Discover Madagascar
Why Madagascar?
Promising sectors
Facilitation by EDBM

A stable political new regime
after 5 years of crisis
A newly elected President
committed to:•Fight corruption•Reestablish the rule of law andensure good governance•Guaranty a secure businessenvironment•Promote the development of theprivate sector•Protect the environment

A renewed relationship withinternational donors

587,295 km² (about 60 million ha)
21.1 million people, of which 53% isactive and generate €7.6 billion ofGDP
FDI increased 36-fold from 2005 to 2008
reaching €2.1 billion thanks toinvestment partners: UK, Canada,Japan, South Korea, France, Mauritius,…
Exports rose by 10% in the last 5 years
reaching €1 billion in 2013 thanks to
trading partners: France, US,Germany, Canada, South Africa, …

Friendly business environment• 100% foreign ownership allowed• World’s 79th freest economy (Index of Economic Freedom, 2013)• Investment protection, Double Taxation Agreement (DTA) and other Bilateral
Treaties with numerous countries• Registering business in 7 days (29th in the DBI 2014) thanks to EDBM
• Regulatory and fiscal incentives, assistance on export (ITBM)

Natural and human resources• Megadiversity with the highest fauna and flora’s endemicity rate
• Different types of climate and soil
• Skillful, competitive and young labor

Gateway to international markets• Strategic location• Preferential access to Europe, Africa and soon USA• Considered as the “breadbasket of the Indianoceania”

•Availability of all occupations of thesector: spinning, weaving, knitting,printing and finishing•Garments from warp and weftknitting and accessories•Ability to produce large series andupscale products for man, womanand child•Certification AFAQ ISO 9001, GOTS,
SA 8000, …
•Rules Of Origin with UE: simple
transformation•Pending re-eligibility for AGOA

• Bio agriculture and livestock• 18 million ha of potential arable landavailable, large grazing land area,
50,000 ha of favourable land for shrimp
farming and 114 million ha of EEZ• Wide range of high quality products:
vanilla, lychees, gambas, lobster, honey,…
• World’s top exporter of lychees (70% ofUE market)• 50% of world’s vanilla• Leading exporter of other species andessential oils• 22 touristic land reserves and
5,000 km of unspoilt coastline• Extensive rainforest and natural
reserves (megadiversity)• 20,000 hotels rooms needed in
the next 5 years• Small, high end tourism resorts,marina• Many types of tourism assets:
ecotourism, beach, discovery,
cutlural, adventure, rural, …

• Liberalized sector with 3 main operators• Connected to the rest of the world via
optical fiber: EASSy, Lion, …
• Skilled technicians for: softwaredevelopment, outsourcing services, callcenters, data processing• Fastest connection speed in Africa (NetIndex, August 2013)• Penetration rate in mobile telephony:49%• Growth of other sectors (tourism,financial services, mining, …)

• Law on PPP being elaborated• 7,800 MW hydro power potential• Solar energy: 2,000 kwh/m²/year• Wind energy: 8 m/s at 50 m high• Competitive cost with 0%increase in the last 10 years• New operational deep-water
port with a new adjoining special
economic zone in the south in avery interesting maritime axis• 3 main missions: (i)improvement of the businessclimate, (ii) promotion and (iii)
facilitation of investment• One-Stop Shop in charge of:•Company creation•Issuance of: long-term visa (investors,expatriates and their families), residencecard, transformable visa, environment andwork permits, agreement on free zoneregime

Contact:
Johary RAJOSEFA
Director of Promotion
Email: johary.rajosefa@edbm.mg
Port: +261 33 11 653 58
Website: www.edbm.gov.mg
Address: Immeuble EDBM, Av.
Général RAMANANTSOA,
Antaninarenina, Madagascar

Potential Markets:• Madagascar Internal Market: 22 Million Population (doubling within 25 years)• Madagascar as major supplier of the Indian Ocean Islands for Food Security• Access market to the SADC countries (FTA 15 Countries with 277 Million
Population, 660Billions USD of GDP)
• Access market to COMESA countries (FTA 19 Countries with 443 Million
Population 519Billions USD of GDP)
• Prospect of the Tripartite Access to SADC-COMESA-EAC for FTA, Customs
Union, Common Market, monetary Union and Single Currency.

Island of Unique and Hotspot Biodiversity:• Interest focus on Researches and Development (Natural Sciences;
Biotechnology and Pharmaceutics, etc.);• Land of Discovery and Tourism.

