China Cuts US$2.7b Fishing Deal With Madagascar, Angering Locals

China Cuts US$2.7b Fishing Deal With Madagascar, Angering Locals
Credit: Reuters / Thomas Mukoya
Why you need to know

A fishing rights deal with China has infuriated the people of Madagascar. The sitting president, running for re-election in a vote held on Wednesday (Nov. 7), is right in the thick of it.

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By Edward Carver

  • Two months ago, a little-known private Malagasy association signed a 10-year, US$2.7 billion fishing deal – the largest in the country’s history – with a group of Chinese companies that plans to send 330 fishing vessels to Madagascar.
  • Critics of the deal include the country’s fisheries minister, who said he learned about it in the newspaper; environmental and government watchdog groups; and local fishers, who are already struggling with foreign competition for Madagascar’s dwindling marine stocks.
  • Critics say no draft of the deal has been made public and the association that signed it did not conduct an environmental impact assessment or any public consultation.
  • The issue drew media attention in the run-up to the presidential election, held on Wednesday. (Votes are still being counted.) The incumbent and a leading candidate, Hery Rajaonarimampianina, was present at the fisheries deal’s signing, although he later claimed not to be familiar with it.

Life on the coast of Madagascar is increasingly precarious. In recent decades, the overexploitation of marine life has made it difficult for hundreds of thousands of small-scale fishers to make a living. So it’s no surprise that they are vocally opposing a new agreement to bring hundreds of additional Chinese vessels into their waters.

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Credit: Rowan Moore Gerety / Mongabay

Two months ago, a little-known and ostensibly private Malagasy association signed a 10-year, US$2.7 billion fishing deal – the largest in the country’s history – with a group of Chinese companies that plans to send 330 fishing vessels to Madagascar. Madagascar’s president at the time, Hery Rajaonarimampianina, was in the room when the deal was signed in Beijing on Sept. 5, although he later claimed not to be familiar with it. No draft of the deal has been made public, and its opacity has drawn media attention in the run-up to the presidential election on Wednesday. Rajaonarimampianina stepped down as president on Sept. 7, two days after the deal was signed, to comply with Malagasy law that requires a sitting president to leave office 60 days before an election in which he is running. He is a leading candidate in the election.

On the Madagascar side, the Agence Malagasy de Développement économique et de Promotion d’entreprises (AMDP) made the deal, which the group says was designed to promote the country’s “blue economy.” It did so without consulting the fisheries ministry, the national environment office, or civil society groups, many of which are now calling for the deal to be scrapped. These critics say the AMDP failed to set up an open bidding process and did not conduct an environmental impact assessment or any public consultation. They also note that there’s limited information on fishing efforts and catches in Madagascar’s waters, so any new projects should be taken on with extreme caution.

“I can’t help but wonder how 330 vessels in our coastal zone would contribute to a blue economy. Not everything that happens in the ocean is ‘blue,’” Nanie Ratsifandrihamanana, country director for the international NGO World Wide Fund for Nature (WWF), wrote in an op-ed in one of Madagascar’s leading newspapers.

Activists have started an online petition to revoke the agreement, and some members of the government are equally concerned. Augustin Andriamananoro, the minister of fisheries, went on national television to voice his opposition to the deal, which he said he first read about in a newspaper.

“This could bring about discord and, if we are not careful, it will cause our ocean to be overexploited,” he told TV Plus Madagascar on Oct. 5. “Madagascar’s natural resources are in danger, especially the fish. The fishers are shocked and concerned.”

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Credit: Courtesy of 2424.mg
A cartoon that ran on the Malagasy news site 2424.mg. The caption reads 'Blue Economy = 10-year fishing deal with China.'
A deal without details

The AMDP signed what it describes as a “framework agreement” with a consortium of seven unidentified Chinese companies known as Taihe Century (Beijing) Investment Development Co., Ltd. The AMDP has said in public statements that the agreement will be a boon to the local economy, and said in a press release from Beijing when the deal was signed that it would create 10,000 jobs over the next three years.

