Madagascar's head of state met officials from the General Authority for Investment and Free Zones (GAFI) in Alexandria to open a new Africa-Africa investment corridor. But the domestic backdrop remains tense: the main employers' federation has suspended public-private dialogue, and the GEFP warns that 200,000 jobs are at risk.
Economic diplomacy turns toward Cairo
Colonel Michaël Randrianirina led a delegation to Alexandria to meet the leadership of GAFI, Egypt's investment and free zones authority. The stated objective: open Madagascar to Egyptian capital and technical expertise in strategic sectors — energy, logistics, and agro-industry. "We are looking for companies ready to commit durably, implement projects, transfer technology, and train personnel," Randrianirina stated.
South-South cooperation as a lever
The approach aligns with the Africa-Africa cooperation logic promoted by many continental states: gradually moving away from traditional financing (Europe, China, Bretton Woods institutions) toward intra-African partnerships with longer time horizons. Madagascar highlights its geographic position — a gateway between Asia and East Africa — along with its natural resources and human capital. Egypt, for its part, brings recognised expertise in regional infrastructure development.
Structural obstacles acknowledged
Randrianirina publicly acknowledged the barriers to investment: energy deficits, logistics infrastructure gaps, and administrative burden. He called them "not insurmountable" within his "Refoundation" programme. Conditions were set for future investors: compliance with laws and tax obligations, environmental protection, decent job creation, and mandatory partnerships with local Malagasy firms.
Underlying tensions with the private sector
In the background, the relationship between the state and the private sector remains strained. The GEM (Groupement des Entreprises de Madagascar), the main employers' federation, suspended its participation in public-private dialogue at end-June, citing "prolonged denial of justice" in the CNaPS pension fund scandal. The GEFP warned that 200,000 jobs are threatened by economic instability linked to new taxation policies.
Why it matters
Madagascar holds immense economic potential — mining, agriculture, tourism, fisheries — but struggles to convert it into inclusive growth. Opening toward Egypt is a positive signal, but it can only bear fruit if the domestic business climate improves. A business federation in retreat and 200,000 jobs under pressure are signals that foreign investors read carefully before signing.