The Rubber Processors Association of Ghana (RUPAG) says temporary restrictions on raw natural rubber exports are beginning to strengthen domestic processing, increase local purchases and create greater value addition, supporting Ghana’s industrialisation agenda.
The Association said early industry data showed the policy was driving higher domestic demand for raw rubber, expanding market opportunities for farmers, traders and aggregators while boosting local manufacturing.
A statement issued by RUPAG said local processors purchased about 30,967 tonnes (dry) of raw rubber between January and June 2026, up from 21,627 tonnes during the same period in 2025, representing a 43 percent increase in domestic purchases.
Mr. Perry Acheampong, Secretary of RUPAG, said the figures indicated that fears of reduced market opportunities for farmers, traders and aggregators following the temporary export restrictions had not materialised.
He said purchases from traders and aggregators rose sharply from 5,987 tonnes (dry) in the first half of 2025 to 13,431 tonnes during the corresponding period in 2026, representing a 124 percent increase.
Direct purchases from farmers also increased from 15,640 tonnes (dry) to 17,535 tonnes, representing a 12 percent rise.
“The early data indicate that domestic market activity is expanding and that opportunities continue to exist for farmers, traders and aggregators,” Mr. Acheampong said.
He noted that local processors had continued buying raw materials at prices above the monthly minimum factory gate prices set by the Tree Crops Development Authority (TCDA), demonstrating sustained demand within the domestic market.
According to him, the emerging trends reinforced the importance of retaining strategic raw materials for local processing to support industrial development.
Mr. Acheampong said the temporary export restrictions aligned with the government’s industrialisation agenda and the 24-Hour Economy Policy, stressing that processing rubber locally generated significantly greater economic benefits than exporting raw materials.
He explained that every additional tonne of rubber processed locally created employment across factories, transport, logistics, freight forwarding, warehousing and other supporting services, while increasing tax revenue and foreign exchange earnings.
Industry projections, he said, showed that increased local value addition could generate an estimated US$1.36 billion in additional foreign exchange earnings and about GH¢326 million in additional tax revenue between 2026 and 2031.
Mr. Acheampong disclosed that local processors were already expanding production capacity in anticipation of increased demand under the government’s industrial agenda.
He said the long-term objective was to ensure Ghana derived maximum value from its natural resources by processing more rubber domestically rather than exporting raw materials.
He noted that Ghana’s policy direction reflected a broader global trend, with major rubber-producing countries adopting measures to encourage domestic processing.
According to him, Côte d’Ivoire and Liberia had introduced restrictions on raw rubber exports to support local industries, while Nigeria processed nearly all its natural rubber into Technically Specified Rubber before export.
Mr. Acheampong also cited market intelligence from Helixtap, a Smartkarma Group company, which indicated that Malaysia increasingly depended on imported raw rubber, including supplies from Ghana, to sustain its downstream manufacturing sector.
He said Ghana currently accounted for about 15.2 percent of Malaysia’s natural rubber imports.
“The lesson from other producing countries is clear. Countries that process their raw materials create more jobs, generate more foreign exchange and build stronger industrial economies,” he said.
Mr. Acheampong called for continued collaboration among farmers, traders, aggregators, processors, transporters, freight forwarders, nursery operators and regulators to ensure the transition towards greater domestic value addition benefited all participants in the rubber value chain.
While acknowledging implementation challenges, he said the available evidence suggested the policy was delivering positive results and should be allowed time to achieve its full impact.
He added that strengthening domestic rubber processing would contribute to job creation, higher exports, increased foreign exchange earnings and greater resilience for Ghana’s economy.
