Nowadays, Africa has become a new interesting export market and an attractive foreign direct investment destination amid the slowing economies of mature markets, namely the USA, EU, and Japan. Exporters resort to Africa as a new market with a high potential return and the second largest market after Asia. Africa bordered Europe and Asia with an approximate area of 3,029.92 billion hectares, consisting of a plateau covering about 2 in 3 of the total area. It is in the arid tropics, and it has a large desert. Its population is about 1.3 billion people (worldometers.info, 2020). Africa has a large number of natural resources, including oil, natural gas, and minerals. However, Africa is poor and underdeveloped. The International Monetary Fund (IMF) estimated the GDP growth of Sub-Saharan Africa (45 countries in Sub-Saharan Africa) for 2020 at -3.2%, which was a little negative level compared to other regions, and its GDP was expected to return to 3.4% in 2021.

The rubber situation in Côte d'Ivoire, a country in Africa, is the most promising new rubber producer and is growing rapidly. In 2021, Africa accounted for 8% of rubber production, with the major production sources being Côte d'Ivoire, Nigeria, and Liberia. Côte d'Ivoire produces 1.047 million tons of rubber and exports 1.076 million tons (International Rubber Study Group: IRSG), ranking fourth in the world with 9% of the world's primary processed rubber exports. In addition, there are also several tire factories located in Africa, such as Michelin and Bridgestone. It is a good opportunity for Thai entrepreneurs to find new markets with potential.

However, the African market is not widely recognized due to high risks, yet it offers great opportunities. These strategies should be implemented in order to expand the rubber business into the African market: 1) The government shall conduct an in-depth market study of the African market and publish the results to Thai entrepreneurs; 2) The government shall foster international relationships and encourage business connections; and 3) The private sector and trade organizations/associations, including the Thai Chamber of Commerce and the Federation of Thai Industries, shall foster a corporation through business matching and the exchange of information on opportunities and challenges in doing business in Africa. Moreover, trade associations shall make a list of trade defaulters to ensure a healthy and honorable industry. Furthermore, entrepreneurs shall unite into associations to build up bargaining power in trade negotiations and solve major problems together. In addition, Thai entrepreneurs interested in doing business in Africa should assess the financial status of their trading partners and buyers' banks. Moreover, they should set a low-risk payment term along with strict hedging of trade and exchange rate risks.

From the above data, the African market becomes more and more important for the natural rubber market. It is an urgent need for the government and private sectors to consider and promote trade, investment, and international relations with Africa to substitute for weakening mature markets.

Mr.Chaiyos Sincharoenkul

President

The Thai Rubber Association