Trade and Business in Madagascar

The purposes of the subject “Foreign Trade and Business in the Republic of Madagascar” are the following:

1. To analyze the Malagasy Economy and Foreign Trade;
2. To know the business opportunities in the Republic of Madagascar;
3. To explore the Malagasy trade relations with the country of the student;
4. To know the Malagasy Free Trade Agreements;
5. To examine the profile of Malagasy companies;
6. To develop a business plan for the Malagasy market.

The Subject “Foreign Trade and Business in Madagascar” belongs to the following Online Higher Educational Programs taught by EENI Global Business School:

Doctorate (DIB): African Business, World Trade.

Masters (MIB): Business in Africa, International Business, Foreign Trade.

Course: Business in East Africa.

Learning materials in or Madagascar Madagascar Madagascar.

1. Credits of the subject “Foreign Trade and Business in Madagascar”: 1 ;
2. Duration: one week.

Malagasy Preferential Access and Free Trade Agreements:

1. Madagascar and the East African Economic Area;
2. Common Market for Eastern and Southern Africa (COMESA);
3. Southern African Development Community (SADC)
   1. European Union-SADC Free Trade Agreement (FTA).
4. COMESA-EAC-SADC Tripartite Agreement;
5. African Continental Free-Trade Area (AfCFTA);
6. Indian-Ocean Rim Association (IORA);
7. Indian Ocean Commission;
8. Arab Bank for Economic Development in Africa (BADEA);
9. United States-Madagascar
   1. United States-Africa (AGOA);
   2. COMESA-United States Trade and Investment Framework Agreement.
10. European Union-Madagascar
    1. Free Trade Agreement European Union-Eastern and Southern African States (Madagascar, Mauritius, Seychelles, Zimbabwe);
    2. Africa-European Union Strategic Partnership (Cotonou Agreement);
    3. Generalized System of Preferences (GSP).
11. Global System of Trade Preferences among Developing Countries (GSTP) - accession process.

Trade Facilitation Programs.

1. World Trade Organization (WTO)
   1. WTO General Agreement on Trade in Services (GATS);
   2. WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS);
   3. WTO Agreement on Technical Barriers to Trade (TBT);
   4. WTO Agreement on Preshipment Inspection (PSI);
   5. WTO Agreement on Safeguards (SG);
   6. WTO Trade Facilitation Agreement (TFA).
2. World Customs Organization (WCO)
   1. Revised Kyoto Convention (RKC).
3. International Bureau of Containers and Intermodal Transport (BIC);
4. International Civil Aviation Organization (ICAO, Chicago Convention);
5. International Maritime Organization (IMO)
   1. International Convention for Safe Containers (CSC);
   2. Convention Relating to Temporary Admission (Istanbul Convention).
6. Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (Rotterdam Rules, UN);
7. Convention on the Carriage of Goods by Sea (Hamburg Rules, UN);
8. Customs Convention on Containers (CCC, UN) - not a member.

African Trade and Economic Organizations:

1. Economic Commission for Africa (ECA);
2. African Union (AU)
   1. African Union Convention on Preventing and Combating Corruption;
   2. African Union Development Agency (AUDA-NEPAD).
3. African Development Bank (AfDB);
4. Africa-India Framework for Cooperation;
5. Africa-BRICS (Brazil, Russia, India, China, South Africa);
6. Africa-Turkey Partnership;
7. Africa-Asia Strategic Partnership (NAASP);
8. Africa-Korea Partnership;
9. Africa-Japan Cooperation (TICAD);
10. Africa-South America Summit (ASA);
11. Forum on China-Africa Cooperation;
12. Afro-Arab Cooperation;
13. Arab Bank for Economic Development in Africa (BADEA).

Global Organizations:

1. United Nations (UN)
   1. Conference on Trade and Development (UNCTAD);
   2. International Trade Centre (INTRACEN);
   3. World Intellectual Property Organization (WIPO).
2. World Bank (WB);
3. World Trade Organization (WTO);
4. International Monetary Fund (IMF).

The Republic of Madagascar

1. Malagasy Population: 25 million. Growth: 2,7%;
2. Life expectancy: 64 years;
3. Malagasy Area: 587,295 square kilometers;
4. Malagasy Capital: Antananarivo (2.1 million);
5. Economic capital of Madagascar: Toamasina;
6. Largest cities: Antananarivo, Toamasina, and Antsirabe;
7. Official Languages of Madagascar: Malagasy and French
   1. English was official language from 2007 to 2010.
8. Nearest countries to Madagascar: Mozambique, the Comoros, Mauritius, Mayotte, Reunion, the Seychelles, Eswatini (Swaziland), and Tanzania;
9. Abolition of Slavery in Madagascar: 1896;
10. Independence of Madagascar from France: 1960.

More information about Madagascar (EENI African Business Portal).

Religions in Madagascar:

1. African Traditional Religions (52%);
2. Christianity(41%).

Madagascar belongs to the East African Economic Area (African Civilization).

Malagasy Economy:

1. Madagascar is one of the poorest countries in Sub-Saharan Africa;
2. Malagasy Economic growth: 2.6%;
3. Malagasy Inflation: 6.9%;
4. The main sector of the Malagasy economy is agriculture
   1. 3.6 million tones of rice (the third African producer);
   2. 1 million tones of cereals (maize, potato);
   3. Fruits and vegetables;
   4. Litchies: 70% share of the European market. The first world exporter;
   5. 50% of the global vanilla market;
   6. The first world spices and other essential oils exporter.
5. Malagasy industry (13% of the GDP): soap production, food and tobacco processing, brewing, textiles, and leather;
6. Ranking in the Doing Business Index (WB): 142;
7. Malagasy currency: Ariary (not convertible).

Foreign Trade of Madagascar:

1. Malagasy Exports: 1.251 million Dollars (FOB Value);
2. Malagasy Imports: 2.619 million Dollars (CIF Value);
3. Top Malagasy trading partners: France, Singapore, China, Germany, Canada, India, the United States, Italy, the United Kingdom, and Spain;
4. Trade with the Southern African Development Community (SADC) countries: only 5.3% of the total exports/12% of the total imports;
5. Trade with the Common Market for Eastern and Southern Africa (COMESA) countries: only 3% of the total exports/6.9% of the total imports;
6. Trade with the Indian Ocean Commission countries: only 3.1% of the total exports/5.5% of the total imports;
7. Foreign Direct Investment (FDI) in Madagascar: 386 million Dollars.

The mission of the Economic Development Board of Madagascar (Public body) is to encourage the foreign direct investments and create a friendly business climate. The Board has defined six strategic sectors for the Malagasy economic development: tourism, agribusiness, light manufacturing industry, Information and communication technologies (ICT), infrastructure, and mining.

(c) EENI Global Business School (1995-2022)
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