124. Beyond the above three priority areas, complementary public investments will be
required to act as a catalyst for new private investment in agribusiness value chains, air
transportation and biodiversity-based tourism. For example, public investments in value
chains are needed to unlock the agribusiness potential. Tourism sector is particularly dependent
on reliable airline service, for both international and domestic travel. Regional and strategic
partnerships are promising avenues for overcoming some of the constraints facing the air transport
subsector. The air transport subsector itself has potential for new private investments if some of
the constraints are relaxed. Harnessing the value of biodiversity through tourism can be enhanced
through unlocking carbon finance, particularly when linked to sustainable forest management.
Poverty driven deforestation means that actions to reduce emissions through avoided deforestation
are extremely cheap compared to other emission reduction options available globally. Madagascar has developed a series of important pilots throughout the country and has already concluded a
number of carbon credit transactions with foreign governments and private firms. This is the tip
of the carbon revenue potential.