Social News:

Social Enterprise Perspectives: Solutions to Poverty in Economically Depressed Madagascar
By Keat Goh (OE), Contributing Writer
Source: Harbus - News
Issue: 10/24/05


Organization: United Nations Development Program (UNDP)
Location: Antananarivo, Madagascar

Last summer, I worked at the United Nations Development Program (UNDP) Country Office in Antananarivo, Madagascar. I worked for the Growing Sustainable Business (GSB) Initiative, a program designed to identify and facilitate enterprise solutions to poverty. My task was to identify pro-poor private sector investment opportunities in ecotourism, sapphire and gold mining, and agriculture/food processing. To do this, I interviewed donors, government officials, entrepreneurs, private investors, economic sections of embassies, chambers of commerce and non-governmental organizations.

Located off the eastern coast of Africa in the Indian Ocean, Madagascar is the world's fourth largest island. Currently, Madagascar has a population of 18 million, and an annual GDP per capita of approx. $800 (US). About 50% of the population live in poverty, although depending on the definition of poverty and the metric of measurement, the IMF has cited numbers as high as over 70%.

The official languages are French and Malagasy. The literacy rates for males and females are 76% and 63% respectively. The population is predominantly Christian, with a large number of Malagasy practising indigenous religions and Islam. Despite Madagascar's proximity to the African continent, many Malagasy are descendants of modern day Malaysia and Indonesia. There is an economically significant Indo-Pakistani and Chinese minority (combined less than 5% of the population), who control 80% to 90% of the country's economic wealth.

Madagascar gained its independence from France in 1960. However, it soon began practicing flawed economic policies, including the nationalization of formerly French-owned businesses and over-reliance on foreign debt, causing a debt crisis. In 2002, Marc Ravalomana, a self-made millionaire businessman and former mayor of Antananarivo, won a power struggle that caused the economy to shrink by 12.7%. He then began to privatize state-owned companies and has successfully sought international aid and foreign investment. Despite the president's pro-business policies and abundant natural resources, there were substantial barriers to establishing sustainable businesses in one of the least developed countries.

The country's history of nationalization had scared off many investors, including their relatively wealthy neighbor, South Africa. Language was also a barrier to trade with its English-speaking neighbors in East Africa and the Indian Ocean. Infrastructure was generally very poor, with low electrification rates, a poor and limited road network, and under-developed ports. Also, many businesses were informal, and property and land rights were often ambiguous; hence entrepreneurs did not have access to capital since they had no collateral. Finally, corruption and a weak legal system were major impediments to both domestic and foreign investment.

For example, in the sapphire industry, the previous government had institutionalized smuggling, taking a cut from gem smugglers for allowing them to ship briefcases of raw uncut stones on flights out of Antananarivo. Consequently, very little value was added domestically to the stones. This was true for many exported products. In ecotourism, the poor infrastructure made it impossible to target high-end tourists, although Madagascar has an astounding total of eight plant families, four bird families, and five primate families (namely lemurs) that live nowhere else on Earth.

Trying to find and support viable businesses was difficult in such an environment. However, I felt that whatever headway I made would have a huge impact. I believe that the private sector has a pivotal role to play in increasing incomes in such countries, and these increased incomes will bring about greater political stability and respect for human rights. Donor-led initiatives to generate income for poor communities were often unsustainable. Once the donors pulled out, these initiatives often did not have a continuing source of cash.

The combination of coming from HBS and working in the UN system was also a great advantage, as I received instant credibility. I was even invited to speak at the local institute for tourism, and was invited to cocktails and had access to trade delegates, diplomats and high-level government officials. I was quite amused when I was filmed by the national TV station during one of these events.

I enjoyed the social life in the expatriate community. The community was just a bunch of people thrown together, and we got to know each other because there were so few of us around, not because we had that much in common. For example, I met people working in forestry, HIV/AIDS prevention, human rights, genocide investigation, textile manufacturing, engineering, diplomacy, venture capital, consulting, and mining. The level of professional and geographical diversity in this little microcosm was far greater than even at HBS. Almost every week, someone would throw either a farewell party or a housewarming party, since the expatriate community was so itinerant. I enjoyed meeting new people every week.

All in all, I feel that my summer was a perfect combination of education, networking, community service, travel and fun.

