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Smuggling threatens GH₵450m rubber industry credit

Illegal exports put Ghana’s rubber sector at risk as banks reconsider lending term

NewsCenta by NewsCenta
August 5, 2025
in Local, Main, News
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The Rubber Processors Association of Ghana (RUPAG) has issued an urgent call for security agencies to intervene in the illegal and unregulated export of raw rubber (cuplumps), which continues to undermine Ghana’s rubber value addition agenda and broader industrialisation goals.

According to RUPAG, the ongoing smuggling of raw cuplumps directly contravenes the Tree Crops Development Authority’s (TCDA) ban under the Tree Crops Regulations, 2023 (L.I. 2471), and severely threatens the survival of local processing companies and thousands of livelihoods.

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“Our factories have the capacity and expertise 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,” explained in the statement issued and signed by  Mr Emmanuel Akwasi Owusu, the Chairperson of RUPAG.

According to the statement, exporting raw cuplumps directly contradicts the 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.

The statement pointed out that contrary to fears that halting raw exports may cause job losses, enforcing local processing before export leads to more jobs across the entire value chain, from processing and logistics to packaging, quality control, and export services.

Moreover, downstream industries such as rubber-based manufacturing gain momentum, accelerating inclusive economic growth.

Stopping raw exports is not a loss; it is a necessary lever for job creation, industrial expansion, and long-term national prosperity.

 Jobs, farmers, and investments are in danger

The statement pointed out that Illegal exports threaten over 1,300 direct jobs and more than 70,000 indirect livelihoods across Ghana’s rubber sector.

The Rubber Outgrower Plantation Project (ROPP), which supports over 11,800 farmers cultivating 55,599 hectares, is facing serious disruption as illegal buyers lure farmers away from formal processing channels.

This, the statement noted does not only undermines the sustainability of the plantations but also jeopardises critical repayment structures tied to long-term financing.

The situation is particularly alarming for the recovery of over GH₵450,000,000 in credit financing extended to the sector.

If left unchecked, this will render the current financing model unviable, closing the door to future funding and threatening the very foundation of rubber plantation development in Ghana, an industry that has largely relied on these financing schemes to thrive.

The statement continued that although the TCDA introduced a permit system in April 2025 to control exports, smugglers reportedly bypass 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, the statement noted

Call for immediate action

Therefore, the statement said RUPAG is appealing to the Ghana Police Service, National Security, Customs Division of the Ghana Revenue Authority, National Investigations Bureau (NIB), and the Economic and Organised Crime Office (EOCO) to strengthen surveillance at all export points, intercept illicit shipments and prosecute offenders in accordance with the law

Furthermore, RUPAG urges government and industry stakeholders to deepen public-private partnerships to protect agribusiness investments, boost domestic processing, and ensure the rubber sector drives Ghana’s economic transformation under the 24-hour economy vision, the statement concluded.

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Tags: Rubber Processors Association of GhanaTree Crops Development Authority
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