Rubber Processors warn of industry crisis over smuggling

The Rubber Processors Association of Ghana (RUPAG) has called for urgent intervention from the country’s security agencies to curb the illegal and unregulated export of raw rubber (cuplumps), warning that the practice is derailing Ghana’s efforts to add value to rubber locally and undermining its broader industrialization agenda.

RUPAG says the smuggling of raw cuplumps violates a ban imposed by the Tree Crops Development Authority (TCDA) under the Tree Crops Regulations, 2023 (L.I. 2471), and poses a major threat to the survival of domestic rubber processing firms and the livelihoods of thousands of workers and farmers.

“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,” said a statement signed by RUPAG Chairperson, Mr. Emmanuel Akwasi Owusu.

The statement stressed that raw cuplump exports are fundamentally at odds with the government’s industrialization drive, particularly the 24-hour economy vision, which centres on value addition and sustainable economic activity. By exporting raw rubber, Ghana forfeits vital foreign exchange earnings, stalls industrial growth, and leaves local factories under-resourced.

RUPAG rejected claims that halting raw exports would cost jobs, insisting that value addition within Ghana actually creates more employment opportunities across the entire supply chain—from processing and logistics to packaging, quality control, and export services. The association believes that downstream industries, including rubber-based manufacturing, would also gain traction, fuelling inclusive growth.

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

Jobs, Farmers, and Investments at Risk

RUPAG warned that illegal raw rubber exports now threaten over 1,300 direct jobs and more than 70,000 indirect livelihoods across the sector. The Rubber Outgrower Plantation Project (ROPP), which supports over 11,800 farmers cultivating more than 55,000 hectares of rubber, is being severely affected as smugglers lure farmers away from the formal processing chain.

The statement raised alarms about the risk to long-term sustainability and the repayment of credit financing. “This not only undermines the sustainability of the plantations but also jeopardizes critical repayment structures tied to long-term financing,” it said.

It pointed to the potential collapse of a credit system worth over GH₵450 million extended to the sector. Without enforcement, RUPAG warned, the financing model would become unworkable, effectively cutting off future funding and crippling Ghana’s rubber plantation development, which has long depended on such financial support.

Although the TCDA introduced a permit system in April 2025 to regulate exports, the statement said smugglers continue to flout the rules, destabilising the domestic rubber 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 added.

Call for Immediate Action

RUPAG is urging national security institutions to step in. The statement specifically called on 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
• Prosecute offenders in accordance with the law

The association also appealed for deeper collaboration between government and the private sector to safeguard investments in agribusiness, expand domestic processing capacity, and ensure the rubber sector contributes meaningfully to Ghana’s economic transformation.

“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.