The Malagasy industry´s skin claimed by the political transition: problematic re-launch

Emulate the year 2008´s achievement was Madagascar´s economic sector. The SIM (Union of Madagascar´s Industries) noticed that companies did not recover in general. In 2010, a 40% high drop in sales compared to 2008 recalls the hard re-launch, although a slight improvement has started to emerge despite the illegal government change.

“The main problem has since 2009 been the lack of visibility which hindered us from forecasting anything in the management of our companies. We are still in a transitional and quite volatile period” regretted Hery Ranaivosoa, president of the SIM as expressing the union´s concerns in the industrial sector. The election of a legal President of the Republic and subsequent political stability are the single pledges for next economic policy directions.

The dictating authority itself has deemed the year 2010 to be that of the economic bounce back. Regarding the year 2008´s results, it failed. And repeated state led interventions even caused recessions. The SIM´s president is jointly with telecommunication companies opposing the state controlled gateway ordered by the Vital government. The ruling power is proving to be a threat for free trade for having demonstrated its willingness to violate deals and licenses at will.

Merely 20 to 30% of Malagasy industries have reinvested money to re-launch their business in 2010. The state´s arbitrary behavior has been ruining trust between the administration and the private sector as a matter of fact. The union regretted series of unfair competition factors which failed from being mastered by the state. Malagasy industry products are actually being challenged by imported fake ones since 2009, and the black market is incredibly quickly developing.

The union´s goal is no secret:”keeping the industry afloat in 2011”.  It subsequently put series of proposals forth for the sake of improving Madagascar´s business world seriously wrecked by repeated political crisis: definition of clear, precise and realistic measures for every contestant, genuine implementation of the rules of engagement, active promotion of investment and reliable partnership with the administration…. Hery Ranaivosoa would like to believe it all, but remains for the time being sceptical