Madagascar Development

ANTANANARIVO (Reuters) - The French president's Madagascar visit aimed to revive a once-strong relationship, but the island's widening trade ties and unsentimental view of its former colonial master makes that goal unlikely. France's relations with Madagascar took a nosedive when a people's revolution toppled former ruler Didier Ratsiraka, a close ally of French President Jacques Chirac, putting President Marc Ravalomanana in power in 2002. But despite Chirac's best efforts on a two-day trip to the Indian Ocean island earlier this month, analysts said the visit achieved little since no substantive agreements were reached. Ties have warmed somewhat as Ravalomanana realises there is much to gain from co-operating with what is still Madagascar's biggest trading partner and only major foreign investor. But analysts say it will not stop him from looking elsewhere for whatever makes the most economic sense for Madagascar. "Ravalomanana doesn't care about hist

Following the discovery of a deposit of pink sapphire in Madagascar last December, the International Colored Gemstone Association (ICA) reports that there is a newly discovered ruby deposit in the island nation's Andilamena mining district. The deposit has yielded rubies that are mostly small, dark red and well-formed with hexagonal platelets, according to an ICA statement issued Wednesday. Andilamena has been producing ruby since 2000, and recently became well-known within the jewelry industry for the "ruby star" material commonly filled with lead glass to improve its clarity. The new deposit is producing better gem-quality material than that found in the "ruby star" deposit, and should be appearing in quantity in the marketplace right about now, ICA Ambassador to Madagascar Tom Cushman said in the organization's release. Also recently reported was another corundum find, about 62 miles south of Mahajunga, but its quality and quantity have yet to be appraise

THESE days the vast swathes of brick dirt that gives Madagascar its nickname the Red Island are pockmarked by small holes: evidence of the search for sapphires, rubies and other precious stones. Mining accounts for 3% of the country's GDP and 1% of its export revenues, and provides 500,000 seasonal and full-time jobs in a population of about 18m. But if the government improves the miners' and cutters' skills and curbs smuggling and corruption, the Malgaches would benefit a lot more.… From The Economist print edition

ON THE face of it, there's nothing much to link two places as far- flung and disparate as the Faroes and Madagascar. But these islands are two key locations that feature in what looks likely to be the last great land grabs by the international oil industry. Exxon Mobil last week surprised its peers by buying up rights to explore 13,100 square miles of northern Madagascar from UK company Sterling Energy, which will keep a 30% stake. The US oil firm is throwing all its weight at exploring the island, which until last year was largely dismissed by Africa's oil men. Last year it bought into two blocks owned by Vanco Energy, and the island is expected to open a new licensing round later this month. Meanwhile, Royal Dutch Shell has appointed 80 staff to a new exploration division centred on exploring the waters around the Faroes. That is ten times what it should need to manage its one exploration licence, pointing at a push in the region. The major oil companies have been grindingly

Henry Lim Bon Liong, SLAC chairman, said SLAC has been shipping SL-8H hybrid rice seeds to Madagascar since last year and is now considering to put up a plant there upon its government’s invitation. "The minister of ministers of Madagascar came here last year and inspected our research station in Sta. Cruz and processing plant in Davao Oriental. They’re very impressed and wanted to import more. But cost becomes more expensive with volume, so they’re inviting us to set up a plant there," said Lim in an interview. SLAC has started to ship 20 to 50 sacks (of 50 kilos each) of seeds but is now exporting 700 to 800 sacks. With Madagascar’s intent to buy about 100,000 sacks good for 100,000 hectares, cost of air freight becomes more prohibitive. Shipping these by vessel takes a longer three weeks to one month which is compelling Madagascar to invite investors to rather propagate the seeds there. Madagascar has already tested the hybrid seeds which has been turning a good yield ther

Iowa farmers will likely benefit from a recently-signed Food For Progress agreement between the United States and Madagascar. Advertisement U.S. Agriculture Secretary Mike Johanns and Madagascar's Minister of Agriculture, Livestock and Fisheries, Harison Randriarimanana, signed the agreement and a memorandum of understanding to enhance the agricultural trade and technical assistance between the two countries. The Food for Progress agreement, valued at $10 million, will provide Madagascar 15,000 metric tons of soybeans, 3,000 tons of wheat and 500 tons of nonfat dry milk that will be sold by its government. The proceeds will be used to establish a national agricultural statistics system, strengthen agricultural regulatory policies and commodity standards, conduct a school milk program in rural villages and provide farmer training in cooperatives, marketing and credit. The Food for Progress program provides for donations of agricultural commodities to needy countries to encourage ec

