8 | The Japan Times | Tuesday, November 6, 2018 (Sponsored content) www.global-insight.net Madagascar and Japan strengthen their connections The countries’ close relationship puts Japanese enterprises in pole position to benefit from new opportunities on the rapidly developing, resource-rich island.

In December 2017, at the Japan-Madagascar should remain stable, thanks to prudent monetary goal is a GDP per person in 2030 that is more than Business Forum in Tokyo, Malagasy President Hery policies.” double the $422 that it was in 2017. Rajaonarimampianina detailed the many opportu- The strategically located island has also “The private sector must play a crucial role in this nities available for Japanese investors on the world’s strengthened its international position, with and the state is there to create a favorable environ- fourth-largest island. The forum was part of the first Rajaonarimampianina serving as chair of both the ment that allows businesses to flourish. Hence, in official visit to Japan by a Malagasy chief of state Common Market for Eastern and Southern Africa, Tokyo, I again stressed our support for Japanese for over 50 years, during which he also met Prime a free trade area of 21 states, and the International investors coming to Madagascar,” he noted. Minister Shinzo Abe and Emperor Akihito. Organization of La Francophonie, which represents This support includes new legislation for public- The two countries are close partners — Japan is French-speaking countries worldwide. private partnerships and, said Andriambololona, the third-largest investor in Madagascar and the “Other significant reforms are underway that send fifth-biggest market for its exports. But the visit a strong signal to partners and investors, while tax marked a strengthening of relationship between “I agree with Prime Minister incentives are now in place to attract foreign direct Japan and a resource-rich, friendly nation that func- Abe that we have a true investment.” tions as the gateway to Africa, as Abe described the The government hopes to focus this invest- Indian Ocean island. partnership, with mutual ment on a number of economic growth engines. “My visit was a milestone. I agree with Prime Agriculture was one of those mentioned by the Minister Abe that we have a true partnership, with advantages and win-win president in Tokyo. It currently employs 80 percent mutual advantages and win-win benefits for our benefits for our private of the labor force and is the economy’s main pillar, private sectors. Japan is a strong partner of choice but with only 10 percent of arable land utilized, it for us, which Madagascar needs to continue on its sectors.” has huge potential for growth. path of development,” said Rajaonarimampianina. He also highlighted other underexploited Hery Rajaonarimampianina Madagascar has been on this path since 2014, President of Madagascar resources such as oil, gas and minerals, and oppor- President Hery Rajaonarimampianina and Prime Minister Shinzo Abe during the Malagasy state leader’s official visit to Japan. noted Japan External Trade Organization Chairman tunities in tourism, information and communica- and CEO Hiroyuki Ishige at the forum, with the gov- tions technology, textiles and infrastructure, with Cooperation Agency, active in the country for many tor — for example, Sumitomo is heavily invested The pair seem to be perfect partners, with one ernment enacting numerous reforms that have ush- “As a result of our achievements and the forecasts investment in renewable energy, water and trans- years, gave $411 million in funding for an expansion in our largest mining project, Ambatovy,” noted offering natural resources, a young and cheap ered in a new era of economic growth that shows no for 2018, Madagascar finds itself on the launch port being seen as crucial. of Madagascar’s largest port, Toamasina. Rajaonarimampianina. labor force, and a growing market, and the other sign of slowing down. pad for its future economic development,” stated Japan is increasingly looking outward for eco- “That is the biggest project we are working on At his meeting with Abe, both leaders confirmed having the technology, expertise and capital to Minister of Finances and Budget Vonintsalama Rajaonarimampianina. Giving shape to this future nomic growth and its interest in Africa is intensify- with the Japanese government, but we are also that the countries’ relationship is entering a new, maximize the potential. Equally importantly, said Andriambololona is expecting, “gross domestic is a new strategic plan for inclusive growth and ing. As a result, Japanese public and private sectors running joint projects in agriculture, health, edu- stronger phase, with Abe pledging to continue sup- Andriambololona, “There is a deep trust between us product growth of 5.1 percent in 2018 compared to transformation, the name of which translates as have been among the first to take up some of these cation and many other areas. Additionally, we have porting Madagascar technically and economically, — that is why the biggest investments in Madagascar 4.1 percent in 2017 and foreign exchange reserves emergence and rebirth — Fisandratana 2030. Its opportunities. In 2017, the Japan International strong connections with the Japanese private sec- and to negotiate a bilateral investment treaty. are made by the Japanese.” A focus on building infrastructure to accelerate economic growth Madagascar is looking to the private sector to help it Lantoniaina Rasoloelison, “For example, Japan co- cesses with the help of the World Bank. Making financed two water pipelines and is funding water JIRAMA more efficient boils down to people man- rapidly develop all aspects of its infrastructure, including purifiers and sanitation technology.” agement: how we analyze, manage and optimize To encourage businesses to help achieve the our workforce’s performance. This is something we transport, water and energy. goal of providing electricity to at least 70 percent of are focusing on.” households by 2030, Madagascar has introduced JIRAMA is also investing in infrastructure, in part- a new electricity law. “This gives tax reductions for nership with the private sector. “Reducing losses is renewable energies and enables new business mod- our key priority. For example, currently, between Developing infrastructure in Madagascar has structure held in the Malagasy capital, , els. It also lightens the terms of production licenses production and the end customer, we lose about proved a challenge for an island almost twice the in July 2017. and concessions,” explained Rasoloelison. 