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Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable. This percentage is calculated from the number of mobile cellular subscriptions per 100 adults. Occasionally a single user will have more than one mobile subscription and so it is possible for this value to exceed 100%. 190 countries ranked This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Disclosed share of foreign investment in the clean energy sector (of both local and foreign investment in clean energy, this tells us the amount of foreign investment in clean energy). This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. As per the 2020 Customs Code (part 2) As per the 2020 Customs Code (part 2) Only if between 2V and 6V, and at least 200 Amp/hour. As per the 2020 Customs Code (part 2) As per the General Tax Code of 2019 As per the General Tax Code of 2019 Only if between 2V and 6V, and at least 200 Amp/hour. As per the General Tax Code of 2019 The median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Refers to all types of entry ports. Unit is days. Year is 2018, unless specified otherwise. The real economic growth, or real GDP growth rate, measures economic growth as it relates to the GDP from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms. The real economic growth rate considers inflation in its measurement of economic growth, unlike the nominal GDP growth rate, which does not. 167 countries ranked. Scores are averaged across 2012, 2014, 2016 and 2018 with the last year weighing most of the score. See "Source" below for more details.

The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.

Overview

The economy of Madagascar remains robust, having demonstrated gradual but consistent increases in real gross domestic product (GDP) growth, reaching 4.8% in 2019. Per capita GDP remains below €500, yet continues to grow at a healthy average rate of around 4% annually. Madagascar is not rated by either of the major credit rating agencies under consideration and is ranked in the bottom 30 of 190 countries for ease of doing business.

Inflation is going down but remains under pressure at 6.7% in 2019, down from a high of 8.3% in 2017. The value of local currency, the Malagasy ariary, has been steadily depreciating against major global currencies with both the US dollar and the euro now costing about 1000 ariary more than they did in 2015.

Foreign investment, while higher in 2018 by volume, remains within its recent range between 2.9% and 4.5% of national GDP. To help enable and attract investment, the Economic Development Board of Madagascar (EDBM), an agency of the presidency, works to improve the business environment and investment climate in Madagascar. It works with ADER, the country's rural electrification agency, to identify and attract investors to the Malagasy energy sector. Its services include, for example, assisting investors with registering a company in Madagascar and obtaining permits. Clean energy investments reached €34.6 million in 2017, all of which were from foreign sources.

The Malagasy tax code provides generous incentives to investment in the renewable energy sector, exempting solar panels, wind turbines and batteries from both VAT and import duties.
Regional affiliation
AU, COMESA, SADC
Official language(s)
French, Malagasy
National currency
Malagasy ariary
Presence of port
Yes
Port of Toamasina
Next planned election and cycle length
Presidential elections:
2023 (5-year cycle)
Parliamentary elections:
2024 (5-year cycle)

Demographics

Population
% urban population of total population
% rural population of total population
Population growth rate
Working age (15-64) share of total population
Working age (15-64)
Rest of population
Urbanisation rate (% urban population growth)

Connectivity

Mobile telecom operators
Airtel
Blueline/BIP
Orange
Telma Mobile
All three connectivity indicators
% penetration of mobile cellular subscriptions
% penetration of mobile money
% population with access to internet

Logistics, Import duties and value added tax

Logistics

Median lead time to import
2018
1 days
Aggregated Logistics Performance Index ranking
2018
137

Import Duties and Value-Added Tax

Import Duties
Solar panels
Wind turbines
Batteries (for renewable energy storage)
VAT
Solar Panels
Wind turbines
Batteries (for renewable energy storage)

Business intelligence

Energy Ranking

Climatescope ranking
2019
54
2018
61
2017
Not ranked
2016
Not ranked
2015
Not ranked
WB RISE ranking
2018
122
2016
93
2014
Not ranked

Economy

GDP
Real GDP growth
GDP/capita, real
SSA average
GDP/capita, real
SSA average
GDP/capita, real
Debt to GDP ratio (gross debt)
Inflation rate
Exchange rate
Currency exchange rate vs. EUR and USD
Currency exchange rate vs. EUR
Currency exchange rate vs. USD
Total volume of clean energy investment
% foreign investment in clean energy
2018
92.00%
2017
100.00%
Methodologies
Get to know how this Country Brief was developed
Read more
Contact
Questions or feedback are always welcome
info@get-invest.eu