Country Profile

Madagascar is Africa's largest island which is located in the Indian Ocean, about 420 km (260 miles) east of the coast of Mozambique and is separated from the African continent by the Mozambique Channel. Madagascar shares maritime borders with Comoros, France (Mayotte and Réunion), Mauritius, Mozambique and Seychelles.

With an area of 587,000 km², the island is slightly larger than France, or twice the size of the US state of Arizona. The island has a subtropical to tropical maritime climate and a population of 29.6 million (2022) people. The capital and largest city is Antananarivo and the spoken languages are Malagasy and French. Christianity is the predominant religion with more than 80% of the population being Christians, but traditional beliefs are deeply rooted in society. The Malagasy Ariary (MGA) is the local currency of Madagascar with Euro being the most accepted foreign currency, but US dollars and Great Britain Pound can easily be changed.

Madagascar is a semi parliamentary republic with a popularly elected president, a bicameral legislature (Senate and National Assembly), prime minister, and cabinet. Madagascar has a constitution dating from 11 December 2010 and a civil law system based on the old French civil code, with customary law in matters of marriage, family, and obligation.

a) Key Facts

Capital city	Antananarivo 01 international airport in the capital city 10 hours from the international port of the city of Toamasina First industrial city 02 centres that can host international conferences Headquarters of international companies Administration central office
Population	29.6 million (2022) of which 50% is comprised of under 30 years old
Currency (Nov 23)	1 USD = 4 505 MGA. Madagascar is part of the international SWIFT system
Exports	Textiles, Mining products, Fishing products, crops, Essential oils
Priority sectors	Agribusiness, Textile, Tourism, ICT, Energy Mining
Surface	587 000 sqm with 23 regions, 119 districts. It has 36 Million Ha of cultivable surfaces and 7.6 Million Ha of protected areas and 1,140,000 sqm of Exclusive Economic Zones
Official languages	Malagasy and French
Political system	Semi-parliamentary Republic

b) Macroeconomic Indicators

Madagascar Macroeconomic Indicator	2021	2022	2023
GDP PER CAPITA (USD)	516.53	523.08	529.56
Nominal GDP (in billion MGA from current USD)	66 026.5	68 702.1	71 468.4
Real GDP growth (last 5 years)	5.7%	4.0%	4.0%
Trade balance (as a percentage of GDP)	-6.60%	-6.50%	-5.10%
National savings (as a percentage of GDP)	10.20%	15.90%	20.30%*
Inflation Rate (average period)	5.80%	8.20%	10.50%

c) Contribution of Key Sectors to GDP

Sectors	2021	2022
Construction	11.2%	9.68%
Industry	13.5%	14.42%
Agriculture	16.1%	16.06%
Industries extractives	55,4%	23,6 %
Tourism	1.3%	0.79%

Why Madagascar?

a) Wide Market access

Madagascar has signed several international agreements which offer a wide market of more than 1 billion potential consumers through:

ZLECAF (African Continental Free Trade Zone); SADC (Southern African Community Development Community); COMESA (Common Market for Eastern and Southern Africa); IORA (Indian Ocean Rim Association); IOC (Indian Ocean Commission); WTO Generalized System of Preferences

Free trade Agreement; EU (Economic Partnership Agreement); AGOA (African Growth Opportunities Act); UK (Economic Partnership Agreement); Everything except weapons.

b) Qualified and Bilingual Labour

Madagascar has readily available skilled workers, particularly in the textile and clothing and craft sectors attracting a low cost of salary. Training is also available at any level of positions (from junior to executive).

c) Ready Infrastructure

Madagascar has a well-established infrastructure which include:

International Ports

• The Port of Toamasina is considered as one of the most efficient container ports in Africa and will soon become the maritime hub of the Indian Ocean and Southern Africa;

• The Port of Ehoala, Taolagnaro, grants direct access to the North American market.

International Airports

• Ivato International Airport located in the capital Antananarivo is served by the companies such as Air France, Air Austral, Ethiopian Airlines, Kenya Airways, AIr Mauritius, Turkish Airlines, Airlink among others;

• Nosy Be international airport is served in particular by Polish Airlines and Airlink.

Railways and National Roads

The Madarail transports different types of products (mineral ores, construction materials, quarry products, agricultural and food products, containerized products, etc) through the North Network. The commercial fleet includes 17 locomotives and 260 wagons of different types.

