Thursday, May 25, 2017

The Positive 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 economic impacts of mining in the Madagascan islands have been well noted. Many economists have written and spoken about them. Mining activities make the country to earn a lot of income. Mining is the chief foreign exchange earner of this Indian Ocean Island. The income earned from mining is used to pay government employees and to run the different government projects.

The economic impact of mining is having a positive impact on the average Madagascan. There are people in this country that usually smile all the way to the bank because of what mining has done to them. Some have gone from being extremely poor to having relative wealth because of the various mining related activities. Actually, mining is good for the economy.

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.

The Madagascan society is undergoing a great transformation. The country is transitioning to middle income status and it is all because of the abundance of natural resources. Such resources when well managed will definitely result to positive societal impacts. Of course, they make the economy to grow and that results to higher living standards among other matters. There are also social impacts.




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