• GDP: US$5 billion (2005).
• Main exports: Coffee, shellfish, vanilla, fish, textiles and garments (free zone), cloves, pepper, cotton, chromite, graphite and sapphires.
• Main imports: Machinery and transport equipment, mineral fuels, food and consumer goods.
• Main trade partners: France, USA, Germany, Mauritius and China.

Madagascar’s mainly agricultural economy relies heavily on coffee production to earn foreign exchange, and this has suffered lately from a decline in world demand and prices. Rice and cassava are produced primarily for domestic staple consumption. Fishing is underdeveloped thus far: the government, which still exercises extensive control over the economy, is hoping to improve its performance.

The country has appreciable mineral deposits of chromium ore, bauxite and titanium ore, all of which are being exploited. The recent discovery of oil deposits is set to bring about further development as well as hopefully resolve Madagascar’s energy problems. 15% of GDP derives from the manufacturing industry, mainly textiles and food processing.

The service sector is relatively underdeveloped at present. The government has been looking at ways of developing the tourism industry, and has focused on the island’s abundance of exotic wildlife as a major attraction.

Although the Madagascan economy has considerable potential, there are major problems to overcome. There is little that can be done about the climate; Madagascar suffers from frequent cyclones which have done severe damage to agriculture, especially in the last few years. More seriously, political instability afflicted Madagascar throughout 2002 and threatened to undermine the economy.

The economy grew by 4.7% in 2006. The country continues to rely heavily on loans and grants from the EU (especially France) and the World Bank: these were among a consortium of donors which in July 2002 agreed a major aid package worth US$2.3 billion over four years. France accounts for about 30% of all Madagascar’s trade.

Lightweight suits are advised. If arranged far enough in advance, the embassy can arrange interpreters for business meetings.

Office hours: Mon-Fri 0800-1630.

Fédération des Chambres de Commerce d’Industrie et d’Agriculture de Madagascar
20 Rue Paul Dussac, Antaninarenina, Antananarivo 101, BP 166, Madagascar
Tel: (2022) 20211.
Website: www.tana-cciaa.org