The Malagasy Road network is currently estimated at 31,640 km of roads and the Government is committed to the construction of roads to open up territories and increase agricultural production.

Good Internet Infrastructure

Madagascar has good internet speed, approaching those of industrialized countries and above its peers in the region. In the past decade, due to the availability of low-cost, high-quality labour and higher than average internet speed, more and more call centres and business outsourcing companies have set up shop in Madagascar, while services have also diversified to keep pace.

The internet infrastructure includes:

• LION Indian Oceanic Network (LION);

• LION Indian Oceanic Network 2 (LION 2);

• Eastern African Submarine System (Eassy);

• Meltingpot Indian Oceanic Submarine System (METISS).

d) Investment Regulatory Framework

Madagascar has implemented significant legal, procedural and administrative reforms aimed at facilitating business practices and encouraging local and foreign investment. These reforms include: the Investment Law, Cooperative Societies Act, Agricultural Aggregation Law, Organic Agriculture Law, Mining Code, Electricity Code and total liberalization of the telecommunications sector. Other important regulatory frameworks include the Public-Private Partnership; Law on Large Mining Investments, Free Zones and Special Economic Zones. The government is also committed to maintaining a tax system that is simple, fair and pro-growth for investors.

New Investment Law

The main principles of the investment law are:

• Freedom to invest for any natural or legal person, Malagasy or foreign;

• Equal treatment between local and foreign investors (with the possibility for foreign investors to hold 100% of the capital);

• Protection of investors' property rights against nationalization, direct or indirect expropriation and requisition;

• Free transfer, without prior authorization, of after-tax profits, dividends, salary income, remuneration and savings of expatriate employees.

e) An Abundant Endemic Natural Resource

Madagascar is one of the most renowned areas of biological diversity in the world, with more than 80% of the planet's endemic plant and living animal species. Further, Madagascar offers a particularly dense and varied array of resources for agriculture, mining, energy, fishing and tourism.

f) Strategic Location of the Island

The island of Madagascar is a vital location for operations in the Western Indian Ocean. The island along with Comoros borders the Mozambique Channel, a crucial trading route between Asia, Europe, and the America. This trade route allows trade flow towards the southern tip of South Africa via Cape of Good Hope.

EDBM Economic Development Board of Madagascar

EDBM is the national investment promotion agency of Madagascar whose objective is strengthening the competitiveness of the private sector, increasing direct foreign investment, making improvements in the business environment and facilitating the business climate in the country.

It offers dedicated aftercare services for investments and end-to-end investor support services which include:

• Expertized investment managers per sector;

• Advisory service for investment projects;

• Connecting with public and private sector;

• Support and facilitation from the pre-establishment to post-establishment or aftercare phase.

EDBM has a one-stop shop for investment facilitation which aims to ease the costs of doing business. It brings together ten ministerial services and offers the following services in one place:

Formalities for creating and modifying a business; Issuance of authorizations for tourist establishments; Granting of employment authorizations for foreign employees;

Issuance of long-stay visas for investors, workers and their families; Granting of Transformable Visas; Granting of approval for free zones and companies; Information on land acquisitions.

Investment Opportunities

a) Infrastructure

Opportunities in this sector include:

1. Antananarivo: Tana-masoandro (189 Ha)

Dedicated areas
Housing areas	143.47 Ha with 30-storey housing towers, 12-storey housing blocks and villas
Business areas	28.7 ha with cinemas, hall, catering, pharmacy, terraces, stores and hypermarkets and parking lots
Industrial areas	6.9 Ha
Hotel areas	10.4 Ha with 2-to-5-star hotels, catering establishments and conference rooms
Benefits
Serviced and developed land with access to: energy, drinking water and VRD; Strategic location; State support and facilitation at all stages of the project; Access to quality equipment; Competitive investment conditions.
Estimated cost
Under study
Financing Plan
PPP, State - Bank - VEFA Promoter Partnership, Acquiring credit with banks

2. Mahajanga: Amparemahitsy (86 Ha)

Dedicated areas
Residence	​​24 Ha for housing
Commercial	16.4 Ha of the new city will be occupied by shopping malls, supermarkets and commercial parks
Industrial	28.8 Ha will include a non-polluting industrial zone
Hotelière	16.91 Ha will be occupied by 2-to-5-star hotels, catering establishments as well as conference rooms

In addition to the more than 52 hectares dedicated to economic activities in the private sector, other components of the city will require mixed investment, such as the educational and health zones.

b) Agriculture

Priority crops in agricultural development areas

1. Corn

• A deficit of 300,000 tonnes per year to meet national needs;

• Intended to supply the local food industries;

• Allocation of 80,000 ha of ZEA in 15 Regions;

• Project needs estimated at 77 million USD in investment.

