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Minerals have positively impacted the world. They have led to economic, social and economic benefits. Because of mineral products, the world is a better place to live. These products make life better. They are used in the production of consumer goods. Some are used in industrial applications. They have been many good impacts of Madagascar minerals. There are mineral deposits all over the Madagascan Island. There are many companies that are involved in the production of mineral products. The mining business is very profitable. However, it requires large capital investments. There is need for local and international financiers.
The most prominent impact is the economic impact. When there are serious mineral deposits, the economic outlook of a country can change in less than a year. This is because of the infusion of a lot of foreign income to a country. When mineral products are sold in the international market, payment is made in dollars, pounds, yen and precious Euros.
The average people are not excluded from the economic impacts of mining. As a matter of fact, some of them earn their bread as a result of mining. There are people who have moved from one income class to another because of being active participants in the mining sector. Some have earned millions or even billions from this economic activity.
Generally, the different mining activities that take part in Madagascar have increased the GDP. With a good GDP figure, it is easy for a country to borrow money from the large financial institutions. Increased GDP also causes the increase in per capita income. Therefore, citizens end up enjoying a better quality of life. Wellbeing of people is an important matter.
Another direct impact is the foreign direct investment. Most countries in Africa are behind because foreigners are not investing in those countries. There is a good reason for a company in Europe, Asia or the USA to directly invest in a Madagascan mining enterprise. This is due to the fact that good returns are guaranteed. Indirect investment is also good.
Investors are not bringing their money to the Madagascan economy just because of the presence of minerals. Many other countries in Africa have far greater mineral wealth but investors are shunning them. That is because this nation is more politically and economically stable than such countries. In some African countries, money can be lost in a bank. Madagascar has secure banks with great deposit protections.
Due to the rise of the mineral sector, other sectors are rising as well. In any economy, there is interdependence. Thus, when one industry grows, the others grow as well. When there is economic failure in one sector, it can easily spread to other economic sectors. Mining is dependent on efficient logistics, secure IT systems, and good financial institutions.
Madagascar is going places. It is on its way to become one of the wealthiest countries in Africa. Mineral wealth has greatly transformed the face of this nation. Skyscrapers are rising on the skylines of Antananarivo and other Madagascan cities. Economists have predicted that middle income status might be achieved by the nation sooner than was forecasted by the IMF.
The most prominent impact is the economic impact. When there are serious mineral deposits, the economic outlook of a country can change in less than a year. This is because of the infusion of a lot of foreign income to a country. When mineral products are sold in the international market, payment is made in dollars, pounds, yen and precious Euros.
The average people are not excluded from the economic impacts of mining. As a matter of fact, some of them earn their bread as a result of mining. There are people who have moved from one income class to another because of being active participants in the mining sector. Some have earned millions or even billions from this economic activity.
Generally, the different mining activities that take part in Madagascar have increased the GDP. With a good GDP figure, it is easy for a country to borrow money from the large financial institutions. Increased GDP also causes the increase in per capita income. Therefore, citizens end up enjoying a better quality of life. Wellbeing of people is an important matter.
Another direct impact is the foreign direct investment. Most countries in Africa are behind because foreigners are not investing in those countries. There is a good reason for a company in Europe, Asia or the USA to directly invest in a Madagascan mining enterprise. This is due to the fact that good returns are guaranteed. Indirect investment is also good.
Investors are not bringing their money to the Madagascan economy just because of the presence of minerals. Many other countries in Africa have far greater mineral wealth but investors are shunning them. That is because this nation is more politically and economically stable than such countries. In some African countries, money can be lost in a bank. Madagascar has secure banks with great deposit protections.
Due to the rise of the mineral sector, other sectors are rising as well. In any economy, there is interdependence. Thus, when one industry grows, the others grow as well. When there is economic failure in one sector, it can easily spread to other economic sectors. Mining is dependent on efficient logistics, secure IT systems, and good financial institutions.
Madagascar is going places. It is on its way to become one of the wealthiest countries in Africa. Mineral wealth has greatly transformed the face of this nation. Skyscrapers are rising on the skylines of Antananarivo and other Madagascan cities. Economists have predicted that middle income status might be achieved by the nation sooner than was forecasted by the IMF.
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