Mining News:

Majescor Finds First Kimberlite Body in Madagascar
MONTREAL, QUEBEC--(CCNMatthews - Sept. 27, 2005) - MAJESCOR RESOURCES (TSX VENTURE:MAJ) -

Less than 18 months after launching its diamond exploration effort in the country, Majescor and its partner Madagascar Mining Development are pleased to announce that they have discovered the first known kimberlite in Madagascar. The body occurs near surface as a very weathered dyke some 0.5 to 1.0 m thick, with frequent coarse nodular texture (up to 3 cm). The kimberlite dyke is considered to be the source of the abundant indicator minerals with fragile surface textures reported previously (see press release dated August 16, 2005) as ilmenite is readily visible in the kimberlite and a rough field concentrate of the weathered rock has returned ilmenite and chromite.

A deep pit is currently being hand dug on the kimberlite in order to recover fresh rock for petrography, geochemistry and detailed indicator mineral analysis. The kimberlite is also being simultaneously sampled for diamond. Laboratory results are expected early in the new year.

To quote Andre Audet, CEO of Majescor: "We are extremely pleased with the rapid progress of the work performed on this project by Pascal Marchand, project manager and qualified person under National Instrument 43-101. Mr Marchand is currently following up additional targets. We know, from our ever increasing data base, that there are many more kimberlites to be found on the property and in the country in general. Majescor and its partner are considering undertaking a high-resolution geophysical survey early in the new year over the discovery area. This would define the kimberlite pipes which are believed to exist as preliminary dating of indicator minerals recovered from river sediments in the immediate area have yielded Cretaceous and Tertiary intrusion ages". An update on the work in progress will be released in the near future upon completion of this current campaign.

Majescor is a well funded exploration company with a large portfolio of diamond projects in Quebec, Nunavut and the Northwest Territories in Canada, and in Brazil and Madagascar.

The Toronto Stock Exchange - Venture (TSX Venture Exchange) does not accept responsibility for adequacy or accuracy of this release

Weather News:

Date: 28 Sep 2005
Weather hazards assessment 29 Sep - 5 Oct 2005Weekly Introduction:
Source: Famine Early Warning System Network (FEWS NET)
Update of Seasonal Outlooks at Four-Months Lead: January-March 2006 Forecasts

Southern Africa

The outlook at four months lead shows a tilt in the odds favoring above normal rainfall across central South Africa, most of Namibia, the western half of Botswana, portions of southern and northern Angola, locally over central Zambia and north central and southern Mozambique. There is a tilt in the odds favoring below normal rainfall locally over northern Mozambique and southeastern Madagascar.

More details at: http://www.reliefweb.int/rw/RWB.NSF/db900SID/EGUA-6GNT9H?OpenDocument

Another Mining News:

Aminex get exploration rights in Madagascar
18/10/2005 - 07:45:47

ISEQ-listed exploration company Aminex has been awarded onshore exploration acreage in Madagascar.

Aminex, with partner Mocoh Resources Ltd, has been awarded the rights to Block 3108, known as Manja, on the west coast of Madagascar, which covers an area of 10,725 square kilometres.

The rights to this block are held through a production sharing agreement between OMNIS, the Madagascar state oil and mining organisation and Amicoh Resources Ltd, a newly formed company in which Aminex and Mocoh each hold an equal number of shares and through which shareholders will fund exploration activity in equal proportions.

Mocoh is an active African petroleum group with existing assets and distribution operations in a number of countries including Madagascar.

Several wells have been drilled in the past on Manja, some of which found significant shows of oil and gas without the benefit of modern seismic and other exploration tools available today.

The geology is similar to the east coast of Tanzania, where Aminex is already a well-established explorer.

A number of international oil and gas companies have become active in Madagascar recently, including Exxon-Mobil, Norsk-Hydro, Vanco, Sterling Energy, Vuna Resources and Sun-Pec.

The Manja PSA calls for seismic in an initial two-year period followed by exploration drilling in subsequent periods.

The effective commencement date of the PSA will be upon the signing of a Presidential decree, estimated to take place in 30 to 45 days’ time.

Aminex chief executive Brian Hall said: "We are very pleased to have secured the exploration rights to this interesting block and to be participating in Madagascar's fast-growing exploration effort."

Mining News:

Majescor to Spin Off its International Properties to Subsidiary, Tropic Diamonds Inc.
OCTOBER 17, 2005 - 16:01 ET

MONTREAL, QUEBEC--(CCNMatthews - Oct. 17, 2005) - Majescor Resources Inc. (TSX VENTURE:MAJ) ("Majescor" or the "Corporation") is pleased to announce a proposed arrangement to reorganize the Corporation's mineral property assets in an effort to maximize shareholder value. Specifically, the Corporation will transfer its interests in Brazilian and Malagasy companies (the "International Subsidiaries"), and therefore the properties located in Brazil and Madagascar owned by said companies (the "International Properties"), to its wholly-owned subsidiary Tropic Diamonds Inc. ("Tropic Diamonds").

