Madagascar’s economy is one of the struggling African economies. It is primarily dependent on agriculture. Madagascar accounts for two-thirds of global vanilla exports.

(Source: Heritage.org)

Gross domestic product (GDP)

Madagascar’s GDP grew steadily from MGA 10,092 billion in 2005 to MGA 16,803 billion in 2009. In 2010, GDP was projected to be MGA 18,225 billion.

(Sources: National Statistics(2005-2009), pg: 4, National Statistics(2010), pg: 4) p = projected

GDP growth rate

The GDP growth rate in Madagascar in 2005 was 4.6%. The rate increased until 2008 reaching 7.1%. It was projected to be 0.6% in 2010.

(Sources: National Statistics(2005-2009), National Statistics(2010)) p = projected

Gross national income (GNI) at PPP

GNI per capita (PPP) in 2010 was USD 953 compared to USD 940 in 2005.

(Source: undp.org)

Tax Rate

The individual income tax and the corporate income tax rate in Madagascar is 23%. VAT in Madagascar is 20%.

(Source: Tax Rates)

Inflation

The inflation rate in Madagascar declined gradually from 18.4 % in 2005 to 9% in 2009.

(Source: National Statistics, pg: 13)

Foreign direct investment (FDI)

Net FDI in Madagascar rose staedily between 2006 and 2009. In 2009, provisional net FDI was recorded at SDR 882.1 million.

 

(Source: Central Bank , pg: 41) p = provisional

Banking sector assets

Madagascar's banking sector saw a steady increase in total assets between 2007 and 2009. In 2009, total assets amounted to MGA 4,266.4 billion.

 

(Source: Central Bank, pg:  22)

Consumer price index (CPI)

Madagascar’s CPI has been rising steadily. In 2011, the index reached 283.2.

(Source: National Statistics) Base year = 2000

Money supply

The Central Bank of Madagascar saw an increase in the money supply between 2007 and 2009.

(Source: Central Bank, pg: 142)

Official exchange rate

The exchange rate in 2009 was 1956.06 MGA per USD.

(Source: Central Bank, pg 139)

Since 2011, MGA per USD has been 1,970.00.

(Source: XE)

Government finances

Fiscal balance

In 2010 (July) Madagascar had a fiscal surplus of MGA 106 billion. A fiscal surplus of MGA 48 billion was recorded in the previous year.

(Source: Central Bank,pg: 17)

Total revenue:

Total revenue (MGA billion)
July 2009 - July 2010	Total revenues & Grants	Tax Revenue	Non Tax Revenue	Grants
Jul 09	1,179	1,005	32	142
Aug 09	1,356	1,158	36	162
Sep 09	1,510	1,302	37	172
Oct 09	1,709	1,473	47	189
Nov 09	1,886	1,625	71	190
Dec 09	2,054	1,782	80	192
Jan 10	149	144	1	4
Feb 10	316	303	1	12
March 10	472	440	6	26
Apr 10	663	621	10	32
May 10	841	794	10	37
Jun 10	1,254	965	247	42
Jul 10	1,419	1,128	249	43
Aug 10	1,604	1,304	254	46
Sep 10	1,856	1,463	256	137
Oct 10	2,026	1,629	257	139

(Source: National Statistics, pg: 17)

Current account balance  

In 2009, Madagascar’s current account balance was in deficit of SDR 1,074.20 million.

(Source: Central Bank, pg: 41)p = provisional

Balance of payments

Balance of Payments (SDR million)
	2009 p	2008
Exports of Goods and Services	676.0	828.9
Imports of Goods and Services	-1,710.2	-2,033.8
Investment Income	-59.3	-31.7
Current transfers	198.8	299.9
Capital transaction	43.3	156.5
Financial operation	973.0	990.1
Direct investment (NET)	882.1	718.7
Other Investment	90.9	271.2
Overall balance	-15.5	66.1

 (Source: Central Bank, pg: 41) p = provisional

The labor force in Madagascar was 9.35 million people in 2008. This was an increase of approximately 3.24% from the previous year’s 9.05 million labour population.

(Source: World Bank)

The labour participation rate in 2008 was 86% which matched the figures in 2007.

(Source: World Bank)

Unemployment rate

In 2009, the Madagascars unemployment rate was 2.8%.

(Source: Heritage.org)

Minimum wage

In 2011, Madagascar’s minimum wage was MGA 70,025 per month in the non-agricultural sector and MGA 71,000 per month in the agricultural sector.

(Source: Minimum Wage.org)

Level of unionisation

Four of Madagascar’s trade unions are affiliated to the International Trade Union Confederation:

•         Confederation of Workers’ Trade Unions of Madagascar
•       Confederation of Madagascan Workers
•         Christian Confederation  of Madagascan Workers
•         Union of Autonomous Trade Unions of Madagascar

(Source: ituc-csi.org)

Madagascar has a republican form of government. The constitution of Madagascar came into effect on 19 August 1992. Madagascar has a bicameral parliament. The parliament consists of the national assembly and the senate. 

