The revised Mining Code
The Malagasy National Assembly voted on May 12 to reform the Mining Code, in preparation for many years. The text increases from 2% to 5% the duties and taxes on mining products paid by operating companies. 3% will go to the State and 2% to local authorities. The latter tried to obtain a fair sharing of these revenues, but the State accuses them of misusing their share of the mining royalties. The new Mining Code also provides for stricter protection provisions for the environment and religious places which could be threatened by an extraction project..
Too many pesticides, according to Europe
Malagasy agricultural production is not as naturally organic as we believe. Export sector companies provide producers with synthetic fertilizers and pesticides to increase yields. But this practice could be thwarted by the tightening of European rules, which tolerate less and less pesticide residues in products entering the Community market. A bean exported by Madagascar at a rate of 20 to 25,000 tonnes per year, the black eye still, could pay the price. It would contain residues of chlorpyrifos, an insecticide used against desert locusts, banned in Europe due to risks to human health.
Exports in the 1st quarter
Malagasy exports fell in the 1st quarter of 2023, according to the Central Bank. The drop is mainly due to difficulties in the vanilla sector, which saw its revenue decline by 41% compared to the 1st quarter of 2022, and a 50% drop in value, cobalt exports. Exported volumes of cloves have also fallen, but revenues increased by 4% thanks to the rise in prices.
Jirama invests in solar
The public company Jirama launched a call for tenders at the end of April for the construction of 38 photovoltaic power plants spread across the country., especially in isolated areas, far from any network. The project is financially supported by the IMF. In parallel, the Malagasy state announced the distribution of one million solar kits, to reduce the consumption of kerosene. This fuel, mainly used for lighting, will no longer be subsidized from 2024.
Persistent poverty : the World Bank crushes the Malagasy elites
“Why does poverty persist in Madagascar and how to break the vicious circle ? » In a column published at the end of April under this title, the World Bank draws up an uncompromising assessment of the governance of the Big Island. Over the past decade, “the share of the population living below the national poverty line increased from 72,5% in 2012 to 75,2% in 2022 “», notes the international organization. In a country where “between 1960, date of independence, et 2020, per capita income fell by 45%”, the “lack of transparency at the heart of power and the capture of the state by elites” are singled out. The small Malagasy private sector, uncompetitive and characterized by low levels of investment, prevents “from creating jobs, to stimulate economic growth, and therefore reduce poverty”. The circle is vicious : “Madagascar’s human capital index is one of the lowest in the world, which means that Malagasy children will not become productive adults, unlike other healthier and better educated children”, note again the tribune.
Madagascar Airlines pays its debts
The new public airline Madagascar Airlines, which officially brings together since April Air Madagascar and its domestic subsidiary Tsaradia, getting ready to pay his debts. These last years, the two Malagasy companies had issued for 3,5 million dollars in unused tickets due to the health crisis and had not refunded them. Madagascar Airlines, directed by Frenchman Thierry de Bailleul, must settle this debt to reintegrate the BSP (Billing and Settlement Plan), the IATA subsidiary which regulates payments and invoicing between companies and travel agencies.