33 percent of the energy we produce, due to old size of Japan. For example, its network of about “We have many attractive packages to offer, such With a potential 7,200 MW in hydroelectric power, network infrastructure, human failure or theft. If we 31,640 kilometers of roads is insufficient and in poor as concessions to develop and manage our 44 air- 2,800 hours a year of sunshine and plenty of wind, could reduce this by just 10 percent, it would make a condition, only around 15 percent of the population ports. We are also in discussions with the Japanese the country is looking to renewable sources for 85 huge difference to our balance sheet,” he explained. has access to electricity and 23 percent to tap water. government about a new highway and economic percent of its future energy. “Our priority is mini- By working toward zero losses, Jaomiary believes But a transformation is underway. In terms axis linking Antananrivo and Toamasina.” grids and around 1-MW systems, and we have JIRAMA can achieve profitability in 2020 and start of transportation, “We are working on all fronts had proposals for these from Japanese companies. investing more sustainably in its network, genera- simultaneously,” stated Minister of Transport and A revitalized port links Japan with Africa Christian Eddy Avellin Olivier Aimé Jaomiary They might also be interested in large hydropower tion and distribution structure. As research and Meteorology Beboarimisa Ralava. “We are extend- At a cost of $639 million, $411 million of which is Managing Director, Societe du Port a Managing Director schemes and supplying solar technology to rural competition in the international industry mounts, ing the port of Toamasina, upgrading the railway being lent by the Japan International Cooperation gestion Autonome de Toamasina (SPAT) Jiro sy Rano Malagasy (JIRAMA) homes. In addition, there is a potential 7,800 MW to Jaomiary is particularly excited by the potential system, planning major highway projects and ren- Agency, the port of Toamasina (Tamatave in French) exploit in urban electrification,” Rasoloelison said. of solar power in Madagascar. “The price of solar ovating our airports, among other things. All these is set to become the largest in by 2026. (SPAT), the government agency that oversees the By 2021, Avellin expects that about 320 meters of Under the new law, producers can sell excess technology is dropping so quickly, as are the costs projects have one goal: facilitating the social and Located 353 kilometers northeast of Antananarivo, port and is supervising the works. new deep-water dock will be operational. “This will energy to Jiro sy Rano Malagasy (JIRAMA), the of battery energy storage. The Malagasy state is there, economic development of Madagascar.” it is the largest port in the country, handling about These will see the dock extended to 470 meters, enable us to be a sustainable growth engine for our state-owned electricity and water utility that has ready to assist investors, and our donors are also Ralava’s goal is, “to attract Japanese investors and 75 percent of all domestic and 90 percent of inter- an additional 10 hectares for container storage and economy, as the new Toamasina will be an impor- undergone its own transformation. With a new, really enthusiastic to help,” he said. partners to realize high-quality projects in public- national cargo. However, in its current form, it is modernized computer management systems. “The tant link between Asia, the Gulf countries, Africa and dynamic leadership, headed by Managing Director His positive view for the future of Madagascar’s private partnerships,” and Japan’s companies too small and shallow to meet rapidly increasing Japanese are not only supporting us with capital Latin America,” he said. Olivier Aime Jaomiary, it is modernizing to become water and energy reflects the position of most of the and government are welcoming his approach. In demand. “The extension is vitally important for our investment, they are also sharing their know-how more efficient, effective and profitable, in order to country’s infrastructure specialists: “If I was doing December, Prime Minister Shinzo Abe reiterated economy, it will double our capacity and the world’s and cutting-edge technologies, which is helping to Increasing access to energy and water improve services and attract international investors. this job four years ago, I would not have had nearly his support for the development of quality infra- largest vessels will be able to unload in Madagascar,” achieve outstanding results, as they have the experi- Madagascar is also developing its water and energy “One of my priorities is optimizing our organiza- as many opportunities to make a difference as I do structure in Madagascar, while many Japanese said Christian Eddy Avellin, managing director of ence of developing world-class facilities in extreme infrastructure and, here again, Japan is an important tional structure, which had become cumbersome,” now. It is the right time for change and to seize this companies attended a bilateral conference on infra- Societe du Port a gestion Autonome de Toamasina climatic conditions,” Avellin explained. partner, said Minister of Energy and Hydrocarbons stated Jaomiary. “So we are scrutinizing all our pro- chance to create things.”

