Tiko group: nationalization threats to put an end to the “Magro” phenomenon?

Why do the political demonstrations in favour of the ousted president Marc Ravalomanana still unite such a crowd, five months after the putsch? Some masterminds of the Transition believe that the answer is an economic matter. The Magro yard would be filled by scores of workers who lost their job during the crisis, particularly Tiko Group’s workers. 

The solution would therefore be simple according to the anti Tiko who are fiercely opposed to Marc Ravalomanana: the solution consists in giving these unforced militants their jobs back.

So the Tiko Group’s enterprises would have to be re opened, so that they could re-enlist them. Rebuilding the industrial empire is, however, definitely out of question. The” anti-Tiko” recommend to nationalize, to dismantle then to privatize again by selling the group’s parts. They justify the idea by the fact that this strategy will pave the way for competition. 

The transition’s regime would be twice winner in the end. First, it would weaken the legalistic movement since “Daddy’s children” will be busy at work, and lose their unique political incentive which is unemployment. Then, the state would collect substantial revenues while controlling the hypersensitive and strategic first necessity products distribution sector. 

Such a nationalization looks like theft, no matter how temporary it is, because the goal is to sell theTiko group in spare parts after its loyal state service as milking cow. The turnover of a Tiko controlled by the transition’s government, the supposed group’s debts whose major part was tax advantages motivated by first necessity products’ price regulation, and tax returns would all allow the HAT regime to be at ease on the budgetary plan and to challenge the chilly financial partners who have too many democratic and political principles. 

The nationalization measure doesn’t lack of political motives, according to the anti Tiko. The people and the whole country need it because the first necessity products distribution used to be controlled by Marc Ravalomanana’s corporation: when Tiko doesn’t work, consumers are in difficulty. They probably wrongly estimate that tax advantages granted to this industrial group are a kind of public investment which would justify nationalization. 

The genuine motive of this developing project is first and foremost political. It is about putting an end to Marc Ravalomanana’s alleged influence on the population by suppressing its main symbol. The social impact of an agro industrial empire that generates more than 10 000 indirect jobs is quite a considerable stake. The final goal is to hinder Marc Ravalomanana from managing any enterprise again in the country. 

The anti Tiko hope to put an end to Marc Ravalomanana’s political and business manager career. But here is the rub. The group is no more the concerned person’s “personal property” because there are other shareholders. Shall the state steal the founder’s actions only? Tiko might actually not be as profitable and productive as before, if it is taken over by politicians who would like it to be so.