Source: GNA

Ghana’s raw rubber industry has lost an estimated $70 million between 2024 and 2025 due to under-declaration of export revenues and excess shipments beyond approved permits, an internal investigation has revealed.

The report found widespread under-invoicing and regulatory breaches in the sector, raising concerns about revenue losses and the survival of local processing firms.

Data from the Ghana Revenue Authority showed 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 13,000 tonnes, official export figures reached 39,000 tonnes—an excess of 26,000 tonnes.

The report highlighted significant under-invoicing, noting that while the TCDA set minimum prices at GH¢8.62 per kilogramme in 2024 and GH¢9.08 in 2025, exporters declared Free on Board prices as low as GH¢0.99 and GH¢1.91, respectively.

“This means that every kilogramme of exported raw rubber in 2024 and 2025 was under-invoiced by an average of GH¢7.63 and GH¢7.17, respectively,” the report said, adding that exporters declared only about 12% of the actual export value in 2024 and 22% in 2025.

Under Section 15 of the Foreign Exchange Act, 2006 (Act 723), exporters are required to repatriate full proceeds through licensed banks.

However, the report found that in 2024, only $6.17 million was returned out of $55.83 million worth of exports, while in 2025, just $4.48 million was repatriated from $26.03 million in exports.

The situation has also impacted the local industry.
Despite having a combined processing capacity of over 171,000 tonnes annually, Ghana produced only about 110,800 tonnes of raw rubber in 2025, leaving a deficit of more than 60,000 tonnes.

This shortfall has forced local factories to operate below capacity, with production dropping to less than 40 percent and job cuts exceeding 35 percent. One processing company has reportedly halted operations entirely, while others have scaled down significantly.

A rubber farmer, George Eshun, said raw rubber currently sells locally for about GH¢8.30 per kilogramme, adding that farmers often sell to any available buyer, including exporters.

The findings support recent government moves to restrict raw rubber exports. Trade Minister Elizabeth Ofosu-Adjare said the Cabinet has approved measures to limit exports and ensure adequate supply for domestic processors.

Finance Minister Cassiel Ato Forson also indicated similar plans during the 2026 Budget presentation to Parliament.

Industry players, including the Association of Natural Rubber Actors of Ghana, have called for stricter enforcement, warning that continued unchecked exports could collapse local processing and worsen unemployment.

The report concludes that without urgent regulatory action, the sector risks further revenue losses, idle industrial capacity, and long-term damage to Ghana’s rubber value chain.

Ghana loses $70m in rubber export revenue due to under-declaration and permit violations

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