New opportuNities for a New Madagascar ‘The Malagasy pride’

Kraoma S.a. (Kraomita malagasy) Ampefiloha | Tel: 261 20 22 243 04 | Email: [email protected] | Website: www.kraoma.mg

Transform with Jirama, Grow with Madagascar

Jirama Jiro sy Rano Malagasy [email protected] | www.jirama.mg

PAGE: 8 (Sponsored2 | The Japan c Timesontent) | Thursday, May 4, 2017 Tuesday, November 6, 2018 | The Japan Times | 9 www.global-insight.net MADAGASCAR Unlocking the potential in Madagascar’s natural resources

Access to the island’s underexploited reserves of minerals and hydrocarbons is opening forged by bringing together the sector’s its energy independence. recently carried out extensive explora- whole value chain in one central hub, International oil companies are tion of the subsoil of Madagascar, and up in 2018, with tenders being issued for promising oil blocks, exciting opportunities on including BCMM itself, government min- increasingly turning their attention to identified 200 offshore and 100 onshore offer in gold and a new central hub for investments in mining. istry departments, mining operators and Madagascar and 14 are currently operat- blocks with significant potential for suppliers. ing in the country, with the most recent hydrocarbons. As a result, it acts as a platform for trade, additions being Britain’s BP and Brazil’s 2018 will see the launch of an inter- the need for middlemen is reduced and CB World Natural Trade Energy, both of national tender for the first 40 off- Madagascar’s vast lands are full of A golden future for minerals administrative procedures within the sec- which are exploring offshore. shore blocks, which are located in untapped reserves of numerous valu- As a state-owned mining company, tor take less time. These enterprises are working in part- the Morondava Basin to the west of able minerals, petroleum and gas. The KRAOMA is responsible for exploiting The extensive high-tech building, nership with OMNIS under productions Madagascar. island’s many natural resources include mineral resources in a sustainable way located in Antananarivo and just a few sharing contracts, which specify that “These are the ones for which there is the nickel, cobalt, vanadium, chromite, gold, that advances the country. miles from Ivato international airport, cost the companies pay for all exploration most data — 2D and 3D seismic surveys gemstones, ilmenite, zircon, graphite and Historically, its main interest has been $6 million to construct and is a showcase costs over eight-year exploration phases. have been carried out over about 9,000 an estimated 1,500 billion barrels of oil — chromite and it operates four mines for for the range and depth of Madagascar’s However, once oil is discovered and mar- square miles — and for which there is a very none of which have been exploited due to this ore in the Brieville region, near the mineral wealth. keted, they can recover this expenditure, high probability of finding oil. So these will a lack of available funds, technology and island’s center. After treatment, the resul- It contains separate state-of-the-art within a certain threshold. be the most interesting ones for companies expertise in the past. tant chromium — up to 330,000 tons a year information centers for gems, industrial To further encourage investors, no con- and investors,” said former OMNIS General Some major international players have — is transported to the port at Toamasina stones, precious metals and other metals, sumption taxes are levied on operations Manager Bonaventure Rasoanaivo. already spotted the potential in the coun- where it is exported, mainly to China. each of which offers real-time data and until discoveries are made and the govern- He notes that the winners will be sup- try. Since 2005, Japan’s Sumitomo, along- In 2016, KRAOMA reassessed its busi- news matched with cartography. ment intends to reform the industry’s legal plied with all of OMNIS’s intelligence and side Canada’s Sherritt and South Korea’s ness plans when its profit levels were A focal point of the building is a sunlit framework and make it even more advan- exploration data, in order to help them Kores, has owned Madagascar’s largest impacted by a substantial drop in world hall with 2.97 acres of flexible space that tageous for companies than it already is. maximize their exploitation of the blocks. mining operation — Ambatovy, which is prices for chrome. It took advantage can be utilized for fairs, exhibitions or located near Toamasina. of a subsequent rise in prices in 2017 David A. Ratsimbazafy other events that can also benefit from a “For oil and gas investments, Madagascar is the second best This important project provides 7,000 to increase production from 70,000 to Managing Director, Bureau du Cadastre 1,000-seat amphitheater, four VIP lounges jobs, currently represents about one-third 177,000 tons, which has provided the Minier de Madagascar and two restaurants. destination in Africa after Mauritania, according to the of Madagascar’s exports and has a targeted funds for the company to start investing In addition, the highly secure cen- annual production of around 66,000 tons in strategic projects for the future. The company is also moving vertically ter contains a 32-unit shopping mall for Africa Oil & Power energy investment platform.” of nickel, 6,200 tons of cobalt and 230,000 As a result, 2018 sees KRAOMA in a phase along the value chain into processing. It products mined in the country and an tons of fertilizer. of growth, diversification and new interna- wants to construct