The Initiative for the Emergence of Madagascar is changing the investment landscape across the entire country, highlighting the island’s natural resources and investment opportunities.
Under the guidance of His Excellency President Andry Rajoelina, the Initiative for the Emergence of Madagascar (IEM) is set to impact the investment landscape by focusing on 13 crucial pillars to revitalise the economy, such as education, employment, security, healthcare and others.
Henri Rabarijohn, Governor of the Central Bank, says, “There is a vision and leadership right now. We want to effectively improve people’s lives with new infrastructure, investment in education, health, housing. The Initiative is the translation of the commitment the President of Madagascar made during his campaign. It is a translation of his vision into some tangible projects and guides every person in priority sectors.” The Initiative’s specifics include specialised attention to the island’s main industries, measures to facilitate foreign investment and job creation.
Madagascar’s abundant natural resources make it a haven for the mining sector by offering investment opportunities through the excavation of gemstones, industrial and decorative stones, oil and rare metals. Small-scale and artisanal mining alone generates 1.5 million full-time and seasonal jobs for locals, proving that local communities are one of the mining sector’s greatest assets. The mining industry accounts for 30% of export earnings, 40% of FDI and 8% contribution to GDP.
Christian Eddy Avellin, General Manager of SPAT says, “We have natural resources. We have plenty of coal to extract. We have gas reserves. Everything is here, but we haven’t exploited anything yet. Today, Madagascar is a new country, a mining country, because we export nickel, cobalt and other resources.” The mining industry takes great care to operate with the country’s unique biodiversity as a top priority, working with local communities to define sustainable ways to make a living and harvest natural resources with conservation in mind.
The IEM is also aided by the energy sector. At the forefront of the administration are sustainable energy policies that focus on the immense potential of renewable energy resources through hydro, solar and wind power. Oil is also a huge prospect in Madagascar, especially with Tsimiroro field, one of the world’s largest oil development projects, which boasts a potential of 100,000 barrels per day. The energy and oil sectors are actively involved in 11 of the 13 pillars of the president’s Initiative, proving that these sectors are critical to Madagascar’s prosperity. Russell J. Kelly, CEO of Madagascar Oil, says, “The future is looking very good. Energy is among the biggest drivers of economic development. We will soon be recognised as an oil-exporting country.”
Madagascar is blessed with ample resources, strong sectors and a predominantly young workforce, where 70% of the population is under the age of 25. Under the leadership of H.E President Andry Rajoelina and the IEM, the country is creating an attractive business environment to enhance the economy. As a peaceful and stable country, Madagascar welcomes investors to contribute to its sustainable economic transformation.
Richard Randriamandrato, Minister of Finance, says of Madagascar’s potential: “If you wait, it will be too late. Madagascar has been enjoying a 5% growth rate for the last two years. This year we expect 5.5%. By 2023, we would see a 7% growth. We need to increase economic growth by investing in mining, agribusiness, infrastructure, electricity and energy. It has to be genuine, based on innovation, younger people’s initiatives. Now is the time, not tomorrow.”