Madagascar’s business climate opening up investment opportunities

Madagascar, a country known for its rich natural resources and unique biodiversity, is working towards improving its business climate to attract more foreign investments. Ranked 161 among 190 economies globally in terms of ease of doing business, the country is actively implementing reforms to enhance its regulatory framework and reduce corruption levels. To discuss the efforts being made to boost investment opportunities in Madagascar, Andry Tiana Ravalomanda, CEO of the Economic Development Board of Madagascar (EDBM), recently joined CNBC Africa for an insightful conversation. During the interview, Ravalomanda highlighted the various initiatives taken by EDBM to attract investors. He emphasized on the favorable regulation framework in place, offering tax incentives for activities aimed at exploitation. Additionally, EDBM provides support agencies to facilitate investments and guide investors through the process of setting up businesses in Madagascar. Ravalomanda stressed that EDBM serves as the first point of contact for investors seeking opportunities in the country, offering assistance in understanding the regulatory framework and accessing incentives. Addressing the challenges faced in improving the business climate, Ravalomanda acknowledged Madagascar's current ranking and the need for reforms. With the support of international partners like the World Bank and the African Development Bank, EDBM is focused on implementing reforms related to the ease of doing business indicators. The organization aims to streamline processes and promote online company registration to enhance the business environment in Madagascar. Ravalomanda expressed optimism about the government's ambition to boost rankings and support the private sector in driving economic growth. When discussing the sectors with the most investment opportunities in Madagascar, Ravalomanda highlighted the diversity of options available. The country boasts rich resources in mining, tourism, information technology, and agribusiness. Notably, Madagascar is renowned for its vanilla and spices, presenting ample opportunities for export and trade. To capitalize on these opportunities, EDBM is working to attract investments and provide financial support to the private sector, fostering growth and development across various industries. Despite the progress in enhancing the business climate, Madagascar continues to grapple with issues of corruption. The Corruption Perception Index ranks the country 152 globally, indicating the need for stringent measures to combat corruption. Ravalomanda emphasized the importance of political will in addressing corruption and highlighted a zero-tolerance approach adopted by the government. Stringent actions, including jail sentences for individuals involved in corruption, demonstrate Madagascar's commitment to eradicating corrupt practices. Moreover, the government is leveraging information technology to minimize corruption risks and enhance transparency in governance. In conclusion, Madagascar is actively working towards creating a more conducive environment for investments, with a focus on regulatory reforms, sector diversification, and anti-corruption measures. As the country strives to improve its ranking and attract foreign investors, initiatives led by EDBM and supported by international partners are crucial in driving sustainable economic growth and promoting business opportunities across various sectors.