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Unlocking Wealth: Opportunities in Madagascar's ASM Sector

Explore the thriving artisanal and small-scale mining industry in Madagascar, offering sustainable jobs and revenues surpassing traditional sectors. Discover how advancements in technology, management, and governance are transforming ASM, creating a new pathway for economic growth and reducing corruption. Join the session to learn about the bottom-up approach to wealth creation and the key strategies for success.

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Unlocking Wealth: Opportunities in Madagascar's ASM Sector

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  1. CASM 2006 November 11-15, 2006 Antsirabe MADAGASCAR “MADAGASCAR SESSION” Tonga soa, Welcome, Bienvenue!

  2. Wealth at the Bottom of the Pyramid: Opportunities in ASM in Madagascar By Lucie C Phillips, Ph.D. Consultant, Ministry of Energy and Mines, Mineral Resources Governance Project

  3. Through PGRM studies we learned • ASM is already the best option • For young rural people • Since government opened up mining • And legal marketing • Jobs and revenues are growing rapidly

  4. Revenues from gemstones better than agriculture or livestock

  5. Revenues from gold panning even better

  6. Wealth in the sector • Miner workers bottom • Foremen next rung up • Brokers higher • Buyers higher • Exporters • Home offices • Sri Lanka & • Thailand

  7. Capital comes down the pyramid • Home offices finance local buyers • Buyers inject capital • Sponsor mines • Without them, mining is marginal

  8. How we are improving opportunities? • What works? • Adaptations • New legal framework • New technology • New management • More effective governance • Financial services—yet to come

  9. Technology • Cell phones=seller power • Private power supplies • Privately funded schools, clinics • Coming now: • Internet at Rural Mines Office—for global price info • Email & text messaging—to sell to established customers

  10. New management • Miners associations • Gold panning corridors • Global buying networks

  11. Training—IGM • Improving market • Paving the way for jewelry industry • Most wealth is at the bottom—selling rough or tumbling it • Niche market: “Madagascar naturally”

  12. Reducing Corruption • Digital cadastre—first come, first served • Updated and visible daily—www.bcmm.mg • Taxing the market chain • Transparency • Easier procedures • Decentralizing, 2% royalty • 1.6% to communes • Approach works better than force

  13. Administration • Mine rush management strategy • Integrating environmental protection • Making tax payment easy • One-stop export processing • Provisions for foreign buyers • Legal exports of gemstones doubled from 2004 to 2005

  14. Misaotra! Merci. Thank youLucie C. Phillips, Ph.D.International Business Initiatives2200 Clarendon Blvd., suite 1200Arlington, VA 22201Tel. 703 525-2277 Fax 703 525-2211lcphillips@ibi-usa.com

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