Research and consulting in Madagascar

Country overview:

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, negatively affecting the economy. IOA researchers find that while the country’s 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
The countries key natural resource exports are well placed to benefit from the ongoing green transition
If their ecosystems are preserved, Madagascar’s unique plants and animals can be a major tourism attraction

Key concerns/risks in Madagascar:

Climate change is adversely affecting food production, natural habitats of unique fauna and flora, and the national economy
Political instability and corruption characterise governance
Infrastructure is sub-standard in one of the world’s least developed countries

Find out about how IOA can help you with research and consulting services in Madagascar

Tips on doing business in Madagascar:

Starting a business:

Though the property acquisition process in Madagascar can be difficult, there are comparatively fewer restrictions around foreign ownership of firms. Land development is prohibited to foreigners, though companies can acquire a leasehold from third parties
An LLC can be entirely foreign-owned; and it no longer requires that prospective investors acquire authorisations, which was the case in the past. The Economic Development Board of Madagascar (EDBM) is a one-stop shop for investment and business development to facilitate company registration procedures and assist local and foreign investors

Doing business:

Madagascar is one of the poorest countries in the world. Limited infrastructure and an acute shortage of skilled workers are persistent problems
Additionally, an opaque and inefficient judiciary could present problems for firms in cases of legal disputes
Companies involved in renewable energy, tourism, industrial, civil work, and construction can benefit from a tax rebate equal to 20% of the taxable portion of their investment in that same year
(Read more at: https://edbm.mg/pourquoi-choisir-madagascar/)

Culture and society:

French is widely spoken in administrative and commercial contexts
Foreign visitors should keep in mind “Fady” which is a shifting set of regionally specific cultural taboos related to local veneration of ancestors. Publicly breaking such rules, even inadvertently, can result in ostracism and thus visitors should take care to consult locals around which “Fady’s” apply to any regions they will be travelling in
Violent crime and rural banditry can pose serious risks and visitors should ideally not travel alone