When did Japan initiate its links with Madagascar?
Madagascar has been independent since 1960, Japan established diplomatic ties in 1962. The first Japanese company to establish business was a fishing company; there are now major prawns companies as well as culture companies. There is a big prawn farm located in Majunga. They have been very active in this area and have been in cooperation with the Malagasy government. They established a joint company with the government as well as some French capital.
Relations began in the 60's; we started to see many Japanese trading companies. However, you know that Malagasy policy has fluctuated quite a lot; in the 2000 era we have had another impact from Asian economies. Japanese economy has suffered heavily from the bubble of the 90's. It has affected other Asian economies, which in turn has affected Madagascar. The island relation with Asia has grown in importance; they could have done more if it the crisis had not occurred. We hope to see a recovery, then a regain of relationships especially with south East Asian countries. They are very conscious of that, they have opened diplomatic offices in south East Asia, and Air Madagascar has introduced 2 weekly flights from Singapore to Madagascar.
What area are Japanese investors mainly involved in?
Japanese businesses are not just interested in fishing but also in the public works area. We have a construction company working right now in Madagascar. More companies are interested in the agro-industry. Recently a Japanese company has entered into a partnership agreement with a Malagasy company, to study the prospective of enhancing the quality of one of the primary products. Madagascar is very rich in agriculture products, with some input of capital and technology there are tremendous possibilities. Take a look at the export picture of Madagascar, for a long time they only exported primary products, but now they are exporting processed products. The outlook on the future is good, since the Africa Bill will benefit the island.
What areas of expertise could the Japanese economy adapt to Madagascar?
We hope to see more Japanese investors taking interest into the Malagasy economy. If you look at Africa as a whole, without South Africa, we see Madagascar as a stepping-stone to the big African market. Madagascar as investment environment is improving, we hope it will continue. | There are a couple of reasons for that improvement. First, they have relative economic stability, which is a sine qua non condition for international ventures. The second reason is the continued economic performance, for the past 4 years the economy has grown by more than 4 %. That is supported by the government open market policy, improved investment. There is a definite will among policy makers in this country to encourage international ventures, make the country investor friendly. Third reason is the quality of labor here, which is cost wise very interesting. Even Maurician entrepreneurs have moved their plant from Mauritius to Madagascar.
And finally the resources of the island are immense, some have not even been used yet. They key is the improvement in terms of making access easier
Is there a specific agreement between Japan and Madagascar?
No we do not have any specific agreement between the 2 countries that is not our practice. We do not have such agreement with any countries. If there are problems or troubles we try to facilitate them. We are in a position of facilitator. What we can do is to make improved investment in Madagascar more known in Japan and in Asia.
What do you think is the next step?
The next step is to consolidate what Madagascar has achieved up to here: continuous political stability, continuous improvement of their education, continuous policies, and finally more promotion about the country
What would be your final message to the Japanese investors?
There is a proverb that states "Va sur place et voit, cela vaut mieux que mille paroles ».
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