ECONOMIC IMPACT OF COVID 19
 INTERNATIONAL
Global economic activity will contract in 2020 (-4.5%) before recoveringin 2021 (+ 5.0%)
Pandemic could push 88 to 115 million more people into extreme
poverty
The "new poor" are more likely to belong to urban and educatedpopulations and to work in an informal service economy and in industry
 AFRICAIn 2020, the decline in GDP in sub-Saharan Africa is due to thedecrease in exports (4% less), private investments (8%) and household
consumption (6%).

 MADAGASCAR

Companies remained
open duringcontainmentCompanies remained
open duringcontainment

Companies remained
open duringcontainment

Companies remained
open duringcontainment

Companies remained
open duringcontainment

Declare a decreasein turnover

Declare a decreasein turnover

Declare a decreasein turnover

Declare a decreasein turnover

Declare a decreasein turnover

DOWNSIZINGDOWNSIZINGDOWNSIZINGDOWNSIZINGDOWNSIZINGRESPONDING COMPANIESPRIORITY AREAS FOR THE MALAGASYGOVERNMENTAREA 1: Strengthening the governance of the fight against thepandemic
AREA 2: Strengthening measures relating to social protection
AXIS 3: Support for economic resilience and support for theprivate sector
1. TOURISM
2. TRANSPORT
3. AGRICULTURE
4. SUPPORT FOR THE PRIVATE SECTORFOCUS :SUPPORT ECONOMICRESILIENCE AND
SUPPORT THE
PRIVATE SECTORREGIONAL INDUSTRIALIZATION OPPORTUNITIESOBLIGATION TO DEVELOPMORE INDUSTRIES
industrialization that is both green and innovative.

THE PANDEMIC HASACCELERATED THE
INDUSTRIALIZATIONPROCESS THROUGH THENEED TO PRODUCE LOCALFONDS MALAGASY DE FORMATION PROFESSIONNELLEOU FMFP
Training policy so that the country can acquire
all the skills
In total in 2019, FMFP funding enabled thetraining of 12,159 people, 40% of whom werewomen, 5% of young people (pre-employment)
and 43,098 hours of training.
6,300 contributing companies

Objectives of the Association
1. To make business environment between
Madagascar and Japan easier
2. To reinforce economic relationship between twocountries

3. To create economic exchange platform

Sectoral distribution of members

714

AGRIBUSINESSINFRASTRUCTURE & ENERGY7ITC
SERVICETEXTILETOURISM7611

TOLAGNARO

TOAMASINAANTSIRABEANTANANARIVO

Agribusiness
OVERVIEWAgriculture-Fishing-Livestock
sector represents 40% of GDP
and 80% of active population
Existing local market:
Madagascar imports 80% of its
needs of rice, sugar andcooking oil
Madagascar, world leader inseveral products: Madagascar is
the world’s leading exporter ofcloves and vanilla, and second
for lychee and ylang ylang
essential oil

Leverage the good imagesof products from
Madagascar: Cocoa from
Madagascar is considereda fine cocoa of very highend.
Madagascar produces thebest shrimp on the market
respecting international
standards: Certified
organic and Label Rouge…

SOURCE EDBM

Agribusiness
POTENTIALITIESExisting resources:

Attractive legal framework

18 million ha of arable land
Pasture area of 35 million ha
Abundant labor
Climatic and soil conditions
favorable for different typesof crop
Madagascar has the highest
rainfall and water resources in
East Africa
115 million ha of EEZ and300,000 ha of mangroves(ideal for aquaculture)

Exemption from taxes andcustoms duties for
agricultural materials andinputs (fertilizers, 1-day-oldchicks, fry, etc.)
Agricultural enterprises andfood processing companies
targeting the export marketare eligible for the freeenterprise regime
SOURCE EDBM

Agribusiness
OPPORTUNITIES

1. Sugar

2. Essential oils
3. Cooking oil

4. Fruit processing
5. Slaughter units
6. Aquaculture

SOURCE EDBM

Infrastructures and Energy
OVERVIEW

Madagascar presents aninteresting renewable energy
potential yet remains
underexploited.
The extremely lower access levelto electricity of the population(15%) shows that the local market
is still in high demand.

