Country context

Political Situation 

After five years in an unprecedented socio-economic doldrums, Presidential and legislative elections took place in Madagascar at the end of 2013. The new Government presented the general policy of the State (PGE), as well as its National Development Plan 2015-2019 and its implementation plan. These documents unveil the governmental will to initiate a new phase of stabilization of institutions and economic recovery, and to lay the foundations for a more inclusive development. More precisely, the National Development Plan (NDP) aims at"fighting against poverty through inclusive growth and sustainable development".

Economic situation

55 years after its independence, Madagascar is among the least developed African countries with 91% of the population living with less than $2 a day and 77.1% of the population living in what is considered extreme poverty, with less than $1.25 per day. Madagascar is also highly vulnerable to natural disasters - including cyclones, droughts and flooding - and is the third most vulnerable country in the world to climate change.

Malagasy economy is dominated by the agricultural sector which employs 81% of the workforce and accounts for only 25.4% of GDP. Exports are mainly composed of primary goods such as coffee, vanilla, cloves, pepper, sisal, etc. with very few local value additions. The abundance of natural resources has recently generated a rapid expansion of mining activities in oil, iron, bauxite, coal, chromite, graphite, ilmenite, etc.The industrial sector, mainly driven by the textile sector, is still poorly developed with a contribution to 15% of GDP in 2014 (see more here).

Nevertheless, it constitutes an important source of foreign exchange with 57% of total exports (Source: INSTAT report 2014). In addition, Madagascar was ranked 163 out of 189 countries in 2015 on the World Bank's Doing Business (DB) indicator. 

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