Doing 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 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 Programs taught by EENI Global Business School:

Doctorate: African Business, World Trade.

Masters: Business in Africa, International Business, Foreign Trade.

Course: Business in East Africa.

Languages: 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. COMESA;
3. SADC
   1. EU-SADC Free Trade Agreement.
4. COMESA-EAC-SADC Agreement;
5. African Continental Free-Trade Area;
6. Indian-Ocean Rim Association (IORA);
7. Indian Ocean Commission;
8. BADEA;
9. U.S.-Madagascar
   1. United States-Africa (AGOA);
   2. COMESA-United States Trade and Investment Framework Agreement.
10. EU-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.

1. WTO
   1. Agreement on Trade in Services (GATS);
   2. Agreement on the Application of Sanitary Measures;
   3. Agreement on Technical Barriers to Trade;
   4. Agreement on Preshipment Inspection;
   5. Agreement on Safeguards;
   6. Trade Facilitation Agreement.
2. WCO
   1. Revised Kyoto Convention.
3. International Bureau of Containers and Intermodal Transport (BIC);
4. Chicago Convention (ICAO);
5. International Maritime Organization (IMO)
   1. Convention for Safe Containers;
   2. Istanbul Convention.
6. Rotterdam Rules (Sea);
7. Hamburg Rules (Sea);
8. Customs Convention on Containers - not a member.

African Trade and Economic Organizations:

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

Global Organizations:

1. UN
   1. UNCTAD;
   2. ITC;
   3. WIPO.
2. WB;
3. WTO;
4. IMF.

The Republic of Madagascar

1. Malagasy Population: 25 million. Growth: 2,7%;
2. Life expectancy: 64 years;
3. Malagasy Area: 587,295 km²;
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, 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).

International 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 U.S., Italy, the UK, 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 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 (1995-2023)
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