Invest in Madagascar

Madagascar is a member of SADC, COMESA, and the IOC, providing access to over 600 million consumers. By signing the Tripartite Free Trade Agreement (TFTA), Madagascar positions itself at the heart of 57% of Africa's population, thereby increasing business opportunities.

Madagascar has an exceptional wealth of natural resources. Here are a few examples:

• Mineral Resources: Nickel, cobalt, graphite, sapphire, and gold are abundant in Madagascar.
• Agricultural Resources: Malagasy vanilla is renowned worldwide for its quality. The island also produces high-quality cocoa, coffee, and lychees.
• Essential Oils: Madagascar is a major producer of essential oils, particularly ravintsara oil and ylang-ylang oil.
• Marine Resources: Fishing, especially for shrimp and tropical fish, is another significant asset of the island.
• Unique Biodiversity: With a biodiversity rate of 90% and the highest endemism rate in the world, Madagascar is a paradise for eco-tourism and investment in natural reserves.

Madagascar benefits from AGOA with the United States and the EPA with the European Union, allowing companies to export to these markets without customs duties, thus fostering strong commercial activity.

Despite the challenges posed by corruption, particularly within customs, significant progress has been made over the past decade. Malagasy customs have been digitized, and the Gasynet and Tradenet platforms ensure document rigor and greater transparency, reducing the risks of corruption.

Additionally, the customs office at the port of Tamatave, Madagascar's main port, is equipped with a container scanner, enabling rapid inspections and the release of goods within three days if all procedures are correctly followed.

In Madagascar, the legal and tax framework is designed to encourage investment. Legal and administrative reforms have simplified business procedures, and specific laws, such as those governing Free Zones and Free Enterprises, offer significant benefits.

LAW No. 2007-037 OF JANUARY 14, 2008
on Free Zones and Free Enterprises in Madagascar

These enterprises enjoy tax exemptions for the first two years, followed by a corporate income tax (CIT) rate of only 10%. However, establishing a free enterprise is subject to stricter conditions compared to regular Malagasy companies. It is crucial to thoroughly prepare your application and project to optimize the business creation process. This advantageous tax regime is exclusively reserved for companies exporting goods or services. For more information and to better prepare your investment, visit the EDBM website.