Madagascar - Market OpportunitiesMadagascar - Market Opportunities
- In 2014, the top product categories for U.S. exports to Madagascar were industrial machines and engines, passenger vehicles, chemicals, man-made cloth and plastics. These product categories have consistently represented the bulk of U.S. exports to Madagascar throughout the last five years.
- Exports related to the extractive industries represent some of the best prospects for future U.S. exports. The country has commercially significant reserves of several minerals, including rare earths, uranium, coal, chromite, graphite, mica, as well as gold and other precious and semi-precious stones. A number of large scale deposits have been identified for development and are only awaiting the issuance of permits. Additionally, about a dozen international oil companies are actively exploring both on shore and off shore, some with plans to commence drilling in the near future. As activity in these sectors is poised to pick up, these industries would present opportunities to U.S. suppliers of the associated machinery and equipment.
- Although the poor state of Madagascar’s energy infrastructure and its limited and unreliable electricity production are frequently cited as a principal impediment to doing business, the government’s prioritization of this problem could also present opportunities for U.S. suppliers, particularly with respect to renewable energy technology. The government has set an objective to increase its electricity access rate from 15 percent to 30 percent by 2020. In rural areas outside the grid – where over seventy percent of the population lives, the access rate is only 4 percent, presenting opportunities in particular for suppliers of photovoltaic equipment.
- Similarly, the poor state of Madagascar’s infrastructure can present opportunities for American suppliers of construction equipment, as the government and international donors prioritize rehabilitation and extension of the road, port, and airport infrastructure.
- Madagascar’s heavy reliance on imports provides opportunities for American suppliers of consumer goods for the small middle and wealthy classes, which are currently supplied primarily by France, China, and South Africa.
- Madagascar's rich biodiversity and high level of endemic plants and animals are the basis for eco-tourism development and might attract foreign investors, along with potential for the development of beach resorts.