General Information

Madagascar is a fragile country marked by political instability and heavily dependent on support from multilateral donors.

The government has carried out several reforms to attract foreign investors and improve the business climate (161st out of 190 by Doing business 2020). A National Investment Promotion Agency (EDBM) has been established as a one-stop shop to facilitate implementation and investment. The country's exports recovered significantly in H1/2022.

Although not a requirement, the use of an agent/distributor or partner with experience in the distribution of imported products can be useful in approaching the market and establishing the right contacts.

Means of Payment & Banking Specificities

Madagascar has a floating exchange rate regime: the exchange rate of the ARIARY currency is freely determined by the IFEM (Interbank Foreign Exchange Market).

The recommended invoicing currency remains the Euro despite the recent devaluation of the Ariary.

To secure payments, we strongly recommend the use of a confirmed documentary credit with payment on demand or even within 30 days maximum.

Payments for unsecured transactions are often delayed and can range from 30 days to several months.