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mercredi 24 mai 2017

The Impacts Of Madagascar Minerals

By Raymond Myers


The world is changing for the better and it is all because of minerals. Qatar is becoming a leading financial center due to the fact that the country has huge natural gas reserves. China is a world power because it is a leading producer of phosphate and other mineral products. Madagascar is greatly transforming. Some of the positive transformations that have been witnessed in this country are attributable to Madagascar minerals. There are more than a dozen companies in this country that are involved with mining activities. Some of those enterprises are based locally while others are foreign based.

The economic impacts of mining in the Madagascan islands have been well noted. Many economists have written and spoken about them. Mining activities make the country to earn a lot of income. Mining is the chief foreign exchange earner of this Indian Ocean Island. The income earned from mining is used to pay government employees and to run the different government projects.

Mining has had an impact on different classes of people. It has impacted the rich, middle income earners and also the poor. Some people have been able to conquer poverty as a result of being involved in mining activities. It is true that some of the rich Madagascans have grown richer due to the fact that they own mining companies.

The Madagascan GDP has been positively impacted by mining. This country used to have a small GDP that placed it among the least wealthy countries in Africa. That will not be the case in the next decade or two because the Madagascan GDP is growing at a very fast rate. That has led to the rise in per capita income.

Another direct impact is the foreign direct investment. Most countries in Africa are behind because foreigners are not investing in those countries. There is a good reason for a company in Europe, Asia or the USA to directly invest in a Madagascan mining enterprise. This is due to the fact that good returns are guaranteed. Indirect investment is also good.

People are investing in the Madagascan mineral sector because of the good economic climate of the country. It is easy to open a business in this part of the world. Getting a mining license is also an effortless affair. There are also fewer failed banks. That means that investors do not have to fear about the safety of their monies.

It is not the mineral industry alone that is growing. There has been a ripple effect to the entire Madagascan economy. This is because this industry does not exist on itself. It is dependent on other sectors. It is particular dependent on a number of service sectors such as transport, logistics, finance and hospitality. There is need to bank funds and to efficiently transport minerals.

The Madagascan society is undergoing a great transformation. The country is transitioning to middle income status and it is all because of the abundance of natural resources. Such resources when well managed will definitely result to positive societal impacts. Of course, they make the economy to grow and that results to higher living standards among other matters. There are also social impacts.




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