Madagascar is a relatively untapped market for U.S. capital and goods and services. As the Government of Madagascar (GOM) pursues its plans for large-scale infrastructure projects, U.S. firms may wish to explore establishing local subsidiaries or partnering with local companies, bringing capital and technical expertise to a market hungry for both.  Senior government officials and citizens express interest in high-quality U.S. brands.

Over the last five years, the top categories for U.S. exports to Madagascar were hardware and machinery, aircraft parts, liquefied gas, food, and apparel. The volume of exports in these categories has room to grow. If a long-standing plan for a public procurement agency gets off the ground, it would be responsible for the acquisition of a wide range of staple goods. The associated calls for tenders could offer opportunities for U.S. companies to identify procurement needs and priorities and to compete in a market traditionally dominated by European, Chinese, and Asian companies. As the government and international donors prioritize repair and extension of roads, ports, airports, energy and agricultural infrastructure, American infrastructure companies and suppliers of construction equipment may wish to pursue these opportunities as well.

Madagascar’s poor energy infrastructure and desire to embrace clean energy sources present a significant opportunity for U.S. companies by bringing diversification and reliable technologies, particularly in solar, wind, nuclear and geothermal energy, and hydroelectricity. At present, less than 30 percent of the population has access to electricity, most of which is generated by high-cost, environmentally unfriendly, heavy-fuel technology. The grid, where it exists, is limited to urban areas and their outskirts. U.S. companies could export technical know-how and equipment to help state owned utility JIRAMA build grid capacity and quality, extending its reach and reliability. Unreliable electricity production also presents opportunities for U.S. suppliers. In rural areas outside the grid – where over 70 percent of the population lives — the access rate is only four percent, presenting a market for suppliers of off-grid solutions.

Madagascar relies heavily on imports of consumer goods from France, China, India, and South Africa, including a consumer market of roughly $750 million. U.S. exports could target the country’s minority wealthy class who can afford high end and luxury products.

The textile sector showed its resilience and is continuing to grow after the pandemic, occupying a large share of production exported to the U.S. under the African Growth and Opportunity Act (AGOA) and Generalized System of Preferences.  While many firms are hoping for renewal of AGOA for a longer period after September 2025, the 47 percent tariff on Madagascar goods issued April 9 has significantly weakened the textile sector. However, opportunities exist for U.S. companies to partner with established businesses or set up new export-oriented workshops to take advantage of the country’s low-cost skilled labor and the GOM’s tax concessions.

Madagascar is also eager to tap into the global travel business, especially in eco-tourism and luxury sectors, taking advantage of its rich biodiversity and high proportion of endemic plants and animals to attract foreign investors and tourists. Its tourist infrastructure remains limited, offering opportunities for hotel chains, airlines, tour operators, transportation solution providers, and other service providers.