Madagascar has extraordinary potential for FDI attraction as it is endowed with rich natural resources, a young population and vast fertile land. Yet, its FDI per capita is below the regional average and has been decreasing for the past 10 years.

As the country emerges from the latest political crisis, the Government has embarked upon an ambitious strategic development planning effort.

Against this background, the Investment Policy Review (IPR) of Madagascar emphasizes the need for targeted policies that can positively impact FDI inflows into the country and optimize its impact in terms of employment, transfer of technology and skills and fiscal revenues.

The IPR analyses the regulatory and institutional framework for investment and addresses the challenges and opportunities for FDI in key sectors of the economy, including agriculture, mining, textiles and tourism.

It highlights the need to define specific and coherent sectoral objectives that could allow the country to pursue a more targeted investment promotion approach.

The IPR also recommends strengthening the competitiveness of the local economy through infrastructure development and a more coordinated approach to entrepreneurship promotion.