Under the terms of the arrangement, the Corporation will transfer its interest in the International Subsidiaries (and therefore the International Properties) to Tropic Diamonds, in exchange for common shares and preferred shares of Tropic Diamonds. Concurrently, it is anticipated that the Corporation's shareholders, at record date on closing of the arrangement, will receive one (1) share of Tropic Diamonds for every tranche of five to six (5 to 6) shares of Majescor held. Tropic Diamonds has also planned a private placement, on terms yet to be determined, to provide working capital and to fund the recommended exploration programs on the International Properties.

Prior to the closing of these transactions, Tropic Diamonds will apply for the listing of its shares on the TSX Venture Exchange (the "Exchange"). The listing of the shares of Tropic Diamonds on the Exchange will be conditional upon Tropic Diamonds meeting the minimum listing requirements of the Exchange. Majescor is confident that these minimum listing requirements will be met by Tropic Diamonds following the closing of the private placement, which will occur concurrently with the reorganization.

Mr. Andre Audet, President of Majescor states, "This arrangement will allow Majescor to extract the unrecognized value of the international diamond portfolio and re-distribute new shares to its shareholders."

The Brazilian and Malagasy diamond assets are both in countries with secure mining titles and transparent mining regulations, where there is a possibility of 100% ownership of local subsidiaries and mines, where the properties can be accessed directly by road year-round and with very low exploration costs compared to northern Canada. The Brauna project in Brazil comprises 14 kimberlite bodies ranging from small pipes to dykes, 13 of the 14 being diamond-bearing. An aggregate bulk sample of 100 tons is planned for the next few months with joint venture partner Vaaldiam Resources Ltd.. The Madagascar project is made up by a number of permit blocks which cover a substantial part of the Archean craton and of historical findings of indicator minerals. All the blocks are kimberlitic indicator minerals supported and the first known kimberlites in the country were recently discovered by Majescor on one of the blocks after less than 18 months of exploration activities.

Initial capital will be provided to Tropic Diamonds by Majescor through a $200,000 loan (to be completed), which will be convertible into shares of Tropic Diamonds at a conversion price to be determined before the closing of the reorganization and the listing of the shares of Tropic Diamonds on the Exchange. On completion of the reorganization and private placement, it is anticipated that the Corporation will hold approximately 20%, the Majescor shareholders will hold an estimated 42% and the private placement purchasers will hold the remaining 38% of the issued shares of Tropic Diamonds.

The proposed reorganization is subject to shareholder approval by at least 66 2/3% of the votes cast. The Corporation expects to submit the terms of the reorganization to its shareholders at a special meeting to be held in January or February 2006. The Corporation anticipates that the reorganization, private placement and listing of Tropic Diamonds to be completed shortly thereafter. The reorganization is also subject to approval of the Quebec Superior Court and acceptance by the Exchange. Further particulars will be announced in due course.

Majescor is an exploration company with a large portfolio of diamond properties in Quebec, as well as projects in Nunavut, Northwest Territories, Brazil and Madagascar.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release

Mining News:

