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Madagascar says it has cancelled Daewoo land deal.

Last Updated: 4/10/2009 4:59:52 PM

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The new Madagascan administration has said it has definitely “abandoned” a $6 billion land lease deal that the country’s former administration signed with Korean firm, Daewoo Logistics Corp.....

Madagascar cancels Daewoo deal!
Madagascar cancels Daewoo deal!

The new Madagascan government of President Andry Rajoelina has said it has “abandoned” a $6 billion land lease agreement with South Korean firm Daewoo Logistics Corporation. The announcement was made by the country’s Minister of Land Reform Hajo Andrianainarivelo. The controversial deal was signed under the administration of former President Marc Ravalomanana, and it saw 3.21 million acres of land (about the third of the size of Belgium) leased to Daewoo to grow produce solely for the South Korean market. The deal was one of the areas of contention that lead to months of conflict between Ravalomanana and then opposition leader Rajoelina, eventually leading to Rajoelina seizing power in a military backed coup. It comes as no surprise that having seized power, the Korean deal was one of the first reversals of government policy to occur.

Daewoo officials have said they have not been officially informed of the move but they are already putting plans together to switch their investment to more receptive countries in the regions.


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