France loses privileged relationship with Madagascar
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 history. He's a pragmatist. He wants to know what you can do for him now," said one official from a donor organisation.
Since coming to power, Ravalomanana's government has pursued stronger ties with the United States, Germany, South Africa and China and has increasingly snubbed French investment.
"Unlike his predecessors, Ravalomanana wants to do business with everyone. French economic interests are being weakened," said Christian Chadefaux, French editor of the Madagascan daily Les Nouvelles.
And Ravalomanana has no particular love for France.
"This visit was Chirac's attempt to restore a relationship that hasn't been good over the years," said Many Ravelonanana, politics professor at Antananarivo University. "But it's been difficult: Ravalomanana is really not a Francophile."
Tenders to sell off public services or put them under private management under donor-sponsored restructuring programmes have gone to non-French companies.
Hong Kong company Distacom Communications beat France Telecom to buy the state telecoms monopoly in 2003.
The management contract for the state water and electricity company went to German infrastructure firm Lahmeyer International, beating Veolia Water. Lufthansa Consulting got the contract to manage Air Madagascar without a tender being put out.
AWAY FROM FRANCE
Analysts say Ravalomanana will continue to push for diversifying diplomatic ties away from France.
"There is definitely a preference in the administration to get away from French influence," said Christopher Eads, Africa editor of the London-based Economist Intelligence Unit. "Ravalomanana doesn't want to have just one important friend."
However, Eads said France would remain Madagascar's number one economic partner for some time, regardless of the politics.
French diplomats admit Ravalomanana has opened Madagascar's markets but say French companies still dominate almost every sector, including textiles, fisheries, banking, petrol imports, public works and pharmaceuticals.
"The previous regime was not motivated as the current one to enlarge the scope of its business relationships," said French embassy trade commissioner, Jean Francois Bijon. "French companies are by now well established. Up to a half of all foreign investment is French."
Bijon said when Dynatec and Rio Tinto start making big capital investments in their mining projects on the island, this will change.
"This is the only sector where French companies have no foothold," he said. "There is no way they can compete with the big Anglo-American mining companies."
But French investors continue to be the only ones committing cash, business leaders say.
"There's interest but few foreign investors outside France are setting up companies here," said Andre Beaumont, president of the Madagascar chamber of commerce. "By contrast, 600 out of 2,500 companies in Madagascar have French capital in them."
By Tim Cocks
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 history. He's a pragmatist. He wants to know what you can do for him now," said one official from a donor organisation.
Since coming to power, Ravalomanana's government has pursued stronger ties with the United States, Germany, South Africa and China and has increasingly snubbed French investment.
"Unlike his predecessors, Ravalomanana wants to do business with everyone. French economic interests are being weakened," said Christian Chadefaux, French editor of the Madagascan daily Les Nouvelles.
And Ravalomanana has no particular love for France.
"This visit was Chirac's attempt to restore a relationship that hasn't been good over the years," said Many Ravelonanana, politics professor at Antananarivo University. "But it's been difficult: Ravalomanana is really not a Francophile."
Tenders to sell off public services or put them under private management under donor-sponsored restructuring programmes have gone to non-French companies.
Hong Kong company Distacom Communications beat France Telecom to buy the state telecoms monopoly in 2003.
The management contract for the state water and electricity company went to German infrastructure firm Lahmeyer International, beating Veolia Water. Lufthansa Consulting got the contract to manage Air Madagascar without a tender being put out.
AWAY FROM FRANCE
Analysts say Ravalomanana will continue to push for diversifying diplomatic ties away from France.
"There is definitely a preference in the administration to get away from French influence," said Christopher Eads, Africa editor of the London-based Economist Intelligence Unit. "Ravalomanana doesn't want to have just one important friend."
However, Eads said France would remain Madagascar's number one economic partner for some time, regardless of the politics.
French diplomats admit Ravalomanana has opened Madagascar's markets but say French companies still dominate almost every sector, including textiles, fisheries, banking, petrol imports, public works and pharmaceuticals.
"The previous regime was not motivated as the current one to enlarge the scope of its business relationships," said French embassy trade commissioner, Jean Francois Bijon. "French companies are by now well established. Up to a half of all foreign investment is French."
Bijon said when Dynatec and Rio Tinto start making big capital investments in their mining projects on the island, this will change.
"This is the only sector where French companies have no foothold," he said. "There is no way they can compete with the big Anglo-American mining companies."
But French investors continue to be the only ones committing cash, business leaders say.
"There's interest but few foreign investors outside France are setting up companies here," said Andre Beaumont, president of the Madagascar chamber of commerce. "By contrast, 600 out of 2,500 companies in Madagascar have French capital in them."
By Tim Cocks
Comments