Development opportunities & challenges in Madagascar: a personal visit in the field

15.04.23

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Travelling to Madagascar was an eye opening-experience. I had no idea what to expect. I knew a new world would open up for me. It was my first trip outside of the European continent. I left the life I knew and I headed for five weeks to the pearl along the Indian ocean.

I started my visit in the capital, Antananarivo. I was welcomed by an amazing family. The first days where filled with family visits. It brought me to places where the average tourist never comes. I was able to experience the authentic life of the local people.

I felt like I was a superstar. As I walked in places absent of tourists, children were looking as if they saw an UFO. I saw surprised looks. You saw people staring and following with their head as I passed by. I felt both uncomfortable and excited at the same time. Catching all that attention is something I generally do no prefer. It was a whole experience standing in the spotlight.

hiking in madagascar, visiting a local village

As I saw the beauty of the country, you immediately come in touch with the poverty of the country. According to data of the world bank it’s in the list of the ten poorest countries on earth. As I walked through the slums in the capital, it broke my heart to see the circumstances in which people had to live. Things I had taken so for granted where totally absent.

Père pedro

I have taken a visit to Akamasoa, a village that is shaped by the work done by père pédro. Père pédro is known globally for his efforts to tackle poverty in the country. I am inspired by his courage to provide people with opportunities, build better infrastructure and give people a vision for the future. He takes poor people of the streets and provides them work. They are required to help in the community. They have work in construction, agriculture, education, healthcare, crafts and other small businesses. In return, they earn money, receive food and get shelter. I find this very interesting and well for a few reasons.

Pedro has been able to build homes, schools, and other infrastructure, and provide access to healthcare, education, and other essential services. All this was possible in villages which were lacking basic necessities and extreme poverty was omnipresent.

Pedro’s approach to development is based on community involvement and participation. Rather than simply providing aid to people in need, Pedro has worked to empower the residents of Akamasoa to take ownership of their own development and create a more self-sufficient community. It is encouraged to take initiatives yourself. There are micro financial programs built, enabling people to start their own businesses and a cooperative that produces and sells goods.

I am personally very curious how these small businesses will evolve over time. I am curious what happens when you provide poor people with basic resources & infrastructure. Is it a gateway to create their own, independent lives or do they stay dependent on aid from the community. In the longer, sustainable run, when given access to schooling and resources, can people find a way out of poverty? What lessons can be learned? What combinations of socialism, communism, capitalism and things like a universal basic ‘infrastructure’ could pave a path to a more prosperous future? I believe in combinations to reach that point. It’s not one or the other. We need protective markets, transparency, innovation, equal opportunities alongside with sustainable investments and regulatory frameworks that provide the country with a plan for the future. Timing is important here.

Despite the challenges Pedro and his team of volunteers faced, including opposition from local authorities and limited resources, it is remarkable to see that even in a challenging environment success can be made. It is an inspiration for other regions facing similar challenges.

Maybe someday we will have père Robbe 😂

I am taking a Taxi in the capital Antananarivo: the car is the iconic French Citroën 2CV, better known as the “Deux Chevaux”.

Smog and air pollution

I was lucky to travel most of my time in a 4x4. It was not a luxury to have one, especially if you’re traveling into the countryside. In the capital I’ve frequently taken an old, yellow taxi. It is a Citroën 2CV (deux chevaux car) as the model is being called. There is something to be said about the way the car is still being used today. On one hand it’s sustainable to reuse the car over and over again, when something is broken, people try to fix it. On the other hand it’s still using an old diesel engine, producing an incredible amount of particulate matter and pollution. The amount of smog on the roads in the capital was very bad. I got some particles in my eye. It has taken weeks before the particles where gone, even after washing my eyes daily with professional products. On the road you see old cars, trucks and scooters from the early 20th century. There is a huge challenge to create affordable transportation methods that will produce less pollution. The countless small, wooden shops you see along the road where people are selling fruits, drinks, and other consumable products are all directly being contaminated by the pollution on the streets. The many daily traffic jams don't help much to the problem either.

collage of food in madagascar

I enjoyed the local street food in Antananarivo.

