Doing Business in Madagascar
EENI - Business School.
Subject (Course): International Trade and Business in Madagascar - Antananarivo.
- Introduction to the Republic of Madagascar (East Africa).
- Doing Business in Antananarivo and Toamasina
- Malagasy economy
- International Trade of Madagascar.
- Ports of Madagascar
- Foreign Direct Investment (FDI) in Madagascar
- Business Opportunities in Madagascar
- Light Industries
- Information and communications technology (ICT)
- Case Study:
- Socota Group (Textiles and apparel)
- Madagascar petroleum
- Economic Development Board of Madagascar
- Economic partnership agreement with the European Union (EU)
- Introduction to French
- Access to the Malagasy market
- Business Plan for Madagascar
Purposes of the subject “Doing Business in the Republic of Madagascar”:
- To analyse the Malagasy economy and foreign trade
- To evaluate business opportunities in the Republic of Madagascar
- To explore Madagascar's trade relations with the student's country
- To know Madagascar's Free Trade Agreements (FTAs)
- To examine the profile of Malagasy companies
- To develop a business plan for the Malagasy market
Sample of the subject (Doing Business in Madagascar):
Subject Description (Doing Business in Madagascar).
Madagascar: 50% in the World vanilla market.
The Republic of Madagascar: one of the poorest African countries.
- Malagasy Population: 22 million. Growth: 2,7%
- Life expectancy: 64 years
- Area: 587,295 square kilometres
- Capital: Antananarivo (2.1 million).
- The official languages: Malagasy, French, English
- Religion: Animism (52%). Christian (41%)
- The nearest countries: Mozambique, the Comoros, Mauritius, Mayotte, Reunion, Seychelles, Swaziland, and Tanzania
- Abolition of slavery in Madagascar: 1896
- Independence from France: 1960
Madagascar belongs to the East African Economic Area of the African Civilisation.
- One of the poorest countries in Sub-Saharan Africa
growth: 2.6 %
- The inflation: 6.9%
- The main sector of the Malagasy economy: agriculture
- 3.6 million tonnes of rice (third African producer)
- 1 million tonnes of cereals (maize, potato)
- Fruits and vegetables.
- Litchies: 70% share of the European market. The first world exporter.
- 50% of the World's vanilla market
- The first world exporter of spices and other essential oils
- Malagasy industry (13% of GDP): soap production, food and tobacco processing, brewing, textiles, and leather
- Ranking in the Doing Business Index: 142
- Malagasy currency: Ariary (not convertible)
Foreign Trade of Madagascar:
- Malagasy Exports: 1.251 million Dollars (FOB Value)
- Imports: 2.619 million Dollars (CIF Value)
- Top Malagasy trading partners: France, Singapore, China, Germany, Canada, India, the United States, Italy, the United Kingdom, and Spain
- Trade with the Southern African Development Community (SADC) countries: only
5.3% of the total exports/12% of the total imports.
- Trade with the Common Market for Eastern and Southern Africa (COMESA)
countries: only 3% of the total exports/6.9% of the total imports.
- Trade with the Indian Ocean Commission countries: only 3.1% of the total exports/5.5% of the total imports.
- Foreign Direct Investment (FDI): 386 million Dollars.
The mission of the Economic Development Board of Madagascar (Public body) is to encourage foreign direct investments and create a friendly business climate.
The Board has defined six strategic sectors for the development of the Malagasy
economy: tourism, agribusiness, light manufacturing industry, Information and communication technologies (ICT), infrastructure, and mining.
Madagascar has preferential access:
- Common Market for Eastern and Southern Africa (COMESA)
- Southern African Development Community (SADC)
- COMESA-EAC-SADC Tripartite Agreement
- Indian-Ocean Rim Association (IORA)
- Indian Ocean Commission
- United States-Africa (AGOA)
- COMESA-United States Trade and Investment Framework Agreement
- Cotonou Agreement (European Union)
- Generalised System of Preferences (GSP)
Madagascar is a member of:
- African Development Bank
- Economic Commission for Africa (ECA)
- New Partnership for Africa's Development (NEPAD)
- African Union (AU) - Convention Combating Corruption
- Africa (Madagascar)-South America Summit (ASA)
- Africa (Madagascar)-Asia Strategic Partnership
- Afro-Arab cooperation - Arab Bank for Economic Development in Africa (BADEA)
- Relationships with China and India