Mining in Madagascar: Optimizing the Added Value with Gold Sector

In Madagascar, the mining sector accounted for 47% of exports and 5% of GDP in 2023. This is a key sector, but one that remains largely under-exploited for the country's economic development. However, industrial mining could account for up to 14% of Madagascar's GDP and dominate the country's exports by 2025. The objective of this study is to analyze and propose strategies to optimize value addition in artisanal and small-scale mining, with a focus on gold. Madagascar is rich in mineral resources such as graphite, nickel, cobalt, titanium and chromium. These resources are classified by international conventions as large-scale corporate mining. In addition to this type of mining, there is a sector dedicated to artisanal and small-scale mining (ASSE). It is this sector that is the focus of this study. ASSE is particularly important for Madagascar's national economy, as it provides jobs and income for local communities while contributing to the production of essential minerals. From an economic perspective, optimizing value added can also lead to a better distribution of the profits and revenues generated by mining, thus ensuring that local communities benefit equitably from the economic spin-offs of these activities. The existing exploitation does not improve the standard of living of the Malagasy people, but on the contrary increases the already existing poverty. The Commune is relieved of its gold resources, but these have no significant social or economic benefits. Finally, this study explores innovative models for local economic development and cooperation between public and private actors and civil society. It could serve as a reference for other similar contexts where artisanal and small-scale mining plays a central role in the regional economy. The main interest of this study is its ability to propose concrete and adapted solutions to improve the sustainability, profitability and positive socio-economic impacts of artisanal and small-scale mining in Madagascar's unique context. With a projected growth of 5.3% in 2025, the economic outlook is promising, and the mining industry's performance is expected to further boost this growth.