industrialization agenda and advocating for value addition in agriculture. Industry stakeholders say protecting the rubber sector is crucial, as it provides direct and indirect employment to thousands of Ghanaians and supports the country’s broader economic transformation drive.
