Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements.
Last Published: 2/28/2017

  • Political situation: Madagascar has recently emerged from a political crisis occasioned by a coup d’état in 2009.  Internationally observed elections in 2013 led to the inauguration in January 2014 of President Hery Rajaonarimampianina.  The new President has emphasized battling poverty, improving good governance and rule of law, tackling corruption, and promoting a better investment climate among his priorities.  The U.S. government lifted all coup-related restrictions on aid to Madagascar on May 27, 2014, and in July 2014, duty free eligibility to the U.S. market under the African Growth and Opportunity Act (AGOA) went back into effect after a five year absence. ​​

  • U.S. exports to Madagascar totaled USD 102.8 million in 2014, a decrease of 13.8 percent compared to 2013.  The United States is the tenth largest source of imports in Madagascar, representing approximately 4.7 percent of the country’s total imports.  The U.S. ranks tenth after the United Arab Emirates, China, India, the European Union, France, South Africa, Bahrein, Pakistan and Mauritius.  ​

  • U.S. imports from Madagascar totaled USD 185.1 million in 2014, an increase of 27.6 percent compared to 2013.  The United States is the second largest destination for Malagasy exports after France, representing approximately 5.7 percent of Madagascar’s total exports. ​

  • Stock of U.S. FDI in Madagascar totaled approximately USD 183 million in 2013, the latest year for which figures are available.​

  • Economic performance:  Madagascar’s GDP was approximately USD 10.6 billion in 2013.  The estimated GDP growth rate for that year was 2.4 percent, according to the World Bank, while it was an estimated 3 percent in 2014, according to the African Development Bank.  The latest projections by the International Monetary Fund (IMF) for the GDP growth rate in 2015 are between 3.5 and 4 percent.  The largest driver of GDP growth in recent years has been the mining sector, followed by agribusiness and the services sector, including transportation and commercial services.  Agriculture contributes about one fourth of total GDP and employs approximately eighty percent of the population.  Inflation was approximately 6 percent in 2014, according to the World Bank, driven largely by an overreliance on imported goods, particularly petroleum products, but also food.

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.