The food

The food is mostly fresh and biological. I eat food from the local markets and restaurants. Compared to European standards, it is very cheap. I bought lobsters, fish, chickens, greens and fruits on the local market. Of course rise was part of our daily diet. I liked the street foods. I especially liked the ‘mofo akondro’ bananas, the mofogasy food as breakfast and the Mofo-anana. I’ve once gone to a food restaurant, and had pain in my stomach for days. Afterwards people told me to never go there because the food in that restaurant is not being properly processed. It does come handy when you know some local people that know what’s good and what to avoid.

Nature, climate change & agriculture

collage of robbes adventure in madagascar

In conversation with a local fisherman.

It’s unbelievable how quick the people were able to adapt to different situations. There was a huge rain storm. The local market was washed away. People were standing to their bellies in the water. Still, no matter how bad the situation a lot of the people where in, they were dancing in the rain. The following day, they were busy repairing their shops. I expected to see more people sitting desperately on the streets. I think I would say ‘it is no longer necessary for me’ when I was in such a situation. Yet, a huge majority (not all, but a lot) of the people were busy trying to earn some ariary (local currency). Even if that means they just sell a single citron or a banana they picked from a nearby tree.

Unfortunately, I didn’t make it till the south of Madagascar. I will go next time. I wanted to go to see with my own eyes the impact of climate change in the region. The environment is becoming too hot and dry, creating extreme hunger under the poorest people. People dependent on their own food growth for survival are struggling to grow their plants but also food and feed their animals. Severe droughts has caused the World Food Programme to come in to help where possible.

In the capital region, I saw lots of rice fields, old school farmers and fisherman everywhere in the rivers. It’s no surprise rice is on the menu at every meal of the day here. The climate is great for exotic fruits and vanilla plants.

(sustainable) Tourism

collage photos of my trip to Madagascar

I especially enjoyed my stays in the jungle. The unique ecosystems are a heaven for biology enthusiasts like me. The shooting was a game to first hit a bottle of wine.

Tourism could be a potential growth opportunity. The country is blessed with incredible national parks, gorgeous beaches, great climates and so much more. I especially enjoyed my stays in the jungle. Cheaper flights and more flight connections making the country more accessible could help. It is worth the long flight. It would make the country less secluded. The country was secluded for a very long time. Unique ecosystems and animals have shaped and evolved over time independently. As a biology enthusiast, Madagascar was a heaven. More opportunities in sustainable tourism could be shaped in the future. I’ve taken domestic flights to be able to reach my destinations.

Two cars navigating through a flooded street, with water reaching up to the car windows.

Infrastructure

A lot can be said about infrastructure, it’s even a bit of a controversial topic nowadays. Infrastructure is a broad topic. It ranges from roads, rail ways, hospitals, bridges and houses, but also things like access to a bank account.

Roads & railways

It is very hard traveling in the country by car. As I told earlier, the roads aren’t good in the countryside. Places aren’t very accessible. When going to the coastline, I had to take the plane, otherwise it would have taken days (depends on which coast you want to reach, starting from the capital). It quickly costs 300 euros for a retour ticket from the capital to the coast. It would make tourists more independent and it would open up the country more when there was a better infrastructure.

Roads and motorways are sometimes even totally absent. It would have been a pleasure, to have something like a train connecting all the major bigger cities. As far as I know, there are no trains riding in the country right now. There is a used train from Switzerland bought that should ride from the center of the country to the east coast. The train will ride on an old, already existing rail road that still needs some upgrades and maintenance. A train or motorway connecting the major cities would attract more people to the country, costs would go down over time, and places would become more accessible. Questions to do that in a sustainable way and how to finance such a project in a poor country raises questions.

