Ten years ago, Mauritius obtained 100,000 hectares of land in Mozambique for agricultural and economic development. But, with the exception of some sugar farmers, the country's entrepreneurs failed to make use of this opportunity. Now Mauritius, well aware that it must meet the challenge of a soon to be reformed world sugar trading regime, is looking to exploit a similar opportunity on its giant Indian Ocean island neighbour, Madagascar.
Teeruthraj Hurdoyal has been one of the leading Mauritian exporters of fruits and vegetables to Europe for the past decade. Having recently returned from Madagascar, he believes that cultivating vegetables and fruits for export from the country is a viable business proposition as there is a surplus of available, fertile land. "I am planning to cultivate potato, cassava and vanilla in Madagascar for export to Europe. And wild lychees are also abundant; we just have to pick them for export. Alternatively, we might send the lychees to Mauritius for processing and then re-export them to European markets," he says.
However, Hurdoyal admits that the lack of transport logistics and infrastructure on Madagascar could prove a huge, perhaps insurmountable challenge for his new business plan. Another entrepreneur, Tunraz Rampal, although concerned over land ownership issues, the legal security of investments and the lack of efficient customs and port services, believes that there are good prospects for agribusiness projects in Madagascar.
Other problems that Rampal has identified include bad roads and a shortage of mechanical agricultural equipment for land preparation as well as the lack of cold-storage facilities. "But," Rampal insists, "the land is fertile, there are no pests, and labour costs are low."
Investments in technology and know-how
Madagascar could become the main source of food products for Mauritius, as there is little land left on Mauritius for agricultural, tourism and economic development. The government in Mauritius is encouraging its entrepreneurs to go to Madagascar and cultivate the land there to supply food crops to Mauritius and other countries, launch tourism activities and bring back foreign exchange. The UN Food and Agricultural Organisation (FAO) played a crucial role in organising a trade mission of Mauritian entrepreneurs to visit Madagascar last January to see for themselves the possibilities that exist in agribusiness, thereby developing a viable...