2. Rice

• Rice is the staple food in Madagascar, as in many other African countries;

• A deficit of 700,000 tonnes per year for the country;

• Allocation of 17,500 ha of ZEA in 11 Regions;

• Project needs of 15.5 million USD in investment.

3. Groundnut

• Exported and supplied for both artisanal food oil mills and larger units;

• Allocation of 80,000 Ha of ZEA in 10 Regions;

• Project needs estimated: USD 32 million in investments.

4. Soybean

• Most of the country's soybean requirements for animal feed are imported;

• The government's goal is to produce 50,400 tonnes of soy by 2028. The project aims to revive a virtually extinct industry;

• Allocation of 6,500 Ha of ZEA in 2 regions of the country;

• Project needs estimated 32 million USD in investment.

5. Sorghum

• Sorghum is the cereal of the future, adapted to the climate of the south of the country. It is an alternative for food security in the south;

• Allocation of 3,200 Ha of ZEA in the Ihorombe Region;

• Project needs estimated: 4.5 million USD in investment.

6. Viticulture

• A fairly resilient sector despite competition from imported products;

• The industry stagnates around 3,000 hectares of plantations;

• The project aims to create an investment model to promote this promising sector.

Distribution of agricultural development areas by region

Ambassadors: Oso farming, Havamad, Robert, Tozzi green

• 220,000 Ha of agricultural development areas

Regions	Surface	Sectors
Diana	4.200Ha	Corn, cassava, peanuts, local chicken farming
Sofia	27.800Ha	Black eyes, corn, cassava, groundnut, rice, cuma, vanilla
Boeny	2.450Ha	Rice, sorghum, vegetables, small ruminants
Melaky	6.450Ha	Rice, cassava, groundnut, corn
Bongolava	16.000Ha	Upland rice, corn, groundnut, wheat
Itasy	1.000Ha	Rice, groundnuts, corn
Menabe	69.100Ha	Groundnuts (potential), corn, cassava
Atsimo andrefana	4.080 Ha	Rainfed cultivation and irrigated cultivation: Rice, groundnut
Androy	12.000Ha	Vegetables, sorghum, small ruminants, Cassava, Sweet potato
Sava	2.000Ha	Vanilla, rice, corn, palm oil
Analanjirofo	1.500Ha	Rice, poultry farming
Betsiboka	3.000Ha	Rainfed rice, corn, groundnut
Alaotra mangoro	500Ha	Corn, beans and local chicken
Analamanga	1.000Ha	Vegetables, rice, beans, groundnut, corn, pink pepper (Anjozorobe), wheat
Atsinanana	7.000Ha	Corn, cassava, cloves, pepper, cuma, fruits, dairy cow, rice
Vakinankaratra	13.200Ha	Wheat, upland rice, corn, cassava, soy
Matsiatra ambony	3.458 Ha	Rice, corn, groundnut
Vatovavy	20.128Ha	Cinnamon, coffee, pepper, vanilla, rice
Fito vinany	2.024Ha	Coffee, pepper, vanilla, rice
Amoron’i mania	6.125Ha	Coffee, pepper, vanilla, rice
Ihorombe	12.984Ha	Irrigated rice, corn, cassava, groundnut
Atsimo atsinanana	4.000Ha	Food crops, cash crops, livestocks (poultry and dairy cows)
Anosy	2.000Ha	Cassava, sorghum

• Allocation of 1,000 Ha of ZEA in the Haute Matsiatra region

• Project needs estimated: 2 million USD in investment

• 110,000 Ha of Territory for Organic Agriculture to be created within the framework of PPP

Regions	Surface
Diana	12.500Ha
Atsimo andrefana	15.000Ha
Analanjirofo	12.500Ha
Alaotra mangoro	10.000Ha
Atsinanana	10.000Ha
Analamanga	12.500Ha
Vakinankaratra	12.500Ha
Androy	15.000Ha

