By Zobia Zulfqar 
Ghana is seeking to attract major Chinese investment into its rubber industry as part of efforts to increase local processing, create jobs, and reduce the export of raw rubber materials.
The Tree Crops Development Authority (TCDA) has engaged Xiamen ITG Materials Co., Ltd., a subsidiary of China’s Fortune Global 500 state-owned Xiamen ITG Group, in discussions aimed at establishing rubber processing and manufacturing facilities in Ghana.
The talks focused on opportunities for producing tyres, medical gloves, and other rubber-based products locally under Ghana’s Agriculture for Economic Transformation (AET) Agenda.
Speaking during the meeting, TCDA Chief Executive Officer Dr. Andy Osei Okrah encouraged the Chinese company to move beyond purchasing Ghana’s Technically Specified Rubber (TSR) and instead invest in local manufacturing operations.
According to Dr. Osei Okrah, such investments would significantly strengthen Ghana’s position within the global rubber value chain while generating employment opportunities and boosting industrial development.
He noted that Ghana offers a stable political environment and a supportive regulatory framework that makes the country attractive to foreign investors seeking long-term opportunities in agriculture and manufacturing.
The government’s renewed push for local processing comes as Ghana continues to lose substantial value through the export of unprocessed rubber.
Industry data indicates that nearly half of the country’s raw rubber production is exported as unprocessed cup lumps each year, limiting the supply available to domestic processing factories.
As a result, several local rubber processing plants, including industry leader Ghana Rubber Estates Limited (GREL), reportedly operated below 40 percent of their installed capacity in 2025.
To address the challenge, the government introduced the Feed the Industry Programme in the 2026 Budget. The initiative aims to reduce raw rubber exports and ensure greater availability of raw materials for local processors.
The financial implications are significant. The Rubber Processors Association of Ghana estimates that the country loses approximately US$100 million annually due to limited value addition.
While raw cup lumps typically sell for around US$600 per tonne, processed Technically Specified Rubber commands significantly higher prices on international markets, allowing countries with stronger processing industries to earn more export revenue.
Ghana is looking to replicate the success of neighbouring Côte d’Ivoire, which implemented similar export restrictions and has since developed a thriving rubber processing industry. Côte d’Ivoire now generates more than US$2.1 billion annually from rubber exports.
Additional concerns have also emerged regarding export transparency. The Association of Natural Rubber Actors Ghana recently highlighted a valuation discrepancy estimated at US$21.55 million in raw rubber export records during the first ten months of 2025, raising concerns about foreign exchange compliance and revenue losses.
Dr. Osei Okrah said expanding local processing capacity remains central to Ghana’s broader industrialisation strategy. He explained that new investments would support value addition, increase export earnings, create jobs, and contribute to economic growth.
He further disclosed that the government plans to significantly increase national rubber production, targeting 1.1 million metric tonnes by 2030 through the rehabilitation of degraded lands and expansion of rubber cultivation.
Representatives of Xiamen ITG welcomed the discussions and expressed interest in exploring long-term investment opportunities in Ghana’s rubber sector. However, no formal agreement was announced following the meeting.
The engagement signals Ghana’s determination to transform its rubber industry from a raw material exporter into a competitive manufacturing hub capable of generating greater value from one of its key agricultural commodities.
Source: News Ghana