(Ecofin Agency) - In Madagascar, the government plans to pass its new mining and petroleum code in early 2016 and anticipates economic growth of 5% next year.The country has failed to attract stakeholders due to political instability and declining commodity prices but hopes to fast-track economic growth by developing natural resources.

“We are still debating all the finer details, but compared to the old one it will be an improvement across all aspects, it would be passed this year or at least at the beginning of next year”, President Hery Rajaonarimampianina said at an investment conference in London.

The draft of the new code which was dated August 27, revealed that the country plans on raising royalty fees and claim 10% stakes in mining concessions, raising concerns amidst mining executives.

The president noted that Madagascar had been hit by low commodity prices and bad weather. He, however, anticipates an expansion of 5% next year.

“We have some other promising sectors, like energy, infrastructure, tourism and services -- and I believe those together with traditional ones like agriculture, where we can increase our productivity and ramp up growth,” he said.

In November, the government slashed its growth forecast, stating that in line with IMF’s estimates, it anticipates the economy to expand by 3.2% in 2015 and 4.5 in 2016.

Madagascar has reserves of nickel, cobalt, gold and uranium. Since the 2009 coup which scared off foreign stakeholders and prompted donors to cut aid, the country has been struggling economically, Reuters reports.