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Madagascar

Republic of Madagascar

French, Malagasy Malagasy Ariary (MGA) Mixed: French civil law, customary law
AU, SADC, COMESA, AfCFTA, WTO

Madagascar is the world's largest island nation in Africa and possesses extraordinary biodiversity and natural resources. The economy is driven by agriculture (vanilla, cloves, rice), mining (nickel and cobalt at Ambatovy, ilmenite and zircon at QIT Madagascar Minerals), and a growing tourism sector.

Madagascar produces approximately 80% of the world's vanilla, making it a critical supplier to the global food industry. The mining sector attracts significant foreign investment, particularly the Ambatovy project (one of the world's largest laterite nickel mines).

Challenges include political instability (four changes of government between 2009-2019), poor infrastructure (particularly roads), deforestation, and widespread poverty. The EDBM (Economic Development Board of Madagascar) facilitates investment. The country's unique biodiversity makes eco-tourism a high-potential sector. Free zones (Zone Franche) offer tax incentives for export-oriented manufacturing.

Snapshot

Population~32.7 MWorld Bank, 2025
GDP (current USD)$19.6 BWorld Bank, 2025
GDP per Capita$599World Bank, 2025
GDP Growth3.00%World Bank, 2025
Inflation (y/y)~8.05%World Bank, 2025
Taux directeur (Banque Centrale)11.00%Central Bank
Unemployment3.04%World Bank, ILO modelled estimate, 2025
Internet Use~18.68%World Bank, 2024
Electrification~34.00%World Bank WDI
CPI Score (Rank)26.0/100 (#142)Transparency Intl
HDI (Rank)0.501 (#173)UNDP HDR

World Bank Indicators Compare with another country

GDP (current USD)$19.6 BWorld Bank, 2025
GDP growth (annual)3.00%World Bank, 2025
GDP per capita (USD)$599World Bank, 2025
Population, total32.7 MWorld Bank, 2025
FDI net inflows (USD)$606.2 MWorld Bank, 2024
Inflation (consumer prices)8.05%World Bank, 2025
Unemployment (% labour force)3.04%World Bank, 2025
Internet use (% of people)18.68%World Bank, 2024
Trade (% of GDP)54.24%World Bank, 2025

Climate Readiness Full ranking

32out of 100
Early-stage
Climate adaptation readiness for Madagascar, from 5 of 5 measured indicators.
Energy access3434.0% · 30% weight
Governance readiness2626 / 100 CPI · 20% weight
Human readiness500.501 HDI · 20% weight
Economic readiness21$599, 2025 · 15% weight
Digital readiness2222.0% · 15% weight
This scores climate adaptation readiness (adaptive capacity), following the readiness dimension of the ND-GAIN framework. It is built only from measured values already held on this profile and normalised 0-100. It does not measure emissions or physical climate vulnerability: the platform does not yet hold emissions, hazard-exposure or natural-capital series. Energy access is the single most climate-specific indicator held; the other four are governance, economic, human-development and digital readiness proxies. The economic sub-score is relative to the African countries the platform covers.
How this is computed

Adaptive capacity to absorb climate finance and adapt, following the readiness dimension of the ND-GAIN framework. Built only from measured values already held on each country profile. It is not a measure of emissions or physical climate vulnerability, which the platform does not yet hold.

  • Energy access (30%) — World Bank, access to electricity (% of population). The single most climate and energy specific signal held: SDG 7 and the clean-energy transition.
  • Governance readiness (20%) — Transparency International, Corruption Perceptions Index (0-100). ND-GAIN governance readiness: the capacity to govern and deploy climate finance. Higher is cleaner.
  • Human readiness (20%) — UNDP, Human Development Index (0-1). ND-GAIN social readiness: the adaptive capacity of the population.
  • Economic readiness (15%) — World Bank, GDP per capita (current US$), latest measured year. ND-GAIN economic readiness: the capacity to finance adaptation. Scored relative to the covered set.
  • Digital readiness (15%) — World Bank, individuals using the Internet (% of population). Information systems for early warning and adaptation.

A country is scored only when at least 4 of the five indicators are held. Sub-scores are weighted and renormalised over the indicators that are present; nothing is estimated for one that is absent.

Country Facts

CapitalAntananarivo
RegionEast Africa
CurrencyMalagasy Ariary (MGA)
FX RegimeManaged float
Investment Promotion AgencyEDBM (Economic Development Board of Madagascar)
Legal SystemMixed: French civil law, customary law
Time ZoneIndian/Antananarivo

Focus Sectors

Mining (nickel
cobalt
ilmenite)
Vanilla (world's largest)
Agriculture
Textiles
Tourism
Fisheries
Energy
Telecoms
Construction

Regulations & Taxes

Corporate Income Tax20% standard
VAT / Sales Tax20% standard