The president of Madagascar is the head of state and also chief of the armed forces. The president is elected by an absolute majority by secret ballot. The president is elected for a term of five years and is eligible for re-election for three successive terms.

The prime minister is the head of the government. The prime minister is appointed by the president of the republic. Andry Nirina Rajoelina is the current President and Gen. Albert Camille Vital is the Prime Minister of Madagascar.

(Source:eisa.org, eisa.org)

The main political parties in Madagascar are:

·         Tiako-i-Madagasikara  (TIM)

·         Ny Asa Vita no Ifampitsanara (AVI)

·         Rénaissance du Parti Social-Démocratique (RPSD)

·         Andry sy Riana Enti-Manavotra an'i Madagasikara (AREMA)

·         Mpitolona ho amin'ny Fandrosoan'i Madagasikara

·         Herim-Bahoaka Mitambatra (HBM)

(Source: eisa.org)

Regulatory environment

Madagascar has a bicameral government which includes a national assembly and a senate, each with a term of five years. The national assembly consists of 127 seats, while the senate consists of 33 members.

(Source: eisa.org)

(Source: Heritage.org)

Madagascar ranks 81^st on the 2011 Index of Economic Freedom with a score of 61.2. Madagascar ranks 8^th out of 46 countries in the Sub-Saharan Africa region.

(Source: Heritage.org)

Freedom of information

The World Press Freedom Index 2009 ranks Honduras at 116^th rank with a score of 34.88 which indicates that media in Madagascar is restricted.

(Source: rsf.org)

Newspapers

·         Midi-Madagasikara

·         Madagascar-Tribune

·         L'Express

·         La Gazette de la Grande Ile

·         Lakroa (Cross)

·         Dans Les Media Demain

·         Feon'ny Merina (Voice of the Merina)

·         Jureco       

·         Revue de l'Ocean Indien

(Source: BBC)

Television

·         Television Malagasy (TVM)

·         Radio-Television Analamanga (RTA)

·         Madagascar TV (MATV)

·         MBS TV

(Source: BBC)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. It ranks countries according to perception of corruption in public sector. Madagascar is ranked 123 out of 178 countries covered on World's Corruption Perception Index 2010, which indicates that the perceived level of corruption in Madagascar is very high.

(Source: Transparency.org)

Judicial system

The judicial system of Madagascar consists of:

·         Administrative and Financial Constitutional Court

·         Supreme Court

·         Courts of Appeal

·         Tribunals

·         High Court of Justice

Madagascar’s High Constitutional Court consists of nine members, each serving a term of six years. The Council of Ministers is appointed by the President; two members are elected by the National Assembly, three by High Council of Magistrates and one by the Senate.  

(Source: eisa.org)

Education

Education from the age of six to fourteen years is compulsory in Madagascar. The system is divided into three stages:

·         Primary

·         Secondary Education

·         Higher Education

Primary Education lasts for a period of five years. Secondary education consists of two stages. The first stage is the junior secondary level which lasts for four years. Senior secondary level lasts for three years. There are opportunities to pursue vocational and technical education through collège professionelle (professional college) and collège technique (technical college).

(Source: infodev.org)

In 2010, the literacy rate in Madagascar was 70.7%.

(Source: undp.org)

Health care

The Ministry of Health and family Planning is the governing body of Madagascar’s healthcare sector. Madagascar faces a shortage of modern healthcare services. The majority of Madagascar’s health workforce is concentrated around the capital, Antananarivo.

A poverty reduction strategy paper ‘the Madagascar Action Plan’, was drafted to improve the general state of healthcare by 2012. Gender inequality is also an issue that needs to be tackled to ensure equal accessibility to healthcare by the population.

(Source: rti.org)

Mass Public Transport

The ‘Ministry of Transport and Tourism’ is the regulating authority of Madagascar’s transport sector. Public transport consists of taxis, rickshaws (non-motorized carts) and bush-taxis.

(Source: uitp.org, pg 60)

Ports

There are 11 ports in Madagascar. These are - Andoany, Antalaha, Diego Suarez, Majunga, Mananjary, Morondava, Manakara, Saint Louis, Toamasina, Tolagnaro and Tulear.

(Source: World Port Source)

Airports

(Source: Air Charter)

Telecommunication

Telephone Lines

In 2009, the number of fixed telephone line users in Madagascar was recorded at 186,150.

(Source: itu.int)

The main fixed-line operators in Madagascar include: MTN Uganda and Uganda Telecom. They offer services such as ADSL, ISDN as well as local and international leased lines.

(Source: Internet World Stats)

Mobile cellular subscriptions

Madagascar’s mobile phone subscriptions increased steadily between 2005 and 2009. In 2009, the number of mobile phone users was recorded at 6,283,799.

(Source: itu.int)

The main mobile phone service providers in Madagascar are: Zain, Orange and Telma.

(Source: Internet World Stats)

Approximately 320,000 out of 21,281,844 people, i.e. 1.5% of population used the Internet in 2010. Between 2000 and 2010, the number of internet users grew by 966.7 %.

(Source: Internet World Stats)