Country Snapshot

Population (2019, millions)¹ 29.96
Population Projections (2030, millions)¹ 35.62
Economically active population in agriculture (as % of Economically active population)12, 2019 80.6
Capital Antananarivo
Surface Area (km²)² 587,040
Weather¹¹ In Antananarivo: Hottest month, December, 16-27°C; coldest month, July, 9-20°C; driest month, June, 8 mm average rainfall; wettest month, January, 300 mm average rainfall
Languages³ Official: French and Malagasy – Others: English
Main Religions³ Christian, indigenous, and  Muslim
Time⁴ Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵ Right Side
Internet Country Code⁶ .mg
Country Calling Code +261
Plug, Socket and Voltage⁷ Type C, D, E, J, and K – 127V/50Hz and 220V/50Hz
Currency Malagasy Ariary (MGA) – 1/5 = Iraimbilanja
Exchange Rate (As of 29 January, 2019, per USD)⁸ 3 ,456.15
GDP at Market Prices (2018, current, billions of USD)⁹ 12.1
GDP Growth (2018, annual %)⁹ 5.19
Average GDP Growth (2014-2018, annual %)⁹ 4.02
GDP per Capita, PPP (2018, current international $)⁹ 1,634
Inflation, Consumer Prices (2018, annual %)⁹ 7.29
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ 7.14
Total Reserves in Months of Imports (2018)⁹ 3.94

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Banque Centrale de Madagascar.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.

Reasons to Invest in Madagascar

Source: Madagascar Embassy in Japan Online Portal.

Population

Population Projections (millions)

Population (2019) 29.96
Population Projections (2030) 35.62

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019) 37.86
Percentage of Population Residing in Urban Areas (2030) 45.24

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 81.19
Youth Literacy Rate, Population 15-24 Years, Female 80.67
Youth Literacy Rate, Population 15-24 Years, Male 81.71

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force)

Unemployment, Total 1.65
Unemployment, Female 1.78
Unemployment, Male 1.53

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total 86.41
Labour Force Participation Rate, Female 83.59
Labour Force Participation Rate, Male 89.41
Labour Force, Total (number) 13,464,363

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

2014 2015 2016 2017 2018
GDP at Market Prices (current, billions of USD) 10.67 9.74 9.95 11.46 12.1
GDP Growth (annual %) 3.31 3.11 4.17 4.3 5.19

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator 2018 2019
Agriculture 30.91 30.81
Manufacturing 16.50 16.35
Industry 22.21 22.03
Services 65.88 66.16
Construction 3.88 3.85
Electricity, gas and water 1.48 1.47
Mining and quarrying 0.35 0.36
Education 2.34 2.34
Finance, real estate and business services 3.23 3.21
Public administration and Defense 6.08 6.08
Health and Social Work 3.00 3.00
Other services 8.87 8.90
Transport, storage and communication 30.35 30.67
Wholesale and retail trade, hotels and restaurants 15.39 15.33

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (Imported Value, thousands, USD)

2014 2015 2016 2017 2018
World 3,229,993 2,594,082 2,926,565 3,593,146 3,660,812
China 501,251 478,703 624,187 744,783 812,759
United Arab Emirates 580,298 162,048 164,218 281,062 437,020
France 190,766 156,354 189,134 226,697 339,330
India 201,604 156,380 190,579 264,701 250,064
Pakistan 135,180 87,662 99,416 146,068 179,424

Source: International Trade Center COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

2014 2015 2016 2017 2018
World 2,213,656 2,020,801 2,222,632 2,125,071 2,355,824
United States of America 184,533 218,900 287,161 424,845 495,278
France 484,218 378,983 490,481 284,979 305,394
Japan 142,609 107,478 113,119 107,617 202,552
Netherlands 144,321 135,155 96,388 128,401 142,540
China 98,880 136,961 142,133 173,138 137,413

Source: International Trade Center COMTRADE Statistics.

Madagascar’s Top Import Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 3,229,993 2,594,082 2,926,565 3,593,146 3,660,812
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 729,505 446,949 471,490 547,417 675,318
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 203,349 182,629 202,235 281,578 305,751
10 Cereals 170,161 91,574 97,227 256,375 246,686
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof 175,735 140,123 181,693 287,732 233,160
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 157,537 164,929 172,367 164,524 190,031

Source: COMSTAT database

Madagascar’s Top Export Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 2,213,656 2,020,801 2,222,632 2,125,071 2,355,824
09 Coffee, tea, mate and spices 260,213 348,749 570,291 945,062 1,034,266
75 Nickel and articles thereof 596,320 511,077 394,688 376,030 416,006
81 Other base metals; cermets; articles thereof 86,716 86,465 77,810 169,737 223,028
71 Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin 27,858 25,693 39,954 111,213 127,348
26 Ores, slag and ash 99,321 71,272 63,368 125,351 106,287