Madagascar viewed as prospective for platinum

New platinum-group metal (PGM) discoveries in Madagascar are exciting mineral explorers about the potential of finding significant PGM deposits in the country.The possibility is be- ing investigated that Madagascar could yield sufficient PGM resources to establish a PGM district that will be able to support several mines. One of the first exploration com- panies to search for PGMs in Mad-agascar, Jubilee Platinum, listed on the London Stock Exchange’s Alternative Investment Market, last week announced the results of its second borehole, LAV2A, drilled on the Lavatrafo property.The Lavatrafo deposit is the southern unit of two currently disparate nickel-copper-platinum-palladium de- posits that fall within the Londokomanana concession held by Min- eral Resources of Mad-agascar, Jubilee’s 85%-owned subsidiary.The borehole was stepped out 150 m south-east of borehole LAV1.The company announced promising results from LAV1 in September.Jubilee CEO Colin Bird tells Mining Weekly from the company’s headquarters, in London, that the multimetal intersection in the second borehole confirms continuity along the strike of the formation and that the mineralisation is consistent with that identified in borehole LAV1.Bird says what is particularly exciting about the deposit is that it is part of a 35-km-long formation, identified some years ago by the French mission in Madagascar, BRGM.Past work by BGRM, including geophysical and geochemistry analyses, indicated the potential for nickel, copper and PGM deposits.Jubilee’s plan is to gather more information on the deposit in the south of the project area and, once the parameters of the mineralisation have been confirmed, to move to the north of the Lavatrafo property and repeat the drilling model.Bird says that, based on the results of the drilling performed to date, the deposit lends itself to economic bulk-mining.The company is working according to the $20/t model that is emer-ging in the market to confirm the economic viability of large-scale mining projects.Bird explains that, in line with the model, $11/t is allocated to direct operating costs and between $9/t and $10/t to recovering the capital invested.At the Lavatrafo boreholes, the in-situ gross-metal value (GMV) is $52/t or 1,32% copper-equivalent at current metal prices.Intersections have also been identified that have a higher GMV, at $98/t and $77/t.Nickel will yield about 60% of the revenue if a mining operation is established, with copper yielding 20% and PGMs 20%.Based on the formation of the orebody, every kilometre of strike will be able to yield 20-million tons of ore.Hence, the potential exists to mine 200-million tons of material over the 35 km of strike. Bird says that the results compare favourably with bulk-mining projects that are currently being developed worldwide.“And we believe that the results suggest the possibility of establishing more than one mine in a district that could be similar to the northern limb of the Bushveld Igneous Complex in South Africa,” he adds.Jubilee is also exploring two other orebodies in Madagascar – Ambodilafa and Lanjanina.Ambodilafa is located 300 km south of Lavatrafo and comprises a 20-km-long and 4-km-wide strike.As with Lavatrafo it has the potential to yield economic quantities of nickel, copper and PGMs.Jubilee has begun a geophysics programme at Ambodilafa to investigate the deposit.Bird says that the discovery of new PGM resources outside South Africa can make a meaningful contribution to the platinum industry worldwide.“It has been considered most unlikely that large systems would be discovered outside Southern Africa.“Moreover, the platinum:palladium ratios in Madagascar are 1:1, while, outside South Africa, palladium dominates in most deposits,” he adds. While Bird is bullish about the company’s discoveries in Mad-agascar, he is also upbeat about the development of Jubilee’s proposed PGM-mining projects in South Africa.Jubilee has a 25% interest in empowered firm Tjate Platinum Corporation, which holds old-order prospecting rights on three con- tiguous farms in the eastern Bush-veld – Dsjate, Fernkloof and Quartz Hill.The farms are downdip of Anglo Platinum’s Twickenham PGM project and Impala Platinum’s Marula PGM-mine.Bird says that the application for the conversion of the old-order rights has been accepted by the Department of Minerals and Energy and the granting of the convert- ed rights is believed to be imminent.Drilling on the Dsjate farm has intercepted Merensky and UG2 reefs at the expected depths, with PGM grades generally at the top end of expectations.Elsewhere in South Africa, Jubilee’s Bokfontein and Elandsdrift PGM properties, in the western Bushevled, are drill-ready and await the granting of new-order prospecting rights, which is believed to be imminent.Other properties in Jubilee’s portfolio include Buffelsvallei/Zaaiplaats, in the Groblersdal district, and Sallies Sloot/Swartkop, near Marble Hall.The company is also awaiting the granting of new-order prospecting rights for these properties.


Published: 2005/10/14 Author: helene le rouxPortfolio: Senior Staff WriterE-mail: newsdesk@engineeringnews.co.za

Developpement News:

Vietnam continues to assist Madagascar's agricultural development
August 17, 2004

Vietnam would continue its co-operation with Madagascar and an international organisation to assist the country to re-structure its agriculture in a bid to be self-supporting in food, said Vietnamese Trade Minister Truong Dinh Tuyen.
The minister made his affirmation at the talks with Madagascan Minister for Industry, Trade and Private Sector Development Olivier Sahobisoa in Hanoi on Monday.
The Madagascan minister said his country is lacking 100,000 tonnes of rice from now until March 2005 and in the next two months it needs 25,000 tonnes. Minister Tuyen said Madagascar's demand will be considered after Vietnam harvest in March next year its winter-spring crop.
Minister Tuyen handed over to the Madagascan minister a draft of trade agreement that the two sides will consider for signing at an appropriate time. (VNA)

Buisiness Environment:

