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Madagascar Madagascar

EITI Status

EITI Status: 
Candidate country

Candidate since

Candidate since: 
22 February 2008

Extractive Industries

Data from the 2012 and 2013 EITI Reports showed that the relatively small mining sector in Madagascar was expanding rapidly. The sector accounted for 2% of the country's GDP in 2013, up from 1.6% in 2012. This increase can be attributed to export of refined cobalt and nickel and growing production of other minerals. According to the USGS 2012 Report, production of key minerals increased sharply in 2012. The report estimated that production of gold increased by 900%, ruby by 344%, cobalt by 44%, ilmenite and mined nickel by 40% each, routile by 38% and Zircon by 30%. Employment in the artisanal and small scale mining was estimated to be as high as 500,000 workers in 2012.

Ambatovy started production in 2012 near the city of Moramanga, 80 km east of Antananarivo. The company produces fully refined cobalt and nickel for export. According to the company's website, it is targeted to produce approximately 60,000 tonnes of refined nickel and 5,600 tonnes of refined cobalt every year once it is fully operational.

In the southern part of the country, Rio Tinto runs an ilmenite mine, which has been operational since 2009. Prospects for future years relate to coal mining, iron ore and other deposits of ilmenite.

In addition to minerals, Madagascar has potentially significant hydrocarbon deposits. The existence of oil has been known for over a century but production was not considered commercially viable for a long time. According to the 2013 report, at least 17 oil companies were active on some of the country’s 20 onshore blocks and over 200 offshore oil blocks. 

EITI Reporting

The country produces EITI Reports that disclose revenues from the extraction of its natural resources. Companies disclose what they have paid in taxes and other payments and the government discloses what it has received. These two sets of figures are compared and reconciled.

EITI Implementation

Madagascar has published a comprehensive 2015 workplan laying out their goals and activities to ensure that EITI contributes to wider reforms of the extractive sector. 

Following delays, due to lack of funding, Madagascar’s pulished its 2012 and 2013 EITI Reports in January 2015. The reports revealed that despiate the government ban on export of gold, USD 26 million worth of gold were illegally exported to the United Arab Emirates, in 2012 and 2013 alone.

The National Committee published its first EITI Report covering 2007 to the first half of 2010 in June 2011. Despite the challenging political environment and lack of funding, the MSG continued to function during the period when Madagascar was suspended for the EITI (October 2011-June 2014) due to political instability. The full 2010 and 2011 reports were published in October 2012 and September 2013 respectively. Both reports highlighted subnational payments and transfers from the central governments to communes of mining affected area as a key issue that needs to be monitored regularly. 

Validation will commence by 5 December 2016 in accordance with the EITI Standard, though Madagascar may seek an earlier Validation if the National Committee tasked with the mandate to implement the EITI considers that all requirements have been met.

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Innovations

  • Citizens in the municipalities, where mining activities take place, are given a say in how revenues from their natural resources are used through participatory budgeting. This allows the population to have a say in how to allocate revenues from mining activities. 
  • The 2013 report included information on both mandatory and voluntary social payments.

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National Coordinator

Madagascar
Interim National Coordinator

International Secretariat

Madagascar
Regional Director for Central Africa and Madagascar
EITI International Secretariat
+4796043106
Madagascar
Country Officer
EITI International Secretariat
+47 21685381

Facts & Figures

Latest Eiti Report: 2013 Report
Deadline for next Eiti report: Saturday, 31 December 2016
Number of fiscal years published: 7

Madagascar News

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