TEXTILE AND CLOTHING INDUSTRY IN SUB-SAHARAN AFRICA The Textile and Clothing Industry of Madagascar By Ralaivelo Maminirinarivo 1. Introduction During the last two decades, Madagascar has been confronted with a series of economic challenges linked to the country’s persistent indebtedness and its chang­ing policies on investments. From a period of nationalisation and state control of the economy, it embarked on a process of structural adjustment since the 1980s, and, like many other developing countries, Madagascar has shifted its policies towards increasing liberalisation. As a result, the national economy remains precarious and extremely vulnerable to external shocks from the international economy. Today, the economic situation of the majority of the population is more depressed than at the time when the country attained independence from France. More than 70% of the population are living below the poverty line, and the GDP per capita has been reduced by half since 1960. The development of the textile industry in Madagascar was slightly different to other Sub-Saharan African countries. During the 1960s and late 1970s, the na­tional government attached prime importance to exports of traditional crops such as vanilla, while at the same time, pushing for a policy of import substitution through state-owned companies to produce consumer goods, including textile products. The textile sub-sector became one of the fastest growing industries. Specifical­ly, six industrial units were competitive until the 1980s, including state owned companies such as SUMATEX, and a semi-public company SOTEMA, which em­ployed more than 2,000 workers. The growth of the sector was reinforced by the existence of cotton processing agro-industrial units, which provided the raw materials needed by the textile industry. During the 1990s, the textile sub-sector declined and experienced factory closures. Only four domestic companies remained competitive. This negative trend can be attributed to various interrelated factors, such as: • the mismanagement of state owned companies combined with financial dif­ficulties and high levels of debt • the lack of competitiveness in face of economic liberalisation • the unfair competition brought about by the massive and fraudulent import of textile products and second hand clothing. 178 FRIEDRICH-EBERT-STIFTUNG