By Robert M. Sammie
The recent Executive Order 151 issued by His Excellency Joseph Nyuma Boakai, President of the Republic of Liberia, represents a significant step toward economic transformation. By restricting the export of unprocessed rubber and mandating that rubber companies process a substantial portion of their products locally, Liberia is taking important measures toward reclaiming economic sovereignty and promoting sustainable development.
This decision represents a strategic shift from nearly a century of economic imbalance rooted in historical agreements such as the Firestone concession signed in 1926. That agreement established terms that prioritized foreign investment interests, allowing rubber companies operating in Liberia to export raw, unprocessed rubber for decades, thereby transferring the most lucrative aspects of the industry—value addition, industrial growth, and job creation—to foreign markets.
According to available data, Liberia produces approximately 73,000 metric tons of rubber annually, but experiences significant economic leakage because the majority is exported in raw form without value addition. Processing a substantial portion locally could significantly increase employment in manufacturing and related sectors while transforming raw material exports into higher-value goods that better support national revenue.
President Boakai has demonstrated forward-thinking leadership by requiring local processing of a significant portion of rubber production before export. This policy aims to enhance economic growth and industrial capacity in Liberia while creating employment opportunities for the country’s youth—a vital consideration in a nation where youth unemployment remains a significant challenge.
The implications of this policy extend beyond Liberia’s borders. For decades, resource-rich African countries have been constrained by extractive industry models that prioritize exporting raw materials with minimal local processing. According to the African Development Bank, Africa imports substantial manufactured goods annually despite having vast raw material reserves, representing a missed opportunity for industrialization.
Liberia’s action, therefore, transcends national policy—it serves as an example for African countries to reconsider their resource management strategies. Developing local value chains and processing industries offers a pathway toward economic diversification, job creation, and long-term prosperity.
Given this groundbreaking step in the rubber sector, I respectfully encourage President Boakai to consider extending this approach to other critical sectors, particularly mining, which holds considerable potential for Liberia’s economic transformation. Liberia’s mineral wealth—including iron ore, gold, diamonds, and other precious minerals—remains largely underutilized in terms of local value addition. Currently, much of these resources are exported unprocessed, limiting opportunities to build domestic industries and maximize national revenue.
Similar policies requiring local processing for minerals could stimulate industrial growth in Liberia, enhance government revenues, and develop skilled workforces. This would position Liberia as a leader in Africa’s pursuit of economic development and industrial self-reliance.
Moreover, other industries relying on agricultural raw materials should be encouraged to add local value before export. Such policies could help Liberia reduce economic dependency while setting an example for the continent.
Liberia’s Executive Order 151 represents an encouraging development for the continent’s future. It demonstrates that sustainable wealth creation depends not only on natural endowments but on how these resources are processed, manufactured, and utilized to power economic growth.
I commend President Joseph Nyuma Boakai’s leadership and vision and encourage African leaders to learn from Liberia’s example—transforming resource export models into engines of industrialization, job creation, and economic development.
Let us support Liberia in this important initiative and work toward an Africa where economic transformation becomes reality.
