Rédaction Africa Links 24 with New Dawn
Published on 2024-03-18 02:47:00
Thousands of Liberians working in the rubber sector may face redundancy if Executive Order #124, which prohibits the exportation of unprocessed rubber, is lifted, according to the Liberia Agriculture Company (LAC). This looming threat has sparked concerns among industry players and government officials in Monrovia, as it could have significant implications for the Liberian economy.
As of Monday, March 18, 2024, an estimated 20,000 Liberians are employed by the six major rubber processing companies in the country, with Firestone Liberia (FSLB) and LAC being the largest employers. These companies, including Cavalla, Jeety Rubber, and Lee Group, play a vital role in the country’s rubber industry and overall economic development.
At recent meetings with government officials, including Justice Minister Oswald Tweh and Commerce Minister Amin Modad, industry associations expressed fears about the potential consequences of lifting Executive Order #124. The Liberia Agriculture Companies Association (LACA) and the Rubber Planters Association of Liberia highlighted the risks of discouraging investment in the sector, which could lead to factory closures, job losses, and a decline in tax revenue and GDP.
For example, Firestone Liberia and LAC rely on smallholder farmers for a significant portion of their rubber supply, indirectly supporting thousands of individuals involved in farming and transportation. Firestone’s plans to expand its operations by constructing a new factory for Ribbed Smoked Sheet (RSS) production demonstrate the company’s commitment to the local supply chain and the need for continued access to raw materials.
Should the export ban be lifted, companies like Lee Group and Jeety Rubber, which depend solely on purchasing raw latex from small farmers, may be forced to shut down their operations. The potential closure of these businesses, which contribute to Liberia’s processed rubber exports, could have far-reaching consequences for the industry.
LACA also raised concerns about the potential increase in illegal activities, such as theft and non-compliance with international standards, if the ban is lifted. By maintaining Executive Order #124, the association argues that the industry can uphold ethical practices, support local farmers, and contribute to sustainable economic growth in Liberia.
In discussions with government officials, LACA emphasized the importance of maintaining the current regulations to safeguard employment opportunities and revenue generation in the rubber industry. By upholding the export ban, the industry can continue to create jobs, add value, and contribute to the country’s economic development.
Overall, the potential lifting of Executive Order #124 poses a significant threat to the livelihoods of thousands of Liberians working in the rubber sector. Industry players, government officials, and stakeholders must carefully consider the implications of such a decision on the economy and take proactive measures to protect the interests of all involved parties.
Read the original article on The Newdawn Liberia
