Large volumes of raw rubber produced in Ghana are being exported without processing, significantly undermining local manufacturing capacity and job creation, Chief Executive Officer of Yaeric Company Limited, Mr Eric Owusu, has revealed. Speaking during a visit by the Ghana Investment Promotion Centre (GIPC) under its Regional Investment Roadshow of the Integrated Industrial and Manufacturing …
Ghana: Local rubber processor operates at less than 20% capacity due to raw exports
Large volumes of raw rubber produced in Ghana are being exported without processing, significantly undermining local manufacturing capacity and job creation, Chief Executive Officer of Yaeric Company Limited, Mr Eric Owusu, has revealed.
Speaking during a visit by the Ghana Investment Promotion Centre (GIPC) under its Regional Investment Roadshow of the Integrated Industrial and Manufacturing Programme (IOMP), Mr Owusu said the trend has left local processors struggling to access raw materials needed to sustain operations.
He explained that Yaeric Company Limited’s processing plant in the Western Region, which has an installed capacity of 60 tonnes per day, is currently operating at less than 20 tonnes due to the inadequate supply of raw rubber.
The situation, he noted, has resulted in severe underutilisation of capacity and reduced productivity.
Mr Owusu further indicated that the shortfall in raw materials has forced the company to scale down its workforce, with employment declining from between 400 and 500 workers to fewer than 100. He warned that the continued export of unprocessed rubber poses serious social and economic consequences for local communities that depend on the factory for jobs and income.
He therefore called for policy measures to curb the export of raw rubber, improve collection systems, and strengthen coordination with the private sector to support local processing while safeguarding the interests of farmers.
Responding on behalf of the Deputy Chief Executive Officer of GIPC, Mr Abdul Razak Baba, Deputy Director Mr Charles Opoku Mensah said indications in the 2025 Budget suggest steps toward restricting the export of raw materials. He stressed that retaining raw rubber in-country would enhance value addition, sustain local factories, and promote job creation, especially in rural areas.
The engagement forms part of GIPC’s efforts under the IOMP to deepen industrialisation and promote investment that supports value addition and inclusive economic growth.
