The Rubber Processing Industry in Ghana Essay

Chapter ONE

1.0 Introduction

1.1 BACKGROUND OF THE STUDY

Natural gum elastic is an elastomer ( an elastic hydrocarbon polymer ) that was originally derived from latex, a milky colloid produced by some workss. ( Wiley,2002 ) . Wiley farther provinces that natural gum elastic is used extensively in many applications andproducts, as is man-made gum elastic. Recent research has found that the economic impact of the industrial processing of gum elastic had at the clip of find is, besides an industry that provides occupations and returns on nest eggs, and besides contributed a batch to economic development ( Oluwalana et al 2007 ) . Ghana has non merely achieved sustainable growing and important poorness decrease in the recent old ages, province and establishment edifice has made rapid advancement in the same period. Ghana has become a stable democratic province as demonstrated in a peaceable passage of power in two back-to-back free and just elections in 2000 and 2008. Administration indexs have been steadily bettering over the past old ages and in 2007, Ghana ranked in front of regional norms of Asia, Latin America and Africa in most of import administration indexs, including authorities effectivity, regulative quality and control of corruptness ( Kaufmann et al. 2008 ) . The state is ranked among the top 10 African states in footings of freedom of the imperativeness and academic freedom ( Freedom House, 2008 ) . Industrial development has been recognized as one of the surest agencies of guaranting higher and sustained growing rates. Hence African states including Ghana pursued import permutation industrialization in the sixtiess and 1970s. The principle was to travel African economic systems from its agricultural province to modern industrialised economic systems as has been the instance of the East and south-east Asiatic economic systems. Consequently, policies to advance import permutation industrialization were pursued and this led to the constitution of light industries to bring forth goods locally and run behind duty barriers. Like many African states, Ghana’s industrial scheme was meant to cut down economic dependance ; hence, fabricating industries were established to bring forth points that were antecedently imported. Ghana became a success narrative in Africa in the recent old ages. The growing and poorness decrease scheme volume 2 provinces that, after more than 20 old ages of steady economic growing and important poorness decrease, Ghana is taking to go a in-between income state in following 10 old ages. Result of transmutation in many Asiatic states is frequently characterized by a declined portion of agribusiness in GDP and progressively of import function of fabrication in taking growing in the transmutation procedure ( GPRS,2009 ) . Industrialization has enjoyed important good will and virtues of history as the impeling force in the planetary economic sciences of national development. Technology underlines industrialization and the appropriate blend of the two provides the technology substructure for growing and development. Ghana has made important efforts at industrialization, particularly in the immediate post-independence epoch through definite programs. The nucleus scheme of the GPRS is to prosecute industrial development through the private sector as the footing of wealth creative activity, growing and poorness decrease ( GPRS, 2009 ) .

1.2 PROBLEM STATEMENT

Ghana’s economic system has displayed less transmutation than might be expected for a state that has late achieved middle-income position harmonizing to National Development Planning Commission ( NDPC, 2010 ) . The function that transmutation dramas in the class of development is good understood by both development economic experts and policymakers in the underdeveloped universe. NDPC ( 2010 ) argues further that, transmutation which is a procedure in which labour moves from traditional activities in agribusiness and other primary sectors to modern industry and besides a procedure in which population moves to urban Numberss, making chances for the development of industrial activities and improved public assistance. In Ghana, a important per centum of the working population is employed by the informal sector, The Ministry of Trade and industry ( MTI ) ( 2000 ) cited that, little houses can more propel growing in the economic system than big one time due to their figure and niches they occupy in the national economic system. In the rural economic development, little graduated table industries and endeavors play a cardinal function in bring forthing income for running of households and financing most activities in the rural countries of the state ( MTI, 2002 ) . With this great impact and part to the economic development of the state, these little graduated table industries are weighed down with a batch of jobs ( Ankomah, 2012 ) . Ankomah in his research further stated that, most of these industries barely grow in the rural economic system to go medium and big graduated table. They still faces challenges such as hapless working status, low engineering, low substructure installations, unequal web, hapless distribution system, low

quality merchandise and hapless regulative systems ( MTI, 2002 ) . They face difficult competition from big graduated table industries in the formal sector in marketing their merchandise. Ghana’s Medium Term Development Policy Framework provinces in NDPC ( 2010 ) that, the midterm development program in Ghana is to “lay the foundation for the structural transmutation of the economic system within the decennary stoping 2020, through industrialisation, particularly fabricating, based on modernised agribusiness, industries and sustainable development of Ghana’s natural resources, peculiarly minerals, oil and gas” ( NDPC 2010 ) . It is against this background that the research seeks to supply adaptable agencies to advance the gum elastic industry for economic development through architectural inventions and progress substructure installations.