(Kyodo) _ Africa has been enjoying windfall gains from surging commodity prices partly caused by growing demand in China, while facing increased competition from Asian economies in exporting such items as textiles and coffee, an Organization for Economic Cooperation and Development economist said Wednesday. Kiichiro Fukasaku, counselor at the OECD Development Center, told reporters in Tokyo that Africa is currently experiencing the best economic performance in eight years, with aggregate 5.1 percent growth estimated for 2004, due partly to soaring oil and metals prices and the discovery of new oil fields. China's demand for African exports of oil and metals, including copper and aluminum, benefited such countries as Mozambique, Ghana, Zambia and Cameroon, while the new oil fields in Angola, Chad and Equatorial Guinea gave a boost to oil exporters, he noted. The growth of African economies is expected to continue at a lower rate of 4.7 percent in 2005 and 2006 as the effects of new

DAKAR - United States and African trade experts met in Senegal overnight (NZ time) to try to get more from a deal to help African nations trade their way out of poverty. The meeting is US trade chiefs' first chance to answer African scepticism over pledges to boost trade and aid made by the industrialised G8 leaders this month. African officials will also push for more concrete details, like a timetable for dismantling rich countries' farm export subsidies. Pressure is also growing to ensure December world trade talks in Hong Kong succeed to avoid more delays to free trade. "If we can't produce a positive result in the weeks ahead it may be a long time before a similar opportunity comes to us again," US Agriculture Secretary Mike Johanns told delegates. Few concrete decisions are expected from the three-day meeting but US Secretary of State Condoleezza Rice is due to drop in on the last day to show top-level commitment to boosting trade under the African Growth an

Dakar, Senegal – The U.S. Millennium Challenge Corporation (MCC) has moved from idea to theory to reality and is looking for good development partners worldwide who will use funds wisely to promote economic growth and reduce poverty, Ambassador Paul V. Applegarth, MCC chief executive officer, told the AGOA Forum July 18. Addressing the delegates of the 37 nations eligible for assistance under the African Growth and Opportunity Act, Applegarth said, “The beauty of the MCC is that becoming eligible (for the program) is within the power of almost every African country. The power is up to you,” he said. Applegarth told the delegates MCC is at the forum “to talk about what it means in practice and operation (to be part of the MCC) in very concrete terms.” MCC, he said, is now working with 400 million people in 30 countries all across the globe. He said it is particularly appropriate that an MCC session be held within the context of the AGOA Forum because “there is not one magic bullet to re

Oil & gas exploration group Sterling Energy said it had signed a farm-out deal with ExxonMobil for the Ambilobe and Ampasindava offshore licences in Madagascar. Under the agreement, ExxonMobil will pay for significant exploration work in those areas and in return receive 70% interests in the licenses. “The signing of this deal with a partner such as ExxonMobil, with their extensive existing interests in Madagascar, reflects the potential of this acreage," said Sterling chief executive Harry Wilson. He added that Sterling would benefit from the remaining 30% interest in the licences without the financial risk of carrying out explorations. LONDON (SHARECAST)

Agriculture Secretary Mike Johanns today invited U.S. agribusiness firms to participate in a Trade and Investment Mission to the Southern Africa Region Oct. 31-Nov. 4, 2005. "The Southern Africa region has experienced a decade of political, social and economic reform, creating a dynamic environment for economic growth," Johanns said. "Since the passage of AGOA, U.S. agribusinesses looking to enter or expand their presence in Africa have greater opportunities for success, as African products have duty-free access to the U.S. market." Johanns extended the invitation at the African Growth and Opportunity Act (AGOA) Forum being held in Dakar, Senegal, which encourages trade and investment in African nations that have implemented good economic and political reforms. The goal of the mission is to promote U.S.-Africa agribusiness cooperation and trade and investment, particularly in the dry goods, food processing, beer and spirits, seafood, livestock genetics and productio

Leaders of the Indian Ocean Commission (IOC) will hold a summit in Antananarivo, Madagascar, on 22 July, official sources have said. Headquartered at Quatre-Bornes, 20 km south of Port- Louis, the IOC groups Mauritius, Madagascar, Reunion, the Seychelles and the Comoros. Formed in 1984, it seeks to integrate the region into the world economy, work at preserving marine and coastal environment, protecting people as well as developing cultural, university and research cooperation. The IOC`s major donors are the European Commission, the World Bank, the African Development Bank, the UN system, UNESCO, the Francophonie and France. For the 2005-2006 period, the IOC will mobilise 80 million euro from foreign sources to fund projects, including the current 16 which are being implemented. Quatre-Bornes, Mauritius, 07/18

