Investment in two of Madagascar’s key airports boost to business, tourism and jobs

In 2015, as part of its economic reforms programme, the Malagasy government awarded a 28-year management concession that saw Ravinala Airports take over the running of Antananarivo Airport which serves the country’s capital, Antananarivo, and Nosy Be Airport in the north of the country. With the support of a €25 loan from the EAIF, Ravinala is investing €215 million upgrading and expanding facilities at both airports.

Efficient and modern airports are one of the foundation stones of advanced and competitive economies. They are significant employers in their own right and catalysts for growth in almost every sector of an economy.

At Antananarivo Airport, passenger handling capacity will more than double. Its runway is being reinforced and resurfaced, giving the airport the ability to take wide-bodied aircraft. Terminal and runway works are also central to the improvements at Nosy Be Airport, one of the country’s busiest tourism airports. Its capacity will rise to accommodate 500,000 passengers a year, making it a more attractive destination for regional and global carriers. Ravinala is marketing the airport to airlines and tourism operators worldwide.

Among the direct benefits of the project is jobs for local people during the construction phase. Permanent jobs will also be boosted at the airports, particularly in areas like aircraft servicing, catering, retail and security.  The project is expected to deliver €61 million in taxes to the Malagasy government.

Madagascar, the world’s fourth largest island, has a population of 26.5 million people, 60% of whom are under the age of 25. GDP per head is around US$1500. More than 75% of the population lives below the poverty line, making it one of the very poorest countries in the world.