Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 2/28/2017

  • Madagascar ranks among the poorest countries in the world.  Over 80% of the population lives under the extreme poverty line of USD 1.25 per day while over 90% live on less than USD 2 per day (PPP), according to the World Bank.

  • The low purchasing power of the population makes the local market challenging for American imports, particularly for mass consumption products.

  • The country’s limited and dilapidated infrastructure poses obstacles to market entry, in particularly regarding road and rail transport infrastructure, which is also highly susceptible to damage from recurrent cyclones and floods.  These infrastructure constraints impose additional costs on traded goods, putting them further out of reach of most local consumers. 

  • Law enforcement capacity within the government, coupled with widespread corruption, facilitates anti-competitive practices by some actors, which compete unfairly against legitimate importers.

  • Madagascar operates under a French legal system.  The lack of transparency in regulatory decisions may continue to make doing business in Madagascar difficult, though the new government has committed to work with the private sector to make improvements. 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.