“As a civil society actor, we heard the needs of traditional fishers,” Hugues Ratsiferana, the AMDP’s CEO, wrote in an email to Mongabay. He said that Malagasy people would operate 300 of the fishing vessels, and that these would all be new, 14-meter (46-foot) vessels with 1,200-kilogram-capacity (2,646-pound) iceboxes. The new equipment will allow Malagasy fishers to modernize and professionalize their fishing practices, he said. The remaining 30 vessels will be 28 meters (92 feet) in length and used for surveillance, rescue and collection of catch.

Though there has been a slow trickle of information regarding the deal, the lack of transparency has concerned observers. “The scale of this investment is unprecedented in the island’s history,” reads an Oct. 12 statement on the website of Mihari, a network of locally managed marine associations in Madagascar. “It is a great source of concern for our Network members and the entire fishing industry, especially as we have little information about the content of the agreement or the manner in which it will be implemented.”

Last week, AMDP representatives met with civil society groups and explained a bit more about the agreement. The first phase of the project, worth US$700 million over three years, will include investments in fishing, aquaculture, shipyards and technical training, according to slides from the AMDP’s presentation. The second phase, worth US$2 billion, will include more fishing, an aquaculture “base” and unspecified logistical services.

The AMDP representatives did not specify where the vessels would be based, the fishing would be done, or the projects would take place – not even for a planned pilot project. Nor did they present a complete breakdown of how the US$2.7 billion would be spent.

In an apparent attempt to mollify critics, AMDP representatives said at the meeting that Malagasy people would have first access to the catch and only the surplus would be shipped to China. (It is unclear how Taihe would make money by selling the fish in Madagascar, a low-income country, and Ratsiferana did not reply to a question from Mongabay on this subject.) They also said that each individual project within the framework agreement would be subject to an environmental impact assessment.

However, civil society groups are still not satisfied that the deal was made in a fair and transparent manner. “The AMDP failed to answer our most important questions,” Frédéric Lesné, head of advocacy at Transparency International (TI) – Madagascar Initiative, told Mongabay after attending the meeting.

On Friday, TI and other civil society groups announced their ongoing opposition to the deal, saying the AMDP had no experience in the fisheries sector, had refused to disclose information about Taihe, and had not made any social or environmental impact studies public.

The AMDP’s Ratsiferana told Mongabay that critical civil society groups had shown “great naïveté” and that opposition to the deal was politically motivated. “During the electoral period in Madagascar, the [online petition] signatories, and first and foremost Transparency International (TI), were manipulated by interests and political issues that go beyond them,” Ratsiferana told Mongabay, referring to the upcoming presidential elections. (TI declined to respond to this claim, saying it had no basis in fact.)

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Credit: Rowan Moore Gerety / Mongabay
Fishermen in southwestern Madagascar carry a pirogue to the sea.
What is the AMDP?

Critics of the deal have also expressed concern about the AMDP’s unusual structure and unclear relationship to the Madagascar government and to then-president and current candidate Rajaonarimampianina.

As president, Rajaonarimampianina officially launched the AMDP at the headquarters of the Organisation internationale de la Francophonie in Paris in September 2016. Soon after, Madagascar hosted an international francophone summit, where the AMDP acted on behalf of the government to facilitate economic partnerships with other French-speaking countries. The group’s name, which identifies it as an “agency,” also implies that it is a government body.

In the AMDP’s press release from Beijing in September, Rajaonarimampianina voiced his support for the fisheries deal – “the new silk roads run through Madagascar!” he said – and was one of a handful of people in the room when the deal was signed. The AMDP attached a photograph of the hand-shaking scene to the release, and Rajaonarimampianina can be seen at the back, in the middle.

When questioned about the deal by Radio France Internationale (RFI), Rajaonarimampianina claimed not to know about it.

Rajaonarimampianina has another tie to the AMDP: His son, Lovatiana Mickaël Rakotoarimanana, was on the AMDP’s board of directors when it was founded in 2016. (In an email to Mongabay, the AMDP’s Ratsiferana said Rakotoarimanana was no longer on the board.)

Despite the AMDP’s work on behalf of the government and connections to the presidency, Ratsiferana said it was a “private association” and thus had no legal obligation to release a copy of the fisheries deal to the public.

