MADAGASCAR
A thousand hills & thousand of wills

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Intro - Economy - Private Sector - Privatization - Industry - Agro-industry - Textil - Agriculture
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AGRO-INDUSTRY

The future of Madagascar is firmly intertwined with agriculture, and particularly with agro-industry. Agro-industries make up for 24.4% of the formal businesses of the country, representing 51.25% of the whole capital. "It is obvious that Madagascar's future doesn't solely lie in the textiles and the free trade zone. Notwithstanding, this future is inevitable linked to agriculture", explains Mr. Bruno de Foucault from GEFP. He recommends not only to rely on products, such as vanilla, clove or coffee, but more important, to create added value to it so as to export added value.

Fishing

With a coastline of 5000 Km opened to the Mozambique canal and to the Indian Ocean, 2 sea miles of continental plateau, 2000 sq. Km of lakes, rivers and fish farms, the Big Island has one of the richest fishing grounds in the world. Fishing is certainly one of the oldest economic activities in Madagascar. It remains the main resource of some ethnic groups for whom the sea does not entail any secret. Thus, the Vezo, inhabitants of the South, have made it their specialty and even manufacture their own nets and boats. Fishing constitutes in fact additional revenue for many households. Even with their frail outriggers their catch is not to be neglected. This "handicraft" fishing supplies mainly the local market. Lacking freezers or cold chambers, a large part of production is either dried or smoked. Institutions such as the GTZ or Deutsche Gesellschaft für Technische Zusammenarbeit, contribute to setting a successful traditional and handicraft fishing platform by improving the production and distribution sectors. In 2001, thanks to a refundable grant from the Japanese government, the region of Mahajanga was able to get a cold-storage facility with a capacity of 300 Tons. These initiatives, among others, will popularize fish consumption. Though paradoxical - with prices higher than beef - fish still remains a luxury for most of the population. Despite of this, around 90% of the 30,000 tons of non-wanted fish are thrown back to the sea, while the law forces industrial fishermen to bring them to mainland.



About ten companies and vessels are fishing industrially under foreign flag. Almost all the fish, shrimp and crustacean catches are exported. In 1999 revenues from exports proceedings were estimated at USD 111 million divided as follows: 77 million from shrimp, 27 million from tuna preserves, 20 million from lobster, 1.5 million from sea cucumbers and 1.7 million from fish and cephalopods. Tuna, being one of the most commercialized fishing products in the world, could become an important product for Madagascar.
Besides, the Indian Ocean is the second most productive area in the world, representing 20% of the world catches. Furthermore, Madagascar is among the first top suppliers of fish to the European Union, together with Ivory Coast, Senegal, Ghana, Mauritius, and the Seychelles. The European Union embargo on Malagasy fishing products was certainly a hard blow on the sector, but at the same time it has forced the key players to pay more attention to the international standards. Exports have more than doubled. From USD 63 million revenues in 1996 they increased to USD 133 million in 2000.

Representing 50% of fishing exports and generating 80% of export revenues, shrimps have been named as the country's "pink gold". This is a resource the Groupement des Aquaculteurs et Pêcheurs de Crevettes de Madagascar (GAPCM) defends through its Secretary General, Bertrand Coûteaux, who stresses the need to protect this resource. "We are going to work on the environment in order to set up a policy of eco-certification together with the WWF and the Marine Stewardship Council. These are people who wondered how, in the future, to reassure the consumers about the protection of the environment". The country has observed a tremendous increase of its fresh and frozen shrimp exports towards the end of the 1980's, incrementing about 30% per year between 1984-1991and reaching USD 41 million in 1991. Since Madagascar is not far from its maximum shrimp-fishing threshold, operators have started to turn towards fish farming. With 50,000 Has. of mangroves, the country offers exceptional sites for the development of fish farms that could reduce the overexploitation of the present resources.



Located in the region of Mahajanga since 1991, Aqualma exploits a 700 Ha. site in Mahajamba, where annual production reaches 3,000 tons of shrimps. Unima has invested funds worth USD 78 million in the Besalampy site, spreading over more than 2,800 Has. with an expected production of 5,000 tons of shrimps per year.

The latest arrivals in fish farming are the Gambas de L'Ankarana of the Socota group, which invested around USD 47 million in the creation of a facility that includes 100 Has. of pools, a birth zone and a packing factory equipped with state of the art machinery. This company will start cruising in 2005 with an annual production of 4,500 tons of shrimp and a turnover of USD 45.5 million. Bertrand Coûteaux of GAPCM is convinced that "both at the level of fishing and fish farms, considering the comparative advantages of Madagascar and the way the problem of quality and health security had been managed, there is room for the development of added value products".

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© World INvestment NEws, 2002.
This is the electronic edition of the special country report on Madagascar published in Far Eastern Economic Review.  March 28 th, 2002 Issue.
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