Concern in the tax free corporations

The tax free zones contractors in Madagascar challenge the different involved parties in the Malagasy political crisis to find a quick exit from the present situation. The crisis has been a pending chaos for the country’s economy since the beginning of the year.  

The tax free zone has for 20 years allowed to kick-start artefacts exports from Madagascar. The sector allowed the Great Island to reach the second rank of textile and clothing products exporter in sub Saharan Africa. The majority of the tax free zone’s corporations actually work in this field.  

Today, the Tax free Corporations and Partners’ Group (TFCPG) as well as the other employers’ groupings of Madagascar don’t hide their concern, because of the political crisis, anymore. Founded in 1998, ” to promote the development of the tax free enterprises and their partners, to coordinate their actions, to defend their common interests, and to manage the partnership with the state and the Madagascan Private Sector in order to contribute to the competitiveness of Madagascar within a global economy “, the TFCPG is persuaded that the tax free sector is part of the main growth booster of the Madagascan economy. 

During the latest years, the tax free zones have allowed to create more than 100.000 direct jobs. The enterprises created during the last years generate every month about 12 billions Ar of salary. They insure besides nearly 60% of the foreign currency market in Madagascar.  

A relevant part of the textile sector yet lives through the commercial agreement, AGOA, established with the United States. This agreement allows made in Madagascar artefacts to enjoy certain American custom advantages. However, if the political crisis persists, Madagascar will irretrievably lose the commercial profits of the AGOA. The employers’ groupings sound the alarm bell. 

Without the AGOA, scores of jobs will be lost, warned the TFCPG and some associations of the private sector. The foreign currency level is going to fall. And generally, the competitiveness of the Great Isle is the stake. Without yearning to enter in the political debates, the TFCPG attracted, through a statement, the attention of all parties involved in the crisis.