Partnership Conference - Mauritius Africamauritiusafrica.com/wp-content/uploads/2016/09/Madagascar.pdf · Partnership Conference 20-21 September 2016. Madagascar at a glance ... Tana)

Investment Opportunities in Madagascar

Presented byEric ROBSON ANDRIAMIHAJAChief Executive Officer, EDBM

September 2016

AfricaPartnership Conference

20-21 September 2016

Madagascar at a glancePosition 4th largest island in the world Time zone GMT+3 Area 587,295 km² Capital Antananarivo Administrative division 22 Regions Population 24 millionLanguages Malagasy, French, EnglishGDP (USD) 9.98 GDP per capita (USD) 411.81 GDP structure (%)

Agriculture 33.0 Industry 13.1 Service 53.8

Inflation (%) 7.4 Growth rate (%) 3.2

‐ World’s 87th freest economy of 178 countries‐ 9th freest economy of 46 countries in the sub‐saharan Africa region (Index of Economic Freedom 2016)

Investments opportunitiesgemstones

mining

oil & gas energyelectricity

transport infrastructures

real estatetourism

textile

food processing

agribusiness

fisheries

livestockfinanceconstruction

logistics

woods

forestry

waterchemicals

essential oils

spicesaquaculture

technologycall centerdairy products

Infrastructure

Why invest in Madagascar?

Insufficient and poor quality of existing infrastructures Expansion of local economy

Growing demand by the population and businesses Large scale mining projects requiring ports, road and railway

corridors A new law on PPP enacted

Airport

Catering unity services for Ivatointernational airport

Location: Ivato Antananarivo

Opportunities:> Providing catering services> Improving tourism and air transport competitiveness

Progress: Feasibility studyCost: 1 million USD

Catering unity services for nosy be airport

Location: Nosy Be (North)

Opportunities:> Providing catering services

> Improving tourism and air transport competitiveness

Progress: Feasibility studyCost: 0.9 million USD

Setting stop handling services

Location: Antananarivo, Nosy Be, Antsiranana, Taolagnaro, Toliara

Opportunities:> Providing handling services

> Growth of air travel traffic and improve airport facilities with an

upgrading to international standards

Progress: Pre‐feasibility studyCost: 11 million USD

Airport cont’d

Airport construction to support middle sized aircrafts (B737‐300, A319)

Location: Antsirabe (Centre)Main activities:> Constructions of: Runway, Storage area construction, Freightoffice, Parking, Airport perimeter security fence, Ramp andfreight tarmac> Water and electricity installation> Purchase of ILS equipment> Purchase of truck VIMP 6,000 liters> Electric tracking and permanent PAPI installation> Road renovation (No.7 to aerodrome)> Renovation of Control tower> Purchase of Meteorological equipment> Construction of Meteorological lodging> Aircrafts hangars renovation

Cost: 15.885 million USD

Airport construction to support high capacity aircrafts

Location:Mahajanga (North West)

Main activities:> Enhancement of airport including drainage ofaeronautic area> Installation of Terminal> Road shoulder layout> Layout threshold> Fencing of airport site

Cost: 7 million USD

Airport cont’d

Airport layout to support A340 aircrafts typesLocation: Toliara (South West)Main activities:> Enhancement and extension of runway> Electric tracking and permanent PAPI installation> Passenger terminal extension> Tarmac and parking extension> Purchase of ILS> Fencing of airport site

Cost: 87 million USD

Extension of Nosy Be Fascène airportLocation: Nosy Be (North)Main activities:> Renovation/construction of building andsupporting infrastructures (network, access,etc.)> Extension of Airport infrastructures andadaptation to attract airlines companies> Development of commercial offer anddedicated services> Setting up of a quality management system> Implementation of environment‐friendlysolutions (water treatment) and aiming to limitpollution

RailRehabilitation of railway infrastructures in the south region (FCE)

Location: Regions of: Haute Matsiatra and Vatovavy Fitovinany (Fianarantsoa‐Manakara)

Main activities:> Rehabilitation of railways> Rehabilitation of engine park and purchase of coach> Purchase of spare parts> Technical studies and works to rehabilitate Sahasinaka railway overpass (FCE)

Opportunities:> Overcoming and freeing an area along 123 km to facilitate and restore economics activity of almost 650,000 people and about 30 municipalities> Facilitate export goods routing: coffee, pepper, various spices, cloves, rice, lychee, avocado, oranges, bananas, mangos

Progress: Preliminary studies availableCost: 45 million USD

Rail cont’dRehabilitation of railway infrastructures in the north region

Location: Regions of: Vakinankaratra, Analamanga, Alaotra‐Mangoro, AtsinananaMain activities:> Railways rehabilitation> Fleet rehabilitation and purchase of locomotives> Purchase of spare parts


Harbour

HarbourOperationalization of Manakara port

• Location: Vatovavy‐Fitovinany Region (South East)• Main activities:• Technical & economic studies• Rehabilitation of port building and premises• Rehabilitation of the platform• Dredging• Rehabilitation of lights and general electrical wiring