Source:: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inflows 314 436 451 389 349

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Outflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Outflows (3.8) 1.1 0.1  (0.9) 0.1

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inward Stock 6,277 5,619 5,882 6,472 6,360

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Outward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Outward Stock 16 17 17 16 16

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

France, India, UK, United States, Canada, Germany, Mauritius, China, Japan, and Kuwait.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Financial Services, Communications, Metals, Business Services, Food & Tobacco, Transportation, Chemicals, Coal, Oil and Natural Gas, Minerals, and Real Estate.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

MicroCred Bank Madagascar, Airtel Madagascar, Symrise, Rio Tinto Group, CMA CGM, Verizon Communications, Forever Living Products International, Bank of India (BOI), Broll Property Group, and Vanco Energy.

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

2020 161/190
2019 161/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank 80/190
Procedures (number) 5
Time (days) 8
Cost (% of income per capita*) 30.2
Paid-in Minimum Capital (% of income per capita*) 0.0

*GNI per capita used: USD 440
Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank 134/190
Payments (number per year) 23
Time (hours per year) 183
Total Tax Rate (% of profit) 38.3
Profit Tax (% of profit) 16.6
Labor Tax and Contributions (% of profit) 20.3
Other Taxes (% of profit) 1.5

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank 140/190
Time to Export: Border Compliance (hours) 70
Cost to Export: Border Compliance (USD) 868
Time to Export: Documentary Compliance (hours) 49
Cost to Export: Documentary Compliance (USD) 117
Time to Import: Border Compliance (hours) 99
Cost to Import: Border Compliance (USD) 595
Time to Import: Documentary Compliance (hours) 58
Cost to Import: Documentary Compliance (USD) 150

Assumptions

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – Law N. 2007-036 of the 14th of January 2008.
Key guarantees in terms of investment protection include:

Source: Economic Development Board of Madagascar, Law N° 2007-036 ,14 January 2008 on investments in Madagascar

Investment Incentives

Special Incentives

Source: Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018, PWC Madagascar Tax summary 2019

Country Snapshot

Population (2019, millions)¹ 29.96
Population Projections (2030, millions)¹ 35.62
Economically active population in agriculture (as % of Economically active population)12, 2019 80.6
Capital Antananarivo
Surface Area (km²)² 587,040
Weather¹¹ In Antananarivo: Hottest month, December, 16-27°C; coldest month, July, 9-20°C; driest month, June, 8 mm average rainfall; wettest month, January, 300 mm average rainfall
Languages³ Official: French and Malagasy – Others: English
Main Religions³ Christian, indigenous, and  Muslim
Time⁴ Eastern Africa Time (EAT) +0300 UTC
Driving Orientation⁵ Right Side
Internet Country Code⁶ .mg
Country Calling Code +261
Plug, Socket and Voltage⁷ Type C, D, E, J, and K – 127V/50Hz and 220V/50Hz
Currency Malagasy Ariary (MGA) – 1/5 = Iraimbilanja
Exchange Rate (As of 29 January, 2019, per USD)⁸ 3 ,456.15
GDP at Market Prices (2018, current, billions of USD)⁹ 12.1
GDP Growth (2018, annual %)⁹ 5.19
Average GDP Growth (2014-2018, annual %)⁹ 4.02
GDP per Capita, PPP (2018, current international $)⁹ 1,634
Inflation, Consumer Prices (2018, annual %)⁹ 7.29
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ 7.14
Total Reserves in Months of Imports (2018)⁹ 3.94

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Banque Centrale de Madagascar.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.

Reasons to Invest in Madagascar

Source: Madagascar Embassy in Japan Online Portal.

Population

Population Projections (millions)

Population (2019) 29.96
Population Projections (2030) 35.62

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019) 37.86
Percentage of Population Residing in Urban Areas (2030) 45.24

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 81.19
Youth Literacy Rate, Population 15-24 Years, Female 80.67
Youth Literacy Rate, Population 15-24 Years, Male 81.71

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force)

Unemployment, Total 1.65
Unemployment, Female 1.78
Unemployment, Male 1.53

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)

Labour Force Participation Rate, Total 86.41
Labour Force Participation Rate, Female 83.59
Labour Force Participation Rate, Male 89.41
Labour Force, Total (number) 13,464,363

Source: World Bank, World Development Indicators 2019.

