CONSTRAINTS TO THE ADOPTION OF LOCAL CONTENT POLICY IN MINING SECTOR IN MADAGASCAR

Natural Resources Management and Development

Supporting local community development has become an imperative for both extractive projects and government over the past two decades. The lack of sufficient incentives, such as local content, for companies supplying needed goods and services to locate within the mining areas, limits the emergence of outreach effects from large-scale mining projects. The objective of this paper is to analyze the constraints to the adoption of a local content policy in the mining sector in Madagascar. For this, the chosen method is based on the inventory of local content in Madagascar following the guide of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) with two indicators: the legislative framework and the favorable conditions for the implementation of a local content policy. The results showed that political and socio-economic factors still hinder the adoption of a local content policy in Madagascar. The lack of a clear vision of the economic and sectoral policies that explain in the medium- and long-term the desired evolution of the economic, social, and environmental impacts of large-scale mining projects, leads to a lack of ripple effects on the dynamics of business opportunities for both local operators and local populations.

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