• 68,945 Ha of private land

Regions	Surface	Sectors
Sofia	18.000Ha	Soya, Sunflower, Oil mill, Sugar cane, Tilapia
Boeny	8.000Ha	Rice, fish farming
Betsiboka	7.796Ha	Rice
Bongolava	16.000Ha	Corn, rice, soy, groundnut, white bambara peas, banana, coffee and ginger
Itasy	573Ha	Corn, soy, onion, spices, fruit trees and essential oils
Amoron’i Mania	100Ha	Groundnut and corn
Haute Matsiatra	2.450Ha	Rice, corn, groundnuts and beans
Atsimo Andrefana	4.905Ha	Rice, dried cereals, oilseeds, spices, fruits, fish farming, peas, beans, lentils, onions and sugar cane
Diana	95Ha	Cashew nuts, lemon, orange, cassava and cinnamon
Analanjirofo	230Ha	Spice, fruit tree and essential oils
Alaotra Mangoro	7.464Ha	Plants with essential oils, spices (Pili-pili, organic paprika) and corn
Atsinanana	1.882Ha	Oilseed plants (peanut, soya, sunflower, etc.)
Analamanga	1.528Ha	Oil palm, corn, rice, orange tree, coffee, spices, tree fruits and essential oils
Vakinankaratra	450Ha	Rice, soy, corn, groundnuts, organic fertilizers and potatoes
Vatovavy	3.975Ha	Groundnut and coffee
Fitovinany	450Ha	Spice, fruit tree, essential oils

• Fertilizer plants and community greenhouse centres

Types	Production potential	Cost	Regions
Chemical fertilizer plants	40,000T/in the NPK 30,000T/year of urea 46%	9M USD (PPP)	Atsinanana, Alaotra Mangoro
Organic fertilizer plants	30,000T/year of organic fertilizer	3,5M USD (PPP)	Vakinankatra, Boeny
Greenhouse Community Centres		59,79M USD	Anosy, Diana, Alaotra Mangoro, Analamanga, Vakinankaratra, Bongolava, Amoron'i Mania, Haute Matsiatra

c) Industry

The ambassadors: Ciel textile, aquarelle group, ultramaille, epsilon, accord knits, mklen international, groupe socota

Key figures	Observations
14,42%	Contribution of the sector to GDP
136.392	Workers contributing to employment (CNAPS) 10% of total employment (Source: World Bank 2022)
622	Industries created at EDBM from 2016 to 2022
ODOF	Implementation of the One District One Factory Industrial Incubation Zone program
1,5B USD/an	Additional investment needed to reach the 25% contribution of FDI to GDP. The current level of investment is 1 billion USD per year.

• Investment projects

Projects	Estimated costs	Observations	Localisation
One District One Factory (ODOF/ZPI)	49M USD	245 local agricultural product processing units	All 119 districts of Madagascar
Industrial Parks	765M USD	4 agro-industrial parks of 15ha/park   Phase 1 (2023 2028): Arivonimamo, Ambatolampy, Fianarantsoa, ​​Manakara Phase 2 (2029-2038): 19 parcs 25,500 jobs per park	Arivonimamo, Ambatolampy, Fianarantsoa, ​​Manakara
Special Economic Zones	4B USD (Start-up phase)	4 economic hubs: Andrakaka (Diana) 260ha Ptaso (Toliara) 120ha (Southwest) Ehoala park (Anosy) 400ha in Taolagnaro Moramanga (Alaotra Mangoro) 680Ha 47,500 jobs per zone

d) Mining

Ambassadors: Rio tinto, Ambatovy

• Contribution of the mining sector to GDP (M USD)

Years	2017	2018	2019	2020
Total GDP	6521,3	6286,4	6046,4	5318
Contribution of the mining sector to the GDP	416,9	318,6	387,6	190,4

• Minerals available

Minerals	Localisation	Potential
Graphite	Fotadrevo	120M tons
Gold	Maevatanana, Bestiaka and Dabolava
Coal	Sakoa, Imaloto	1.3 billion tons
Bauxite	Manantenina	60M tonnes at 42% alumina
Ilmenite	Ranobe	1.4B tonnes of sand at 4.4%
Copper	Ambatovarahina, Ambodilafa and Besakoa	315K tonnes
Iron	Solala	800M tonnes
Uranium	Morafeno, Andranokolo	70K tonnes of around 5% to 8%
Chrome		150K tonnes/an
Rare earth	Ampasindava	10M tonnes at a concentration of 0.08%

