Positive Impacts Of The Fdi And New Opportunities

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This chapter presents the results of the investigation concerning the position impact of the Foreign Direct Investment in the country . The section deals with the distribution of the impact by sector of Foreign direct investment as following : manufacture of textiles and clothing item , agriculture and mining. According to the research made by the INSTAT, the number of industrial enterprises to foreign direct investment activity is estimated at 50 to mid of 2014 against 45 in the previous year, an increase of 10%.
Five (5) new industrial enterprises to FDI have been identified, finding reflecting the renewed confidence of foreign operators to Malagasy economy .
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In the “mining” sector has become a priority for the Government and the objectives for the sector are ambitious. Madagascar reiterated its aim to fully exploit its mineral potential through FDI,” in 2012, with support from the World Bank, the Ministry of Mines has produced a geological mapping update mineral wealth of Madagascar . This update shows that the country has a diversified mineral base, with gemstone deposits (sapphires, rubies), industrial stones (marble), minerals (chromite) and copper, including malachite” stated by the UNCTAD. The industry contributes about 2% of GDP , but this figure could reach 10% in the short term and even 30% after the Ambatovy project has reached its optimal production level ( Minister of Mines, 2013). GDP growth is estimated at 3.4 % in 2015 (3.3% in 2014 ), mainly generated by the mining industry and the tertiary sector.

Note that most of these companies are subject to the free zone regime, “putting in place an incentive environment for all investment activities in Madagascar gave rise to the development of the Law on Investments in Madagascar, the objective of which is to adapt and boost rapidly
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