Madagascar’s first gold area dedicated to banking services. All Vonintsalama Andriambololona, Minister of Finances and Budget Rio Tinto is also working in the country, tional partnerships. The company wants to refinery and is building a processing plant of which will be used by BCMM to help mining ilmenite and zircon in the south- increase its chromite mining, but in light of to turn its chromite into ferrochrome, unlock the full potential of Madagascar’s As the Malagasy Minister of Finances “OMNIS’s internal strategy is to go step east of the island in partnership with the recent price volatility for that mineral, which is cheaper to transport than treated mining industry. and Budget Vonintsalama Andriambololona by step with its tendering of the blocks. the government. As a result of activities it has also started to diversify by investing chromium and fetches higher prices. explained: “For oil and gas investments, It is starting with these 40 and at a later like this, the contribution of extractive in the extraction of other minerals, such as This facility, with its own power International tenders for oil Madagascar is the second-best destina- stage it will promote the rest of the 200 industries to gross domestic product has gold, beryllium, apatite and columbite. plant, should be completed in 2019 and Madagascar does not just want to unlock tion in Africa after Mauritania, according offshore blocks, as well as the onshore recently risen from around 2 percent to Gold, especially, offers a tremendous KRAOMA is currently obtaining more its mineral resources — it also intends to to the Africa Oil & Power energy invest- blocks,” stated Rasoanaivo. over 4 percent. opportunity. Madagascar has significant mining licenses in chromite-rich zones to become an important oil and gas nation. ment platform.” He is keen to see Japanese companies But, having identified the sector as reserves of the precious metal, which are ensure sufficient reserves for the project. Facilitating that transformation is Oil was first discovered in Madagascar bid for some of the new blocks. “Between a central pillar in its economic growth only just beginning to be realized — in 2017, OMNIS, the state-owned agency that has over 100 years ago and five highly prom- 2017 and 2020, Japan will have con- plans, the government wants to increase registered gold production rose from previ- A new gateway into mining been managing, developing and promot- ising onshore and offshore sedimentary tributed more than $447 million to the it further by attracting more interna- ous levels of under 0.06 tons to 1.9 tons. More information about the investment ing Madagascar’s petroleum, gas and basins have been discovered, three of Malagasy mining and oil sector, in addi- tional investors to help take advantage of Having explored its sites, KRAOMA has possibilities available through KRAOMA, strategic mineral resources, such as coal, which have the same geological history tion to the investment of Sumitomo in its latent treasures. It is currently devel- identified a number of locations with along with all the other opportunities ilmenite and uranium, since 1976. as petroleum-rich areas in Angola and the Ambatovy project, which highlights oping a new mining code that will ben- high potential for gold mining, on which on offer in the country, can be found at Overseen by the Ministry of Mines and Nigeria. In addition, a vast deposit of nat- what an important partner Japan is for efit all stakeholders, but improvements it has been carrying out artisanal-style Madagascar’s recently inaugurated Mining Petroleum, OMNIS implements national ural gas has recently been identified in the Madagascar,” he said. to the business environment are already extractions. Business Center. policy on exploration and exploitation, south of the island. “Japanese businesses are very reliable taking place. This change is evidenced by To turn this into full-scale mining opera- This one-stop gateway to Malagasy carries out exploration work and fosters But Madagascar as a whole remains and focused on the long term, which is the activities of three organizations in par- tions, it is looking to international inves- mining has been developed by BCMM, a partnerships with international compa- very underexplored, with only one pros- exactly what the island of Madagascar ticular, which are at the forefront of the tors. In a bid to attract these, the company public body set up in 2000 to manage all nies, providing them with any informa- pect drilling having been made for about needs to embrace the huge potential our sector’s ongoing development: Kraomita has created a new partnership model, mining licenses in the country and pro- tion, data, or technical and administrative every 4,000 square miles. mining and hydrocarbons sector has to Malagasy (KRAOMA), Bureau du Cadastre already proving successful, under which mote the sector at home and abroad. assistance they need. To address this issue, OMNIS has offer.” Minier de Madagascar (BCMM) and the the partner provides capital and KRAOMA Its new Mining Business Center is now It believes the island is on the verge of Office of National Mines and Strategic supplies everything else, including mining playing a key role in stimulating invest- an oil and gas revolution that will boost This report was produced by Global Insight and can also be read online at: Industries (OMNIS). license, technical expertise and personnel. ments and enabling partnerships to be economic development and contribute to www.japantimes.co.jp/international-reports

