The building and public works sector hugely affected by the crisis

Large scale building sites are now history. The 2009 crisis has definitely ruined the building sector’s takeoff in the Great Isle. A situation has already been leading to a significant rate of job losses in the sector. 

During the past year, the Grouping of Madagascar’s enterprises (GME) has accounted 13.000 jobs in the building sector. The slump has begun in the second quarter of 2009. There were merely 6.400 jobs left. Within the next months, thousands more jobs will be lost again, according to the GME. 

Generally speaking, public Works projects are actually on the front line. The withdrawal of donor money simply means work suspension and pending hardship for corporations 

Some weeks before his dismissal, finance minister Benja Razafimahaleo used to specify that the lack of foreign donor money would be more especially hitting infrastructure projects, namely road construction largely depending on foreign financings.     

The former minister’s prediction has, as from now on, come true. The public Works sector is fully engulfed in the crisis. A significant number of corporations have closed doors. Some others are desperately resisting with crumbs hopefully until better days for the sector. 

Road rehabilitation works have been going rare in the Great Isle during the latest months, due to lack of means. In order to display shadows of illusions, transitional leaders are showing off on well advanced building sites started long before the putsch of mid March, and whose budget has been engaged a long time ago.  

In the capital city, street repairs are in an as so despicable estate. A few recent works, started during the latest months, are leaving a taste of undone job, seen the incredible pressure used to reach their completion, one again because of the lack of money. Some corporations often work against their will for lacking certainty to be correctly paid in time. 

The days when the Madagascan government could parade some thousands of well built roads and tracks every year have now a long way back in history. Since 2002, Marc Ravalomanana has been making road construction and rehabilitation one of his priorities. It was the golden age of large scale building sites, now definitely laid in its grave.