Invest in Madagascar

The Economic Department of the Embassy is at your disposal to assist you in your search for investment partnerships and all other elements relating to your projects.

7 GOOD REASONS TO INVEST IN MADAGASCAR

1.  POTENTIAL ACCESS TO A MARKET OF 600 MILLION CONSUMERS
2. AN ISLAND RICH IN NATURAL RESOURCES
3. CUSTOMS PROVISIONS TO FACILITATE ACCESS TO MARKETS
4. A LEGAL AND TAX FRAMEWORK FOR INVESTMENT
5. COST OF COMPETITIVE FACTORS
6.  MULTIPLE INVESTMENT OPPORTUNITIES IN HIGH POTENTIAL AREAS
7. COMMITMENT OF THE MALAGASY GOVERNMENT FOR STRUCTURAL PROJECTS

POTENTIAL SECTORS IN MADAGASCAR

TOURISM: “MADAGASCAR, A TREASURE ISLAND”, A FAVORABLE NICHE MARKET FOR ECOLOGICAL TOURISM

Madagascar is full of undeniable natural assets: rich in 90% endemic biodiversity, spectacular and diversified landscapes, these are among the criteria that elected it "Best green destination in the Indian Ocean in 2019”. Warm and welcoming people, the island attracts an average of 20% more tourists each year.
Investors will have the choice of building hotel complexes in the form of business tourism, luxury eco-tourism, beach tourism, or adventure tourism.
The government has identified 25 investment sites consisting of beaches, national parks and islands across the country.

​

AGRIBUSINESS: A GROUND FAVORABLE FOR ORGANIC FARMING

Endowed with immense agricultural potential with favorable climatic conditions for varied crops, Madagascar has a rapidly growing market in organic agriculture. The opportunities include the processing of thousands of tons of vegetables and fruits, the production of essential oils based on aromatic and medicinal plants sought worldwide. In addition, the fishing sector plays a key role in the economy with an annual production representing 7% of GDP.

 ​

ENERGY: HUGE POTENTIAL IN RENEWABLE ENERGIES

Only 15% of the Malagasy population have access to electricity. The State has undertaken to increase the rate to 70% by 2030, by promoting renewable energies coupled with the energy mix (hybridization). Opportunities are available to investors in the construction of hydroelectric power plants, photovoltaic and wind farms.

In addition, rural electrification is a large $92 million market in operating mini-grids to connect 131,000 homes by 2030, 91% of which will be renewable energy.

7,800 MW potential Only 168 MW used
2,800 hours of sunshine all year About 7m/s maximum wind speed in the North and South

TEXTILE, CLOTHING AND ACCESSORIES, SECTOR N°1 IN MADAGASCAR

Madagascar is the leading exporter of textile products in Sub-Saharan Africa to Europe. Modern Malagasy industries are distinguished by their quality products, meticulously made by skilled workers, at competitive labor costs.

In 2019 exports were valued at 512 million dollars, mainly for the American market and that of the European Union thanks to AGOA (the African Growth and Opportunities Act ) with the USA and the EPA (Economic Partnership Agreement) with the EU exempting Malagasy products from customs duties. Faced with the global demand for clothing exceeding 470 billion dollars, major international clothing brands produce and source their supplies in Madagascar.

N°2 Largest employer of labor (130,000)
N°2 recipient of FDI (7% of FDI) 19.35% contribution to GDP 30% contribution to Exports

ICT: N°1 IN CONNECTION AND FASTEST DOWNLOAD SPEED IN AFRICA

Madagascar has the fastest broadband internet connection in Africa, contributing to the growth of the sector by more than 44% from 2017 to 2019.

Madagascar has set up a frank regime during the first 2 years of business establishment, resulting in exemption from taxes and customs duties. In addition, modern infrastructure at a lower cost in all cities is available to future investors, and young and qualified labor is competitively priced. ICT accounts for 2.4% of GDP