Economy Overview

GDP

2014 2015 2016 2017 2018
GDP at Market Prices (current, billions of USD) 10.67 9.74 9.95 11.46 12.1
GDP Growth (annual %) 3.31 3.11 4.17 4.3 5.19

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator 2018 2019
Agriculture 30.91 30.81
Manufacturing 16.50 16.35
Industry 22.21 22.03
Services 65.88 66.16
Construction 3.88 3.85
Electricity, gas and water 1.48 1.47
Mining and quarrying 0.35 0.36
Education 2.34 2.34
Finance, real estate and business services 3.23 3.21
Public administration and Defense 6.08 6.08
Health and Social Work 3.00 3.00
Other services 8.87 8.90
Transport, storage and communication 30.35 30.67
Wholesale and retail trade, hotels and restaurants 15.39 15.33

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (Imported Value, thousands, USD)

2014 2015 2016 2017 2018
World 3,229,993 2,594,082 2,926,565 3,593,146 3,660,812
China 501,251 478,703 624,187 744,783 812,759
United Arab Emirates 580,298 162,048 164,218 281,062 437,020
France 190,766 156,354 189,134 226,697 339,330
India 201,604 156,380 190,579 264,701 250,064
Pakistan 135,180 87,662 99,416 146,068 179,424

Source: International Trade Center COMTRADE Statistics.

Export Partners (Exported Value, thousands, USD)

2014 2015 2016 2017 2018
World 2,213,656 2,020,801 2,222,632 2,125,071 2,355,824
United States of America 184,533 218,900 287,161 424,845 495,278
France 484,218 378,983 490,481 284,979 305,394
Japan 142,609 107,478 113,119 107,617 202,552
Netherlands 144,321 135,155 96,388 128,401 142,540
China 98,880 136,961 142,133 173,138 137,413

Source: International Trade Center COMTRADE Statistics.

Madagascar’s Top Import Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 3,229,993 2,594,082 2,926,565 3,593,146 3,660,812
27 Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes 729,505 446,949 471,490 547,417 675,318
84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof 203,349 182,629 202,235 281,578 305,751
10 Cereals 170,161 91,574 97,227 256,375 246,686
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof 175,735 140,123 181,693 287,732 233,160
85 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 157,537 164,929 172,367 164,524 190,031

Source: COMSTAT database

Madagascar’s Top Export Products (USD ‘000)

Chapter Description 2014 2015 2016 2017 2018
All products 2,213,656 2,020,801 2,222,632 2,125,071 2,355,824
09 Coffee, tea, mate and spices 260,213 348,749 570,291 945,062 1,034,266
75 Nickel and articles thereof 596,320 511,077 394,688 376,030 416,006
81 Other base metals; cermets; articles thereof 86,716 86,465 77,810 169,737 223,028
71 Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin 27,858 25,693 39,954 111,213 127,348
26 Ores, slag and ash 99,321 71,272 63,368 125,351 106,287

Source:: COMSTAT database

Investment Profile

FDI Inflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inflows 314 436 451 389 349

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Outflows (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Outflows (3.8) 1.1 0.1  (0.9) 0.1

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Inward Stock 6,277 5,619 5,882 6,472 6,360

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Outward Stock (millions of USD)

Year 2014 2015 2016 2017 2018
FDI Outward Stock 16 17 17 16 16

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

France, India, UK, United States, Canada, Germany, Mauritius, China, Japan, and Kuwait.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Financial Services, Communications, Metals, Business Services, Food & Tobacco, Transportation, Chemicals, Coal, Oil and Natural Gas, Minerals, and Real Estate.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

MicroCred Bank Madagascar, Airtel Madagascar, Symrise, Rio Tinto Group, CMA CGM, Verizon Communications, Forever Living Products International, Bank of India (BOI), Broll Property Group, and Vanco Energy.

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

2020 161/190
2019 161/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank 80/190
Procedures (number) 5
Time (days) 8
Cost (% of income per capita*) 30.2
Paid-in Minimum Capital (% of income per capita*) 0.0

*GNI per capita used: USD 440
Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank 134/190
Payments (number per year) 23
Time (hours per year) 183
Total Tax Rate (% of profit) 38.3
Profit Tax (% of profit) 16.6
Labor Tax and Contributions (% of profit) 20.3
Other Taxes (% of profit) 1.5

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank 140/190
Time to Export: Border Compliance (hours) 70
Cost to Export: Border Compliance (USD) 868
Time to Export: Documentary Compliance (hours) 49
Cost to Export: Documentary Compliance (USD) 117
Time to Import: Border Compliance (hours) 99
Cost to Import: Border Compliance (USD) 595
Time to Import: Documentary Compliance (hours) 58
Cost to Import: Documentary Compliance (USD) 150

Assumptions

Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code – Law N. 2007-036 of the 14th of January 2008.
Key guarantees in terms of investment protection include:

Source: Economic Development Board of Madagascar, Law N° 2007-036 ,14 January 2008 on investments in Madagascar

Investment Incentives

Special Incentives

Source: Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018, PWC Madagascar Tax summary 2019