Mining industry: potential sector to boost the economy during 2013

In the year 2013, Madagascar hopes to increase its economic growth rate thanks to the mining industry. In fact, as is widely known, a few large mining projects are currently settled in the country which, according to economists, will surely contribute to the increase of at least 4% per year the total Gross Domestic Product.

Although an economic growth is optimistically expected to happen in Madagascar, there is however no guarantee that such a target will be attainted this year, unless the political crisis plaguing the country since 2009 will finally be resolved. Indeed, to render investments sustainable and to attract new investors, Madagascar urgently needs to establish a peaceful and stable political environment, which logically creates trustworthy and sound platforms for the economy.

As for the mining industry, the impact of the different projects implemented throughout the country is not yet felt in the lives of the Malagasy population in general, except those living in the vicinity of the projects sites. Among the benefits brought about by those projects include employment creation, fiscal revenues for the local administration, supply of equipments and seeds to farmers.

The Ambatovy Project, for instance, contributes to the development of the local community on various fields, including education, agriculture, respect of the environment, and training, among others. Unfortunately, supports provided by those big mining companies are not generally enough to help the entire population living in the localities surrounding exploitation sites, who currently reaches the total number of about 13, 5 million.