Big mega projects, financed by foreign multinationals or countries, like seen in other (poorer) countries are only a solution if they can be paid back on a sustainable way. It's something I still need to dig into a little more to be able to provide more context and shape my opinion. The whole infrastructure section soon becomes a financial question. How does a poor country, with a (in practice) taxation system from the 20th century finances it’s infrastructure costs? Infrastructure projects need to be well-equipped and prepared for potentially disastrous cyclones in the region.

Construction & housing

For huge infrastructure projects, Madagascar seems to be dependent on foreign multinationals. The knowledge to construct a house or a basic building is present. They should be made affordable or at least accessible to the poorest layers of the society. The government could prioritize the provision of basic infrastructure, such as water and sanitation, in settlements and slums to improve living conditions. By promoting the use of local materials, building the capacity of the local workforce, and establishing financing mechanisms for low-income households, it may be possible to make construction more affordable and accessible to all segments of the population. There is a need to address land tenure issues, which can make it difficult for low-income families to access land for housing development. The government could establish policies and programs to support the formalization of land rights and facilitate access to land for low-income families. Innovations can be made here to. I already saw 3D printed houses being built in the country.

Tax, Banking & financial services

I was surprised to hear that a lot of people didn’t had a bank account. Cash is the main driver of the local economy. I was surprised to see that even a lot of poorer people had a smartphone. Fintech solutions could potentially create more equality and accessibility to financial resources and capital markets. Creating transparency in capital flows is important to create equal playing levels.

The government could work with the private sector and international donors to establish financing mechanisms, such as microfinance loans and housing cooperatives, that make it easier for low-income households to access credit and secure affordable housing.

Tax was collected by tax collectors passing by the small little shops on the street. Shop owners had to pay a fixed amount for there standing place on markets and streets. While this is far from the only revenue stream of the government, for most people it is the only way they are paying taxes. This mid century tax system hasn’t changed since a very long time.

Energy

The average Malagasy person uses very little energy resources. Electricity outages where a common thing. I experienced at least four outages during my stay in the capital. Especially when it’s raining the electricity grid is vulnerable. The electricity infrastructure is old and is primarily concentrated in the urban areas. The rural areas lacked reliable power supply. In certain villages I saw a complete absence of electricity. It is unbelievable to see people living in a different era. There are many people in Madagascar who have no access to electricity.

The poorer people use their hands and the river to wash their clothes. The food they consume has grown locally. Lightning is often very primitive. The houses are build from clay and wood. Sometimes they possessed an old refrigerator or an air conditioner. Cooking was all too often done with fire. If they where able to posses a scooter or car, it’s a polluter of a vehicle, often times with an old diesel engine.

Energy transitions in developing areas are challenging. The costs and investments needed for a transition are high. There are sources full of renewable energy that are waiting to be explored. There are abundant natural resources, including solar, wind, hydroelectric, and biomass potential.

A significant portion of Madagascar's population lives in rural areas where access to electricity is limited. This provides an opportunity to implement off-grid and mini-grid solutions, powered by solar or hydro, to bring electricity to remote communities and improve the overall standard of living.

As reliable energy resources is crucial for economic development, Madagascar will need to incorporate innovative and flexible solutions for its future energy needs.

Raw materials

Madagascar is rich in raw materials. These raw materials could be a possible treasure for economic growth when the right actions are taken. Madagascar is especially rich in precious gemstones, minerals and ores, including chromite, nickel and cobalt, agricultural products, including a booming vanilla market, coffee, cocoa, cloves, essential oils and fishing resources.

Billion dollar contracts are made by companies and countries in the fight for the raw materials. Current mining projects are being scaled up which brings in new environmental and social challenges. The exploitation of natural resources can lead to environmental degradation, loss of biodiversity, and social conflicts. To ensure a long-term sustainable window, it is essential for the country to strike a balance between economic development and environmental conservation. I hope that the natural wealth of the country can bring more prosperity to all the people of Madagascar. While mining operations are generally closed circle systems, the European Union is imposing new resolutions that calls for more transparency in the use and processing of these raw materials. Mining activities are at the political debate to promote transparency, to allow mutual sharing of profits between investors, local communities, the environment and the host country.