• Current projects

Promoters	Amount	Minerals	Potential	Localisation
TOLIARA BASE	700M USD	Ilmenite	1.29B tonnes	Ranobe Toliara
PAM SAKOA COAL	500M USD	Coal	870M tonnes	Sako to Tolia
TERRIBLY	160M USD	Graphite	22.4M tonnes
BLACK EARTH	100M USD	Graphite and coal	260M tonnes

• Projects awaiting or renewing operating permits

Promoters	Potential	Status of operating permit
Soalala Iron deposit	600M tonnes	Waiting for renewal
Ampasindava EE depot/REENOVA	130M tonnes	On hold
Hope for bauxite	1,215B tonnes	On hold

• Gold potential of Madagascar

Madagascar has 04 potential gold districts and more than 10 tonnes of gold officially exported between 2016 and 2019.

e) Technologies and Innovations

The top 4 in the TIC market: Intelcia, Webhelp, Teleperformance, Konecta Madagascar

• High quality internet infrastructure

• LION Indian Oceanic Network (LION)

• LION Indian Oceanic Network 2 (LION 2)

• Eastern African Submarine System (Eassy)

• Melting Pot Indian Oceanic Submarine System (METISS)

• Comparative advantages

Comparative advantages	Observations
100% urban 82% rural	National 3G coverage rate
98% urban 61% rural	National 4G coverage rate
66 %	Mobile phone penetration rate
17,1%	Internet penetration rate

• Public projects

Openness and inclusion

• Facilitate access to the internet in remote areas;

• Strengthen sector regulation;

• Stimulate pooling;

• Facilitate access to finance for economic actors;

• Promoting digital education, entrepreneurship and employability for all.

Modernization of the administration

• Promote citizens' access to information on their rights and duties in all areas;

• Bringing administration closer to citizens;

• Guarantee the transparency of decisions and actions;

• Rationalization and acceleration of decision-making.

Resilient digital ecosystem

• Reform of the legal and institutional framework of the telecommunications sector;

• Connectivity of municipalities;

• Decim;

• MRTAM;

• Reform of civil status and single identity card.

Develop human capital

• National Institute of Digital and Posts (in progress);

• Intelligence Centre for Inclusive Digital Training;

• Develop advanced digital skills;

• Incubator and Technopôle centre (in progress).

Develop digital and financial inclusion

• Payment digitization;

• Postal bank;

• Village intelligent;

• One stop shop;

• TIC BUS;

• Hotspot;

• E-ariary.

• Mobile application and software development;

• Website development;

• Data digitalization;

• Call centre.

f) Tourism

Ambassadors: Groupe Accor, Time & Tide, Radisson

• The number of visitors is approaching pre-pandemic performance

Months	Year 2019	Year 2022	Year 2023
January	43100	1898	10157
February	33248	1950	9191
Mars	33252	2578	12442
April	26763	5044	18657
May	23347	8733	18831
June	22006	8119	16674
July	29582	11194	25353
August	27303	11895	23288
September	28861	14189	22975
October	30712	22023
November	45085	20481
December	40458	23914
TOTAL	383717	132018

• 600,000 tourists expected by 2026 and 1,000,000 by 2028

2019	2023	2026	2028
380.000 registered tourists	Return to 2019 performance	760.000 Tourists, aim to double the number of tourists in 2019	1.000.000 Of tourists

Madagascar Tourism ranking

• Indian Ocean's Leading Green Destination 2023 (World Travel Awards);

• World’s Leading Beach Resort 2022 (World Travel Awards);

• Indian Ocean's Leading Beach Resort 2022 (World Travel Awards);

• Safe travels stamp 2021 (WTTC);

• Madagascar: Top 5 destinations for 2023 (Forbes);

• Sainte-Marie Island, 4th best travel destination in the world in 2023 (Travel Lemm T);

• Madagascar: Top 5 destinations to put on your travel list in 2023 (Lonely Planet);

• Madagascar in the Top 10 most attractive African countries for the 2022-2023 season (Bloom Consulting);

• Miavana by Time & Tide in the top 50 luxury hotels in the world for 2023 (Robb Report).

