Ghana’s raw rubber sector has suffered an estimated loss of $70 million between 2024 and 2025, following widespread under-declaration of export revenues and shipments that exceeded approved limits, according to an internal investigation.
Thank you for reading this post, don't forget to subscribe!The report uncovered significant irregularities in the industry, including under-invoicing and violations of export regulations, raising alarm about declining government revenue and the sustainability of local processing companies.
Figures from the Ghana Revenue Authority revealed that 89.68 million tonnes of raw rubber were exported in 2024, despite the Tree Crops Development Authority issuing no export permits for that year.
In 2025, although permits were granted for only 13,000 tonnes, actual exports surged to 39,000 tonnes—exceeding the approved quota by 26,000 tonnes.
The report also highlighted severe under-invoicing practices. While the Tree Crops Development Authority set minimum prices at GH¢8.62 per kilogramme in 2024 and GH¢9.08 in 2025, exporters reportedly declared Free on Board prices as low as GH¢0.99 and GH¢1.91. This indicates that exporters declared only a fraction of the true value—about 12 percent in 2024 and 22 percent in 2025.
Additionally, the findings point to breaches of the Foreign Exchange Act, 2006 (Act 723), which requires exporters to repatriate full export proceeds through licensed banks. In 2024, only $6.17 million was returned out of $55.83 million earned from exports, while in 2025, just $4.48 million was repatriated from $26.03 million.
The impact of these practices has been felt across the domestic industry. Although Ghana has a processing capacity exceeding 171,000 tonnes annually, production in 2025 stood at about 110,800 tonnes, leaving a gap of more than 60,000 tonnes.
As a result, many local processing factories are operating below capacity, with output dropping to less than 40 percent. Job losses have exceeded 35 percent, with at least one company shutting down and others scaling back operations significantly.
A local rubber farmer, George Eshun, noted that raw rubber currently sells for around GH¢8.30 per kilogramme, adding that farmers often sell to any available buyers, including exporters.
The findings reinforce recent policy actions by government. Trade Minister Elizabeth Ofosu-Adjare announced that Cabinet has approved measures to restrict raw rubber exports to protect local processors. Similarly, Finance Minister Cassiel Ato Forson signaled plans to address the issue during the 2026 Budget presentation.
Industry stakeholders, including the Association of Natural Rubber Actors of Ghana, have called for stricter enforcement of regulations, warning that continued unchecked exports could lead to the collapse of local processing firms and deepen unemployment.
The report concludes that without urgent intervention, Ghana’s rubber industry risks further financial losses, underutilized industrial capacity, and long-term damage to its value chain.