Ghana Rubber Estates Limited (GREL), which controls approximately 98% of Ghana’s rubber market, is grappling with significant disruptions in its operations due to illegal land takeovers. These encroachments have led to the destruction of rubber plantations and a decline in production.
According to Perry Acheampong, Corporate Affairs Manager of GREL, the company is facing serious challenges in accessing some parts of its plantations due to encroachment. He explained that once these lands are taken over, the rubber trees are destroyed, directly impacting production levels.
“We are unable to access parts of the plantation. Once the land is taken over, the trees are destroyed, leading to a loss in production,” he said.
GREL operates two factories in the Western Region with a combined processing capacity of 20 tons per hour. The company has a total planted area of 13,093 hectares, with 9,555 hectares currently under tapping. Additionally, GREL collaborates with over 5,600 smallholder farmers through its outgrower program, covering about 21,500 hectares.
The growing threat of land encroachment has put the company’s long-term sustainability at risk. The destruction of rubber trees not only affects GREL’s output but also threatens the livelihoods of workers and smallholder farmers who depend on the industry.
Rubber cultivation in Ghana dates back to 1898 when the rubber tree was introduced as an ornamental plant in the Aburi Botanical Gardens near Accra. In the 1930s, trial plantations were established in the Western Region, leading to the first industrial plantation in the 1950s through a joint venture with a Danish company.
In 1967, the Ghanaian government partnered with the U.S.-based Firestone Tire Company to further develop the industry.
Over the decades, the rubber sector has become a key component of Ghana’s economy, significantly contributing to the nation’s export revenues. In 2022 alone, exports of Technically Specified Rubber and natural rubber sheets brought in approximately USD 131.3 million.
Economic Significance and Challenges
Ghana’s natural rubber sector currently has four active processing factories across the Western, Central, and Eastern Regions. The largest processor, GREL, operates two factories in the Western Region with a combined capacity of 20 tons per hour. Other processing factories include NARUBIZ Ltd (1 ton per hour), Rubber Plantations Ghana Ltd (RPGL) (0.8 tons per hour), and APEX Rubber Processing (1 ton per hour).
Additionally, Yaeric Company Limited is set to become the fifth factory, with a processing capacity of 1 ton per hour.
Despite its contributions, the sector faces challenges such as securing financing due to the long gestation period of rubber cultivation, land tenure complexities, and price volatility in the international market. The recent surge in illegal land takeovers exacerbates these issues, threatening the industry’s sustainability.
