Madagascar Roundup: $45m Madagascar airline support, $2.3m public fund embezzlement, insecurity
Madagascar Airlines eyes $45 million from World Bank
Director General of Madagascar Airlines, Thierry de Bailleul, has said that his office is anticipating financial support of about $45 million from the World Bank. In an interview with lechotouristique.com, he expressed optimism about the positive evolution of the company. "The World Bank is ready to put about twenty million on the table. The World Bank has seen the positive evolution of the company," he is quoted by L’Express. Following discussions with the World Bank's Director of Operations, Idah Z. Pswarayi-Riddiough, concerning Madagascar Airlines, Bailleul hopes for an additional $20 million to upgrade ATRs, order regional Embraers, and facilitate digital transformation. The World Bank's assistance, a retroactive loan with a state guarantee, aims to bolster Madagascar Airlines amid growing tourist inflow.
$2.3 million public funds diverted
The General Inspectorate of the State (IGE) has revealed that embezzlement cases, particularly of state funds, in the country exceeded 11.2 billion ariary ($2.3 million) this year. Offences involve misusing state funds, including cash absence, overbilling, and fictitious services, the Madagascar Tribune reported. Again, influence trafficking, a subtle yet harmful practice also contributes to embezzlement. The root causes identified include the ill will of agents, incompetence, and inefficiency of the repression system. In 2022, embezzlement cases reached over 76 billion ariary ($16 million), highlighting the need for enhanced oversight and measures against corruption. These statistics include findings from both the Independent Anti-Corruption Bureau (BIANCO) and the General Inspectorate of the State (IGE). The IGE, specifically, documented embezzlement of public funds totalling 15.3 billion ariary in the year 2021.
227 billion ariary ($49 million) in customs exemptions
The Madagascar Customs Service has reported exemptions of almost 227 billion ariary ($49 million) in import duties and taxes for the first eleven months of 2023. The exemptions arise out of the Council of Ministers' decisions to grant exemptions, covering various items such as equipment from international organizations, raw materials, and donations, the Madagascar Tribune reports. Customs collected 3,104.8 billion ($650,000) in budget revenues during this period, with imports totalling 19,354.1 billion ariary ($4m). The exemptions support initiatives like donations to public hospitals and projects financed by external funds.
Insecurity and kidnappings
Insecurity, including kidnappings, remains a significant concern in Madagascar. Anjozorobe reports ongoing hostage situations, with five individuals still held by kidnappers since November, the Madagascar Tribune has reported. In Ankazobe, a series of kidnappings targeting women and children has recently been resolved. Meanwhile, security forces, communities, and local officials collaborated for successful releases. In the capital, while kidnapping cases are decreasing, street thefts and robberies are on the rise, prompting heightened security measures.
Chinese business relations
Effective December 25, 2023, over 8,900 products from Madagascar enjoy exemption from customs duties in China, the Chinese Customs has announced. This extension, covering 98% of export products, includes items like vanilla, seafood, cocoa, and spices, Actu Orange has reported. The Chinese Customs Tariff Commission's announcement also extends this zero-tariff treatment to Angola, Gambia, Mali, Mauritania, and the Democratic Republic of the Congo, bringing the total number of African countries benefiting to 27. China aims to further expand this treatment to all least-developed countries with diplomatic ties.
