Madagascar mining operators will have to wait longer as the nation's minister of mines and petroleum, Joeli Valeien Lalaharisaina announced that the new mining code won't be passed by the end of the year.
According to the African Law Business, the draft for the new mining code has been around for almost two years. Lawmakers and miners are both confused with some of its unclear key areas. Madagascar president Hery Rajaonarimampianina said the government is finalizing the code, and that it will be an improvement in all aspects.
Some can't agree with the idea that the new code as an improvement since the World Bank considers the former mining code of Madagascar as the best in the world. The latest draft presented August this year showed that there will be a rise in royalties and the government is asking for 10 percent stake in all new mining projects. Many fear that this would discourage potential investors.
The Madagascan government also promised a new petroleum code for some years now. A draft has been circulating and the official code is expected to be passed early 2016.
In the United Nations Conference on Trade and Development website, Madagascar's Minister of Industry and Private Sector Development Narison Rafidimanana said, "Madagascar has promising opportunities for foreign direct investment (FDI), but to transform this potential we need investors and infrastructure. The positive results of FDI are far from automatic, especially with regards to achieving sustainable development goals and improving quality of life."
Meanwhile, another big news about country is that the Banque Nationale d' Investissement (BNI) Madagascar is going to switch its legacy core banking system with the Amplitude, which is a Sopra Banking Software. According to IBS Intelligence, BNI Madagascar MD Francois Hoffman commends the new agreement, saying it is a start of a strong partnership between both companies.
Madagascar is currently ranked 164 from the 189 countries for ease of doing business in a list by the World Bank. This is a rank higher than last year's 166.
