Liberia’s President Joins African Leaders To Ban This Raw Material’s Export To Europe!

Liberia’s President Joins African Leaders To Ban This Raw Material’s Export To Europe! However, there are signs of change. Some African countries are starting to ban the export of unprocessed raw materials as a means of promoting local value-added industries. Liberia, for instance, recently issued Executive Order 124 on November 23rd, 2023. This order temporarily bans the export of unprocessed rubber with the goal of strengthening the country’s rubber industry. The aim is to encourage investment in local manufacturing and the production of finished products. This economic strategy, which has long been advocated by economists, is now being actively pursued. Nevertheless, there are challenges ahead. Firestone Rubber and Tire company, which has been a dominant investor in Liberia’s rubber sector for over 97 years, plans to contest the executive order. They argue that it undermines their business terms and conflicts with their interests. Firestone’s history in Liberia dates back to 1926 when the Liberian government granted them a 99-year lease for a million acres at a remarkably low cost. Despite Firestone’s substantial earnings from the sector, the visible benefits for the country have been limited. Liberia’s move to ban rubber exports aligns with the broader pan-African movement seeking to maximize the benefits of national resources, particularly raw materials, for the country. However, the timing of this decision may be seen as ill-conceived, given the strained relations between the United States and Liberia due to recent US sanctions on top officials of the Liberian government. Some analysts question whether this executive order may have triggered these recent sanctions, as it predates them. This situation reveals the tactics employed by Western countries to exert pressure and influence African nations. Whenever an African country rises and asserts control over its natural resources, resisting their export to the West, it often faces intimidation and coercion that forces it into submission. The response of Firestone Liberia to the export ban and how the US government, a major supporter of Firestone’s operations, will react remains uncertain. Similarly, the stance of President-elect Joseph Boakai, who advocates for revolutionizing agriculture and manufacturing of the country’s raw materials, is not yet clear. Joseph Boakai has emphasized the need to diversify Liberia’s economy, reducing its overdependence on public jobs. Many analysts and economists in Liberia believe that shifting away from a 100% reliance on exporting raw materials, such as rubber, timber, or iron ore, is the right economic strategy. This transition would ensure that a portion of the raw materials is used for domestic manufacturing, creating wealth for ordinary Liberians, attracting foreign direct investment, generating employment opportunities in the private sector, and fostering entrepreneurship to build a middle-class economy.