Ghana risks losing more than $100 million annually by exporting raw rubber without processing it locally, the Rubber Processors Association of Ghana said on Friday.
Chairman Emmanuel Akwasi Owusu said foreign buyers are exploiting Ghana’s low raw rubber prices, depriving the country of revenue and jobs. “We are giving jobs to people in other countries and collapsing our economy,” he said. Processed rubber could fetch significantly higher prices internationally, creating opportunities for local employment and industrial growth.
The sector faces multiple challenges beyond low processing levels. Illegal mining, known locally as galamsey, has damaged some rubber plantations, destroying mature trees and affecting farmers’ livelihoods.
Side-selling and smuggling of raw rubber to unregulated buyers have limited the supply available to domestic processing facilities.
Limited processing infrastructure, weak enforcement of regulations, and land tenure complications have also constrained the growth of the industry. Many smallholder farmers face difficulties expanding plantations or investing in processing due to unclear land rights.
Meanwhile, competition from other crops, particularly cocoa, sometimes forces farmers to choose between traditional livelihoods and rubber cultivation, creating social and economic pressures in rural communities.
Owusu made his comments on Breakfast Daily on Channel One TV, urging stricter enforcement of existing rules, greater investment in local processing facilities, and support for farmers to capture the full economic potential of the sector. He emphasized that every year Ghana loses tens of millions of dollars that could otherwise be retained through value addition.
The Association warned that without urgent action, the trend of exporting unprocessed rubber will continue to drain revenue, deprive Ghanaians of employment opportunities, and limit the development of a domestic rubber processing industry. Adding value locally could allow Ghana to earn more per unit of rubber, create jobs, and strengthen the country’s industrial base.
Ghana’s rubber sector, which has traditionally been an important source of income for rural communities, is now at a crossroads. Coordinated action from government, farmers, and industry stakeholders is seen as crucial to ensuring the country retains the full benefits of its rubber resources while promoting sustainable economic growth.
