Madagascar Basic Information

By | July 21, 2022
Basic data
Capital Antananarivo
Population 27.7 million
Language Malagasy, French
Religion traditional faith (animists) 52%, Catholics 20%, Protestants 20%, Muslims 7%
State system presidential republic
Head of State Andry Rajoelina
Head of government Andry Rajoelina
Currency name Ariary

Madagascar Basic Information

Travel
Time shift +1 hour (winter time + 2 hours)
Economy 2021
Nominal GDP (billion USD) 53.1
Economic growth (%) 2.9%
Inflation (%) 5.8
Unemployment (%) ON

Madagascar has a presidential system and the executive power is headed by President Andry Rajoelina. The legal system is based on the Napoleonic Code, the 2010 Constitution and traditional local amendments. Check cancermatters to learn more about Madagascar political system.

Madagascar is among the poorest countries in Africa, even though it has great mineral wealth. The main raw materials include chrome, gold, graphite, salt, mica, wood, semi-precious stones and precious stones. The economy is dependent on agriculture, mining and tourism.

Madagascar’s economy was significantly affected by the global COVID-19 pandemic in 2020, however, it showed a slight acceleration in 2021, with economic growth reaching 2.9%. This turnaround was mainly helped by strengthening global demand for local agricultural products (especially cocoa, vanilla, lychee, shrimp and caviar) and for minerals (especially cobalt, nickel, gems and petroleum products), the price of which increased during the year. Other sectors such as manufacturing and services including tourism were affected by the restrictions associated with COVID-19 and contributed either negatively or minimally to the country’s GDP. Private investment was minimal during 2021. The Madagascar government has tried to support some social programs, healthcare and also some infrastructure projects, such as completion of the modernization of d’Ivato airport in Antananarivo and the airport in Nosy Be. The local government’s plan is to fully restore economic growth and reach at least 5.5% in 2022. The national development plan 2019-2023 should contribute to this growth, which aims to support private investments, especially in the mining industry, agriculture, tourism, and also emphasizes the need to industrialize the country to obtain higher added value of exported products.

The official language is Malagasy (Malagasy), which is a language of Indonesian origin and has used the Latin script since the 19th century. The working language is French; knowledge of English is expanding relatively slowly.

The arrangement of trade relations between the EU and Madagascar is governed by the Interim Economic Partnership Agreement (EPA) between the EU and the countries of the block designated as ESA concluded in 2009 with Mauritius, Madagascar, Seychelles and Zimbabwe. This EPA has been provisionally implemented since May 2012. The EU is Madagascar’s largest trading partner with a total share of 29.1%.┬áCheck prozipcodes for Madagascar defense and foreign policy.

Many locals live in Madagascar who studied in the former Czechoslovakia and therefore speak Czech or Slovak. Some of them stayed in the Czech Republic for several years after completing their studies. So far, former “Czech” students in Madagascar cater almost exclusively to tourists and naturalists.

Madagascar is among the accredited countries of the Embassy of the Czech Republic in Pretoria and is processed only to a basic extent.

Basic information about the territory

Subchapters:

  • System of governance and political tendencies in the country
  • Foreign policy of the country
  • Population

The system of governance and political tendencies in the country

Official name of the state, brief commentary on the system of government, political tendencies and estimated outlook, composition of the government.

Foreign policy of the country

Relations with other countries (primarily from the EIU)

Population

Brief commentary, including population, demographic composition, ethnic composition, population density, religion.

2. Economy

Subchapters:

  • Basic data
  • Public finances and the state budget
  • Banking system
  • Tax System

Basic data

1st paragraph: Outlook and state of GDP, indebtedness, fiscal stability, shocks, possible overheating of the economy, capital, regional comparison, inflation and unemployment.

2nd paragraph: Brief description of the structure of the economy (what is its main added value, what it produces, what it imports, etc.)

Table from MOP + additionally balance of payments, indebtedness/GDP.

Pointer 2019 2020 2021 2022 2023
GDP growth (%) 4.9 -3.8 15 4.5 5.1
GDP/population (USD/PPP) 1,740.00 1,635.30 1,890.00 2,000.00 2,100.0
Inflation (%) 5.6 4.2 5.8 7 6.6
Unemployment (%) 1.8 2.5 ON ON ON
Export of goods (billion USD) 2.5 2.1 2.6 2.9 3.2
Import of goods (billion USD) 3.6 3.1 4 4.5 4.9
Trade Balance (Billion USD) -0.8 -0.9 -1.2 -1.3 -1.4
Industrial production (% change) ON ON ON ON ON
Population (millions) 26.6 27.4 28.1 28.9 29.6
Competitiveness ON ON ON ON ON
OECD export risk 07.VII 07.VII 07.VII ON ON

Source: EIU, OECD, IMD

Public finance and state budget

Public finance 2021
State budget balance (% of GDP) ON
Public debt (% of GDP) 40.3
Current account balance (billion USD) -0.9
Taxes 2022
AFTER ON
F.O ON
VAT ON

1st paragraph: Current status + outlook. (information mostly from EIU)

Paragraph 2: Balance of payments, foreign exchange reserves, description of data in the table in the public finance section (i.e. state budget deficit/GDP, public debt/GDP), foreign indebtedness, debt service

Banking system

How does the banking system fare, closedness/openness of the system, regulation, development of interest rates, the strongest top 5 banks (domestic + possibly foreign) + a comment on each of them, information on letters of credit, any specifics (e.g. Islamic banks)

Tax system

(if possible use Deloitte tax guides and highlights, available on the website https://dits.deloitte.com/#TaxGuides )

1 paragraph Clear/unclear, stable/unstable tax system.

2 paragraph Taxation of FO (total and who bears it), PO, VAT.

3 paragraph. Expected development.