Industrial Programming Pact: Between The State and the private sector
Thursday, June 29, 2023, marks a historic date with a pact that could revolutionize the economic history of Madagascar. This bold initiative aims to create an environment conducive to local industry growth while attracting foreign investment.
« This brings hope, especially for our children’s future », said Hassim Amiraly, outgoing president of the Madagascar Industries Union, to Express Madagascar. Indeed, the industrial programming pact means a lot to the private sector. By governing mutual rights and obligations between the private sector and the State, it enhances industries’ production and distribution conditions. More specifically, the program aims to double the industry’s positive impact on the Malagasy economy. The role of the private sector in this pact is thus to increase its production to meet local needs before those abroad. The technical advisor of the Ministry of Industry confided to Express Madagascar, « We have developed this contract with the private sector and the support of sectoral and legal experts to realize our vision which extends to the horizon of 2040. A highlight of this programming is to double the weight of the industry in the economy. Currently, it is 15 %; we will do everything to increase it to 30 % by 2040 ».
For its part, the State commits to supporting the sector through adequate infrastructure and the national fund for industrial development. An opportunity for the public party to stimulate foreign investment. According to the 2021 report by the United Nations Conference on Trade and Development (UNCTAD), the FDI stock amounts to an impressive 8.64 billion USD. Thus, once studied and signed in 15 days, this pact could significantly increase this stock.
Last Thursday, the workshop at Novotel mainly targeted key industry sectors in Madagascar: clothing and textiles, essential oils, agribusiness, mining, tourism, and renewable energies. Operators from these sectors who participated in the workshop are satisfied with this mutual support initiative between the two parties. Nirina Olivier RAKOTOSON, President of the Group of Essential Oil, Extract, and Oleoresin Exporters of Madagascar, does not hide his optimism: « What is good is that we did not just dream up this vision but organized work workshops for each sector concerned, mobilizing representatives from the public and private sectors, to identify and plan the actions that need to be taken to achieve it ».
It is wotrh noting that in the recent years, all policies in Madagascar have been geared towards food independence. Economic operators, particularly those in the industrial sector, are warmly supported by the government, notably through tax relief. With all these initiatives, all the elements are in place to affirm that Madagascar’s industry is booming.