"Thank you for that gracious introduction. I am honored to be here to open the 4th AGOA Forum for the United States, on behalf of President George W. Bush. I first would like to extend the sincere thanks of the United States, and of all the nations represented here, to President Wade of Senegal and his cabinet, Prime Minister Sall, Foreign Minister Gadio and Commerce Minister Decroix for their hosting of this forum in Senegal. Dakar is truly an amazing city with a great history and natural beauty. "Mr. President, your government has done a superb job in following the excellent example set by Mauritius, when they hosted the AGOA Forum in 2003. To Mr. Madun Dulloo, Minister of Foreign Affairs and International Trade for Mauritius, we all thank you again for the successful forum in your country. "I especially want to acknowledge and thank the ministers of the many countries that have come to Dakar that will co-host sessions over the next few days. Your participation is vita

SECRETARY JOHANNS: "Mr. President,Mister Ministers, "Let me start out and say that it is a great pleasure to be here in Madagascar. "My wife Stephanie and I are honored to be here. We have enjoyed firsthand the beauty and the natural resources of this remarkable country, and we look forward to our visit over the hours ahead. We certainly appreciate your warm welcome. "I am here in order that our two countries will further develop our common interests, continued cooperation in the progress on economic reforms that will expand freedom, security and prosperity to all. "To the President, President Bush extends warm greetings to you and wants you to know that we are honored to be with you in your efforts to improve the lives of Madagascar's citizens. "When your President came to Washington a few months ago, we discovered that we have much in common when we visited. We both grew up on dairy farms. "I grew up in a small, near a small community in Mitchel

Washington – “Expanding and Diversifying Trade to Promote Growth and Competitiveness” will be the theme of the 2005 U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum July 18-20 in Dakar, Senegal. Better known as the African Growth and Opportunity Act (AGOA) Forum, the event consists of three parallel meetings: one with the United States and the governments of the 37 eligible sub-Saharan Africa countries; one between U.S. and African private sectors; and one involving civil-society organizations from the United States and Africa. The AGOA Forum is the U.S. government’s premier platform to explain and advance its trade and investment policies with sub-Saharan Africa. It also provides a venue to explore new ways to foster closer economic ties with the region. Three previous AGOA Forums were held in Washington in October 2001, Mauritius in January 2003, and again in Washington in December 2003. FORUM TOPICS The 2005 AGOA Forum, hosted by Senegal, will focus on how eligible count

The European Commission proposals to reform the EU sugar regime will affect sugar industries across Africa, threatening some with serious disruption and a large cut in income. Since 1975, under the terms of the Sugar Protocol signed with the African, Caribbean and Pacific group (ACP) countries, the EU has guaranteed quotas and a minimum price for sugar exports from eleven African countries: Democratic Republic of Congo, Ivory Coast, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Swaziland, Tanzania, Zambia and Zimbabwe. The guaranteed prices were set at the level of those paid to European farmers under the EU sugar subsidy regime, ensuring sugar exports received well above world prices for their commodity. Following a ruling from the WTO as well as internal pressures for reforms to the EU system of agricultural supports, the European Commission announced last month a series of proposed reforms which would see sugar subsidies in effect ended, and with it the Sugar Protocol. Those Afr

ANTANANARIVO, July 13 (AFP) - Leaders from five Indian Ocean nations, including French President Jacques Chirac representing France's Reunion island, are to meet here next week for a summit of the Indian Ocean Committee (IOC), officials said Wednesday. The meeting in Madagascar's capital will discuss measures aimed at boosting regional ties, including the free movement of goods between member states Madagascar, the Seychelles, the Comoros, Mauritius and Reunion, climate change and population growth, they said. At least 1,000 participants are expected at the meeting alongside host President Marc Ravalomanana, presidents Azali Assoumani of the Comoros, James Michel of the Seychelles, Chirac and newly elected Prime Minister Navin Ramgoolam of Mauritius. The July 22 gathering will be the third heads of state summit since IOC's founding in 1984 with the first held in Madagascar in 1991 and last in 1999 on Reunion. The leaders are expected to meet behind closed-do

