Ghana is at risk of losing more than $100 million every year due to the export of raw rubber instead of processed rubber products, according to the Rubber Processors Association of Ghana (RPAG). The association has raised alarms about the economic consequences of exporting unprocessed rubber and is calling for urgent action to boost local processing.
Despite Ghana being one of West Africa’s leading rubber producers, a significant portion of the country’s rubber is exported in its raw form. This practice prevents the nation from maximizing revenue opportunities that come from adding value to rubber through local processing.
By exporting raw rubber, Ghana forfeits potential earnings from finished or semi-processed products that could be sold at higher prices in the global market. Industry experts argue that this situation limits the growth of the local rubber industry and reduces the country’s competitiveness internationally.
The RPAG has urged stakeholders, including the government and private sector, to establish more rubber processing plants within Ghana. They also advocate for incentives to encourage local processing, which would help retain more value domestically, create jobs, and stimulate economic growth.
If the current trend continues, Ghana stands to lose over $100 million annually, a significant amount that could otherwise support infrastructure, education, and healthcare initiatives. The loss is not only a missed revenue opportunity but also a setback to the development of the country’s rubber industry.
To fully capitalize on its rubber resources, Ghana must invest in:
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Processing infrastructure: Establishing modern processing plants across the rubber-growing regions.
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Policy support: Creating favorable policies and incentives to encourage domestic value addition.
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Capacity building: Training workers and entrepreneurs in advanced rubber processing techniques.
By implementing these measures, Ghana can transform its rubber industry, boost exports of finished products, and strengthen its position in the global rubber market.
The RPAG’s warning highlights the urgent need for strategic action to ensure that Ghana’s rubber sector contributes fully to national development and economic growth.
Source: Thepressradio.com
