Madagascar turns to SA for investment

International relations / Africa news

President Hery Rajaonarimampianina of Madagascar has urged South African businesses to invest in his island country, which lies on a major sea route between Asia and Africa.

The Department of Trade and Industry in partnership with the Department of International Relations and Cooperation and the Development Bank of Southern Africa hosted President Hery Rajaonarimampianina of Madagascar recently.

The Malagasy leader urged the South African business leaders who attended the Madagascar Investors Conference to invest in his country. He pointed out that there were compelling reasons for South Africa to look at channelling investment into Madagascar.

While South Africa’s imports from Madagascar accounted for just 5.7 per cent of all goods imported, we are the island’s biggest export market. Exports to South Africa have risen from R588 million in 2012 to R1.6 billion in 2016.

Goods produced or shipped from the island nation have preferential access to American and European markets. Madagascar sits on a major sea route between Asia and Africa. The conference highlighted investment opportunities in Madagascar for South African businesses.

The conference aimed at promoting Madagascar as an investment destination and further profiled the country’s economic opportunities, particularly the Presidential Priority Projects available in the market that South African investors and Development Finance Institutions can take advantage of.

South African know-how

President Rajaonarimampianina invited the private sector to get involved in large infrastructure projects in the mining and textile sectors. “All of these projects will require ports, roads and railways in which South Africa could invest.”

Energy, infrastructure, tourism and mining are the sectors most in need of investment. The projects would also require South African know-how and talent.

President Rajaonarimampianina reminded business leaders that his country was eager to attract investment and would listen to their concerns about the stability of the government and the safety of their investments.

Like South Africa, Madagascar is looking to build a sustainable economy that improves the lives of all its citizens. “Our ambition is one, and that is to improve the lives of our citizens. We call upon the South African business community to partner with us in this goal.”