Accra: The Rubber Association of Ghana (RUPAG) has raised concerns over the persistent illegal exportation of cup lumps, which hampers the growth of local value addition efforts and industrialization. Data reveals that these illegal exports jeopardize over 1,300 direct jobs and more than 70,000 indirect livelihoods throughout Ghana's rubber sector. In response, the Association has urged security agencies to address the illegal and unregulated export of raw rubber to protect Ghanaian farmers and the national economy.
According to Ghana News Agency, the illegal trade contravenes the Tree Crops Development Authority's (TCDA) directive under the Tree Crops Regulations, 2023 (L.I. 2471), adversely affecting local processing companies and numerous livelihoods. Mr. Emmanuel Akwasi Owusu, Chairman of RUPAG, expressed concern, stating that local factories possess the capacity and skilled workforce to process all rubber produced in the country. However, the ongoing illegal exports deprive them of necessary raw materials, placing processing plants, investments, and employment opportunities at risk.
Mr. Owusu emphasized the importance of rubber production, processing, and export for the government's industrialization strategy, particularly the 24-hour economy agenda, which focuses on local value addition and sustained economic activity. He highlighted that unprocessed raw rubber exports deprive Ghana of potential foreign exchange, hinder industrial development, and weaken supply to local factories crucial for continuous operations. He advocated for enforcing laws on value addition before export, which would create more jobs across the entire value chain.
Furthermore, Mr. Owusu noted that downstream industries such as rubber-based manufacturing would benefit, accelerating inclusive economic growth. Stopping raw exports is seen not as a loss but as a necessary measure for job creation, industrial expansion, and long-term national prosperity. Meanwhile, the Rubber Outgrowers Plantation Project (ROPP), supporting over 11,800 farmers cultivating 55,599 hectares, faces disruption as illegal buyers entice farmers away from formal processing channels. This undermines plantation sustainability and jeopardizes critical repayment structures tied to long-term financing.
Mr. Owusu highlighted the alarming situation regarding the recovery of over GH?450,000,000.00 in credit financing extended to the sector. If illegal exportation remains unchecked, it could render the current financing model unviable, potentially closing off future funding and threatening the foundation of rubber plantation development in Ghana. Despite the TCDA permit system introduced in April 2025 to control exports, smugglers reportedly bypass the rules, destabilizing the market. Mr. Owusu pointed out that this breach directly violates Act 1010 and the Tree Crops Regulations, 2023 (L.I. 2471), impairing Ghana's ambition to develop a globally competitive, value-added rubber industry.
