By: African Business

Following a military coup in October that ousted President Andry Rajoelina, Madagascar's new military-led government discovered and publicly announced the sale of 300 kg of emeralds found in the presidential palace. The newly installed President, Michael Randrianirina, framed the discovery as a symbolic break from past opacity in managing the country's mineral wealth. Madagascar holds significant reserves of industrial minerals like graphite, nickel, and rare earths, as well as gemstones, attracting major foreign mining investment from companies such as Rio Tinto, Sumitomo, and various Chinese firms.

However, industry figures report that operating in Madagascar remains challenging due to a slow, complex licensing process, unpredictable regulatory moves like permit embargoes, and broader issues like poor infrastructure. These challenges have historically stifled growth, despite reforms like the 2023 Mining Code, which aimed to standardize procedures and offer fiscal incentives to attract investment. It is uncertain whether the new government will continue these reforms. While some analysts feared the coup might lead to resource nationalism similar to events in the Sahel, operations at major mines have continued uninterrupted so far. The appointment of a prime minister with a background in international economics has led some observers to hope for a more technocratic, business-friendly approach focused on economic stability to address the grievances that fueled the protests.