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Madagascar Madagascar

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Madagascar

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EconomicPoliticalStructural

Madagascar – Quick View
ECR score33.97 (Mar 2011)
ECR rank121 (Mar 2011)
Economic
GDP 2010USD 8.53 billion
GNI per capita PPPUSD 953
Net FDI 2009SDR 882.1 million
Inflation 20099%
Central bank assetsUSD 2.14 billion
Unemployment rate 20092.8%
Government surplus 2010 (July)USD 0.04 billion
Tax revenue 2010 (July)USD 0.80 billion
Political
Government typeRepublic
Recent political crisisNA
Economic freedom score81st
Freedom of information score116th
Corruption perception index123rd
Structural
Crude Birth rate 200935 (per ‘000)
Population balance (Years)Under 14 – 42.9%
Population balance (Years)Men over 60 – 4.4%
Population balance (Years)Women over 60 – 4.8%
Life expectancy years (average)61 years
Under-5 mortality rate 200958 (per ‘000)
Literacy rate 201070.7%
Internet access 20101.5%

[Top] Economic Overview

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.

Madagascar GDP

 

(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.

Madagascar GDP growth rate

 

(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.

Madagascar GNI per capita at PPP

 

(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.

Madagascar Inflation

(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.

Madagascar FDI

 

(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.

Madagascar Total assets

 

(Source: Central Bank, pg:  22)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

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

Madagascar CPI

 

(Source: National Statistics) Base year = 2000

Money supply

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

Madagascar Money supply

 

(Source: Central Bank, pg: 142)

Official exchange rate

The exchange rate in 2009 was 1956.06 MGA per USD.

Madagascar Exchange rate

(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.
Madagascar Current account balance

(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

[Top] Labour Force and Employment Overview

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)

[Top] Political Stability

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)

Madagascar Economic Freedom Indices

 

(Source: Heritage.org)

Madagascar ranks 81st on the 2011 Index of Economic Freedom with a score of 61.2. Madagascar ranks 8th 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 116th 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)

[Top] Demographic Overview

Madagascar Population

(Source: World Bank)

Madagascar’s population was continuosly rising between 2005 and 2009. The population increased from 17.60 million in 2005 to 19.63 million in 2009.

In 2010, the population of Madagascar was 11.3 million.

(Source: undp, pg 182) 

Urban population

30.2% of Madagascar’s population was classified as urban in 2010.

(Source: undp, pg 182) 

Population balance

In 2009, the population below 14 years of age constituted 42.9%. Men above the age of 60 made up 4.4% and women made up 4.8% of the total population.

(Source: un.org)

Migration

The international migrant stock in 2010 was recorded at 37,800 people. This made up 0.2% of the population.

(Source: un.org)

Life expectancy

The average life expectancy at birth in 2009 was 61 years.

(Source: unicef.org)

Birth rate

The crude birth rate in Madagascar was registered at 35 (per ‘000) in 2009.

(Source: unicef.org)

Mortality rate

In 2009, the  mortality rate  of under-5 year olds in Madagascar was recorded at 58 (per ‘000).

(Source: unicef.org)

Ethnic environment

Ethnic groups in Madagascar include:


·         Malagasy tribes

·         Comorans

·         French

·         Indians

·         Chinese

(Source: State.gov)

Human development index

Madagascar ranks 135th out of 169 countries on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source:undp, pg 138)

[Top] Soft Infrastructure

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)

[Top] Hard Infrastructure

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

Town

Runway length (ft.)

Ambilobe

4,900

Andapa

4,100

Antalaha

3,900

Antananarivo

10,100

Antsiranana

8,200

Antsiranana

4,900

Antsohihy

4,900

Belo

4,400

Besalampy

4,900

Fianarantsoa

4,100

Mahajanga

7,200

Manakara

3,900

Mananara

4,100

Mananjary

4,900

Maroantsetra

4,200

Miandrivazo

3,600

Morafenobe

2,700

Morombe

4,200

Morondava

4,900

Nosy-Be

7,100

Sainte-Marie

3,300

Sambava

5,900

Soalala

4,100

Toamasina

7,200

Tolagnaro

5,900

Toliara

6,500

Vohimarina

4,200

(Source: Air Charter)

Telecommunication

Telephone Lines

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

Madagascar Fixed Telephone Lines

(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.
Madagascar Mobile cellular subscriptions

(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)
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