In Madagascar, tense negotiations concerning the increase in electricity tariffs for businesses, between the private sector and Jirama, the public electricity and water distribution company. The latter announced to the various private sector groups an 80% to 100% increase in the price of electricity for the month of July. But the private sector demands that the national company be rehabilitated without jeopardizing businesses, jobs and the country’s economy.
From our correspondent in Antananarivo,
The new tariff schedule presented by the public electricity company was rejected as a whole by business groups. ” Such a large increase in such a sudden way, it was not possible and it was unacceptable. We had a counter-proposal from Jirama, but it still seemed too high. We went back to our members to consult them and the feedback was very clear: we are killing jobs in doing so. We agree that there needs to be an increase. We know that it will be significant, but it must be spread over a few months. This is why we wish to resume the discussions “says Thierry Rajaona, president of the Madagascar Business Group.
These tariffs should contribute to redressing the financial and operational balance of Jirama, debt-ridden and faced in recent weeks with difficulties in supplying electricity. The Malagasy suffered further power cuts at the end of the week.
” In its current form, Jirama’s proposal is akin to eliminating a number of industries vital to the rest of the economy in Madagascar. “, reacts Hery Lanto Rakotoarisoa, president of the Groupement des Entreprises Franches et Partenaires, who evokes the case of heavy industries such as cement works or textiles, large energy consumers, which will lose all competitiveness with these electricity prices:
” In textiles, we are in particular in competition with Mauritius and Ethiopia, countries that support their industry by subsidizing electricityhe continues. Companies are not against an increase, but if we still want to support the industry in Madagascar, it can’t be done like that. It is necessary to identify the sectors which are very sensitive to this type of tariff in order to spare them. We are at the disposal of the State and donors to try to find the most acceptable solution to try to spare the Malagasy economy. »
Discussions should continue this week between the private sector, Jirama, the Malagasy State and the world bank. This last, which finances a project to improve the functioning of the electricity sector in the countryrecommends this new fee schedule.
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