Ghana: Government measure to ban raw rubber exports could generate $1.36 billion in additional revenue by 2031.

The Rubber Processors Association of Ghana (RUPAG) has defended the government's recent temporary ban on raw natural rubber exports, arguing that the measure aims to strengthen the country's industrialization, increase the value added to national production, and stimulate job creation without harming farmers, traders, or intermediaries. In a statement signed by the association's secretary, Perry Acheampong, the association affirms that the policy aligns with President John Dramani Mahama's strategy, based on industrialization, increased foreign exchange earnings, and job creation. The Ghanaian government began restricting raw natural rubber exports in January 2026. The total ban came into effect in May and is expected to last 10 years. According to RUPAG, local processors acquired 30,967 tons of raw rubber between January and June 2026. Of this volume, 17,535 tons were purchased directly from rural producers, while 13,431 tons came from traders and intermediaries. The organization highlights that purchases made from traders grew significantly after the announcement of export restrictions. The volume increased from 534 tons in April to 2,028 tons in May and reached 3,131 tons in June. In the first half of the year, acquisitions from this group increased by 124% compared to the same period in 2025, jumping from 5,987 to 13,431 tons. Direct purchases from farmers grew by approximately 12%, from 15,640 to 17,535 tons. According to the association, these figures demonstrate that the domestic market continues to absorb production and contradict criticisms that the measure eliminated marketing opportunities. The organization also rejected accusations that local processors were refusing to buy rubber or promoting monopolistic practices. According to RUPAG, Ghana faces a structural deficit of raw materials to supply its industry. In 2025, the country produced approximately 110,800 tons of natural rubber, while its installed processing capacity reached about 171,460 tons, resulting in a deficit of over 60,000 tons and factory utilization of only about 41%. Even if all national production were destined for domestic processing, RUPAG argues that industries would still operate below their maximum capacity, which, in the entity's assessment, weakens proposals for creating quotas for the export of raw rubber. The association estimates that local processing of production could generate US$1.36 billion in additional foreign exchange revenue between 2026 and 2031. Conversely, maintaining exports of raw materials could cause a loss of approximately 326 million Ghanaian cedis (GHC) in tax revenue during the same period. RUPAG also cites examples from other producing countries, such as Ivory Coast and Liberia, which have adopted export restrictions to encourage domestic processing, while Nigeria already directs virtually all of its production to the domestic market.

This text was translated by machine from Brazilian Portuguese.