Govt bans raw rubber export - Takes immediate effect, stays for 10 years
The Ministry of Trade, Agribusiness and Industry has, with immediate effect, placed a 10-year ban on the exportation of raw natural rubber from Ghana as part of efforts to boost local industrial production and value addition.
The directive, signed by the sector minister, Elizabeth Ofosu-Adjare, on April 27, follows a Cabinet decision and discussions held at the Office of the President under the Accelerated Export Development Programme.
The Daily Graphic has written a number of articles since last year, drawing attention to the risk the export of raw rubber posed to local processing factories, and hence jobs, and what appears to be under-invoicing at the export front that can lead to money-laundering and transfer pricing.
The ministry indicated that the temporary prohibition was intended to ensure that local manufacturers had adequate access to raw natural rubber for domestic production.
"Reference is made to Cabinet Decision dated November 11, 2025, and the outcome of the meeting held at the Office of the President, chaired by His Excellency, the President, on the Accelerated Export Development Programme," a circular to industry stakeholders, a copy of which the Daily Graphic has cited, stated.
"With immediate effect, the exportation of Raw Natural Rubber from the territory of the Republic of Ghana, is hereby prohibited for a period of ten (10) years," the circular signed by the trade minister stressed.
Government initiative
The circular pointed out that the ban aligned with the government’s initiatives, including the Accelerated Export Development Programme, Feed-the-Industry agenda, and the 24-Hour Economy programme aimed at increasing local processing, industrial activity, exports and job creation.
By the notice, Mrs Ofosu-Adjare stated that institutions such as the Customs Division of the Ghana Revenue Authority (GRA), the Ghana Police Service and the Tree Crops Development Authority (TCDA) would enforce the ban strictly at all borders, ports and export points.
"All relevant authorities, including the Ghana Revenue Authority (Customs Division), the Ghana Police Service, Tree Crops Development Authority and other competent authorities, are directed to give full effect to this notice and to ensure strict compliance at all borders, ports and points of export."
The circular consequently warned that individuals or companies found violating the directive would face sanctions under Ghanaian law.
"Any person or entity found to be in violation of this prohibition shall be subjected to applicable sanctions under the laws of Ghana," the policy circular stated.
It made it clear that the ban would remain in force until revoked or amended by the sector minister based on Cabinet directives or achievement of the policy objectives.
Stakeholder engagement
As part of consultations towards enforcing the ban, the minister convened a meeting last Tuesday with stakeholders in the rubber industry to discuss key challenges affecting the sector, including concerns over raw rubber pricing.
The engagement brought together rubber farmers, association representatives, processors, officials from the Customs Division of GRA, GRA, the TCDA and other players across the value chain.
Notable among the attendees were the Commissioner-General of GRA, Anthony Kwasi Sarpong, and the Chief Executive Officer (CEO) of TCDA, Dr Andy Okrah.
Industrialised country
The minister reaffirmed the government’s commitment to building an industrialised Ghana, where raw materials were sourced, manufactured and processed locally.
Mrs Ofosu-Adjare urged stakeholders to comply with the government’s ban on the exportation of raw rubber and assured them that her ministry would collaborate with relevant agencies to address bottlenecks in the rubber value chain, ensuring benefits for all stakeholders.
For his part, the GRA Commissioner-General encouraged the participants to work collectively to safeguard their businesses and strengthen the rubber industry.
Background
The indiscriminate exports have already led to a multi-million Ghana cedi revolving credit scheme designed to fund raw rubber production being locked up, with a substantial amount in disbursed loans not recovered.
Out of the GH¢673.9 million disbursed in two phases of the Rubber Outgrower Plantation Project (ROPP), just about 12 per cent of the loans disbursed through two state banking institutions since 2006 have been recovered.
With just GH¢78.9 million paid back by beneficiary outgrowers as of 2017, GH¢595 million, which forms nearly 88 per cent of the loans, is still outstanding.
The Agricultural Development Bank (ADB) and the National Investment Bank (NIB), the two banking institutions, along with the Rubber Plantation Ghana Limited (RPGL), the Ghana Rubber Estate Limited (GREL), the Rubber Outgrower and Agent Association (ROAA) and the Association of Eastern Region Rubber Outgrowers (AERRO) have jointly petitioned the Ministry of Finance, the Ministry of Food and Agriculture and the Ministry of Trade, Agribusiness and Industry for a quick intervention.
With export restrictions imposed on raw rubber at the beginning of the year, the industry players also pushed for a total ban due to what is said to be the prevalence of under-invoicing.
