Madagascar Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in madagascar, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Selling Factors and Techniques
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Madagascar ranks among the poorest country in the world. In 2023 the World Bank estimated that Madagascar’s poverty is above 80 percent, (based on an international poverty line of $2.15 per person per day).  Most Malagasy can only afford immediate necessities.

Labeling: When selling, there is no legal requirement to translate labels into Malagasy, but the price must be displayed.  Prices are usually displayed with all taxes included.

Trade Promotion and Advertising

Most trade promotion and advertising events are organized by dedicated agencies. Some agencies, such as Madavision, Media Consulting, and Synergy Communications, are reputed for hosting successful exhibitions on a regular basis.

Pricing

Madagascar’s market is flooded with cheap but low-quality Chinese imports, affecting local industries and consumer choices. These products, ranging from electronics to clothing and household goods, attract buyers due to their affordability but often lack durability. The influx has hurt local artisans and small manufacturers who struggle to compete on price. However, the low-income population relies on these goods, often supported by micro-finance institution, due to limited purchasing power. This trend raises concerns about product standards, sustainability, and the long-term economic impact on local industries.

Sales Service/Customer Support

Madagascar’s sales service and customer support sector is growing, driven by low labor costs, a skilled workforce, and good ICT infrastructure, making it attractive for outsourcing, particularly for customer service, technical support, and back-office functions.

Local Professional Services

Madagascar is home to several leading consulting and legal firms that provide expert services in business advisory, corporate law, and regulatory compliance. Firms such as PWC, ALN Madagascar, Lexel Juridique & Fiscal, Harison & Associates and John W Ffooks & Co. are well-known for their expertise in commercial law, taxation, and investment regulations. These firms assist both local and international clients in navigating Madagascar’s complex legal and business landscape. Their services play a crucial role in supporting economic growth and foreign investments in the country.

Principal Business Associations

In Madagascar the four major business association are: the Fédération des Chambres de Commerce et d’Industrie de Madagascar (FCCIM), which is the umbrella organization for chambers of commerce and industry; the American Chamber of Commerce in Madagascar (AmCham), a non-profit association of American and local businesses and businesspeople; the Groupement des Entreprises Franches et Partenaires (GEFP), an association of free zone and partner companies; and the Syndicat des Industries de Madagascar (SIM), or the Madagascar Industries Union - the umbrella organization representing Madagascar’s industrial sector, advocating for its interests and promoting industrial development within the country.

Limitations on Selling U.S. Products and Services

There are no specific limitations on selling U.S. products and services.  But there is a general prohibition on sales of radioactive waste, pornographic materials, counterfeit and pirated goods, and items with false origin indications. The sale of the following items requires pre-authorization: firearms, explosives, drugs, diamonds, gemstones, gold/platinum jewelry, and vanilla.  Additionally, there are special requirements for sales of imported leaf tobacco, and lubricants and fossil fuel products require a special import license.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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