The port is growing with Madagascar

With the support of the Japan International Cooperation Agency, construction is starting on a major A revolution expansion and improvement of in Madagascar’s Madagascar’s most important com- mercial seaport — Toamasina Port — offshore oil and gas that will enable it to continue to meet the needs of the country, its users sectors is about and investors. to begin

Deposits have been found, investment incentives are on offer and 2018 will see the auction of 40 promising Société du Port à gestion offshore blocks. For more Autonome de Toamasina information about any aspect of (S.P.A.T.) a transforming industry, contact Tel: +261 20 53 321 55/57 [email protected] OMNIS, the state-owned agency www.port-toamasina.com responsible for petroleum and mineral resources.

Our new Mining Business Center is your gateway to the

ActIvItIeS opportunities available in Madagascar’s mineral sector Audit Drilling Partnership development Technical and administrative follow-up BCMM welcomes Mineralogical processing and analyses investors, operators Technical and administrative assistance and service providers to our hub for mining, Biostratigraphic, stratigraphic and sedimentological studies where you can meet Geochemical and physicochemical analyses (Coal, Jatropha and Hydrocarbons) us, find partners and Provision of pre-requisite data for oil exploration, mines and uranium mines in Madagascar access all that you need to do business. OMNIS Office des Mines Nationales et des Industries Stratégiques 21, Lalana Razanakombana Ambohijatovo, Antananarivo 101 - Madagascar Telephone: +261 20 22 242 83 Email: [email protected] Website: www.omnis.mg

BCMM Bureau du Cadastre Minier de Madagascar Rue Farafaty, Ampandrianomby, Antananarivo 101, Madagascar www.bcmm.mg

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