54 AFRICAN COUNTRIES

The largest sectors of the of Madagascar's economy are agriculture and transportation, accounting for 26.9% and 23.7% percent of GDP in 2007, industry was 12% and public administration had a 5% share. Among the major crops grown are rice,coffee, cotton, tobacco, sugarcane, cloves, cocoa, tapioca, vanilla, bananas and peanuts. The natural resources which are extracted are fish, graphite, bauxite, salt, quartz, gold, semiprecious stones, timber and hydropower. The manufacturing sector of Madagascar is dominated by light industries segment such as the food processing (including meat and seafood), brewing, tanning and textiles. There are also cement and paper facilities. Madagascar has no major indigenous sources of coal or natural gas and produces just 90 barrels of oil a day. About 60 percent of electricity is generated by hydropower.

Sector % age Contribution to GDP(2007) Agriculture,livestock forestry & fishing 26.90% Mining and quarrying 0.10% Manufacturing  16.1% Construction 5.30% Trade,hotel and restaurants 14.50% Transport,storage and communication 23.70% Finance, businesss services and real estate 1.50% Government services  5% other Services 5.30%

Agriculture Forestry and Fishing Sector

In agriculture sector, rice occupies the largest share of total crop acreage. Many varieties of dry, wet and irrigated rice are grown in the central plateau. Wet rice is grown in the lower river valleys and dry rice is grown in eastern forests. Costly imports are still required.

Sugarcane is grown in the northwest around Mahajanga and on the east coast near Toamasina. Cassava (manioc) is a staple crop grown all over the island and potatoes and yams are cultivated mainly in the highland region of Ankaratra.

Fruits like bananas are produced commercially on the east coast. Corn (maize) is grown mainly on the central plateau in the southern and western regions of the country. The other fruits grown include apples, grape fruits, avocados, plums, grapes, oranges, litchis, pineapples, guavas, papayas, passion fruits and bananas.Robusta coffee is grown on the east coast and arabica coffee in the plateau region. The other significant crops are beans, peanuts (groundnuts), lima-beans, coconuts, pepper, vanilla, cacao, sisal, raffia, tobacco, copra, cotton, and castor beans.

Forestry

A significant amount of area under forestry is degraded and the remaining is either wet or dry tropical forest. Major efforts for reforestation have been undertaken but because with more than four-fifths of domestic fuel needs supplied by wood and charcoal, the country’s total forested area continues to decline drastically.

Fisheries

Madagascar’s waters are rich in a variety of fish, shellfish and crustaceans. The country’s industrialized fisheries sector has experienced great volume of expansion. The export of shrimp and prawns in particular provides a significant source of revenue. Fishing and over fishing illegally remains problematic. The government of Madagascar largely lacks the resources to combat the issue. Although fish farming, especially along the western coast, has been increasingly developed as an alternative. There is still a  considerable amount of fish in the irrigated rice fields, mainly for home consumption.

Transportation Sector

Transport facilities serve primarily the eartern coast and the plateau. Facilities are less developed on the western half of the island, even though the country’s best natural harbors are located there. Majority of roads are unpaved, roads down the eastern escarpment and across the western coastal strip, as well as minor roads everywhere, become impassable during the wet season.

The roads which are paved mainly run - south from Antananarivo to Fianarantsoa, where branches include those that head southwest to Toliara, southeast to Tôlan̈aro via Ihosy and east to Mananjary and Manakara. Many paved roads also run east from Antananarivo toward Toamasina, west to Analavory and north to Mahajanga and Antsiranana.

The two major ports of Madagascar are located at Toamasina and Mahajanga. Toamasina is famous for the fine deepwater harbour equipped with quay berths and directly linked to Antananarivo by rail and air service. The port at Mahajanga holds a lot of importance too. The coastal lagoons and swamps in Madagascar like the Pangalanes Canal on the east coast, which are links by artificial channels are necessary to provide a waterway that is more than 370 miles(600 km) long.

Railways in Madagascar connects the plateau with the east coast and runs from Antananarivo to Toamasina and from Fianarantsoa to Manakara. The plateau routes include those that run from Antananarivo south to Antsirabe, to Fianarantsoa and north to Ambatondrazaka.

There are numerous airfields in Madagascar which are found throughout the island. It aids the domestic travel across the difficult and sizeable landscape. The main international airport is at Ivato, near Antananarivo, and some international flights make secondary landings at Toamasina, Nosy Be, and Mahajanga. Air Madagascar provides domestic and international service, as do other airlines.

Tourism Sector

The climate, beaches with a coastline of 4,827 kilometers and unique ecology make tourism one of its most dynamic and promising sectors in Madagascar. The sector not only has a huge potential to create employment for the people but also could generate wealth and could turn Madagascar's unusual and endangered environment into a productive asset. Although the country has a total of nearly 14,000 rooms (all classes), it is still an insufficient amount in the view of the steady growth of tourism volume. The many popular tourist sites include places like as Nosy-Be, Sainte-Marie, Andakana but many sites which still have potential still remains untapped. This can be explained by difficulties of access and lack of communications networks. Though these problems are still negligible compared to the likely return on investment.  

The access to property in Madagascar is encouraging given that the public land can be used in lease and private land acquired at very affordable prices. Presently there are five airlines which connect Madagascar to the world. These are Air France, Corsair, Air Madagascar, Air Austral and Kenya Airways.

Financial Services

The limitations present in the financial sector continue to impede growth. The country's assets are controlled by the central bank and 5 commercial banks, the largest of which, BNI-Credit Lyonnais. Few Malagasy, however, qualify for these banks' services. The problem is especially acute in the rural areas where only 1.5 percent of small farmers have access to credit, the agriculture sector itself receives only 5 percent of total lending. High interest on loan rates and fees has also discouraged business borrowing. The lack of a stock exchange and shareholding culture has further restricted financing options.

Mining Sector

Madagascar has a wide range of gems and semiprecious stones that include the garnet, amethyst, tourmaline and beryl . The discovery of sapphires in Madagascar in the late ‘90s was especially significant. As in the beginning of the 21st century, about half of the world’s sapphires were mined in Madagascar.

The many Mineral deposits in Madagascar include the chromite, ilmenite, coal and titanium. Chromite ore is found in the north of Antananarivo and in the southeast at Ranomena. Ilmenite (titanium ore), found on the southeast coast at Tôlan̈aro. Low-grade iron ore, found in scattered deposits in the southern half of the island and low-grade coal, north of Toliara and inland from Besalampy. Nickel and cobalt are found in the mines of Toamasina, which started off in 2007, is among the largest in the world. Nickel is also extracted near Fianarantsoa. Copper is mined north of Ampanihy and near Ambilobe. The country also contains smaller deposits of zircon, monazite, bauxite, lead, graphite, quartzite, jasper, gold, uranothorianite, bentonite, kaolin, columbite, and alunite.

For Further Reference

African Economic Outlook

Madagascar Country Profile - BBC News

The World Bank