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Foreign trade : Beneficial sector for Madagascar’s economy

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Foreign trade : Beneficial sector for Madagascar’s economy

Leveraging opportunities in the IOC, COMESA, and SADC markets

In Madagascar, export opportunities abound, driven by the country’s agricultural potential and rich natural resources. However, a closer analysis reveals a surprising reality : local production falls short of meeting the population’s food requirements, unsettling the balance of import-export dynamics.

When assessing the impact of foreign trade on the island’s economic growth, the trade balance paints a nuanced picture. Promoting economic development becomes challenging in the face of a trade deficit. Conversely, an export surplus compared to imports enhances the financial outlook by bolstering foreign currency reserves.

Regional economic integration expedites the process of industrial relocation, fostering job creation, augmenting residents’ incomes, and attracting increased Foreign Direct Investments (FDIs).Madagascar’s economic players stand to gain from enhanced access to regional markets, particularly those within the IOC, COMESA, and SADC member nations. This expanded market access enables exporting firms to capitalize on economies of scale and uphold their competitiveness.

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