Rich and Diverse Human Capital:• Young, Cheap and Moderately Skilled Labour;• Strong Cultural link to Asia

Vast Reserve Arable Land:• For Agriculture: Role to play in terms of Regional and Global FoodSecurity;• For Energy: Bio-Energy (Biodiesel, Ethanol etc..); and Renewable Energy(Spaces for Solar; Wind; Hydro etc…);• For Forestry and Logging: Role to Play on Fights against Climate Change(Carbone Trade);

Reserves of Natural Resources of World Importance :• Mining Resources: Precious Stones; Rare Earths; etc.;• Petroleum and Gas: On-Shore and Offshore;• Fishery and Coral Reefs.

Strategic Geographical Position of Madagascar:• Hub for World Maritime Merchandise Traffic;• Highway for Energy Transport;• Historically Gate of Indian Ocean.

Strong Political Will of the New President HE HeryRAJAONARIMAMPIANINA for a “Strong and Stable
State” and the “Rule of Law” through the threefollowing commitment pillars:• By ensuring security (persons, goods and investments);• By ensuring the independence of the judiciary system and;• By fighting against corruption and committing for moretransparent and accountable governance.

Madagascar aspires for an “accelerated, inclusive andsustainable growth”:• As a recovery response to the 5 years of crisis, the new
Madagascar Government is optimistically and aggressively
challenging to attain the vision of the President for a “Madagascar
as a Modern and Prosperous Nation”.

The priority development strategies of the government will
be focused on the four main axes as follow:• Improvement of the Governance and the Rule of Law;
• Acceleration of inclusive growth; and the promotion of employment creation ;effective decentralization for a more equitable territorial (local) development;• Improvement of the access to basic social services (education, health, waterand hygiene) and a more proactive and adaptive human resource
development;• Protection of the Madagascar’s unique environment; Towards a Green
Economic Growth by mainstreaming strategy for adaptation and mitigation toclimate change adverse effects.

Some Indicators of Economic and Development Goals to beachieved within 2 years:• Double digit Economic growth;• Attain a high rate of investments allocations (at least 25% of GDP, throughpublic investments mainly on infrastructures);• Creation of 500,000 employment and;• Reduction of poverty rate by 7 to 10 points.

Facilitation through a New Improved Code of Investment:• Facilitation on doing business and FDI in Madagascar by the services of the EDBM
• Special Economic Zones approaches by promoting PPP (New Creation and Concentration ofEconomic Activities; new cities and clusters of industrial zones)• Integrated Growth Poles approaches for existing Regional Economic Potentials (Nosy-Be Island forTourism Development; Antananarivo-Antsirabe for Industrial Development; Fort-Dauphin for
Mining and Tourism Development; Extension soon for other Regions): one example is thepromotion of investment zones at Ehoala Port in Fort-Dauphin (For import-exports related
activities such as: Fisheries, Mining and Natural Resources, Agribusines; Pharmaceutics, Cosmeticsetc…) ;• Franchise Zones approaches (For some competitive sectors such as textiles, garments, ITC andhandcrafts etc…)• Agriculture Investment Zones approaches : 4,145,400ha of unexploited land identified in 4
regions of Madagascar destined for social insertion and youth employment promotion but
importantly for attracting Local and FDI investments projects.

Facilitation through a New improved law for exports:• Facilitation on Exportation by the Installation of ITBM (or International Trade Board ofMadagascar) as a One-Stop shop Service for Exports .

Facilitation through the Improvement of the Code of Tourism:• Tourism Investment Special Zones approaches and specifically the Promotion ofConcession Management at National Parks (launching of call for expression of interests forPilote Projects in 4 national park sites in the north and east) ; and by the Promotion ofSustainable Tourism and Construction of “Cultural Villages”;• Aggressive reforms on Transportation and Communication: Accessibility to all important
tourism sites internally and internationally by deploying the National Airlines (AirMadagascar) and by partnering with potential countries for inbound tourism.

Facilitation through the Improvement of the Mining and Petrol Code:• Special Treatments for Eligible Big Mining Investment (For instance the Ambatovy Project
within which Sumitomo Corporation is involved);• Attractive State’s Joint Venture on Petrol and Gaz Exploitation: some remained on-shore
blocks open for bidding soon; and many other remaining off-shore blocks Off the east coastof Madagascar in the Canal of Mozambique. Possibilities of Joint-Ventures to current
exploration projects. The Government has decided to allow the internal commercializationof the heavy oil from Tsimiroro Project (Madagascar Oil).

New Law and Instruments for PPP Development in Madagascar:• Energy (Promotion of Hydropower: launching of a pilot project of exclusive renewableenergy of the Nosy-Be island estimated at 130Millions USD);• Infrastructures (roads, ports and airports) etc.

Madagascar Embassy in Japan
Andonirina RATODISOA
Economic and Commercial Counsellor
Website: www.madagascar-embassy.jp
Email: ambtyo@r5.dion.ne.jp
Tel: +81 03 3446 7252
Address: 2-3-23 Moto-Azabu
Minato-ku TokyoJapan 106-0046