U.s. Department of Commerce

Business Opportunities in Madagascar U.s. Department of Commerce

Political situation: Madagascar is emerging from a political crisis occasioned by a 2009 coup d?état. Internationally observed elections 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, and promoting a better investment climate as his new government?s priorities. The U. S. government lifted all coup-related restrictions on aid to Madagascar on May 27, 2014. U. S. exports to Madagascar (2013): USD 122.7 million. The United States is the seventh-largest supplier of exports to Madagascar after the United Arab Emirates, China, the European Union, France, India and South Africa, supplying only 3.8% of total imports. U. S. imports from Madagascar (2013): USD 145.0 million. The United States is the second-largest destination for imports from Madagascar, after France, representing 7.5% of Madagascar?s total exports. At the height of Madagascar?s eligibility for the African Growth and Eligibility Act (AGOA), 35% of Malagasy exports went to the United States. Stock of US FDI in Madagascar (2012): USD 185.9 million (3.1% of total FDI) Population and poverty: an island in the Western Indian Ocean with a population of approximately 22 million, Madagascar ranks among the poorest countries in the world. Almost 70% of the population lives in poverty and 90% live under 2 USD per day (PPP), according to the World Bank. Economic performance: Poverty sharply increased during the 2009-2013 political crisis. Madagascar?s 2013 inflation rate was 5.8%, and its growth rate that year was 2.4%. Despite the political crisis, Rio Tinto continued to export ilmenite in 2013, and Ambatovy (a Canadian, South Korean, Japanese joint venture) started exporting nickel on November 8, 2012.