South Africa is the second largest developing country investor on the continent. In 2013, 29 per cent of our exports were destined to Africa. Whilst in 2012, 12 per cent of our dividends came from Africa, up from just 2 per cent a decade earlier e9lil3a. 18 large African firms now have debt and equity listings on the JSE (Johannesburg Stock Exchange). South Africa is an important center for financial services such as fund and asset management.
In 2012 Madagascar was South Africa’s 11th largest source of imports in Africa to the value of R588.000 (annual growth of 15% over 2011). Madagascar was also South Africa’s 14th largest source of exports in Africa to the value of R1,300,000 (an annual growth of 24% over 2011)
Madagascar imports mainly minerals, fuel, sugars, iron and steel, plastics, fertilizers, soft drinks, wine, processed foods; and exports mainly textiles, machines, fuels, iron and steel, coffee, tea, spices, fish and crafts
The interesting factor is that Madagascar exports to South Africa have shown a steady growth from 2008 to 2012 while SA exports initially dropped after 2009, it is picking up from 2011.
South Africa economic involvement in Madagascar is focused on various sectors: mining, energy, tourism, finance, retail, security.
CHALLENGES / Way forward
- To jointly ‘reactivate’ and promote economic ties (trade and investment) from its current low base.
- Initiate the establishment of a government to government ‘joint commission’ with priority focus on economic ties soon after elections.
- Use MASACCI (Madagascar South Africa Chamber of Commerce and Industry) to actively facilitate economic cooperation.
- Explore joint private sector trade missions / participation of SA private sector in trade fairs in Madagascar. Trade missions by both countries, participation by Malagasy government and private sector in SA Mining Indaba, Tourism Indaba, etc.