According to the Chief of Staff of the Presidency of the Republic, investors in the textile industry are eyeing the Big Island. A situation favored by the crises raging in the leading countries in the sector.
Up to sixty thousand jobs in three to six months. This is the job creation potential of the textile industry, said Baomiavotse Vahinala Rahanirina, Chief of Staff of the Presidency of the Republic, during a press conference at his office in Ambohitsorohitra yesterday. A completely realistic forecast given the international context inherent in this sector.
Industrialization was the central theme of this meeting with the press of the Chief of Staff of the Head of State. In particular, she reported on the visit of a presidential delegation to the headquarters of the United Nations Industrial Development Organization (UNIDO) in Vienna last week. On her way, she announced the interest of investors in the textile industry for Madagascar. According to him, “Madagascar is in the spotlight and is considered among the countries with strong potential for the development of this sector”.
According to the explanations of Baomiavotse Vahinala Raharinirina, the difficulties encountered by States in pole position in the textile industry should allow Madagascar to find itself at the forefront. She cites Ethiopia as an example. This cador of the African continent in the field of textiles is crumbling under international sanctions due to a political crisis coupled with armed conflicts in part of the country. China, too, faces economic retaliation from the United States and some European states. This has unfortunate consequences for its industry, particularly textiles.
During yesterday’s press conference, the Chief of Staff of the President of the Republic added that Bangladesh, one of the heavyweights of textiles, is also currently experiencing difficulties. According to him, a royal road is opening up for Madagascar in order to delight a place for those who are at the head of the bow in this sector. The game is, however, not won in advance. Mandatory accompanying measures must be put in place quickly to create the optimal conditions to attract investors.
The first condition underlined and hammered home by the president’s chief of staff is political stability. “Investors will flock if they have the guarantee of political stability”, argues Baomiavotse Vahinala Raharinirina. The other essential element is the establishment of a strong industrial ecosystem. A concept affirmed by Andry Rajoelina, President of the Republic at UNIDO, on Friday.
Stability
“We have this will with firmness and tenacity in order to transform our economic fabric into an efficient industrial ecosystem”, declared the tenant of Iavoloha, underlining the political will of the State to initiate the reforms necessary for the industrialization of the Big Island. His chief of staff, yesterday, mentioned the necessary implementation of an incentive policy for the private sector, support for the latter “by removing the various blockages”, good governance, the fight against corruption and the fight against monopoly.
In an interview published on Tuesday, Claire A. Pierangelo, Ambassador of the United States, also raised the need to ensure a stable and attractive business climate in Madagascar. “(…) the first thing that every entrepreneur needs (…) is a clear, coherent and fair economic policy from the government. Investors should know that the same policy will be applied today and tomorrow. If they have confidence in this policy, they will invest,” she says.
The American diplomat also stresses the need for “equitable treatment”. On her way, she maintains that “any public policy that is not applied uniformly and equitably to all companies discourages investment in Madagascar. The Big Island must therefore reflect on its international reputation in terms of transparency and fairness. It must also reflect on how to have a reasonable, readable and sustainable legal and political system”.
To stick to the speech of President Rajoelina at UNIDO in Vienna, his administration is determined to put all the assets on the table in order to industrialize the country. The other key point which is also the sinews of war is energy. This is one of the big weak points of Madagascar. Baomivotse Vahinala Rahanirina highlighted the reforms undertaken to bring the water and electricity company Jirama back to life.
Only, in addition to cost issues, the quality of service and a sufficient quantity of energy and up to the ambitions of industrialization of the country are the melodies that will capsize the hearts of investors. The Chief of Staff to the President of the Republic indicates that in order to boost the quantity of electricity to be made available to users, the State has given the green light for Jirama to buy electricity from the private sector. According to him, a legal reform in this direction is in progress.
Other options are necessary, however, especially in the long term. The energy transition and renewable energy, such as the installation of hydroelectric power stations, were discussed at length during the presidential visit to Vienna. There is also the question of human resources. On this aspect, the State is counting on the strengthening of vocational and technical training with a view to the industrialization of the country.