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Rwanda-Madagascar Economic Outlook

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Rwanda-Madagascar Economic Outlook

Rwanda-Madagascar: opening up to new economic horizons

On August 7, a major event marked a turning point in economic cooperation between Rwanda and Madagascar. The Rwanda-Madagascar Business Forum, held at the Kigali Marriott Hotel, ushered in a new era of economic partnership between the two island nations, offering a host of investment business opportunities, and collaboration.

« This strategic event highlighted Madagascar’s considerable economic potential, and Rwanda’s growing interest in exploring and investing in this country of diverse opportunities », said the President of the Private Sector Federation of Rwanda, Jeanne Françoise Mubiligi. Key sectors such as Information and Communication Technologies (ICT), agribusiness, mining, tourism, and industry were highlighted, heralding a bright economic future for both countries.

The figures testify to the opportunities opening up between Rwanda and Madagascar. « Malagasy agribusiness, for example, already accounts for over 25% of the country’s GDP, and with abundant arable land, Madagascar has the potential to become a key player in regional food security », emphasized Guy Foka, Director of the Groupement des Entreprises de Madagascar (GEM).

What’s more, the Malagasy mining sector, with its rich diversity of minerals, is a reservoir of opportunities. « Madagascar has significant reserves of graphite, nickel, and other precious metals. These resources could fuel regional and global industrial growth »,added Mr. Foka.

Tourism, a booming sector, is already attracting increasing numbers of foreign visitors to Madagascar every year. With its unique nature reserves, pristine beaches, and exceptional biodiversity, the country could become a top destination for international travelers.

A win-win partnership

One of the key announcements of the event was the proposal to create the Rwanda-Madagascar Business Council. « The mission of this business council will be to explore and encourage investment opportunities, as well as stimulate trade between the two nations », explained Jeanne Françoise Mubiligi. This initiative marks a significant step in the consolidation of economic relations between Madagascar and Rwanda.

Two major agreements were signed at this historic meeting. The first sealed a concrete collaboration between the two countries’ investment promotion agencies, the EDBM (Economic Development Board of Madagascar) and the RDB (Rwanda Development Board). This first agreement aims to create a joint implementation plan to catalyze investment and strengthen bilateral economic relations. The second agreement was signed between the Rwandan Private Sector Federation (FSP) and the Groupement des Entreprises de Madagascar (GEM). This Memorandum of understanding on economic cooperation will lay the foundations for closer collaboration between businesses in both countries, fostering the exchange of expertise and information crucial to economic development.

The Rwanda-Madagascar Business Forum on August 7, 2023, marks a crucial milestone in the history of economic relations between these two nations. Investment opportunities in ICT, agribusiness, mining, tourism, and industry are ready to be seized by bold and visionary minds. The imminent creation of a Rwanda-Madagascar Business Council and the agreements signed pave the way for fruitful and lasting economic cooperation.

The history of diplomatic relations between Rwanda and Madagascar has laid the foundations for solid economic cooperation. Past exchanges and interactions have helped forge a climate of trust conducive to exploring new opportunities. This historic foundation reinforces the commitment of both nations to work together for a common economic future, focused on prosperity and development.

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