The Government of the Republic of Madagascar, represented by the Minister of Finance and Budget RAKOTOARIMANANA Gervais, and the Japan International Cooperation Agency (JICA), represented by its First Vice-President, KOSHIKAWA Kazuhiko, signed the concessional loan agreement amounting to Y$45.214 billion (US$411 million) for the financing of the Development Project Of the Port of Toamasina.
Through this project, which aims to contribute to the economic development of Grande Île, the Port of Toamasina, which is positioned as the first major commercial port in Madagascar, will be expanded and strengthened to meet high demand for goods and to improve the efficiency of processing of goods. This investment by JICA will enable the Malagasy government to carry out imperative work such as expansion of the breakwater, construction of a container dock, dredging of bulk cargo docks, expansion of the container yard and consultancy services (detailed design, technical assistance to tender and construction supervision). This cooperation between Japan and the Malagasy will also increase the revenue generated by port freight and maintain and strengthen the financial situation of the SPAT.
Since Madagascar is an island state located in the southern Indian Ocean, shipping plays a major role in terms of the country’s goods flow. Although Madagascar suffered an economic downturn in 2009 due to political turmoil, the situation improved with positive growth in 2010. The country’s economic growth rate is now between 4 and 5 percent. In addition, a strong increase in freight flows is expected in the face of the current demographic growth. For example, good growth is projected for goods shipped to neighboring countries such as Kenya and Tanzania, which have annual economic growth rates of more than 5 percent. The Port of Toamasina is the largest commercial port in Madagascar, processing about 75 percent of domestic goods as well as about 90 percent of international goods. The Government of Madagascar will therefore prioritize infrastructure development and facilitation for an efficient operation in the port that will meet the expected growth demand for domestic and international goods. Through the expansion of the container dock, the expansion of a container yard, and the completion of the other works at the Port of Toamasina, it is expected that this project will at least double the volume of goods handled at the port. It is also expected that these investments will increase the flow of goods with greater efficiency, promote investments in Madagascar, and develop the private sector.
In parallel to this project, JICA has implemented the TaToM Project (Project for the Development of the Master Plan for the AnTananarivo-Toamasina Economic Axis, Madagascar; French: Le Projet d’Elaboration du Schéma Directeur pour l’axe économique AnTananarivo-Toamasina, Madagascar) in the framework of technical cooperation since January 2017, with the objective to revise the Urban Planning Plans of Antananarivo and Toamasina in order to meet the need for development of Grand Île.
Source: Orange Madagascar (LF)
Source: Orange Madagascar