• Opportunities:• Increase the harbour size and capacity

• Progress: Studies to be updated

• Cost: 8 million USD

Harbour cont’dRehabilitation and development of Nosy Be port, 2nd

phase

•Location: Nosy Be (North West)

•Main activities:•Wharf rehabilitation•Reorganization of the wharf back storage area•Building passenger terminal area

•Opportunities:•Increase the harbour size and capacity•Facilitate establishing of self‐management harbour

•Progress: Studies to be updated

•Cost: 8 million USD

Development of Toliara port

•Location: Toliara (South West)

•Opportunities:•Rehabilitation and extension of Wharf for long‐haul trip with dredging works

•Building reception infrastructures: wharf and bus shelters for correspondence (Soalara, etc.)

•Progress: Existing studies to be updated

•Cost: 18 million USD

Harbour cont’dRehabilitation and development of Mahajanga port

• Location: Boeny Region (North West)

• Main activities: Construction of docks, dredging

• Opportunities:• Increase the harbour size and capacity• Improvement of port management and efficiency


• Cost: 12.375 million USD

Rehabilitation of the Pangalanes canal

• Location: East and South East

• Main activities:• Definition of the appropriate management system to ensure operational use of the canal and related infrastructures (inland ports, tourists areas, heavy urban or industrial areas organisations)

• Complete dredging of key sectors• Consolidation of the canal bank• Establishing of boarding/unboarding docks


• Cost: 15.188 million USD

RoadConstruction of roads

Location:> Moramanga–Ambatondrazaka and Lac Alaotra (339 km): 349 million €> Ambositra–Ambatofinandrahana–Malaimbandy–Miandrivazo (300 km): 309 million €> Ambovombe–Betroka–Ihosy (396 km, RN13): 408 million €> Tsiroanomandidy–Ambatomainty–Maintirano (450 km, RN1Bis): 464 million €

Main activities:> Road maintenance> Engineering works renovation> Road sanitation> Road visual signs

ENERGY

WHY INVEST IN MADAGASCAR?

Demand largely exceeds supply

Thermal power plants are too expensive to operate(43% of total energy production)

The legal and institutional framework is conducive toprivate investments

Challenges:Need affordable tariff for consumers3 grids in the country not interconnected(Antananarivo, Toamasina, Fianarantsoa)The State utility company is in disarray

Only 23% of the population has access to electricity,

And 5% in rural area

Energy projects under 60 MW

Buildingof an hydroelectric plant in

Antetezambato

Location: Amoron’i Mania Region (Centre South)

Main activities:> Power plant with storage> Estimated potential: 240 MW> Rawfall: 195 m> Duration of the activities: 3 years

Progress: Preliminary study (PEMC RI‐Tana)

Cost: 579.2 million €

Buildingof an hydroelectric plant in

Mahavola, Ikopa

Location: Analamanga Region(Centre)



Energy projects under 60 MW cont’d

Buildingof an hydroelectric plant in Antafofo,

Ikopa

Location: Analamanga Region(Centre)



Buildingof an hydroelectric plant in Sahofika

on Onive River

Location: Vakinankaratra Region (Centre)




Energy projects under 60 MW cont’d

Buildingof an hydroelectric plant in Lohavanana, Mangoro

Location: Alaotra Mangoro Region (East)



Buildingof an hydroelectric plantin Ivolobe on Ivondro River

Location: Ivondro basin, AtsinananaRegion (East)

Main activities:> Power plant with storage> Estimated potential: 90 MW> Rawfall: 99.5 m> Duration of the activities: 3 years



Ecotourism

Assets: • Exceptional biodiversity of fauna and flora, with highest rate of endemic species in the world

• Variety of landscape, climate, ecological sub‐systems• 5000 km coastline and 1000 of vacant beaches• Cultural, sustainable and inclusive tourism. Unique Asian‐African art and culture

Brand image evoking mythical destination

Existing niche market for Madagascar

17.7% of GDP Employs 577,000 people Today: 200,000 tourists Target for 2020: 1 million tourists per year Need new Eco lodges and luxury resorts An immediate need for an additional 850 three‐star

(or more) hotel rooms Over 20,000 hotel rooms needed in the next 5 years

Ecotourism

Ankarana rustic eco lodge

Location: Ankarana National Park, DIANA Region (North)

Opportunities:> Settling a 4* eco lodge with 50 rooms in 10‐50 ha inside the Ankarana National Park> Spa & Wellness Center using local natural products from the Ankarana National Park> Restaurants and bars using local organic gardens

Progress: Preliminary studies available


Nosy Hara eco‐luxury resort

Location: Nosy Hara, DIANA Region (North)

Opportunities:> Settling a a 5* high‐end resort with 50 luxury rooms in 10 ha> Spa & Wellness Center using local products> Restaurants and bars using local products



Ecotourism cont’d

Orangea resort & spa

Location: Antsiranana, DIANA Region (North)

