A delegation of representatives of the public and private sectors is in Antananarivo this week. This is a preliminary visit before the prime minister?s visit to Madagascar between 4th and 7th April. Actually, this mission is a follow-up of economic relations between Madagascar and Mauritius. It will take stock of the situation in Madagascar after the political crisis that has led to severe economic problems.

Madagascar was shaken by protests and strikes in early 2002 following disputed presidential elections in December. The capital, Antananarivo, was brought to a halt as supporters of the country?s leader of more than two decades, Didier Ratsiraka, blocked roads, cutting off fuel and other supplies to the city. The crisis paralysed the impoverished country?s once-thriving textile export industry and tarnished its image as a peaceful, investor-friendly country.

Many Mauritian investors in the textile sector, who had opened factories in Madagascar, had to close down, which caused major problems to the textile sector in Mauritius as well. For instance, CMT and Novel had to close down and have not yet started their activities again.

Review of various sectors

However, Floreal Knitwear has reopened its factory as it believes that it can take advantage of certain aspects of Madagascar, its labour cost for example. Actually, the situation seems to be getting back to normal in Madagascar. The economic situation is gradually improving and investors look more confident in the island?s future, even if they want to take their time and be cautious. Mauritian investors nevertheless go to Madagascar because they want to see the development opportunities in the fourth largest island. The Malagasy government has done everything possible to attract investors; cooperation and economic integration will thus be favoured within the region.

The private sector delegation, comprising representatives of the Joint Economic Council, the Chamber of Agriculture and the Chamber of Commerce and Industry, will review the situation of various sectors (fishing, food-processing, textile industries, as well as port infrastructures, financial services and telecommunications) that could be of interest to Mauritius. The public and private sector may want to make sure that it is safe for businessmen to invest in Madagascar. Mauritius has suffered from the the big island?s problems and it does not want to face the same situation again.