Uncontrolled rubber exports threaten industry – AGI President
The President of the Association of Ghana Industries (AGI), Dr Humphrey Ayim Darke, has strongly criticised the unchecked export of raw rubber, lamenting that the practice threatens the growth and competitiveness of the local manufacturing sector.
He cautioned that the practice is crippling local processors and undermining Ghana’s industrialisation agenda, describing it as a “blatant violation” of the Tree Crops Development Act, 2019 (Act 1010) and the Tree Crops Regulations, 2023 (L.I. 2471).
He stressed that the trend is depriving domestic industries of vital raw materials, particularly in the Western Region, where most rubber factories are based.
Dr. Ayim Darke was speaking at the 2025 Ghana Industrial Summit and Exhibition, organised by AGI in partnership with the Biannual Environment, Science & Technology (BEST) Forum.
It was on the theme ‘Unlocking industrial potential: Strategic approaches for Ghana’s economic transformation’.
The event brought together policymakers, industry leaders, academia and development partners to deliberate on strategies for building a resilient industrial economy.
He continued: “Rubber industries that once operated three shifts have now forcibly been reduced to running a single shift. This is not only stifling production but also undermining government’s much-touted 24-hour economy agenda,” he said.
He explained that the situation, if unchecked, can collapse the sector and worsen unemployment in the region.
“I am appealing to the government to urgently work with the Tree Crop Development Authority and relevant agencies in bringing sanity into the sector,” he appealed.
Beyond the rubber challenge, the AGI President also called on government to strengthen border monitoring and patrols to stem the influx of smuggled and undeclared goods, which he said continue to distort the market and pose a threat to local manufacturers.
“Ensuring that parallel imports and smuggled goods are addressed must be a top priority for 2026,” he said, stressing that only firm enforcement of trade regulations will safeguard Ghanaian industries and support sustainable growth.
Panel discussion
During a panel discussion at the event, Chairman-Association of Natural Rubber Actors, Ghana (ANRAG) Emmanuel Akwesi Owusu cautioned that the country risks losing out on a lucrative global opportunity in natural rubber unless urgent policy and investment reforms are implemented.
He revealed that the country currently loses an estimated US$100million annually due to continued exports of raw rubber instead of processing it locally.
This, he noted, has left domestic processing factories operating at less than 40 percent capacity, stifling job creation and discouraging investment.
“Every year that we permit raw rubber to be exported without processing, Ghana loses about US$100million — value that could otherwise be retained through jobs, tax revenue and industrial growth,” he said.
Globally, natural rubber is a US$300billion industry and a key raw material for more than 50,000 products, ranging from car and aircraft tyres to medical equipment.
Yet while neighbouring Côte d’Ivoire accounts for 13 percent of global output and is ranked as the world’s third-largest producer, Ghana remains a marginal player despite its favourable conditions for expansion.
Mr. Owusu argued that turning the sector around requires three deliberate interventions: policy, investment and innovation. He called for strict enforcement of the Tree Crops Development Authority (TCDA) Act, 2020 (Act 1010), and the operationalisation of L.I. 2471, which restricts raw rubber exports and mandates value addition.
“Incentives for processors, fair pricing for farmers and stronger financing support will be critical to making Ghana attractive for investment. No investor will build a processing plant if leakage of raw rubber continues unchecked,” he explained.Banking & Finance Resources
On innovation, he highlighted the need for farmer training, traceability systems and access to input credit to improve yields and meet global quality standards.
For the Association of Natural Rubber Actors, Ghana (ANRAG) — the umbrella body of stakeholders in the value chain — he said its mandate includes data collection, compliance monitoring, farmer engagement, policy advocacy and investment facilitation.
However, Mr. Owusu noted that collaboration with government and the private sector will be essential to drive reforms.
“The opportunity is huge. If we can shift from leakage to value addition, Ghana can transform natural rubber from a struggling sub-sector into a major driver of industrialisation,” he concluded. Read More: Here