SITA SC signs 3-yr agreement with Air Madagascar
[Wednesday, October 5, 2005 9:24:00 am
SITA SC has signed a three year agreement with Air Madagascar to seamlessly integrate remote sites in the region – consisting of 10 town offices and 10 airports – into the airline’s existing corporate network, resulting in more efficient operations, increased sales and improved customer service.“Air Madagascar is a prime example of a customer leveraging SITA’s unique communications expertise and understanding of the industry to reap rewards in terms of operational efficiency and customer satisfaction,” said Hani El-Assaad, Vice President, Business Management, Middle East & Africa, SITA SC. SITA completed a thorough assessment of Air Madagascar’s existing systems and requirements before tailoring a solution that combines Very Small Aperture Terminal satellite-based technology with Wireless Local Loop services into a complete, managed, end-to-end solution. The solution leverages technologies vital for operations in locations where communications are often difficult, and fully integrates them into the airline’s existing SITA-managed Internet Protocol (IP)-based Virtual Private Network (VPN).“We determined that an end-to-end solution, managed by SITA and integrating remote provinces where communications are often difficult, would lead to the most efficient operations and support,” said Berend Bruns, Director General, Air Madagascar. “SITA ensures that all our sites can leverage applications such as reservations, departure control, accounting and e-ticketing, resulting in improved productivity, sales and customer satisfaction.”The three year agreement, valued at about US$1 million, will initially target 20 sites in the provinces, consisting of 10 town offices and 10 airports.VSAT (Very Small Aperture Terminal) – is a type of ground station used to contact a communication satellite. In addition to tuning in satellite TV, they can be used to receive data such as IP multicasting and to create a wide area computer networks (WAN) infrastructure. Wireless Local Loop (WLL) services provide high capacity, reliable connectivity to local SITA nodes in regions where the local infrastructure is either unreliable or unsuitable for a particular requirement. They completely bypass the local terrestrial infrastructure

Mining News:

TGS Announces New Seismic Survey in Morondava Basin, Madagascar
HOUSTON--(BUSINESS WIRE)--Oct. 4, 2005--TGS-NOPEC Geophysical Company (TGS) announced today the start of a new seismic survey in the Morondava Basin, offshore west Madagascar.
TGS' program consists of approximately 10,300 kilometers of multi-client 2D seismic data covering the Morondava Basin and French waters of the Mozambique Channel and is designed to expand the Company's 2,158-kilometer 2001 vintage survey into deeper basins across the entire region. The survey is well funded by industry and will be available early in the 2nd quarter 2006.
A bid round is planned in the Madagascan portion of the survey area for next year. Details of the bid round will be announced from The Office des Mines Nationales et des Industries Strategiques in Madagascar (OMNIS) and closing of the bid round is expected in the 3rd quarter 2006.
TGS-NOPEC Geophysical Company (TGS) is a leading global provider of multi-client geoscientific data, associated products and services to the oil and gas industry. TGS specializes in the creation of non-exclusive seismic surveys worldwide. The company also provides advanced depth imaging solutions and software through its TGS Imaging division. A2D Technologies, a wholly-owned subsidiary, is the energy industry's well log data marketplace offering the largest online database, immediate delivery, conversion services, data management services and worldwide well log data sourcing. The TGS family of companies places a strong emphasis on providing high-quality data and the highest level of service to the industry.
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.

African Union:

Madagascar Ratifies Constitution of African Union
 
Madagascar last Tuesday ratified the constitution of the African Union.  Madam Rahajarizafy Lanto, Chief of Service for Africa and Asia and the Presidents’ Special Envoy handed over the Instrument of Ratification to the Interim Commissioner, Ambassador Daniel Antonio.
 The Republic of Madagascar is the 52nd member state of the African Union to ratify the constitutive act.

