The workforce of Madagascar Airlines will melt
With only two small aircraft in its fleet, Madagascar Airlines (the merger of Air Madagascar and Tsaradia) still employs 800 people. Even if the Malagasy company plans a redeployment of its activities, this situation of overstaffing is not tenable ; a voluntary departure plan was initiated in March. Thierry de Bailleul, general manager of Madagascar Airlines, betting on 400 departures. Two to three months’ salary, compensation and free tickets are offered to those leaving..
Cocoa better than vanilla
The rise in world cocoa prices leads to an unprecedented situation in Madagascar : dry cocoa beans sell for more than green vanilla pods, whose prices follow an inverse curve. Madagascar exports around 15,000 tonnes of cocoa per year : a marginal volume compared to major producing countries, starting with Ivory Coast. But Malagasy beans are appreciated, and the market is liberalized. Cocoa farmers on the Big Island today sell their products for 24,000 ariarys per kilo (almost 5 euros), compared to less than one euro a few years ago.
Agroecology the Zimbabwe way
An agroecological practice from Zimbabwe, called Pfumvudza, is being tested in Madagascar. It consists of reducing soil work, to ensure its permanent cover with mulch, to practice crop rotation and combine service plants with main crops. The objective of the Malagasy state is to train a million farming families in this method which would increase yields without impoverishing the soil..
Rice production is increasing
Madagascar imported 424,000 tonnes of rice in 2023, a figure down more than 40% compared to the previous year. This development could be partially explained by the increase in the consumer price of rice., which would force the poorest Malagasy people to turn away from this basic food. The main factor in this reduction in foreign dependence, however, is the good level of national production., according to the Malagasy Rice Observatory. The distribution of agricultural input kits to producers would contribute to this trend, according to the Observatory. The year 2023 was also marked by a 40% increase in global rice prices., which reached their highest level in fifteen years.
The minimum starting salary at 56 euros
The minimum wage increased by 10%, end of March, within the Malagasy private sector. The minimum hiring salary increases from 238,800 ariarys to 262,680 ariarys (around 56 euros for non-agricultural sectors). It increases to 266,500 ariarys (57 euros) for the agricultural sector.
Economic freedom is in decline
Madagascar falls six places in the annual ranking of the economic freedom index, established by the American liberal think tank The Heritage Foundation. The Big Island appears in 97th position, out of 176 economies studied. It is thus classified among the “little or no free” economies., according to the criteria of this index.
