Liberia: House Wants Halt on Export of Unprocessed Rubber Lifted

Members of the House of Representatives voted, mandating President Joseph N. Boakai to lift the moratorium on the exportation of unprocessed natural rubber from Liberia. Executive Order No. 124 places a freeze on the exportation of unprocessed natural rubber — a restriction that members of the Lower House agreed, through votes, to mandate the President to nullify. The decision has reportedly been transmitted to the Senate for concurrence.

The Executive Order, issued by former President George M. Weah on December 12, 2023, placed restrictions on natural rubber exportation, citing concerns about misuse and theft within the industry.

There is no doubt that the rubber industry has been part of the national economic heritage for over 95 years, providing the highest single source of annual revenue for the Government and providing more employment nationwide than any other single economic sector. However, in the words of former President Weah, the sector “has been greatly affected by abuse, misuse, abandonment and especially theft.”

“The rubber industry has been and continues to be depleted by its tapping observed to be increasing in addition to having massive economic consequences on employment and government revenue. The theft situation has major security implications throughout the country,” Weah said when the order was issued.

The Executive Order added that in order to deal with the depreciating situation in the Liberian rubber industry; the Government believes that further strategy is necessary so that proper policies can be developed and an appropriate institutional and regulatory framework established to curb retrogression, sustain the development of the industry, and stimulate growth.

This decision was also taken with concern for value-added investments through in-country manufacturing and production of finished products, an economic strategy that many well-meaning economists have advocated for decades.

However, according to members of the Lower House, the reversal of the moratorium is meant to alleviate the impact on rubber farmers and sector actors who have been affected by limited market options and economic constraints.

The House’s decision on Thursday to beseech President Boakai to nullify the moratorium was triggered by a communication from Bong County District #7 Representative, Foday E. Fahnbulleh.

The communication from Fahnbulleh, who is the Chairman of the House’s Committee on Good Governance and Reform, highlights the adverse effects of the ban on smallholders, brokers, and the overall rubber industry in Liberia.

“Executive Order No. 124 is intended to suffocate our poor rubber farmers and deprive other actors within the rubber sector of Liberia business opportunities. Hon. Speaker and distinguished colleagues, it will shock you to know that since the issuance of Executive Order #124, Liberians whose livelihoods depend solely on the rubber sector have been greatly affected in so many ways,” Fahnbulleh said.

He argued that some ways that the moratorium on the rubber sector has affected include the market space for smallholder farmers being constricted — painfully limiting the options for them to sell unprocessed rubber — leaving them with a few processors who offer at any price. The processors do so under terms and conditions set by the few buyers to the displeasure and disadvantage of smallholder Liberian rubber farmers.”

Rubber brokers are the aggregators in the value chain and investment risk bearers. They invest resources in the smallholders, buying the rubber from them and selling it to big buyers. The ban has also restricted their options to sell, as some of the current buyers’ policies do not permit them to buy from aggregators.

The livelihood of the aggregators and their dependents has already been subjected to the excruciating pains the ban has superimposed upon them, exposing them to unbearably harsh economic conditions, Fahnbulleh said.

“For example, the rubber is now stocked with the aggregators and their various loans with the banks and other financiers remain unpaid, which has seriously affected their business credibility,” he said.

The reversal of the moratorium aims to address the economic challenges faced by rubber farmers and pave the way for increased market opportunities and sustainability within the sector, the Bong County Lawmaker told his colleagues.

The House’s decision reflects a commitment to supporting the livelihoods of those dependent on the rubber industry while promoting economic growth and stability in Liberia.