Doing Business in Madagascar

Subject (Course): International Trade and Business in Madagascar - Antananarivo.

Syllabus:

1. Introduction to the Republic of Madagascar (East Africa).
2. Doing Business in Antananarivo and Toamasina
3. Malagasy economy
4. International Trade of Madagascar.
5. Ports of Madagascar
6. Foreign Direct Investment (FDI) in Madagascar
7. Business Opportunities in Madagascar
   - Tourism
   - Agribusiness
   - Mining
   - Light Industries
   - Information and communications technology (ICT)
   - Infrastructure
8. Case Study:
   - Socota Group (Textiles and apparel)
   - Madagascar Oil
9. Economic Development Board of Madagascar
10. Economic partnership agreement with the European Union (EU)
11. Introduction to French
12. Access to the Malagasy market
13. Business Plan for Madagascar

Objectives of the subject "Doing Business in the Republic of Madagascar":

1. To analyze the Malagasy economy and foreign trade
2. To evaluate business opportunities in the Republic of Madagascar
3. To explore Madagascar's trade relations with the student's country
4. To know Madagascar's Free Trade Agreements (FTAs)
5. To examine the profile of Malagasy companies
6. 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.

1. Malagasy Population: 22 million. Growth: 2,7%
2. Life expectancy: 64 years
3. Area: 587.295 km²
4. Capital: Antananarivo (2.1 million).
5. Economic capital: Toamasina
6. The official languages: Malagasy, French, English
7. Religion: Animism (52%). Christian (41%)
8. Nearest countries: Mozambique, the Comoros, Mauritius, Mayotte, Reunion, Seychelles, Swaziland, and Tanzania
9. Abolition of slavery in Madagascar: 1896
10. Independence from France: 1960

Madagascar belongs to the East African Economic Area of the African Civilization.

Malagasy economy:

1. One of the poorest countries in Sub-Saharan Africa
2. Economic growth: 2.6 %
3. The inflation: 6.9%
4. The main sector of the Malagasy economy: agriculture
   - 3.6 million tons of rice (third African producer)
   - 1 million tons 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
5. Malagasy industry (13% of GDP): soap production, food and tobacco processing, brewing, textiles, and leather
6. Ranking in the Doing Business Index: 142
7. Malagasy currency: Ariary (not convertible)

Foreign Trade of Madagascar:

1. Malagasy Exports: 1.251 million Dollars (FOB Value)
2. 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): 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, ICT, infrastructure, and mining.

Madagascar has preferential access:

1. Common Market for Eastern and Southern Africa (COMESA)
2. Southern African Development Community (SADC)
3. COMESA-EAC-SADC Tripartite Agreement
4. Indian-Ocean Rim Association (IORA)
5. Indian Ocean Commission
6. United States-Africa (AGOA)
7. COMESA-United States Trade and Investment Framework Agreement
8. Cotonou Agreement (European Union)
9. Generalized System of Preferences (GSP)

Madagascar is a member of:

1. African Development Bank
2. Economic Commission for Africa (ECA)
3. New Partnership for Africa's Development (NEPAD)
4. African Union (AU) - Convention Combating Corruption
5. Africa (Madagascar)-South America Summit (ASA)
6. Africa (Madagascar)-Asia Strategic Partnership
7. Afro-Arab cooperation - Arab Bank for Economic Development in Africa (BADEA)
8. Relationships with China and India