Madagascar’s Financial Underbelly: White-Collar Crime in the Shadows of Poverty

As one of the poorest countries in Africa, Madagascar has long struggled with economic instability and political crises. However, beneath the surface of poverty and chaos lies a more insidious threat: white-collar crime. In this report, we shed light on the complex web of corruption, theft, and violence that affects thousands of citizens daily.

Armed Militias and the Zebu Meat Trade

Armed militias like the Dahalo, also known as “thieves,” have become increasingly brazen, engaging in daily attacks on civilians. The driving force behind their actions is the lucrative zebu meat trade, with an estimated 90% of all exported meat stolen and sold on the black market.

Government’s Three-Pronged Approach

In response to the growing threat, the government has launched a three-pronged approach to combat white-collar crime:

• Anti-Dahalo Military Unit: The government created an Anti-Dahalo military unit in Mahabo to bring the militias under control. However, reports of army abuse of power have only fueled resentment among civilians, leading many to support the Dahalo instead.
• Amnesty for Former Dahalo Members: The government is offering amnesty to former Dahalo members, hoping they will help remove their comrades-in-arms and reintegrate into society. Former Prime Minister Roger Kolo has championed this approach, aiming to utilize ex-Dahalo members to protect roads and villages alongside local village councils (Fokonolona).
• Arming Civilians: The government’s final solution is to arm civilians in defense of their communities, allowing each Fokonolona to establish its own criminal code. In Toliary and Antananarivo, the most affected regions, militias formed by civilians have received 2,000 rifles from the government, leading to bloody clashes with the Dahalo.

Concerns and Risks

While the government’s approach aims to combat white-collar crime, it has raised concerns about the potential for mob violence and erosion of the already weak institutional framework. The risk is that self-defense militias may spiral out of control, plunging Madagascar into chaos rather than stability.

Stability Remains

Despite ongoing conflicts, analysts believe the situation remains stable, with attacks and disputes between warring parties showing no signs of escalating into a larger conflict. However, the fragility of the situation cannot be overstated, and the government’s approach must continue to balance short-term security needs with long-term institutional development.