Côte d’Ivoire, Africa’s top natural rubber producer and the world’s third-largest after Thailand and Indonesia, has announced a major policy shift to promote value addition in its rubber sector.

The Rubber and Oil Palm Council of Côte d’Ivoire has stopped issuing new permits for building or expanding first-stage rubber processing facilities. The suspension, effective immediately, aims to manage the country’s growing overcapacity in primary rubber processing and encourage investment in finished rubber products.

The June 4 announcement aims to rectify the disparity between the supply of raw materials and industrial capability. The first stage, which turns raw latex into solid natural rubber,  is oversaturated.

The Council is encouraging private investors to shift their capital toward second-stage rubber processing to rebalance the sector. 

This includes manufacturing tires, moulded rubber products, and other technical items and leveraging rubber seeds and timber for added value.

This strategic reorientation could accelerate emerging sectors like bioenergy. One example is the New Energy Company (SODEN), which announced plans on June 3, 2025, to build a 76 MW power plant in Divo using agricultural waste, including end-of-life rubber tree.

Simultaneously, the Eni Group is converting rubber seeds into vegetable oil for biorefineries. Following a successful pilot, this initiative led to an agreement with the government on May 28 to foster a national biofuel industry. These endeavours provide small-scale producers with new energy sources and additional revenue streams.

This policy aligns with the government’s target of achieving 100% first-stage processing of Côte d’Ivoire’s rubber by 2025. 

By banning new facilities, the regulator maintains that existing infrastructure can handle the country’s total output, which reached 1.67 million tons in 2023.

Source: ecoFin Agency

Image Credit: African Trade News