A Land Of Opportunity

By H.E. Mr. Jocelyn Bertin RADIFERA

Ambassador

 

H.E. President, S.E.M. Marc Ravalomanana

 

Today, June 26, marks the 44th year of Madagascar's independence. It also marks the 42nd year of diplomatic relations between Japan and Madagascar. On this special occasion, I have the honor and privilege to convey, on behalf of Madagascar's President, S.E.M. Marc Ravalomanana, and the Malagasy people, our warmest greetings to Their Majesties The Emperor and Empress of Japan, the members of the Imperial family, as well as the Japanese people.

 

The Government of Japan has always considered it its duty to assist the developing countries. Better than any agreements we may formalize in the future, Japan has already shown a desire to extend its hand toward Madagascar, and I would like on this special occasion to convey to the Japanese Government the deep appreciation of the Malagasy people.

 

H.E. Mr. Jocelyn Bertin RADIFERA, Ambassador

The friendly relations between Japan and Madagascar date back to my country's independence in 1960. This friendship has been concomitant with the appointment of the first Malagasy Ambassador to Japan in 1962. Today, Madagascar is determined to strengthen these relations in the form of a real partnership. Indeed, the current Government would like to further enhance the relations between our two countries and to make it more fruitful than in the past. We believe that it is indispensable that we establish a direct and productive cooperation between our two countries, not only at the governmental level, but also at the private sector level.

 

To this end, I led 18 Japanese businessmen on a fact-finding mission to Madagascar in April of this year. They were impressed by the measures taken by the Malagasy Government to promote trade and direct foreign investments as well as by all of the business possibilities which exist, and most of them will return to Madagascar sometime in July and August 2004 for a follow up. Their interests lie in agro-business including natural products, organic salt industry, wood, vanilla and aroma, medicinal and endemic plants, tourism industry with a view to construct chains of hotels and casino throughout Madagascar.

 

Madagascar has one of the world's most unique natural resource bases including spices (vanilla, peppers, curry...), cotton, raffia, sisal, fish, rice, precious stones (sapphires, emerald, rubies etc.) and semi-precious stones... Its rich natural environment, competitive labor force, and location at the crossroad of Africa and Asia, make it an ISLAND OF OPPORTUNITY for trade and investment.

 

Indeed, many investment opportunities exist. There has been a serious deterioration of roads, and over the yeas rail operations have shut down. Consequently, the Government has launched a major infrastructure rehabilitation program with assistance from the international organizations and the donor community. Public-private partnerships are being sought to construct, operate, and manage heavy infrastructure (ports, airports, railroad lines, and toll roads). There is also a demand for increased air cargo storage capacity

 

In the area of textiles, there is a need for increased spinning and knitting capacity, using local Madagascar-produced Acala and Pima Cotton. Its vertical integration of cotton producing, spinning, finishing and sewing, and its ability to readily and quickly access fabric from both Asia and Mauritius, given its strategic location, have made the country one of the top five textile and garment producers in Africa.

 

With its 5,000 kilometers of coastline and its unique flora and fauna, Madagascar is a tourism paradise that remains little known outside of France and the Indian Ocean. There is an active campaign to introduce Madagascar and its treasures to the Japanese consumer. Investment opportunities exist for small, high-end tourist resorts, targeting a diversified tourist population; also eco-tourism and adventure tourism packages.

 

Baobab

Madagascar has traditionally produced a wide variety of handicrafts from locally grown raffia, sisal, silk and cotton, and their needlepoint and embroidery is known throughout Europe as being among the finest in the world. At the recent African Festa, held in Hibiya Park and Intex Festa in Osaka, it would seem that the Japanese consumers have developed a desire for such goods.

 

Madagascar is a privileged springboard for international trade, but also an industrial platform for any investor in search of competitiveness and eager to export to southern Africa, the Indian Ocean, and Asia.

 

By the GATT evaluation system and the provisions of the Generalized System of Preferences (GSP) instituted by the World Trade Organization (WTO), Madagascar gets preferential rates or duty free entries for a wide range of products. Indeed, Madagascar benefits from a number of international trade agreements, including the Indian Ocean Commission (IOC); the Common Market of Eastern and Southern Africa (COMESA); the Free Trade Area (FTA); and the African Growth and Opportunity Act (AGOA).

 

Hotel in the East Coast of Madagascar

After his election in 2002, President Marc Ravalomanana took further actions to improve the socio-economic situation of the country and set four objectives for his administration: good governance, private sector development, infrastructure development, and improved health care and education. He has also set an ambitious goal of reducing poverty in Madagascar by 50 percent in ten years.

 

An economic revival plan for a period of four years was conceived and implemented.

 

First, the Government has been focusing on transparency and on fighting against corruption in order to establish an effective State of Law. The anti-corruption campaign is personally led by the President himself.

 

Second, in the infrastructure area, l4,000 km of roads are being rehabilitated before 2009. The northern rail network has been awarded as a concession to the private sector, while ports and airports will be subjected to significant rehabilitation work.

 

Third, the Government is willing to provide to the private sector the required infrastructure to support investment, including Foreign Direct Investment.

 

Fourth, the principle of "Public-Private Partnership" (also known as the 3Ps) will play a significant role and will integrate all actors for development. The Government will play its role as facilitator and regulator, and will act as a catalyst through resource allocation. Growth will be essentially private-sector led.

 

Fifth, the Government's aims are to achieve fast growth by attracting investments and through integration into world markets.

 

Sixth, the Government will implement good security programs, healthcare, education, housing and environment programs, so that the growth benefits the greatest number of citizens.

 

H.E.M. Ravalomanana stated at the recent session of the United Nations General Assembly "We are ready to change, we are ready for openness." At the TICAD III, he reiterated "The current administration in Madagascar will make sure that our country be part of the global production system. For us, to be competitive and meaningful in our endeavor, we need to increase our cooperation with Asia, and to do whatever possible to encourage Asian companies to work and invest in Madagascar."

 

For the "New Madagascar," President Ravalomanana and his economic team have set a challenging goal of 8-10 percent per annum growth over the next five years. It is worth noting that Madagascar's economic growth was at 9.6 percent in 2003.

 

Acknowledging that this level of growth can only be achieved with an influx of foreign direct investment (FDI), his Government has taken the following measures to attract and sustain FDI: Regulatory, fiscal and financial incentives (free transfer of capital and income, free transfer of foreign shareholder dividends; tax incentives for Export Processing Zone firms, fiscal incentives under the Major Mining Investments Law, abolition of export taxes, abolition of all import taxes on capital, equipment and consumer goods, streamlining of labor regulations to facilitate authorizations, creation of an Arbitration and Mediation Center, facilitation of creation of privately-developed Free Zones, and judicial and commercial law reform);

 

Logistics and supply chain improvements (computerization of customs operations, streamlined procedures to improve times at ports and airports, implementation of massive infrastructure improvement);

 

Board of Investment (creation of a one-stop investment center to give foreign investors ready access to information key to their investment decisions and to facilitate processing of all administrative formalities in one location).

 

The Government of Madagascar sincerely hopes that with its renewed efforts to attract Japanese businessmen, that they will avail themselves of the opportunity to visit Madagascar and see for themselves all the opportunities that await them. And the Malagasy people would like to thank the Japanese Government and its people for their continued help, support, and friendship.

 

I conclude with a quote from H.E.M. Marc Ravalomanana in one of his presentations to foreign businessmen: "The first investors who take advantage of these changes will be the first winners. You will win and Madagascar will win."

 

 

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Congratulating the people of the Republic of Madagascar as they celebrate their National Day