SOURCE EDBM

Infrastructures and Energy
POTENTIALITIESSolar energy:
2 800 h of sunshine/year and 2 000 KWh/m²/year
Wind energy:Wind speed: 6 to 8 m/s at 50 meters high in the North
6 to 6.5 m/s in the center and 8 to 12 m/s in the SouthBiomass:
Residue and waste biomass potential energy range
between 5~10 000 kW.
Hydroelectric sites have already been identified with thecapacity of 7 800 MW however only 2% is currently
exploited.
SOURCE EDBM

Infrastructures and Energy
OPPORTUNITIESHydroelec power plant:
1.300 MW, 1.960 million USD
Rural Energy electrification program (Off-grid):
110 MW, 306 million USD
Development of Interconnected grid:
795 km, 243 million USD
Transmission line:
393 million USD
Development of Photovoltaics and Wind farms
SOURCE EDBM

Tourism
OVERVIEW

Madagascar has an
exceptional biodiversity
with a very high level ofendemism:
nearly 80% for the flora(black and white orchids,palms, Ravinala,baobabs, Nepenthes,
medicinal plants, ...) andan even higher rate forwildlife.

Air Transport Incentive
Policy: Renovation of key
airports and ports,
restructuring of Air
Madagascar and launch of
new air services
The country is at thetrajectory of humpback
whales on their annual
migration
Unique Asian-African art andcultureSOURCE EDBM

Tourism

Different kinds of potential activities :Ecotourism, Adventure anddiscovery, Sun and Beach, Sport,Cultural, Gastronomy, Leisure, Businesstourism>4800km of coastline, the 5th longest
tropical coastline in the world, and thelongest in Africa
High percentage of endemic
species : 89% of plant and 92% mammal
species are unique to Madagascar
SOURCE EDBM

Textile
OVERVIEW

More than 100,000 jobs in the 100 existing
companies
Value exported in 2016 : US $ 463 M•69% in EU•18% in US (Export to USA: x2 in 6 months)•11% in South Africa
Garments for many of the world’s best known
fashion brands and retailers are produced inMadagascar
A large number of global apparel firms havechosen to establish operations inMadagascar, across product segments :Knitwear, Intimates & Knits, Wovens,
Speciality/Couture, Denim, …
SOURCE EDBM

Textile
POTENTIALITIESA highly skilled workforce with a reputation for manual
dexterity and productivity
A talent base of more than 200,000 workers withexperience in the apparel industry
Unrestricted duty-free access to US, EU and African
markets, under the AGOA, EPA & SADC/COMESA tradeagreements
Garments for many of the world’s best known fashion
brands and retailers are produced in Madagascar
A large number of global apparel firms have chosen toestablish operations in Madagascar, across productsegments : Knitwear, Intimates & Knits, Wovens,
Speciality/Couture, Denim, …

SOURCE EDBM

Textile

OPPORTUNITIESSOURCE EDBMSYNTHESISINFLUENCE OF COVID 19 ON INDUSTRIALIZATION POLICY AND
STRATEGYPROMOTION OF « VITA MALAGASY » MADE IN MADAGASCARPRIVATE SECTOR EXPECTATIONSPARTNERSHIPSJOINT VENTURE

BUSINESSOPPORTUNITIESEQUIPMENT FOR COMPANIESAND INVESTMENTS

TICAD 7 RESOLUTIONS• Accelerating
economictransformationandimproving the business environment through private
sector development and innovation.
• Concrete proposals to develop trade andinvestment between Japan and Africa, as well as
direct investment from Japan and high expectations
for human resource development in Africa.

THANK YOU FOR
YOUR KIND
ATTENTION !
Lot IVR 87 Entrée cité Gaillard Antanimena
Antananarivo 101 – Madagascar
asecomaja@gmail.com
Contact : +261 20 22 390 28 - +261 34 02 730 42 - +261 33 15 730 42