Accra: The Tree Crops Development Authority (TCDA) has announced that local industries will be prioritized in the supply of produce from tree crops, which serve as raw materials for production. This move is intended to reduce the export of unprocessed rubber, cashew, and shea, aiming to bolster job creation and enhance value addition within the country.
According to Ghana News Agency, this directive aligns with the TCDA's mandate under Act 1010 of Legislative Instrument 2471, which requires written approval or permits before any raw or unprocessed tree crop products leave the country. Dr. Andy Osei Okrah, Chief Executive Officer of TCDA, emphasized the activation of Regulation 50, which prioritizes the supply of raw materials to local industries. Speaking at a High-Level Stakeholders Forum, he highlighted the importance of aligning industry objectives with the national strategy to retain and process tree crops locally.
Dr. Okrah pointed out that while local processors struggle to obtain raw materials, Ghana lost more than GHS 22.5 million during the 2023/24 season due to unregulated exports. He warned that unchecked exports could lead to significant job losses, noting that the country's six major rubber processing factories could potentially employ over 6,000 people with adequate raw material supply.
The TCDA is open to dialogue and engaging with all legitimate actors in the sector to promote responsible growth. Dr. Ishmael Nii Amanor Dodoo, Head of Innovative Finance and Markets at the 24-Hour Economy and Accelerated Exports Secretariat, warned of the economic weaknesses perpetuated by reliance on raw material exports. He stressed the importance of local processing as a path to industrialization, citing the $637 million spent on importing cosmetics last year.
Mr. Emmanuel Akwesi Owusu, President of the Association of Natural Rubber Actors of Ghana (ANRAC), noted that poor regulation has previously hindered financing and sector investment, with banks withdrawing support due to uncertainty. He welcomed the TCDA's enforcement of these rules as a turning point. Mr. Abubakari Ibrahim, General Secretary of the Natural Rubber Association of Ghana, described the forum as "timely and necessary" for national cohesion, stressing the importance of unity, awareness, education, and enforcement for industry growth.
