2023-11-30 07:00:00
The African Development Bank (AfDB) anticipates an economic rise, mainly fueled by the boom in the mining sector in the country. In its 2023 report, it says the sector could represent up to 14% of GDP by 2025, a development supported by growing demand for strategic minerals such as ilmenite, nickel and cobalt.
The document highlights that current exploitations of ilmenite, nickel and cobalt, contributing 1.5% of GDP, could see their impact increase between 4% and 14% by 2025, thus dominating national exports. The substantial investments of Rio Tinto in the South-East and Ambatovy in the East demonstrate the growing role of the mining sector, according to the AfDB.
Madagascar holds abundant reserves of strategic minerals such as nickel, cobalt and ilmenite, with exploration prospects including coal, iron, graphite and limestone. Three major mines and a Ranobe ilmenite project in advanced development, mentioned in this report, indicate the significant potential for mineral production.
Despite mainly artisanal mining, the AfDB believes that Madagascar could become a major player in gold production in Africa. Small quantities of precious stones extracted by gold miners, such as sapphire, ruby and emerald, also contribute to this dynamic. Rare minerals in the northwest are being identified as private investment opportunities.
At the same time, this ADB report highlights the notable economic contribution of the mining sector, according to the Extractive Industries Transparency Initiative (EITI) Madagascar. This sector represented 4.62% of GDP, playing a significant role in exports (27.59%), public revenue (4.41%) and employment (1.82%).
Despite global economic challenges, the extractive sector in Madagascar maintains sustained growth, driven by increased demand for minerals following the war in Ukraine. In 2022, growth of 23.6% was recorded, with forecast growth of 8.6% in 2023, and continued projections of growth in 2024 (14.6%) and 2025 (14.5%) , according to figures from the Ministry of Economy and Finance.
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