“[N]ot being a state-to-state agreement, but a protocol between private sectors and companies, we are bound to an obligation of confidentiality and private business secrecy,” Ratsiferana told Mongabay. “Have you ever seen in the press a publication of the agreement between Exxon and Aramco in the oil sector?” (Aramco, a state-owned oil company in Saudi Arabia, is notorious for its opacity.)

But without a governmental mandate, it’s unclear how a private association like the AMDP could sign a deal of this scope, which will require, at the very least, a series of permits from the national environment office and licenses from the fisheries ministry. In response to a question regarding the AMDP’s authority to make such a sweeping international deal, Ratsiferana said, “The reality on the ground confirms a socio-economic backwardness in Madagascar and the need of the Malagasy population is clear: a better life. The AMDP is responding to this need.”

The deal has drawn a lot of attention in local media and on social-media platforms, with many observers assuming corruption was a factor, or that the AMDP sold access to the president’s office. However, there is no direct evidence for either of these claims, and the AMDP has vigorously denied them. “I have not touched a single dollar,” Ratsiferana told RFI. “Neither me, nor the AMDP, nor Hery Rajaonarimampianina. I give you my word.”

The president’s office, occupied in the interim by Rivo Rakotovao, a Rajaonarimampianina ally, declined to comment for this article. The AMDP declined to provide contact information for Taihe, and Mongabay was unable to reach the Beijing-based company, which has no online presence.

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Credit: Chatham House / CC BY 2.0
Hery Rajaonarimampianina, who is running for reelection in this week’s presidential elections in Madagascar, spoke in London in 2015.
Foreign pressure on local fisheries

Globally, China has the world’s largest fishing fleet. Chinese fishing companies, heavily subsidized by the government, have developed a reputation for overexploiting stocks and signing deals that lack transparency, or just not signing them at all. The vast majority of fishing by Chinese vessels goes unreported, amounting to about 2.5 million tons of catch per year around Africa alone, according to a 2012 European Union report.

The Chinese fishing industry already had a presence in Madagascar prior to the signing of the agreement with the AMDP. Six Chinese vessels have been trawling for demersal and pelagic fish off southwest Madagascar since October 2017, according to the fisheries ministry. Small-scale fishers in the area say they feel the impact of the trawling on their catches, even from this relatively small fleet.

“We mustn’t forget that with the arrival of just six industrial fishing boats in the Toliara region this year, some communities are already struggling to make ends meet,” Hermany Emoantra, a small-scale fisher in southwest Madagascar and Mihari’s president, said in the group’s statement. “So, imagine what could happen with 330 boats – how will these people live, where will they go?”

Officially, these six are the only Chinese vessels working Madagascar’s waters, but the real number is believed to be much higher. Reports in the news and from local observers indicate that a large number of Chinese ships are working there illegally, sometimes using highly destructive fishing methods and strong-arm tactics to muscle local fishers off the water.

But Madagascar’s small-scale fishers also face competition beyond the Chinese, for example from domestic and foreign industrial shrimp trawling and long-line tuna fishing by vessels from South Korea, Seychelles and Europe.

Indeed, civil society groups are closely scrutinizing renegotiations of an EU fishing deal with Madagascar, which is due to expire at the end of the year. Fisheries experts have criticized past deals for prioritizing the profits of private EU companies over the interests of Malagasy people, and for lacking transparency. Late last month, Mihari and TI sent an open letter to both the Madagascar fisheries ministry and the EU asking for greater transparency and more cooperation with civil society groups during this round of negotiations.

The fisheries deals with both the Europeans and the Chinese will be subject to at least an implicit approval by an incoming administration, which could quash them by denying foreign companies the necessary permits or licenses. So for Malagasy fishers, as for other sectors of society, much will depend on the results of the presidential election.

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Credit: Rowan Moore Gerety / Mongabay
A fishing boat in the town of Beheloke in southwestern Madagascar.

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The News Lens has been authorized to publish this article from Mongabay, an environmental science and conservation news and information site. The original article can be found here.

TNL Editor: Nick Aspinwall (@Nick1Aspinwall)

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