Investing in Madagascar in 2026
Sub-Saharan Africa
22
Score
High Risk Investment Destination
Unstable conditions - speculative only, high potential loss
Madagascar earns an investment score of 22/100, placing it in the high risk category for global investors. Unstable conditions - speculative only, high potential loss. The country's standout dimensions are growth potential (32/100) and economic health (22/100), with overall GDP of $16B and per-capita output of $520. Growth is running at 4.0% with 2.5% of GDP arriving as foreign direct investment. Inflation is contained at 9.5%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Mining (Nickel, Cobalt) (sector score 52/100, currently growing), which represents 5% of GDP. Trade openness sits at 55% of GDP, a useful proxy for how integrated Madagascar is with the global economy.
How Madagascar's investment score has evolved over time
Mining (Nickel, Cobalt)
5% of GDP, growing
Textiles
5% of GDP, stable
Agriculture
25% of GDP, stable
Tourism
3% of GDP, growing
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Madagascar a safe country to invest in?
Madagascar carries a high risk risk rating with an overall investment score of 22/100. Unstable conditions - speculative only, high potential loss. Sub-scores: economic health 22/100, political stability 18/100, business climate 22/100, financial strength 18/100, growth potential 32/100.
What is Madagascar's sovereign credit rating?
Madagascar holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Madagascar?
The top investment sectors in Madagascar are Mining (Nickel, Cobalt), Textiles, Agriculture. Mining (Nickel, Cobalt) leads with a sector score of 52/100 and represents 5% of GDP. Its current trend is growing.
What is Madagascar's GDP growth rate?
Madagascar's most recent GDP growth was 4.0%, with total GDP of $16B and GDP per capita of $520. Inflation is running at 9.5% and the current account balance is -5.5% of GDP.
How does Madagascar score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Madagascar scores: political stability -0.5, rule of law -0.8, corruption control -0.7, and regulatory quality -0.6.
Can foreigners invest in Madagascar?
Most industries in Madagascar are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Madagascar?
Foreign Direct Investment in Madagascar runs at 2.5% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 55%. These figures show how integrated Madagascar is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Madagascar?
Madagascar's government debt stands at 48% of GDP. This is a relatively conservative debt load, supporting fiscal flexibility.