During a visit to Morondava, Colonel Randrianirina announced finding a new investor for sugar company Siranala. According to him, an initial investment phase of 70 million dollars is planned to reopen the factory.
A new glimmer of hope for employees of Siranala, or "Siramamin'Analaiva". This could be the significance of Colonel Michaël Randrianirina's speech, Head of State, delivered in Morondava to workers of the sugar company.
During his address to Morondava residents on Sunday, the occupant of Iavoloha stated: "We have found someone for this project." He announced that the State has found a new investor to restart operations at the factory located in Analaiva, a rural commune in Morondava district. He even mentioned an initial envelope of 70 million dollars for the first investment phase.
According to the senior officer, this first phase, lasting eighteen to twenty-four months, will allow "rehabilitation" of the factory. He added that the investor in question will visit the site "in three weeks" to conduct technical studies. "Certainly, we have only been in power for eight months, but we are not sleeping," declared Colonel Randrianirina, affirming his responsiveness to the distress calls of Siranala employees.
The Head of State reiterated his message to factory employees in Analaiva yesterday. However, based on the presidential speeches in Morondava and Analaiva, the matter is not yet settled. "We must follow administrative procedures. A call for bids will therefore be issued for this project," he declared in Morondava. In Analaiva, he added: "Many are interested. One of them will come in three weeks. If it doesn't work, we'll bring others."
A Gamble
The Head of State acknowledges that reopening Siranala is a gamble. Beyond political considerations, the issue carries significant socio-economic stakes, not only for Menabe region but for the country as well. Once the industrial jewel of Menabe, the factory employs seven hundred permanent workers and two thousand seasonal workers. In 2012, it produced 34,000 of the country's 100,000 tons.
Siranala was taken over under lease-management by Chinese group Complant and renamed Sucoma, or Complant Sugar Factory Madagascar, in 1997. It stopped operations in 2014 following a riot that resulted in looting of the Analaiva site and fire destroying part of the factory. These events stemmed from latent conflict between employees and management.
Former president Andry Rajoelina also bet on relaunching this factory. A challenge he committed to before factory workers in Analaiva in 2019. The Rajaonarimampianina administration also wanted to take up the challenge. A resumption of activities was even announced in 2017. To date, however, the Analaiva site remains idle.
Rumors suggest that prerequisites set by the factory's managing company caused negotiations for resuming operations to fail. Beyond security guarantees for their investment and managers, indemnifications, payment of wage arrears, and payment by the Malagasy side for factory rehabilitation were reportedly demanded by Sucoma. In total, the Chinese group's demands amounted to several million dollars.
Colonel Randrianirina's announcement of a new investor in Morondava raises questions about the contract with Complant group. "I will ask the Minister of Industry and Private Sector Development about Sucoma's status," stated the Head of State. During former president Rajoelina's visit to Analaiva in 2019, it was said that Complant's lease-management contract would expire in 2021.
Moreover, in yesterday's speech in Analaiva, the Head of State clearly sought to ensure that 2014 events do not repeat. The question of investment security, as well as personnel and equipment safety, is essential to convince investors. He thus calls for awareness among Siranala employees and urges them to avoid excessive reactions regarding social demands.