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Madagascar, lying off the southeastern coast of Africa, is the fourth largest island in the world. Many rare species of flora and fauna inhabit the island, quite a few of which are hard to find elsewhere, hence the name “A Land of Living Fossils”.

More than natural beauty, the country boasts abundant natural resources and is a potential market. Development in parts of the country has lagged far behind other areas. Madagascan government is expecting more investment from China. This expectation was extended at an investment conference recently in Beijing.

The conference was co-hosted by the Madagascan embassy and Africa Investment Net, dedicated to provide useful information about investment policy and market potential as well as business opportunities for Chinese enterprises.

Victor Sikonina, Madagascan ambassador to China, says his country welcomes Chinese investors.

“Madagascar is among the developing countries in Africa. Actually we have a good relationship with China. I think we need the knowledge, the financial experts from China in all areas of economy, mainly in agriculture, in mining even in social economies. We need because we have a deal now since the Beijing Summit of Sino-African Cooperation. We have a deal. The leaders of our country agree that Chinese help African countries to develop.”

China and Madagascar signed approved destination system convention in October, 2006. Now, Chinese tourists are able to enjoy the magnificent beauty of the country. Sikonina hopes to see more Chinese invest in the tourism industry so that it can be boosted.

“Since the signing of the convention, I do hope we start the tourism this year. A very big potential. I hope Chinese people come to invest in the hotel, restaurant, tour and also the catering industry and a lot of opportunities possible.”

Now there are about ten big Chinese companies which do business in Madagascar. They are specializing mainly in petroleum, in road and bridge construction, agriculture, a sugar factory, medicine and mining.

Many small-and-medium-sized enterprises are exporting local sea food products, fruits, coffee, and lilacs…to European and Asian markets. Currently Chinese business people outnumber those from France and India.

Cai Guowei is the president of General Association of Chinese entrepreneurs in Madagascar. He notes Madagascar boasts many favorable conditions, which can facilitate Chinese enterprises.

“Madagascar has adopted the French legal system, which is fair. In addition, Madagascan people are friendly to Chinese investors. The country has a mild climate, stable society and favorable natural conditions.”

Cai Guowei says Chinese enterprises also bring benefits to the economic development of the country and many locals are beneficiaries.

“Chinese enterprises give impetus to the development of their Madagascan counterparts. More local business people invest abroad thanks to being given the management experience from their Chinese peers. What’s more, they pay considerable taxes to the government and create job opportunities for the locals.”

Cai Guowei has owned three supermarkets in Madagascar. He is planning to invest in a 20,000 square meters of logistics center in the capital Antananarivo later this year.

Chen Mu is the general manager of Shanghai Pharmaceutical. He is planning to establish factories in Madagascar, which is a new market for him. Previously he had business in plenty of African countries, including Kenya and Nigeria.

“I think the market in Madagascar has potential for us. We have an effective drug against deadly malaria, artemisinin, which is desperately needed in Madagascar. What’s more, the price is fairly low compared with that from Europe or America. So we plan to set up an enterprise there, in which the research and development, acceptance, packaging and sales are completed with integrity.”

CRIENGLISH.com