By Mildred Siabi-Mensah
Takoradi, Aug. 04, GNA – The Rubber Association of Ghana (RUPAG) says the incessant illegal exportation of cup lumps continued to be a bane to the growth of local value addition quest as well as industrialization.
Data indicated that Illegal exports threatened over 1,300 direct jobs and more than 70,000 indirect livelihoods across Ghana’s rubber sector.
The Association has therefore called on the security agencies to intervene in the illegal and unregulated export of raw rubber to save the Ghanaian farmer and the economy.
The illegal trade contravenes the Tree Crops Development Authority’s (TCDA) directive under the Tree Crops Regulations, 2023 (L.I. 2471), with dire hard implications on local processing companies and thousands of livelihoods.
Mr. Emmanuel Akwasi Owusu, Chairman of the RUPAG told the Ghana News Agency that, “Our factories have the capacity and the skilled manpower to process all locally produced rubber.
“However, ongoing illegal exports deny us access to raw materials, putting processing plants, investments, and jobs at serious risk.”
He said rubber production, processing and export was critical to government’s industrialisation strategy, particularly the 24-hour economy agenda, which is premised on local value addition and sustained economic activity.
“The unprocessed export of raw rubber drains Ghana of potential foreign exchange, stifles industrial development, and weakens the supply to local factories, which are essential for continuous operations,” Mr. Owusu said.
He pointed out that enforcing laws on value addition before export would lead to more jobs across the entire value chain.
Moreover, “downstream industries such as rubber-based manufacturing would gain momentum and accelerate inclusive economic growth, adding stopping raw exports was not a loss but a necessary lever for job creation, industrial expansion, and long-term national prosperity.”
Meanwhile, the Rubber Outgrowers Plantation Project (ROPP), which supports over 11,800 farmers cultivating 55,599 hectares, was facing serious disruption as illegal buyers lured farmers away from formal processing channels.
The situation undermines the sustainability of the plantations and jeopardised critical repayment structures tied to long-term financing.
Mr Owusu said: “The situation is particularly alarming for the recovery of over GH₵450,000,000.00 in credit financing extended to the sector.
“The illegal exportation, if left unchecked, would render the current financing model unviable.”
This situation could lead to a close of future funding and threaten the very foundation of rubber plantation development in Ghana, an industry that had largely relied on these financing schemes to thrive.
Meanwhile, despite the TCDA permit system introduced in April 2025 to control exports, smugglers reportedly bypassed the rules, destabilising the market.
“This breach directly violates Act 1010 and the Tree Crops Regulations, 2023 (L.I. 2471) and impairs Ghana’s ambition to develop a globally competitive, value-added rubber industry,” Mr Owusu said.
GNA
Edited by Justina Paaga/Benjamin Mensah