• 15 hotel and restaurant projects

Order	Projects	Localisation	Surface	Activities
1	Ehoala Park	You are tall	12,6Ha	Hotel Club Beach Resort
2	Lava Island	Morombe	29,7Ha
3	Andafirôï Lodge	Amparilava, Mistinjo	1.4 Ha	Ecolodge
4	North	Ambilobe	30,8Ha	Hotel Club High end ecolodge
5	Begavo Village	Manambato, Brickaville	72Ha	Ecolodge Marina Water activities
6	Harena II, Jeremy III & IV	The Dyke, Mahajanga II	30ha	Hotel Club Beach Resort
7	Hart & Mia I	Katsepy, Mistinjo	1,8Ha	High-end ecolodges
8	Hart & Mia II & III	The Dyke, Mahajanga II	40,5Ha	Eco-resort Marina Attraction and amusement parks
9	Isabella & Isabelle	Evatraha, Taolagnaro	47,6Ha	High-end ecolodges
10	The Blue Lagoon	Mahambo, Fénérive Est		Extension or improvement of existing hotel Marina Water activities
11	Makomba I & II	Evatraha, Taolagnaro	23,2Ha	High-end ecolodge Heliport
12	Manambina	Marofarihi, Toamasina II	34Ha	Hotel Club Beach Resort
13	Nosy Arenas	Below	80 Ha	Beach resort High-end ecolodge
14	Bora Island Project	Nosy Boraha	2.67Ha	Beach ecolodge
15	Hotel restaurant Nice view	Toliara	6Ha	Hotel takeover

• Marina Project

Projects	Estimated costs	Investment Opportunities
Jasmine Port Port	2,8M USD	Marina Maintenance workshop and wintering shed Shopping centre (stores, restaurants, bars, etc.) Hotels Administrative offices Leisure centres (casino, nightclub, gym)
Crater Port Nosy Be	5,4M USD	Marina Maintenance workshop and wintering shed Centre commercial Hotels Administrative offices
Vieux Port Taolagnaro	3.7 Million USD	Marina Maintenance workshop and wintering shed Cabotage port Navy station Centre commercial Hotels Administrative offices

Cruise project on the Pangalanes canal

1. Description

Canal with a depth of 1.4 m to 5 m, composed of a series of natural rivers, waterways and artificial lakes, which extends for more than 641 km and runs along the east coast of Madagascar from Mahavelona to Farafangana. There are 41 embarkation points, 8 main ports and around 20 resorts, including eco-lodges, along the canal.

2. Proposed project

River cruises offering flat-bottomed boats with a maximum draft of 1 m

3. Accessibility

• By road and rail (FCE, Manakara);

• By boat from ports and piers located along the canal;

• By plane (Toamasina and Mananjary airports).

4. Partnership

• Investment;

• Ship charter.

5. Tourist attraction

• Naturally luxuriant;

• Seaside and village tourism;

• Water activities.

 h) Renewable energy

Ambassadors: Axian, FILATEX Group, Tozzi Green

• Investment Opportunities

• Quantified objectives for 2030

15% Electrification rate in 2022 including: 25% hydroelectric 75% thermal

70% Electrification objective for 2030 of which 85% of renewable energies

• Government projects

  Projects	Costs
  Development of hydroelectric plants	USD 1.8Mds
  Construction of a 100m waste treatment unit3	USD 85M

• Current hydroelectric projects

  Project	Power supplied
  Hairy	750 GWH/an
  Sahofika	1,500 GWH/year

• Electrification rurale

• Investment needs $ 390 509 888*;

• To build power plants distributed across 12 out of 23 regions (Diana, Analanjirofo, Betsiboka, Analamanga, Atsinana, Itasy, Vakinankaratra, Amoron'i Mania, Vatovavy, Fitovinany, Ihorombe, Atsimo Eastinanana)

For the private party

• Possibility of reinjecting and selling surplus production on the network;

• Company commitment against global warming (if Renewable Energy);

• Guarantee of a quantity of energy at a fixed price, stable and predictable over time;

• Continuity of productivity.

For the Public part

• Development of renewable energies;

• Reduction in the use of fossil fuels;

• Reduces losses from farm operations thermal power plants.

Starting a Business

Forms of Businesses

The following can be registered in Madagascar:

1. Public limited companies (SA)

2. Limited Liability Companies (SARL)

3. General partnership (SNC)

4. Simple Limited Partnership (SCS).

a) Public Limited Company (SA)

• May be constituted by one or more natural or legal persons;

• The rights of shareholders are represented by shares;

• Partners are only liable for social debts up to the amount of their contributions.

Share Capital Threshold:

• If Sole Proprietorship (maximum 3 shareholders): minimum 2,000,000 MGA, with General Administration;

• If Company with several Partners: minimum 1,000,000 MGA, with Board of Directors.