JOHANNESBURG, 13 July (IRIN) - The World Bank Board has approved US $239 million in soft loans to help Madagascar reach its development goals, fight HIV/AIDS and stimulate economic growth. Jocelyn Rafidinarivo, the World Bank spokesman in Madagascar, told IRIN the Bank was happy with the country's progress since the political crisis in 2002. "So far, we are pleased with Madagascar's progress and we will try to put into Malagasy minds also the importance of transparency and good governance," Rafidinarivo commented. The country's economic performance since 2002, when it recorded negative economic growth of -12 percent, has "been good, so far". "In 2003 growth was 9.4 percent, last year it was 6.3 percent, and we expect something around 6 percent this year," Rafidinarivo said. The Bank's approval on Tuesday of a total of $239 million to support three projects was evidence of its commitment to assisting the country, he noted. The largest disbur

Debt EIGHTEEN of the poorest countries will have their debt to written off. But that is not new - the deal was made last month. The move will scrap £22billion of debt for Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia. Another £6billion could be cancelled out for nine others within 18 months. Make Poverty History say it is a start, but still an inadequate response to the crisis, which needs around £6billion a year of debt cancellation. For the children in Kamuronko, in Uganda, cancellation of the country's debts will mean new books and extra teachers. And thousands of Ugandans will get schooling for the first time G8 rating: 2/5# Trade Justice THE G8 have let African countries down most on trade by failing to set a date for ending export subsidies which put poor rural communities at a disadvantage. That means the Luabo sugar mill on the banks of the Zambezi in

Presidential Action President Bush today with his G-8 partners launched an historic commitment to assist Africa in bolstering its economic development through the strengthening of African leaders and African people. The United States will help ensure that reforms in Africa continue to gain momentum. The President also welcomed G-8 support for new initiatives that tangibly address real needs with real solutions. Africa is a continent of promise, and the United States will work to see that the children of Africa have the opportunity to grow up healthy and realize their dreams. As freedom is on the march around the world, it is vital that democracy and prosperity continue to find a permanent home on the continent of Africa - a healthy, prosperous Africa will make this world a better and safer place. The United States welcomes G-8 support for initiatives that advance U.S. priorities: Agreeing to debt relief Scaling up the fight against malaria Addressing urgent humanitarian needs Improving

Australia is set to commit millions of dollars to debt relief for 18 of the world's poorest countries, with the Federal Government giving its in-principle support to a Group of Eight proposal to forgive billions of dollars owed by African and Latin American nations. The Herald understands that cabinet agreed last month to follow the lead of the G8 finance ministers before this week's meeting of G8 leaders in Scotland and forgive debts of $72 billion owed by the most heavily indebted countries. World poverty, particularly in Africa, has been a key theme of the G8 summit. The push has been largely driven by the British Prime Minister, Tony Blair, who pledged to continue with his ambitious agenda despite having to abandon the meeting temporarily on Thursday because of the bombings in London. The move would cost Australia more than $10 million a year over a number of years. It would mean forgiving 100 per cent of the debts of the 18 countries that have qualified for debt forgivenes

The Bush administration provided an overview of the strategy for assistance to Africa agreed upon at the Group of Eight (G8) Summit and steps the United States will undertake to implement that strategy in a fact sheet released by the White House July 8. As anticipated, Africa was at the top of the agenda at the Group of Eight (or G8, consisting of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States) summit in Gleneagles, Scotland, July 6-8. In the wake of the summit, President Bush announced that the United States will again double assistance to Africa between 2004 and 2010. In other actions, the G8 countries agreed to cancel 100 percent of the bilateral and multilateral debt for qualifying Heavily Indebted Poor Countries, and President Bush called on the World Bank and other development banks to "stop the debt" by providing up to 50 percent of their assistance to the poorest countries in the form of grants. More than 99 percent of all m

Group of Eight leaders agreed on Friday to more than double aid for Africa to $50 billion to help fight poverty and disease on the continent, presenting the deal as a message of hope that countered the hatred behind the London bomb attacks. The announcement was the culmination of a G8 summit of rich nations hosted by British prime minister Tony Blair, who had been determined to focus on African poverty despite Thursday's attacks, which killed more than 50 people. "We speak today in the shadow of terrorism, but it will not obscure what we came here to achieve," Blair declared, flanked by fellow leaders of the G8 and seven of their African counterparts on the steps of the Gleneagles hotel in Scotland. "It isn't the end of poverty in Africa--but it is the hope that it can be ended." G8 leaders also agreed to proposals on international trade, universal access to HIV treatment, and debt cancellation for the world's poorest countries. The leaders did not, howe