Up to 20 million USD in order to produce banknotes and coins by 2022

The Central Bank of Madagascar is holding off on minting its own banknotes for now. On May 7, 2024, the bank’s governor clarified that the intricate process of banknote production requires significant time and effort.

Crafting banknotes demands a level of technical expertise and engineering currently lacking on the Big Island. There’s a scarcity of printing facilities and skilled technicians capable of producing the necessary materials, like the specialized paper used in banknotes. Governor Aivo Andrianarivelo notes that while some industries specialize in specific components like filaments or paper, a comprehensive production setup remains elusive.

The landscape of banknote production is ever-evolving, necessitating continual investment in research and development to bolster security measures against increasingly innovative counterfeiters. Notably, 54 countries on the continent, including 43, including Madagascar, rely entirely on European and American printing plants for their banknote supply.

Banknote production stands as one of the Central Bank’s most significant expenses. In 2022 alone, the bank spent 86.248 billion MGA (USD 20 million) on banknote and coin production. According to experts in electronic payments, production costs can fluctuate based on factors like denomination and anti-counterfeiting measures. However, the exact cost of ariary production remains undisclosed.