French President Announces Economic Deals with Madagascar

France and Madagascar announced a series of ambitious economic cooperation projects on Wednesday, including the development of a large hydroelectric dam, as President Emmanuel Macron began a two-day state visit to the island nation.

This visit, the first by a French president in 20 years, aims to reinforce bilateral relations and solidify France’s presence in the Indian Ocean region, despite ongoing disputes stemming from the colonial era.

Following discussions with President Andry Rajoelina, Macron revealed that agreements spanning energy, digital technology, infrastructure, and tourism would be finalised during his visit. These agreements include funding from the French development agency (AFD) and a French treasury loan to support the long-delayed Volobe hydropower dam project in eastern Madagascar.

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Additionally, a deal is expected to be reached for French energy giant EDF to invest in Madagascar’s hydroelectric company, CGHV.

Madagascar_Macron (News Central TV)
French President announces economic deals with Madagascar. Credit: France 24

Macron also emphasised the importance of a “partnership” between the two countries regarding strategic rare earth minerals, of which Madagascar possesses significant reserves.

Rajoelina called for further French investment in Madagascar’s “immense potential,” highlighting France’s position as the island’s top trading partner.

Macron’s visit occurs amidst challenges to France’s sovereignty over certain Indian Ocean territories and the increasing influence of China and Russia in the region.

Madagascar, a French-speaking nation of 30 million, disputes France’s control over the Scattered Islands, which remained under French rule after Madagascar’s independence.

Similarly, the Comoros archipelago claims the French department of Mayotte. These territories hold strategic importance in the Mozambique Channel, a vital trade route rich in natural resources.

The issue of territorial disputes is linked to “national identity, resource access, and leverage for other concessions,” according to maritime law expert Denys-Sacha Robin.

While France favours joint management of the Scattered Islands, Madagascar is pushing for a full handover, similar to the UK’s recent agreement to return the Chagos Islands to Mauritius.

The visit also addresses the complex legacy of French colonisation in Madagascar, a biodiverse island nation facing significant poverty.

Macron has pledged to return cultural artefacts taken by French occupiers, though plans to repatriate the skull of a decapitated Malagasy king have been postponed due to family requests for tomb restoration.

There are also calls for France to acknowledge its colonial-era abuses more strongly, including the establishment of a commission to investigate these actions, as proposed by historian Jeannot Rasoloarison.

Macron will also advocate for increased economic, health, maritime, and security cooperation between Madagascar and French territories in the region, such as Mayotte and Reunion.

On Thursday, at an Indian Ocean Commission (IOC) summit in Antananarivo, he is expected to push for Mayotte’s inclusion in the organisation, a move opposed by the Comoros.

Another likely topic of discussion is the case of dual-national Paul Maillot Rafanoharana, imprisoned in Madagascar for an attempted coup. His co-accused was transferred to France in 2023.

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