Economy of Madagascar

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Madagascar
MadagascarMadagascar
World economic rank 133. (nominal)
114. (PPP)
currency Ariary (MGA)
Trade
organizations 		WTO
Key figures
Gross domestic
product (GDP) 		$ 11.5 billion (nominal) (2017)
$ 39.7 billion ( PPP ) (2017)
GDP per capita $ 448 (nominal) (2017)
$ 1,551 (PPP) (2017)
GDP by economic sector Agriculture : 23.7%
Industry : 16%
Services : 60.3% (2017)
growth   4.1% (2017)
inflation rate 8.1% (2017)
Gini index 41 (2012)
Employed 13.4 million% (2017)
Unemployment rate 2.1% (2017)
Foreign trade
export 2.80 billion (2017)
Export goods Coffee, vanilla, fish, sugar
Export partner France : 24.8%
USA : 16.5%
China : 6.7%
Germany : 6.5% (2017)
import 3.63 billion (2017)
Import goods Capital goods, petroleum, consumer goods
Import partner China : 18.7%
India : 9.3%
France : 6.4%
South Africa : 5.6% (2017)
Foreign trade balance −0.83 billion (2017)
public finances
Public debt 37.3% of GDP (2017)
Government revenue $ 1.76 billion (2017)
Government spending $ 2.01 billion (2017)
Budget balance −2.3% of GDP (2017)

The economy of Madagascar is present through reforms marked. The state invests primarily in education, health, rural development, roads, ports, airports and energy supply.

Infrastructure

Toamasina, Madagascar's most important port

The expansion of the infrastructure is funded by the World Bank , the European Union and the African Development Bank (ADB).

The investment conditions, such as predictable administrative action, incorruptibility of decision-makers, legal security, access to credit, infrastructure and level of education are often not yet given. However, the government is trying to make it easier to purchase real estate and business visas through an investment law and thus to attract investors. A central contact point for investors (EDBM) was also set up for this purpose.

Madagascar is a member of numerous economic organizations such as the International Monetary Fund , the World Bank , the World Trade Organization and, since August 17, 2005, the South African Development Community (SADC).

Madagascar's economic growth was 6.3 percent in 2007; the inflation rate in the same year was 8.2 percent.

The economic growth is based on textile and shrimp production as well as tourism.

In general, however, the economy remains vulnerable to economic shocks due to poor diversification.

While the gross domestic product rose by 4.7 percent in 2006, it rose by 6.3 percent in 2007. The GDP in 2007 was 7.503 billion US dollars, resulting in a gross domestic product of 370 US dollars per capita. In 2006 GDP per capita was $ 289. 40 percent of the state budget is based on donor contributions. The budget deficit in 2007 was five percent.

The structural adjustment programs to improve government revenues are set by the IMF and the World Bank.

Madagascar has had some success in reducing its national debt. While this was 4.8 billion US dollars in 2003, it fell to 1.9 billion US dollars in 2007. The government decided on a national poverty reduction strategy that runs from 2007 to 2012 and provides, among other things, higher economic growth.

Agriculture

Rice fields near Antananarivo

With 36% of the gross domestic product, agriculture is the most important branch of the economy after the service sector. However, agriculture in Madagascar is mainly practiced as a subsistence economy , which is mainly due to the problems with access to the market. The government therefore intends to build a competitive agro-industry through the development program. The country is the largest vanilla producer and also has a strong market position in shrimp. Attempts are currently being made to obtain fuel from renewable raw materials. These include biodiesel made from jatropha and biofuel made from ethanol .

However, the land is facing serious problems such as soil erosion due to deforestation . As a result, the MAP provides for a forest protection area of ​​six million hectares.

The Daewoo Logistics group from South Korea has leased an area of ​​13,000 square kilometers in Madagascar for a period of 99 years in order to grow mainly maize and palm oil for the production of biofuels. The group is striving for a similar project in Indonesia .

Mining and industry

The industrial sector contributes 15% to Madagascar's gross domestic product, which is seen as a driver of growth. There are currently 102 companies with a total of 115,000 employees. The industry is almost exclusively limited to the textile sector.

The country has relatively rich natural resources, but these are little used. They mainly include titanium and nickel , and there are also suspected oil deposits in the Mozambique Strait . Titanium occurs as ilmenite in Sanden on the southeast coast and has been mined since 2009 by the mining company QMM , a subsidiary of Rio Tinto , with an investment of 585 million US dollars . A new port (Ehoala) was built near Tolagnaro to ship the ore . In addition, bauxite deposits were discovered near Manantenina , 110 km north of Tolagnaro , which Rio Tinto Alcan is planning to mine . Sherritt , Sumitomo Group , SNC Lavalin and Korea Resources plan to invest 3.225 billion US dollars in nickel mining in the east of the country . The iron ore deposit inaccessible Soalala in the northwest of the country has 800 million tons of ore. The Chinese company Wuhan Iron & Steel 2010 received the licenses for mining the ore.

Foreign trade

Madagascar mainly exports textiles, knitwear, vanilla and shrimp. The main customers are France and the USA. The main import goods are consumer goods and crude oil products, with France and China being the most important countries of origin. Due to the rising world market prices in 2006 and 2007, Madagascar was able to increase its export income and reduce the trade deficit.

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  1. ↑ Gross domestic product 2016 (PPP) (PDF; 14 kB) In: The World Bank: World Development Indicators database . World Bank. February 3, 2017. Retrieved February 5, 2018.
  2. ↑ [1] Retrieved January 29, 2018
  3. ↑ [2] Retrieved January 29, 2018
  4. ↑ [3] Retrieved January 29, 2018
  5. ↑ [4] Retrieved January 29, 2018
  6. ↑ [5] Retrieved January 29, 2018
  7. ↑ [6] Retrieved January 29, 2018
  8. ↑ [7]
  9. ↑ [8] Retrieved January 29, 2018
  10. ↑ [9] Retrieved January 29, 2018
  11. ↑ [10] Retrieved January 29, 2018
  12. ↑ DER SPIEGEL, 48/2008
  13. ^ Homepage of Daewoo-Logistics ( Memento of December 18, 2008 in the Internet Archive )
  14. ↑ Press release on the start of Ilmenite mining by Rio Tinto ( Memento of September 27, 2010 in the Internet Archive ) (English) accessed on December 30, 2010
  15. ↑ Homepage of the port of Ehoala , accessed on December 30, 2010
  16. ↑ Press release , accessed December 30, 2010

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