Troubled Madagascar's oil hopes

Troubled Madagascar's oil hopes

Oil drums

Oil could provide Madagascar with much needed income

As Madagascar tries to come to terms with the violent political upheaval hitting the country, what has the fallout been for the economy?

Any country caught up in the kind of disturbance gripping Madagascar is unlikely to seem a good prospect for new investors.

And Madagascar is a place that desperately needs investment. More than 70% of the population live on less than $2 a day.

Agriculture is the mainstay - the country exports coffee and vanilla among other things.

But one of the big economic hopes is oil. Onshore and offshore deposits, while not huge, could bring some future prosperity to Madagascar.

Sam Malin, who heads Madagascar Oil, a company which has two big onshore drilling operations, told the BBC's Roger Hearing how he thought Madagascar's economy was weathering the political crisis.

Listen Listen to Sam Malin (2 mins 52 secs)

First broadcast on World Business News on March 17 2009