Investing in Madagascar
A. FIVE GOOD REASONS TO INVEST IN MADAGASCAR
- Abundant natural resources
- Low cost of local inputs and labor
- Access to many markets and strategically located
- Attractive business environment
- Peaceful and stable country
1. Abundant natural resources
The abundant natural resources available in the country offer great investment opportunities:
- Gemstones, industrial and decorative stones, oil, and rare metals for mining activities
- 5,000 km of beaches and exceptionally unique fauna and flora for tourism business
- Big and fertile land with favorable climate for any agriculture and farming activities
- Various agricultural and farming products as raw materials for transformative industries
- Rivers, wind and sun for renewable energy production
2. Low cost of local inputs and labor
Establishing a competitive advantage from the low costs of local inputs and labor is possible. Labor-intensive industries such as textile manufacturing have thrived in Madagascar with the Law on Export Processing Zone and the American AGOA provisions. The labor force is young, skilled and fast-learning.
3. Access to many markets and strategically located
With trade agreements and preferential treatment granted to some developing countries, Madagascar has an advantageous access (quota free, duty free) to the American and European markets as well as to other developed countries.
In addition, as a member of the following regional economic communities, Madagascar offers the advantage of being a good location for the ease of exporting goods and services to these markets:
- SADC (Southern African Development Community),
- COMESA (Common Market for Eastern and Southern Africa),
- the Indian Ocean Rim,
- COI (Communauté de l’Océan Indien)
Finally, strategically located between Asia and Africa and on major maritime routes, Madagascar gives an advantage to international businesses. And with the current extension of the port of Toamasina in the East and the construction of the Ehoala port in the South, Madagascar provides world-class facilities for transportation of goods.
4. Attractive business environment
The regulatory reforms and public investments in infrastructure since 2002 in the have led to improvement of the country’s business environment.
- Significant public and private investments in infrastructure, such as road, ports, airports, telecommunication, and energy reduce the costs of doing business.
- No restrictions on capital flows in and out of the country, either for debt service or dividend payment
- No requirement that nationals own shares of foreign companies
- Rules of law are enforced without discrimination.
- Intellectual property protection is granted by laws.
- No Government-imposed conditions on permission to invest, including location in a specific geographical area, specific percentage of local content, substitution for imports, export requirements or targets, employment of host country nationals, or technology transfer
- Property rights are protected by laws (guarantee against nationalization, expropriation).
- Quick and easy procedure for company creation
5. Peaceful and stable country
Malagasy people are peaceful by nature. Disputes and conflicts are resolved through means of amiable settlements and by rules of laws.