Economy & Government

The economy of Madagascar is considered a market economy and is supported by Madagascar’s well-established agricultural industry and emerging tourism, textile and mining industries. Malagasy agriculture produces tropical staple crops such as rice and cassava, beans and bananas, including cash crops such as vanilla, cloves, cacao, sugar, pepper and coffee.

Madagascar’s status as a developing nation exempts Malagasy exports from customs protocol in some areas, notably the United States under the African Growth and Opportunity Act (AGOA) and the European Union under the Everything But Arms (EBA) agreement. These exemptions have supported the growth of the Malagasy textile industry.

Despite Madagascar’s natural resources and developing industries, foreign investments have resumed following the recommencement of elections in early 2014. Through active support from the new President, Government and OMNIS (official government organization operating under the auspices of the Ministry of Energy) for the project, Madagascar Oil has been working closely with the Malagasy Government. In fact, President Rajaonarimampianina inaugurated Madagascar Oil’s Tsimiroro crude oil blending facility in June of 2014, and said, “the success of this project is our sincere wish so that the hopes of the whole people to see his offspring enjoy a better future become a reality.” The new President and government are receiving growing support and recognition by the United Nations and several countries including the United States, Russia, South Africa and the European Union.