NB. Control by Statutory Auditor (CAC)

b) Limited Liability Company (SARL)

• May be constituted by one or more natural or legal persons;

• The rights of shareholders are represented by shares;

• The partners are only liable for the company's debts up to the amount of their contributions;

• Protected from possible seizures of personal belongings by creditors.

Share Capital Threshold:

• If single-person company (SARLU): minimum 1,000,000 MGA;

• If Company has several Partners: minimum 2,000,000 MGA.

NB. Control by Statutory Auditor (CAC) if:

• Share Capital exceeds 20,000,000 MGA

• Turnover (CA) > 200,000,000 MGA,> 50 people permanently employed

c) General Partnership (SNC)

• All partners are traders

• Held indefinitely and jointly and severally for debts;

• All decisions must be taken unanimously;

• Legal form of company suitable for family businesses and small businesses.

d) Simple Limited Partnership (SCS):

• Can be set up by one or more partners with unlimited and joint liability for company debts - general partners

• With one or more partners responsible for the social debts within the limit of their named contributions - limited partners or general partners

• Capital is divided into shares.

The company registration process is done through EDBM which provides facilitation services.

Immigration Procedures

Long Stay Visa

Procedures for obtaining a long stay visa for investors, workers and family reunification

Fees

Length of stay obtained	Residence visa fees	Fees for issuing resident cards
+ 3 months – 1 year	33 €	300 €
1 -2 years	33 €	400 €
2 - 3 years	33 €	533, 57 €
3 - 5 years	44 €	609, 80 €
5 - 10 years	55 €	838, 47 €
Definitive stay	55 €	300 €
Duplicata	33 €	300 €

Payment is to be made in MGA.

Investors Visa

Requirements

04 Recent ID photo; 01 Request letter signed by the interested party addressed to the Ministry of the Interior; 01 Information notice properly completed, signed and dated; 01 Sworn statement; 01 Copy of the passport (3 first pages); 01 Certificate of residence in Madagascar; 01 Certificate of registration at the register to be requested from the Police Prefecture or at District; 01 Photocopy of the company's statutes; 01 Photocopy of statistic card;

01 Extract from registration in the Trade and Companies Register (RCS); 01 Photocopy of the Tax Card (tax situation); 01 Bank certificate issued by a local bank attesting to the existence of an account; 01 Opening balance sheet of the company or activity balance sheet certified by “Contribution Directe” if the company has already existed and is in activity 01 Original criminal record extract issued by his country of origin less than six months old; 01 Copy of the convertible visa with clear and legible entry stamp.

Employees Visa

Requirements

04 Recent ID photo; 01 Request letter signed by the interested party addressed to the Ministry of the Interior; 01 Information notice properly completed, signed and dated; 01 Sworn statement; 01 Copy of the passport (3 first pages); 01 Certificate of residence in Madagascar; 01 Certificat of registration at the register to be requested from the Police Prefecture or at District;

01 Photocopy of the Tax Card (tax situation), certified by the competent authority (Tax General Director); 01 Employment contract; 01 Employment authorization issued by the Ministry of Labour; 01 Original criminal record extract issued by his country of origin less than six months old; 01 Copy of the convertible visa with clear and legible entry stamp; 01 Return ticket.

Application for the visas is through EDBM.

Work Permit

Procedure for Obtaining Work Permit

Requirements

• Request letters (motivated and nominative) addressed to the Minister of Labour, Public Service Employment and Social Laws (including ONE (01) original specifying the name and position of the Company Manager responsible for submitting and withdrawing the file);

• 04 Original employment contract subject to Malagasy labour legislation;

• 01 Information sheet relating to the worker subject of the employment application to be completed and signed by the worker and the employer + company stamp;

• 01 Company information sheet to be completed and signed by the company manager + company stamp;

• 01 Sworn statement of the worker;

• 01 Sworn statement of the employing company.

Additional requirements for common law business ≤ 20 workers

• 01 Copy of tax card;

• 01 Opening declaration form for companies less than two years old or;

• 01 Annual periodic information sheet on the workforce situation;

• 01 Certificate of residence < 1month of the employing company delivered by the Fokontany of its headquarter.

Additional requirements for common law business ≥ 20 workers

• 01 opening declaration form for companies less than two years old or;

• 01 Annual periodic information sheet on the workforce situation.

Useful Contacts

Economic Development Board of Madagascar (EDBM)

Tel: +261 20 22 670 40

edbm@edbm.mg

communication@edbm.mg

www.edbm.mg