Seth Twum-Akwaboah is the Chief Executive Officer of AGI
The Association of Ghana Industries (AGI) has warned that rubber processing plants across the country face imminent collapse due to severe shortage of raw materials.
AGI Chief Executive Officer, Seth Twum-Akwaboah raised this concern at the Association’s 22nd Annual General Meeting (AGM) for Western and Central Regions in Takoradi.
He noted that although Ghana produces sufficient rubber to supply local factories, most processors are operating at less than 50 percent capacity because large volumes of raw materials are being exported in breach of the law.
“The law is clear that exports should only cover excess production, but that is not what’s happening. Unfortunately, our processing plants are not getting access to raw materials because they are being exported,” he said.
Twum-Akwaboah disclosed that factories which previously operated round the clock have now scaled down to a single shift, while some have suspended production altogether due to unreliable supplies.
He warned that six of the seven factories still in operation risk closure if urgent measures are not taken to regulate exports.
“These factories should be running on a 24-hour production cycle but are now operating far below capacity. This poses a major challenge to the industry and threatens jobs along the value chain,” he added.
Cedi slips further to sell at GH¢11.95 to one dollar
He stressed that the situation is undermining job creation, value addition and technological advancement.
“By exporting rubber in its raw state, we are losing jobs, stifling growth and weakening the industry’s sustainability,” he cautioned – questioning how exporters are able to bypass multiple security checkpoints to ship raw rubber abroad.
Twum-Akwaboah called on the Tree Crop Development Authority (TCDA) and government to enforce regulations and ensure farmers and agents prioritise selling to local processors at fair prices.
“They should act swiftly to prevent a total collapse of the rubber processing industry; any inaction could have dire economic consequences,” he warned.
A manager at one of the processing plants, who spoke on condition of anonymity, confirmed that the sector is on the brink of collapse.
“Instead of running three shifts, we are now barely operating one,” he said, blaming the unchecked export of raw rubber.
He explained that large quantities are being shipped through Tema Port despite restrictions, leaving local processors starved of materials. “This is a direct violation of the law,” he stressed.
Interestingly, the manager noted that exporters are not offering farmers better prices.
“Rubber prices are fixed on the international market and locally by the TCDA. So, it’s not that farmers are gaining any special incentives by selling to exporters – it’s simply an issue of enforcement,” he added.
He further cautioned that if urgent action is not taken by the Ministry of Trade and Industry in collaboration with the TCDA, the remaining factories could shut down entirely.
“For a 24-hour economy to thrive, industries must have consistent access to raw materials. At the moment, this is a huge challenge and if not resolved factories may either shift to other crops or shut down completely.”
GhanaWeb’s latest documentary, Sex for Fish, that explores the plights of teenage girls in coastal communities, all in an attempt to survive, is out. Watch it below:
