Madagascar

Candidate country

Overview of Extractive Industries

At present oil, gas and mining resources account for less than 4% of GDP. However, all that is set to change. The minerals sector is seeing a heavy inward flow of capital investment for ilmenite, nickel/cobalt, chromite, chrome iron ore, uranium. Also a large number of oil exploration blocks have been offered - both onshore and offshore - and some exploration activity is under way.

Progress in Madagascar stalled following the political instability since the beginning of 2009. However, with the relative stability since then, the multi-stakeholder group has been revived and an EITI pilot report was published in February 2010. The report shows how significant revenue flows are for the first time in Madagascar’s history being received by Government. The revenue from the two biggest operations – Rio Tinto QMM and Ambatovy – amounted to US$70 million for 2007-09.

Status of EITI Implementation

Madgascar was accepted as an EITI Candidate country on 22 February 2008.

26 January 2010 Madagascar applied to extend their deadline for completing EITI Validation. The EITI Board agreed to grant Madagascar an extension. Peter Eigen sent a letter to the President of the High Transitional Authority conveying the Board's decision. Madagascar has until 9 March 2011 to submit a final Validation report to the EITI Board.

A completed, costed and targeted workplan was agreed in December 2007, but progress on it has stalled. In February 2010, an updated workplan was agreed by the multi-stakeholder group.

Governance of EITI Implementation

The national multi-stakeholder group (MSG) was due to be formalised in January 2008, but the workshop had to be cancelled due to the political crisis that began 3 days before. In July 2010, the national MSG, was finally formalised according to open, transparent, and democratic principles with 18 members equally representing the government (central and regional), NGOs, and companies representatives (mining, oil, and small scale mining). The government has appointed a champion to chair the National committee as well as the working group of 7 members tasked with implementation of the strategic plan. Furthermore there is a national assembly of stakeholders of 90 persons (5 from each of the three constituencies, from each of the 5 regional MSGs and the central MSG). This group oversees the MSG. The structure is established in a formal constitutional document.