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Business Profile
Economy: Madagascar’s mainly agricultural economy relies heavily on coffee production to earn foreign exchange, and this has suffered lately from a decline in world demand and prices. Vanilla, cloves, sisal, cocoa and butter beans are the island’s other important cash crops. Rice and cassava are produced primarily for domestic staple consumption. Fishing is underdeveloped thus far: the Government, which still exercises extensive control over the economy, is hoping to improve its performance. The country has appreciable mineral deposits of chromium ore, bauxite and titanium ore deposits, all of which are being exploited. The recent discovery of oil deposits is set to bring about further development as well as hopefully resolve Madagascar’s energy problems. Fifteen per cent of GDP derives from manufacturing industry, mainly textiles and food processing. The service sector is relatively underdeveloped at present. The Government has been looking at ways of developing the tourism industry, and has focused on the island’s abundance of exotic wildlife as a major attraction. Although the Madagascan economy has considerable potential, there are major problems to overcome. There is little than can be done about the climate; Madagascar suffers from frequent cyclones which have done severe damage to agriculture, especially in the last few years. More seriously, the political instability which has afflicted Madagascar throughout 2002 threatens to undermine the economy. Economic growth is around one per cent annually and the exchequer continues to rely heavily on loans and grants from the EU (especially France) and the World Bank. France accounts for about 30 per cent of all Madagascar’s trade; the USA and the CIS are other important trading partners.
Business: Tropical lightweight suits are appropriate wear. If arranged far enough in advance, the Embassy can arrange interpreters for business meetings. Office hours: Mon-Fri 0800-1630.
Commercial Information: The following organisation can offer advice: Fédération des Chambres de Commerce, d’Industrie et d’Agriculture de Madagascar, BP 258, 101 Antananarivo (tel: (2022) 20211; fax: (2022) 20213).
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