Currently, Africa is emerging as a new market of significant interest to exporters and foreign investors amid a global economic slowdownโ€”particularly in major markets such as the United States, the European Union, China, and Japan. Consequently, exporters have begun turning to Africa, a high-potential market ranking as the second largest after Asia. The African continent, bordering Europe and Asia, spans an area of approximately 3.04 billion hectares, of which 30 to 40 percent is suitable for cultivation, while the remaining 60 to 70 percent consists of arid deserts, tropical rainforests, and mountainous terrain. With a population exceeding 1.5 billion, accounting for 18 percent of the global population, and an abundance of diverse natural resources, Africa remains paradoxically impoverished and underdeveloped. Key risk factors include: 1) energy and infrastructure crisesโ€”severe shortages of electricity and fragmented logistics networks that drive actual production and transportation costs higher than projected; 2) financial volatilityโ€”hyperinflation and the rapid depreciation of local currencies; and 3) political uncertaintyโ€”corruption, sudden shifts in government policies, and security risks in certain regions.

Regarding the rubber situation in Cรดte dโ€™Ivoire, the country is one of the African nations emerging as a prominent new rubber producer experiencing rapid growth; in 2025, it produced 1.99 million tons of rubber, ranking third globally (Source: ANRPC). Cรดte dโ€™Ivoire possesses robust rubber export readiness and hosts several tire manufacturing plants, benefiting from key competitive advantages over Thailand, including significantly lower production costs, favorable geographical proximityโ€”as West Africa is closer to tire and industrial markets in Europe and North America, resulting in lower shipping costs and shorter transit timesโ€”and effective adaptation to EUDR regulations, supported by strong initiatives to swiftly implement traceability systems.

Based on these insights, the African continent holds immense potential for trade and investment. In particular, Cรดte d'Ivoire is a critical natural rubber and rubber industry market poised to grow in importance.  Thai entrepreneurs interested in expanding exports or investing in Africa should proceed with careful deliberation. Specifically, they must rigorously assess the financial standing of trade partners or buyer banks, establish low-risk payment terms, and rigorously implement trade and exchange rate risk management strategies.

Mr. Veerasith Sinchareonkul

President

The Thai Rubber Association