Alongside the huge corporations, there are lots of small scale mining operations, mainly in remote areas. I regularly saw people digging in rivers and rocks in search for gold and other materials of value.

I made an overview with some basic mapping information here.

Education, young demography & jobs

Madagascar has a young demography. This makes the importance of a good educational system very important. I saw projects and people working to build private schools as non-profit organizations. While started as a very basic school, some of these projects have grown out to be great supporting schools.  There are public schools, but more funding is needed. The richer children  go to private schools. There are some major differences with Europe. It is easier to start a private school and the schools have more flexibility and freedom to determine their programs. I look forward seeing those projects successfully grow in the future and being made more accessible to the poorer layers of the society.

There is almost no work in Madagascar. The unemployment rates are incredibly high. Limited job opportunities and a lack of formal industries make it very difficult for many to secure stable employment. The wages are very low.

The work culture and mentality in Madagascar can also pose obstacles for businesses and economic growth. Punctuality and a strong work ethic are not always present, which leads to inefficiencies and hinder productivity. It is important to note that this is a general observation and does not apply to all individuals in Madagascar. Some people do possess a strong work ethic and are eager to participate in business endeavors that can uplift the country's economic prospects.

Foundational projects

Private initiatives, such as foundations, play an important role in Madagascar's development and progress. These organizations are often established by individuals, families, or corporations with a philanthropic mindset.

Foundations in Madagascar typically focus on a range of issues, including poverty alleviation, healthcare, education, conservation of biodiversity, and community development. They work closely with local communities and partner with government entities, other non-profit organizations, and other peoples to maximize their impact.

Strong, transparent and trustful institutions are needed to create building blocks for the poorest people.

Safety

I mostly felt safe in Madagascar and that was because I was well surrounded by locals who know there environment well. It depends a lot on the region your in. In the suburbs of the capital I felt a huge attention and was very careful. Don't let the risks stop you from visiting this beautiful country, but make sure you are very well-prepared. It stays a development area which has its risks.

Foreign investment

Foreign investments in Madagascar have typically been limited due to a combination of factors. Despite its potential for economic growth, the political landscape in Madagascar has been characterized by frequent changes in leadership, which creates uncertainty for foreign capital. Frequent political transitions often have led to policy shifts, legal uncertainties, and a lack of clear economic strategies, all of which have an impact on foreign businesses from investing in the country.

In his talk to france24, père pédro explains some problems he faces when running a business in Madagascar. This includes challenges for licensing processes, contract enforcement, and interactions with government officials. This not only increases the cost of doing business but also poses significant reputational risks for companies operating in an environment tainted by corruption.

Geopolitical influences

The future of Madagascar is unsure. But the world is for sure changing and those changes may shape new opportunities. Movements in global world orders has it’s impact on Madagascar. Different systems will combat to create influence zones in Madagascar. Cards will be shuffled again and hopefully this will create positive change for all the people of Madagascar.

thank you Madagascar card

I will travel back to Madagascar soon. This country is full of love and beauty. Thank you, Madagascar for all that you’ve given to me💖.


(interesting) Sources

World bank data Madagascar country profile

World bank Madagascar overview

Access to electricity Madagascar - world bank

World Food Programme - Madagascar country profile

OEC data - Madagascar country profile

Africain Intelligence: news Madagascar profile

Aljazeera Madagascar

U.S. Agency for international development USAID Madagascar

Pere Pedro - Akamasoa

Hostel - Pere Pedro

Pere Pedro interview

Ambatovy mine wiki

Ambotovy about website

PDF mining gold

EDMB

ARTE - Madagascar : la vallée maudite du saphir