Autonomous Systems and Robotics
This field is underdeveloped in Madagascar, but private sector investment is increasing. The private sector has invested in approximately fifty current projects worth tens of millions of dollars in the field of robotics and autonomous systems. Several Malagasy students have won prizes in international competitions for their work in robotics and autonomous unmanned systems. These projects have involved applications in the fields of agriculture, mobility, security, and more. Pursuant to a U.S.-sponsored program, healthcare workers now use drones to deliver medical supplies and vaccines to remote areas in Madagascar. China is seeking to increase its influence in Madagascar’s technology sector. It has organized mechanical and electrical workshops and provided technical assistance to the country’s polytechnic university. Several major companies have also recently added Chinese electric vehicles (EVs) to their fleets. U.S. EVs have not yet made a significant entry into the market.
Renewable Energy Generation and Storage
Madagascar’s solar, wind, hydro, and thermal potential is exceptional but remains under-exploited. Madagascar’s electric grids are scattered, disjointed, and obsolete. Less than 30 percent of the population has access to electricity. This lack is particularly acute in rural areas. The U.S. DFC provided $2 million in technical assistance to the 205-megawatt Sahofika hydropower project. More renewable energy projects are coming on stream, including a wind farm (12 megawatts) and a solar power (8 megawatts) project that Rio Tinto subsidiary QMM is working on with CrossBoundary Energy, a company founded by U.S. citizens with offices throughout Africa. Upon completion, this project will result in the first mining operation in Africa powered exclusively by renewable energy. Madagascar imports all the equipment required for the production, storage, transmission and distribution of energy. Last year China proposed and the GoM authorized a project to modernize the electrical grid of Antananarivo. This $177 million “Medium Ring Tana” project will use Chinese smart grid technologies.
Financial Technologies
Fintech remains the main tool for financial inclusion in the country, despite the weakness of the regulatory framework, the lag in individual digital identification, and the lack of a robust and innovative credit infrastructure. The population is voluntarily adopting digital financial services thanks to the swift rise of mobile money and electronic payment platforms to settle tax, custom duties, administrative fees, and utility services. Numerous technical assistance programs financed by traditional donors are weaving legal frameworks, fostering innovation and diversification, and improving consumers’ financial knowledge. The U.S. company eCurrency signed an agreement with the Central Bank of Madagascar to complete a feasibility study for digital currency in Madagascar but has not yet conducted the study.
Artificial Intelligence
(Machine Learning systems, Foundation models; Generative AI, Large Learning Models; AI safety & responsible use.)
Madagascar is not at the forefront of AI technology. But three years ago, it established the Laboratory of Artificial Intelligence of Madagascar (LIAM), a research and training center and think-tank, in hopes of advancing AI applications in its development plans. Some U.S. universities and institutions have provided training and networking to build relevant capacity for Madagascar’s officers and technical staff. The country is reportedly using AI in reforestation, biodiversity conservation, and weather forecasting efforts. Madagascar does not have any legal framework regarding AI.
Mining
Concession projects and services, U.S. mining equipment, Advanced extraction or processing equipment.
The U.S. Department of Commerce has developed a list of promising critical mineral projects in the Sub-Saharan Africa region, including Madagascar, that could benefit from USG assistance or U.S. private investment. Madagascar has significant reserves of graphite, nickel, cobalt, titanium, and other rare earth elements. The recent Mining Indaba Conference in Cape Town, South Africa, February 3-5, 2025, allowed representatives from Madagascar to network with USG and U.S. industry representatives, fostering opportunities to promote mining related projects in Madagascar. Mining companies operating in Madagascar have procured equipment from U.S. companies, including Caterpillar. New U.S. investments in Madagascar’s mining sector may increase demand for U.S. equipment.