Monrovia — Liberia's Agriculture Minister, Jeanine Cooper, has emphasized the importance of investment and competition in the agriculture sector, specifically in rubber processing, as part of efforts to revitalize the country's economy and support local farmers.
During a recent tour of the Jeety Rubber Liberia Limited Corporation (LLC) processing plant in Weala, Margibi County, Minister Cooper highlighted the need for diversification in the rubber sector to drive economic growth in Liberia.
The Minister expressed concerns over the declining economy, emphasizing that the country's economic prospects would suffer if Firestone, the oldest rubber company in Liberia, stopped purchasing rubber from small farmers. She referred to the negative impact caused by Firestone's shutdown during the COVID-19 pandemic.
"Firestone is a major player in the Liberian rubber market. If they halt operations and stop buying from our farmers, it will have a ripple effect on the entire economy. We are all interconnected, and the consequences will be felt," Minister Cooper explained.
She noted that Firestone had previously bought an excessive amount of rubber from small farmers in response to their request for income during the festive season. However, due to limited storage capacity, Firestone was unable to accommodate additional rubber from other farmers, creating barriers for them to sell their produce.
Minister Cooper praised the establishment of Jeety Rubber LLC as a solution to address this issue and prevent a single company from negatively affecting the economy. Jeety Rubber LLC, owned by Indian businessman Upjit Singh Sachdeva, has set up a state-of-the-art rubber processing plant that aligns with President George Manneh Weah's vision of promoting manufacturing and processing in the agriculture sector.
Impressed with the plant's technological advancements, Minister Cooper commended Mr. Sachdeva's efforts, stating, "I have visited a few other plants, but Jeety has done an exceptional job within a year. This factory is impressive, and I applaud him for it."
Furthermore, Minister Cooper highlighted the importance of environmental sustainability and noted that Jeety Rubber Corporation had taken measures to protect the environment. The company has implemented waste, circular, and water treatment systems for recycling and spill prevention.
Minister Cooper emphasized that the current administration's vision does not revolve around exporting raw rubber but rather transforming it into finished products within Liberia. She mentioned that Jeety Rubber Corporation aims to be the first company on the African continent to produce surgical gloves, with production anticipated to begin next year.
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While acknowledging the challenges faced by small rubber farm holders, Minister Cooper emphasized that the government has supported their development over the years. She emphasized the need for market outlets for rubber farmers, and the government is collaborating with various stakeholders, including the Rubber Brokers, Farmers Union of Liberia, Rubber Planters Association, and the Liberia Rubber Development Fund, to establish processing plants that can stimulate the economy and provide opportunities for Liberian farmers.
Regarding foreign investments in Liberia, Minister Cooper acknowledged that the ease of doing business in the country has improved but remains challenging for foreigners. However, she highlighted the progress being made in attracting foreign investors in the agriculture sector, with Jeety Rubber LLC serving as a pioneer of foreign direct investment.
In 2021, the Government of Liberia signed an investment incentive agreement with Jeety Rubber LLC, granting permission for the construction, development, and operation of a national rubber processing and production plant. The plant will manufacture various rubber products, including tires, hand gloves, rain boots, rubber bands, and other rubber goods, using approximately 25,000 tons of natural rubber annually. The company aims to prioritize the interests of local rubber traders during the procurement of raw materials.
The Jeety Rubber LLC processing plant is set to commence full operations on August 24, 2023. By the following year, the company plans to begin manufacturing rubber products in Liberia, including car tires and surgical gloves.
