Although the Tree Crops Development Authority (TCDA) has triggered Regulation LI 2471, which requires exporters to notify and receive approval from the TCDA before shipping rubber, cashew or shea abroad, the unchecked export of raw rubber is likely to cost the country GH¢22.5million annually.
The directive – which took effect on May 2 – seeks to ensure raw materials are made available to local factories before any export is permitted.
The acting Chief Executive Officer-TCDA, Andrew Osie Okrah, notes that the nation loses nearly GH¢22.5million annually from exporting roughly 3,000 metric tonnes of unprocessed rubber, based on an estimated value of GH¢450 per tonne.
If the current trend continues, Ghana could see widespread job losses in the rubber processing industry – which currently employs over 1,400 workers and has the potential to create up to 6,000 jobs under a 24-hour production model.
Local industry players say lack of enforcement over the last few years has made the rubber value chain increasingly fragile. Ghana currently produces about 100,000 metric tonnes of rubber annually, but about 40% is exported – much of it unprocessed.
With global prices around US$700 per tonne, the outflow of 40,000 tonnes in unprocessed form represents a major missed opportunity to generate foreign exchange and add value locally.
To curb the losses and protect local processing industries, the Authority has directed all exporters of rubber, cashew and shea to seek written approval before shipping these crops abroad.
Stakeholders from the Ghana Revenue Authority, Customs Division, Port Authority and Ghana Shippers’ Authority have all signed on to the directive, pledging to enforce the new rules at the country’s ports.
President-Association of Natural Rubber Actors of Ghana (ANRAC), Emmanuel Akwesi Owusu, observed that lack of regulation in recent years has also discouraged commercial investment. He notes that between 1995 and 2018, more than 35,000 hectares of rubber were planted through government-backed schemes.
However, that momentum has slowed considerably in recent years as financial institutions have withdrawn from the sector.
Therefore, enforcing the directive could help reverse the decline and boost confidence among lenders. Local processors, given steady access to raw materials, can expand operations and improve Ghana’s foreign exchange position.