1.3 Aim

The research objectives seek to ;

1. Measure the gum elastic processing industry in Ghana and place the design considerations in puting up a modern gum elastic processing industry in Apemanyim.

2. Propose a gum elastic processing industry in the territory capital to act upon the socio-economic development and to make employment in the territory capital.

1.4 RESEARCH QUESTIONS

The undermentioned research inquiries were used to accomplish the aims of the survey. These include ;

  1. What is the current province of the gum elastic industry?
  2. What architectural design intercessions can be disposed of in response to the demands of the gum elastic industry in Ghana?

1.5 Scope

The range of this research is geared towards the processing of natural gum elastic, and how the industry can be advanced in production engineering and substructure to farther procedure the gum elastic into concluding merchandises and besides to act upon the socio-economic development in the territory capital. It besides focuses on the design principles to setup a reputable gum elastic processing industry. This survey will look out for the needed infinites, machines or equipment and criterions for the constitution of a gum elastic processing industry. A item certification and analysis for locating a gum elastic mill will besides be amalgamated into this thesis as an experimental or presentation undertaking being a foreshadow of how executable the country’s programs of work outing her economic jobs will be best addressed.

1.6 Justification

There is an addition in the government’s attempt to accomplish economic growing and poorness decrease in rural and urban countries. Harmonizing to Ghana statistical service ( GSS ) , ( 2000 ) , In their life criterion study, it indicate that approximately 69 % of the Ghanese population is employed in the micro and little endeavor sector with a important figure of them located in the rural countries. The Ministry of trade and industry ( MTI ) ( 2002 ) cited in the ( ADTF ) diary that, the authorities of Ghana has policies for micro and little endeavor. The end of this policy is to make a contributing environment to turn and ease the development of a vibrant, productive and competitory micro and little endeavors sector in the state. The authorities seeks to advance dynamic enterprise civilization for invention, promote employment growing within the informal sector and develop micro and little endeavor to function as a agency to set up linkages between the formal and informal sectors of the economic system. Besides the policy province to better the engineering based merchandise quality and productiveness of the micro and little endeavor sector and upgrade the application of autochthonal engineerings. Rubber processing is concentrated at Apemanyim as a consequence of the presence of natural stuffs. The GREL processing works is the chief industry into the processing of natural gum elastic in the territory capital. An interview conducted at GREL identified that, 120 people are employed with a production capacity of five metric tons per hr. With deficiency of substructure development and engineering, this gum elastic industry is unable to farther procedure the gum elastic into finish goods therefore its inability to make more employment for the young person and more over to contend the urban market with their merchandise. The part of GREL in the economic systems of the Western, Central and parts of Ashanti parts is tremendous as it presently provides employment for over 6,000 husbandmans through its Rubber Out-grower Scheme. There would be more value added to the gum elastic if it is farther processed into tyres before it is exported to assorted states.

1.7 Restriction

The major restriction encountered was the trouble of acquiring some critical information with regard to the inaccessibility of bing mills to be used as local instance surveies and equipment as proficient surveies which are in conformity with gum elastic industry installations. The lone mill available within the state is the gum elastic mill located at Apemanim. However, this mill does non farther procedure the gum elastic into finished goods.

1.8 ORGANISATION OF THE STUDY

The survey has been organised under five chief chapters. Chapter One focuses on the general debut to the survey and defines the research job, aims, range and justification. The 2nd chapter reviews literature on the construct and economic sciences of gum elastic production. Chapter Three covers the profile of the survey Region and Districts every bit good as the methodological analysis that has been employed to transport out the survey. The 4th chapter nowadayss an in-depth analysis and presentation of informations. The fifth and concluding chapter covers the major findings and policy deductions of the survey, recommendations and decision.

1.9 Summary

The chapter has presented an overview of the whole survey with general issues facing the gum elastic industry. The following chapters will hence, present a critical reappraisal of the organic structure of literature related to the processing of gum elastic.