Rivo Rakondrasanjy Proposes Reform

Currently, fewer than 800 large companies generate 75% of the country’s tax revenue, out of more than 330,000 taxpayers. This imbalance, according to Rivo Rakondrasanjy, President of the Fivondronan’ny Mpandraharaha Malagasy (Fivmpama), demonstrates the need for a profound change in the economic system.

He proposes the creation of a “Small Business Act,” a law that would help very small, small, and medium-sized enterprises (VSMEs) to grow.

“These businesses represent 99% of Madagascar’s economic fabric, but they still face many difficulties,” he added. The informal sector, seven times larger than the formal sector, contributed 46.5% to the gross domestic product (GDP) in 2021. According to Rivo Rakondrasanjy, it is time to strengthen support for these small businesses, which play a key role in job creation and the country’s growth.

Furthermore, this framework considers SMEs to be an essential pillar of the national economy. It calls on the government to implement a clear policy to support them, help them formalize their operations, and offer them more financial and technical assistance.

The Small Business Act project aims to simplify administrative and tax procedures for entrepreneurs. The initiative includes the creation of a one-stop shop, designed to facilitate document management and encourage cooperation between businesses, students, and researchers.

FIVPAMA also hopes that public procurement will be more accessible to SMEs. The group is proposing a national program, in collaboration with the Malagasy Vocational Training Fund (FMFP), to strengthen entrepreneurs’ skills and improve the quality of their services.

According to its President, this reform would offer a real opportunity for small businesses to grow and fully participate in the country’s development. He calls on the authorities to widely disseminate the project and work with all economic stakeholders so that the Small Business Act becomes a true engine of progress for Madagascar.