Oil News

Madagascar says to become oil producer in 3-4 years
Thu Sep 29, 2005 4:31 PM GMT

ANTANANARIVO (Reuters) - Madagascar is expected to start producing crude oil for the first time within the next 3-4 years, the government said on Thursday.
Several blocks on land and offshore to the west and south of the huge Indian Ocean island are expected to yield 60,000 barrels a day at the start of production, Elise Razaka, director general of the Office of National Mines and Strategic Industries, told Reuters in an interview.
Razaka said Madagascar currently consumes about 10,000 barrels of oil a day, so the expected production would leave it with a substantial export surplus.
"There is a very good chance that within 3-4 years, we will have crude oil production coming out of Madagascar," Razaka said. "But much depends on the price of petrol. If it keeps going up, the petrol companies may start sooner."
Madagascar, located off the southeast coast of Africa, is known to have oil and gas reserves, but they are inadequately mapped and drilling there is only at an exploratory stage.
However, interest from the oil giants is growing rapidly, spurred by record highs in world oil prices, which last month breached $70 a barrel.
A promising seismic study conducted in 2004 by privately held U.S. exploration company Vanco Energy has also generated a rush of interest.
In July, US oil major Exxon Mobil boosted its oil and gas presence in Madagascar by taking a 70 percent interest in two licences held by small UK-listed oil explorer Sterling Energy.
Razaka said the initial production could change based on factors including world crude prices and the still-unknown extent of the deposits.
"The rate of production will depend on the petrol companies but probably we will have somewhere near 50,000 barrels a day offshore and another 10,000 onshore, depending on the size of the reserves," he said.
He said new technology for extracting oil obtained from bituminous shale rock meant Madagascar's onshore deposits were commercially viable at anything over $30 per barrel.
"Below $30, we lose money because of the energy needed to blast the petrol out of the rock," he said.
He said in the case of one onshore block: "We are almost certain we have 3 billion barrels."
Besides Exxon, Norway's Norsk Hydro had already invested in offshore blocks, he said.
The government was in the process of negotiating concessions with several other oil giants, including Chevron Texaco, Royal Dutch Shell, BP, Total, Norway's Statoil and China's National Petroleum Corporation, he said.
American explorer firm Nopic is doing a seismic survey off the west coast.
Razaka said oil could become Madagascar's major foreign currency earner, bigger than any of its mineral projects.
The impoverished island is being explored by mining companies looking for gold, gemstones, nickel and bauxite.
In August, Rio Tinto confirmed it would go ahead with a $775 million ilmenite mine in the south.
"Suppose we can get 100,000 barrels per day at $60 per barrel. That's $6 million dollars a day, much of it going to Madagascar" said Razaka. "Compare that with $20 million per year that government expects from (Rio Tinto's) ilmenite mine."

Latest News about SADC

SADC ready to assist Madagascar 20 October, 2005
Source: Dayly News Online Saturday October 22nd


GABORONE - The SADC Secretariat will take all the necessary steps to help Madagascar integrate into the organisations programmes and activities.
Addressing a media conference at the end of his visit to Madagascar, the new SADC executive secretary, Tomaz Salomao said Madagascar should exploit the existing benefits under the SADC programme of action.
The technical team led by the executive secretary was in the country from October 12-14 to assist Madagascar with critical information regarding accession to protocols, the role and functions of the SADC national committee and internalisation of Regional Indicative Strategic Development Plan.
Salomao acknowledged that there is need to strengthen capacity at member states level in order to effectively implement regional programmes and activities.
Opportunities for Madagascar in SADC include an attractive regional market of 216 million people and a regional GDP of approximately US$230 billion, creating opportunities for investment, economic growth and development, enhancing the countrys bargaining power in the international arena and enjoying substantial economies of scale, among others.
Salomao began his familiarisation tour of the region last month with a visit to Namibia as the chair of the organ on politics, defence and security.
Madagascar is the second country he has visited since assuming office.
Madagascar became the 14th member of the organisation following its admission at the SADC summit in Gaborone last August. BOPA

Mining deals:

Madagascar exploration deal fuels Aminex rise
AMINEX was the top performer on the Dublin market this week with a price rise of 25pc. Demand for the stock was fuelled after the oil company announced it has secured the award of onshore exploration acreage in Madagascar. It later held an upbeat presentation for investors which obviously worked.
Next best was one of the market's more troubled souls. IWP rose 15pc as the share price staged a recovery from losses endured last week.
Another exploration outfit filled third spot, although hardly setting the market alight with a gain of just 3pc. The rise in Glencar's share price was again put down to a recovery following earlier losses.
Elan nudged ahead by 2pc to fill fourth spot as buyers piled in ahead of third-quarter results due soon - there were also plenty of sellers, hence the small rise. Recruitment firm CPL also rose 2pc, despite cautious comments from the Central Bank on employment growth.
On the way south, yet another explorer topped the list, Dragon oil shedding 13pc as oil prices retreated. Providence was also down, shedding 10pc while fruit firm Fyffes fell a similar margin on the back of profit-taking - its shares had traded up on news of a new deal to distribute its super sweet pineapples in the States.
Recent deals within the drug sector have raised fears of increased competition, sending United Drug down by 9pc while in the wake of French group Danone's decision to terminate its distribution agreement with C&C shares in the Irish drinks firm fell 9pc.

Source: Pat Boyle, Irish independent, Saturday October 22nd 2005