Antalaha, once a vibrant, great town, has undergone significant changes. What happened?

Socio-economic perspective of Antalaha

ECONOMY

by Candidier

1/19/20255 min read

Antalaha is one of the towns in the SAVA region, located in the easternmost part of the region. It was once a vibrant, great town thanks to its economic boom and unique city planning. Vanilla crops drove its economy, making it the world capital of vanilla. Antalaha is one of the first places where vanilla was introduced to Madagascar. It became a vanilla plantation hub during the colonization period. More than 10 vanilla exporters and conditioners had installed their operations there, and hundreds of small vanilla collectors spread throughout the Antalaha region. Its vanilla quality and mass production had no rival. The town was also well structured. The town's plan was engineered in the European style. Most of the roads were paved and named after French cities, like many other towns in Madagascar. The seaside was beautiful, and visitors were awed by the beauty of Antalaha. While these memories still remain today, the momentum seems to have decreased. What happened?

Several factors have contributed to the stagnation of the development of Antalaha. Since I am from Antalaha, have spent most of my youth there, and have talked to many people, I am writing this blog trying to be as rational as I can.

1- Frequent Passage of Cyclones:

Antalaha has endured several cyclones, most of which had strong magnitudes that ravaged crops and the economy. One of the strongest cyclones was Hydah in 2000. It brought heavy rain, causing significant landfall and flooding in the region. Vanilla crops were devastated. The damage extended beyond economic activities, leaving thousands of people vulnerable, having lost their houses, livestock, and belongings. This period marked the beginning of the stagnation of Antalaha's economy. Farmers had to start over every time a cyclone hit. Since 2000, more than 10 cyclones have passed through the region, most of which left an unburdened impact on the population.

  1. Non-Diversification of the Economy:

Antalaha's economy has been driven by cash crops such as vanilla, coffee, and cloves, meaning the majority of the population relies directly or indirectly on them. Besides rice farming, vanilla is the main crop people earn money from. Those who rely indirectly on vanilla engage in related activities such as trading and marketing commodities. The price of vanilla is volatile, fluctuating with international demand and government policy. For example, after Cyclone Hydah in 2000, around 2003-2004, Madagascar had a low production capacity for the first time, and the price was very high—50,000-100,000 AR, adjusted for current inflation to about ~500,000 AR. This price hike did not last long. The same trend occurred from 2015-2020 and continues to this day. When the economy depends on a single factor, once the bubble bursts, everything collapses. This is exactly what happened when the price of vanilla dropped and economic activities collapsed.

  1. The Consequence of the Political Decision to Move the Chef-lieu of the Region to Sambava Since 2004:

People may not realize it, but since the decision to move the chef-lieu of the region to Sambava, Antalaha's economy has not grown well. The growth of GDP has stagnated due to decreased investment from both the government and the private sector. Government public investment has shifted to Sambava. For example, the money allocated by the government for local development—such as roads, public infrastructure like hospitals and schools—has decreased. Now, Sambava has created more paved roads than Antalaha. In just a couple of years, Sambava has doubled the kilometers of paved roads compared to Antalaha. Such infrastructure creates jobs, enabling local residents to provide for their families. It also attracts tourists, which brings revenue. The arrival of tourists to a well-developed town enables the hotel industry to flourish, as has happened in Sambava for decades. In contrast, tourists are no longer coming in large numbers to Antalaha, and the hotel industry does not flourish anymore.

  1. Stagnation of Population Growth:

Population collapse will soon become a global emergency. Several countries are experiencing either low birth rates or negative population growth. Although there is no data to back this up, Antalaha may be experiencing a low birth rate like many other countries. There are many signs that population growth in Antalaha is not positive. For example, there were five private lycées in Antalaha when I arrived in 2011. All of them had more than 500 students, but now they are closed. When they closed, other schools did not see a significant increase in student enrollment. Where have all those people gone? For instance, Sambava has more than 10 lycées, including private lycées, and several secondary schools. But Antalaha has only Ambondrona and Maherifody, plus two or three others. Secondly, there is low occupancy in houses throughout the town. The roads, restaurants, and small eateries are empty. You barely see people at the seaside except on weekends. This is an alarming situation in my opinion.

There is a strong correlation between the transfer of the chef-lieu of the region to Sambava and the stagnation of population growth. When the chef-lieu was still in Antalaha, human interaction between the four districts was tangible. You could hear many people in different sections of town who were from other districts. People from other districts came to Antalaha for administrative purposes, such as delivering or requesting government documents at the regional office. These visitors generated income for the residents by buying food, services, and even staying at hotels.

  1. Non-Existence of Road Infrastructure Connecting the Countryside and Antalaha Town:

Three out of the four main road connections between the countryside and Antalaha are either poorly maintained or non-existent. It is almost impossible to drive to these countryside areas even with a 4x4 vehicle. For example, if you want to go to the Cap Est axis, you can only drive to Ambohitralanana, which is about 60 km from Antalaha by car. The rest is not accessible unless you ride a motorbike. The cost of a motorbike taxi is the same price as traveling to Antananarivo—150,000 AR if you want to go to Ampanavoana. The alternative option is a lower price, but people are afraid to travel by boat, and it is impractical if you want to reach the region quickly. The Ankavia and Ankavanana axes face similar problems. All these issues cause economic problems for the region because there is no interaction of information and goods. When goods reach these places, grocery prices increase, and people cannot afford them. Low purchasing power among the population does not contribute to economic development.

Regarding the flow of information, the lack of road infrastructure and high transportation fees prevent people from traveling. Money and ideas follow people, and through human interaction, people can learn and share experiences. Many people in remote villages have never visited Antalaha, missing out on opportunities that could improve their lives. Bad roads block the development of Antalaha in many ways. There is a Chinese proverb: "If you want to become successful, build roads first." The countryside of Antalaha lacks this spirit.

The economic stagnation of Antalaha is caused by multiple factors, extending beyond what we can imagine. By considering factors like the frequent passage of cyclones, non-diversification of the economy, political changes in the SAVA region, stagnation of population growth, and road infrastructure problems connecting the countryside to Antalaha, we can understand why Antalaha's GDP growth remains weak and develop a more comprehensive approach to tackling these problems. It is a collective effort that requires contributions from all sectors of society, the private sector, and the government. Together, we can develop Antalaha and Madagascar.