The former state bank BFV was purchased by the French bank, Societe Generale, and BTM bank is also in the process of privatization. The primary purchaser of BTM is Bank of Africa. There is no stock market in Madagascar, although discussion has begun regarding establishment of an equities market. We know of no attempts by Government to restrict foreign investment, participation, or control in domestic enterprises. The political environment of the country is stable and there are no nascent insurrections, belligerent neighbors or other politically motivated activities that make it difficult to conduct business.
Tax evasion is widespread in Madagascar, accompanied by bribery of customs or other tax officials.
To the extent that businesspersons engage in such tax evasion without being called to account, other firms are placed at a competitive disadvantage if they do not follow suit. A bribe to a local or foreign official is considered a criminal act, but to Post's knowledge, no one has ever been found guilty of corruption in Madagascar. The government is now establishing a legal and institutional framework to fight anti-competitive practices and corruption. According to the Ministry of Industry, the only country with which Madagascar has concluded a bilateral investment protection treaty is France. OPIC currently finances one U.S.-based investment in Madagascar, the cellular telephone company Telecel.