Limit exportation of raw rubber products - Dealers entreat govt
The Association of Natural Rubber Actors of Ghana (ANRAG) is pushing for policy reforms to limit the exportation of raw rubber.
This, it said, would allow local processors to operate at full capacity while adding value to the commodity.
The President of the association, Emmanuel Akwasi Owusu, who was speaking at the Ghana Industrial summit and exhibition in Accra on Wednesday, said having a deliberate policy to restrict raw rubber exports would not only stimulate investment in domestic processing facilities, but also ensure value addition and job creation.
Currently, the global rubber market, including natural and synthetic rubber, is valued at approximately $46.95 billion, supporting over $300 billion in global business every year, with Ghana’s share making up less than two per cent.
Losses
Mr Owusu said that the country’s raw rubber exports undermined the product’s economic potential, with a staggering loss of $100 million annually due to insufficient value addition.
The situation, he added, limited local processors’ ability to operate at full capacity.
Mr Owusu said many factories were running at less than 40 per cent capacity due to the lack of sufficient raw materials, jeopardising job creation and hindering the government’s industrialisation agenda.
“We are getting less value back into our country because if you export raw rubber per tonne, it's $600, but if you add value, it gets to $1,500. So, there's about $900 per tonne difference.
“What we are saying is that let's feed our local processors; if there is excess, then we export.
Drawing lessons from Côte d’Ivoire, the world's fourth-largest producer and Africa's leading exporter of rubber, the president said that when it banned the export of raw rubber, Côte d'Ivoire generated some $2.1 billion from rubber last year alone.
The country, he said, was now focusing on advanced processing stages, requiring investors to engage in value-added production.
Mr Owusu warned that without such reforms, the rubber industry in the country risked stagnation or collapse, which would lead to job losses and diminished foreign exchange earnings.
He said rubber trees could be harvested for over 35 years, making them a viable long-term investment for carbon sequestration and sustainable development.
“We need to also develop rubber-based downstream industries such as conveyor belts, engine bushings, motorbike tyres, gloves, and industrial products to diversify our industrial base and reduce import dependency,” the president added.
He further advocated the establishment of a floor price stabilisation fund for farmers, adding that ensuring fair pricing mechanisms would provide the necessary support and resilience for smallholders.
Industrial development
Speaking at an EU-sponsored session on promoting industrial development of the Ghanaian agribusiness sector under the 24-hour Economy policy, the EU Delegation Chargé d’Affaires, Jonas Claes, said as a dedicated partner in Ghana’s economic journey, his outfit believed that unlocking the potential of the agribusiness sector was critical for sustainable growth and job creation.
He said the EU aimed to facilitate dialogue on how the government flagship initiatives, such as the 24-hour Economy, Grow 24, and Feed Ghana, could be leveraged to boost productivity, improve value addition and strengthen Ghana’s position in the global market.
