jeudi 25 mai 2017

The Impacts Of Madagascar Minerals

By Raymond Myers

Minerals have positively impacted the world. They have led to economic, social and economic benefits. Because of mineral products, the world is a better place to live. These products make life better. They are used in the production of consumer goods. Some are used in industrial applications. They have been many good impacts of Madagascar minerals. There are mineral deposits all over the Madagascan Island. There are many companies that are involved in the production of mineral products. The mining business is very profitable. However, it requires large capital investments. There is need for local and international financiers.

The number one impact of mining is economic. When talking about mining, the first thing that most people will think about is the money that can be earned from carrying out mining activity. The Madagascan Island earns substantial foreign exchange as a result of selling mineral products to other countries. A nation needs to have dollars and pounds for foreign trade.

Mining has had an impact on different classes of people. It has impacted the rich, middle income earners and also the poor. Some people have been able to conquer poverty as a result of being involved in mining activities. It is true that some of the rich Madagascans have grown richer due to the fact that they own mining companies.

Generally, the different mining activities that take part in Madagascar have increased the GDP. With a good GDP figure, it is easy for a country to borrow money from the large financial institutions. Increased GDP also causes the increase in per capita income. Therefore, citizens end up enjoying a better quality of life. Wellbeing of people is an important matter.

Another direct impact is the foreign direct investment. Most countries in Africa are behind because foreigners are not investing in those countries. There is a good reason for a company in Europe, Asia or the USA to directly invest in a Madagascan mining enterprise. This is due to the fact that good returns are guaranteed. Indirect investment is also good.

Investors are not bringing their money to the Madagascan economy just because of the presence of minerals. Many other countries in Africa have far greater mineral wealth but investors are shunning them. That is because this nation is more politically and economically stable than such countries. In some African countries, money can be lost in a bank. Madagascar has secure banks with great deposit protections.

The mineral industry of Madagascar has led to the growth of other industries. They have been many support industries that have grown over the years as a result of a vibrant mining environment. One of such industries is transport and logistics. There is need to transport minerals from one part of the country to another and also to the port.

Madagascar is going places. It is on its way to become one of the wealthiest countries in Africa. Mineral wealth has greatly transformed the face of this nation. Skyscrapers are rising on the skylines of Antananarivo and other Madagascan cities. Economists have predicted that middle income status might be achieved by the nation sooner than was forecasted by the IMF.

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