Boosting exports to common markets
Currently, Madagascar exports less than 5 % of its trade with Africa. According to the African Development Bank (ADB), the Great Island is already part of three economic communities on the continent, as highlighted in its 2024 country report on Madagascar.
Madagascar is a member of the Common Market for Eastern and Southern Africa (COMESA) and is also integrated into the Southern African Development Community (SADC). Additionally, the country belongs to the Indian Ocean Commission (IOC). In 2018, Madagascar signed the African Continental Free Trade Area (AfCFTA) agreement.Membership in these three Regional Economic Communities (RECs) and the AfCFTA should help increase trade between the continent and Madagascar, according to the ADB.
Over the past two decades, Madagascar has intensified its trade with African countries. The total value of exports increased from 28 million USD in 2002 to 215 million USD in 2022. According to the global think tank ODI, Madagascar’s exports to Africa grew at an average annual rate of 20.6 % during this period.
Madagascar’s imports from Africa, on the other hand, increased from 76 million USD in 2002 to 559 million USD in 2022, with an average annual growth rate of 14 % during this period. According to the ODI, the Great Island has continuously experienced a trade deficit with Africa.
Comparing Madagascar’s trade with the rest of the world, exports increased from over 500 million USD in 2002 to 3.3 billion USD in 2022. During the same period, imports also saw a significant rise, growing from over 500 million USD to 4.9 billion USD.