Research and consulting in Madagascar
IOA has been a long-time provider of in-depth research and data-based consulting services on all aspects of Madagascar. Our analysts have noted that, while the economy is mostly unregulated, economic freedom is poor due to a weak judicial system that leads to difficulty enforcing contracts. Extensive government corruption is another challenge. While Madagascar’s natural resources can be much more extensively exploited, a lack of capital markets hinders investment. Decades of political instability have held back national development.
The island has been one of the world’s first to suffer climate change impacts, from increasingly devastating cyclones to droughts. Madagascar’s remoteness hinders tourism, IOA research has found, and while the unique flora and fauna are big tourism draws, these are threatened by global warming and human encroachment into their habitats.
Key opportunities in Madagascar:
- The island remains the world’s top producer of natural vanilla, which in recent years has seen growing global demand
- If their ecosystems are preserved, Madagascar’s unique plants and animals can be a major tourism attraction
- Investment can boost agricultural production and fishing
Key concerns/risks in Madagascar:
- Climate change is adversely affecting food production and natural habitats of unique fauna and flora
- Political instability and corruption characterise governance
- Infrastructure is sub-standard in one of the world’s least developed countries