Liberia: Natural Rubber Hits the Road to Local Value Addition

In the heart of the remote and economically isolated community of Weala, Margibi County, a ray of hope emerges in the form of the Jeety Rubber Factory. The massive investment is ensuring the processing of natural rubber on an industrial scale. The company is an initiative of renowned Indian businessman and philanthropist, Upjit Singh Sachdeva, popularly known as Jeety. 

The rubber processing company — which Sachdeva says is an investment of US$36 million — has brought a wave of renewed opportunity to the area, transforming it into a vibrant hub of economic and social activity. 

Locals spoke favorably about the company’s huge investments that have not only empowered them economically but have also enhanced the quality of life in the area and adjacent communities.

On April 6, hundreds of guests, including rubber sector stakeholders, members of the business community, as well as government officials, thronged the Jeety Rubber Factory in Cinta, Weala, Margibi County, to witness the colorful program climaxed by a grand tour of the facility. Even Agriculture Minister Dr. Alexander Nuetah, who served as a proxy for President Joseph Nyumah Boakai, was in attendance.

“The presence of Jeety Rubber Company has been a game-changer for the residents of Weala, providing much-needed jobs and essential social services to the community,” Roland Johnson, a prominent citizen of the area, said. “Jeety’s investment has brought light to our community and we are grateful that he is here.”

Johnson is one of many locals who spoke at the launch of the factory.

“Jeety has provided a healthcare facility for residents and is regularly feeding children and the needy, especially the elderly in the communities. He had been very helpful to us,” an elderly woman said.

One of the key benefits of the company’s presence is the direct impact on local rubber farmers, offering them a direct source of revenue in exchange for their cup lumps (raw latex) to supply his factory. By doing so, the Jeety Rubber Factory has enabled them to make more money from their produce.

This direct engagement also offers farmers a healthy turnover of their latex harvests, which keeps their farms running and farm workers paid. 

But this is not without the enforcement of Executive order #124, which prohibits the export of unprocessed natural rubber from Liberia. According to Moses Holmes, Secretary General of the Smallholder Rubber Planters Association, the Executive Order protects the farmers from rubber theft.  

“Many days we lost money due to theft,” Homes told the platform guests, including the Agricultural Minister. “Unscrupulous people would come to our farms under the cover of darkness, steal our cup lumps and sell to the brokers who then sell tons of our products across the border. But since the executive order came into effect, the stealing stopped.” 

A net positive outcome of the executive order is that it enhanced the symbiotic relationship between the rubber farmers and rubber processing plants such as Jeety Rubber Factory and Firestone. 

There are at least three rubber processing factories in Liberia, including Jeety, Firestone and Liberia Agricultural Company (LAC). The latter two also plant their own rubber, although they still purchase rubber from outgrowers. Jeety only processes rubber. 

And as unprocessed rubber increasingly hits the road to local value addition, national authorities have taken cognizance of the resultant challenges. 

Apparently, all the rubber grown in Liberia appears grossly insufficient to meet the capacity requirements of rubber processing factories. According to Sachdeva, his rubber processing facility is running at a capacity of not more than 60 percent, meaning that his and other factories would be seriously hampered if the executive order #124 were to be lifted. 

Highlighting the positive impact of his investment in the area, Sachdeva emphasized the employment opportunities provided to residents, boosting economic activities and fostering growth in the area. 

However, those calling for the ban on unprocessed rubber to be lifted claim that the ability to seek competitive prices for unprocessed rubber could better empower rubber farmers who do not have their own processing facilities, while challenging local processing plants to offer better prices to those farmers.

In response, Jeety Rubber Factory, having the support of many small-holder farmers and the Rubber Planters Association, supports maintaining fair market practices and sustainable growth in the industry. 

At the program, Agriculture Minister Nuetah underscored the government’s commitment to addressing concerns raised by farmers and processors in the rubber sector. He assured stakeholders that their grievances would be relayed to President Boakai as part of ongoing efforts to support value addition and enhance the competitiveness of the rubber industry in Liberia.

True to the Minister’s word, President Joseph N. Boakai on Monday, April 8 announced the formation of “a multi-agency investigative committee to probe issues surrounding the exportation of unprocessed natural rubber, which has been the subject of controversy,” a release from the Executive Mansion said. 

The Committee, chaired by Agriculture Minister Alexander Nuetah, will include Commerce and Industry Minister Amin Modad, Justice Minister N. Oswald Tweh, National Investment Commission Chairman Jeff Blibo, and Senior Economic Advisor Sahr Johnny, as members. 

The President noted that he attaches utmost urgency to this process and asked the committee to provide a detailed report upon the completion of the investigation. 

The issue of exporting unprocessed natural rubber has been a source of disagreement among stakeholders in the rubber industry for some time now.  

Social impact

In addition to economic empowerment, the company has also played a significant role in providing essential social services to the community. From healthcare facilities to programs focused on women and youth empowerment, the presence of Jeety Rubber LLC has made a positive impact on the overall well-being of the residents.

Madam Winifred Korpo, a resident of Margibi County Electoral District #5, acknowledged Jeety’s contributions to the community as a significant boon to the local economy, particularly for small rubber farmers. 

The ripple effects of the company’s operations are evident in the increased vibrancy and upliftment of Weala and its surrounding areas. As the community continues to thrive under the company’s stewardship, residents are hopeful for a bright future filled with sustained growth and development.

Challenging critics

Jeety, at the occasion, issued a challenge to those who accuse him of exerting undue influence over the Liberian government to provide concrete evidence to support their claims. In an emphatic tone, Jeety stated that if any proof is presented, he is prepared to relinquish all his assets valued at over a hundred million dollars and depart from Liberia.

Jeety expressed disappointment at attempts to tarnish his reputation despite his efforts to create job opportunities in Liberia. While acknowledging his status as a foreigner, he reaffirmed his commitment to the country and his dedication to supporting the government’s “Made in Liberia” initiative through the production of finished rubber materials. 

Meanwhile, as discussions on the development of the rubber sector continue, Sachdeva has expressed his willingness to engage with stakeholders and address key challenges, reflecting a shared commitment to fostering sustainable growth and prosperity in Liberia.

In November 2023, Former President George Weah issued Executive Order #124, which imposed the moratorium on the export of unprocessed natural rubber from Liberia. 

The moratorium covered various forms of unprocessed natural rubber, including natural latex, coagulum, cup lump, tree lace, bark scrap, ground scrap, and concentrated latex or dry rubber produced from rubber trees. 

The Executive Order directed the Ministries of Commerce and Industry, Finance and Development Planning, and other government agencies to stop issuing export permits for unprocessed natural rubber.