Opportunities:> Settling a 5* high‐end resort in 10 ha> 80 rooms high‐end Resort & Spa with 50 suites and 15 villas> Watersports activities taking advantage of the good wind conditions for windsurf and kitesurf> Spa Center using products from the sea and natural products from the land> Restaurants and bars using local organic gardens



Ankasy eco resort & spa

Location: Ankasy (South West)

Opportunities:> Settling a 5* high‐end resort with 80 rooms in 90 ha> Spa & Wellness Centre using local organic products> Land and Water sports activities> Restaurants and bars using local organic products> Landscaped dry tropical gardens with local endemic plants



Agribusiness

18 million ha of potential arable land, large grazing land

Wide variety of soil and climates

Great diversity of agricultural products

Large manpower with agricultural tradition

Preferential access to markets US, EU, COMESA, SADC

Tax exemption on fertilizers and agricultural equipments

Agribusiness

Products for the international marketFruits, vegetables, spices, nuts, beans,coffee, crops

Processing of local production Fruit and vegetables Sugar, ethanol Niches sectors:essential oils, jatropha (biodiesel),aromatic plants, medicinal herbs

Organic farming

Provision of seeds, fertilizers, pesticides,equipment, technology to increase yield

Livestock Zebu, goat and sheep meat for

the international market Slaughter house (only one at

international standards) Poultry for local market Beekeeping: honey, royal jelly,

beeswax,…(pharmaceuticaland cosmetic use)

Fishing and aqua farmingTuna, shrimp/prawns, crabs, lobster, …

Agribusiness: Stevia

Location: Any region outside sea area

Major activities :

• Experimentation : cropping trials, geographic trials, small‐scale processing test in the communities

• Seed multiplication through Seed Producers Groups in various regions

• Setting up efficient final manufacturing plants of Stévia extract powder, without exclusion or sidelining the small producers

Opportunities :

• Supplying a bio sweetener substitutes for sugar

• Integration of global value chains in agribusiness related to Stevia

• Industrialization and promotion of rural and regional agribusiness


Agribusiness: Moringa

Location: Early experimentation in East region, Upscaling to all regions

Major activities:

• Setting up incubator and pilot business unit

• Identification of incubator site

• Purchase of necessary equipment and its installation

• Sites identification to set up pilot business unit

Opportunities:

• Development of an industrial fabric based on Moringa sector

• Contribution to local food security

• Valuation of potential growing areas

Costs: 1.5 million USD

Agribusiness: Sugar

Location: Eastern part of Madagascar and in areas of former public companies

Major activities:

• Sugarcane cultivation, processing into sugar and other products: ethanol, biomass, etc.

• Land: Possibility of large plantations more or contract farming with local farmers: Up to 20,000 ha in the South East

• Industrial Equipment for the processing plant

Opportunities:

• Local market: Madagascar currently produces less than 90,000 tons of sugar per year, but consumes about 200,000 tons

• Global demand for sugar is rising, driven by increasing prosperity and consumption in Asia, as well as demand for ethanol

Costs: 1.5 million USD

Agribusiness: Spices and essential oils

Location:

• South for medicinal plants: Saro, geranium, Artemisia, pervenche, etc.

• East and South East for spices: cloves, pepper, ginger, turmeric

• Tempered highland for medicinal plants and spices: ginger, vetiver, geranium, etc.

• North: Ylang ylang, pepper, vetiver, etc.

Activities:

• Culture and processing of spices, aromatic and medicinal plants

• Possibility of large plantations (long term lease) or farming contracts with local producers/ cooperatives.

Opportunities:

• Asia: Rising demand in China and India

• Europe and USA: Growing demand for natural products as food, cosmetic and in the pharmaceutical industry

Agribusiness: Fruits and vegetables

Location:

• East and South East coast for tropical fruits: lychee, raboutant, mango, pineapple, etc.

• Temperate highland: fruits and vegetables requiring a more temperate climate

• West and South: For collection of fruits

• North for tropical fruits: mango, pineapple, papaya, coconut, etc.

Activities:

• Cultivation and processing of fruits and vegetables

• Possibility of large plantations (long term lease) or farming contracts with local producers/cooperatives.

• Industrial Equipment for the processing plant

Opportunities:

• Small local demand but strong demand overseas

• Madagascar is part of the 10 first fruits and vegetables exporter‐country in Africa. If the exports are below the capacity of exports of the others, improving the investments will enable Madagascar to improve its position in the top ten of fruits and vegetables exporter in Africa

THANK YOU FOR YOUR ATTENTION

1 Avenue du Général Gabriel RAMANANTSOA

Antaninarenina- 101 Antananarivo- Madagascar

Tél: +261 20 22 670 40, Fax: +261 20 22 661 05

E-mail: [email protected]

www.edbm.gov.mg

Economic Development Board of Madagascar

Documents

Partnership Conference - Mauritius Africamauritiusafrica.com/wp-content/uploads/2016/09/Madagascar.pdf · Partnership Conference 20-21 September 2016. Madagascar at a glance ... Tana)