ECONOMIC DEVELOPMENT BOARD OF Madagascar The treasure island

OUR MISSION

3 Promote emergence and sustained development of the private sector by improving the business environment World ranking DBI from 149 in 2007 to 80 in 2012 Make the one stop shop for investors, known and appreciated; Promote domestic and international investments FDI: 84 millions USD in 2005 up to 500 millions USD in 2012 Create strong and sustainable economic growth; 8 – 10% in 2012 Define main priority sectors and contribute to their integrated development; Streamline administrative and legal procedures to speed up the process of entreprise creation and operation; Provide policy advice on economic matters. OBJECTIVES

PROMOTION FACILITATION CORE BUSINESS

FACILITATION AND PROJECTS Setting up a company in 04 days (Recording, trade register, tax registration and statistics); Approval for eligible export processing enterprises; Authorization for tourism enterprises Environmental permits (when required); Long-term visa and the work permits for expatriates; Authorization of land access to foreign investors; A ONE STOP SHOP FOR

INVESTMENT CLIMATE New investment law 1.Access to land property for foreigners 2.Freedom of transfer of funds 3.Freedom of recruitment 4.Freedom of ownership No minimum capital required; Minimum bureaucracy (declaration mode); Presence of EDBM as an investment facilitator Exceptional quality of life;

 To create the image of Madagascar, to make it known and recognized as a one of the best investment destination;  To identify the key sectors opportunities, to develop and promote them to targeted investors;  To keep all stakeholders well informed on the rules and regulations related to business climate and on country competitiveness ;  To develop a network of economic actors aiming at achieving the MAP economic goals ; PROMOTION AND COMMUNICATION THAT IS COMMITTED

OPPORTUNITIES Agri-Business Madagascar’s varied climate & abundant fertile land is suited to a wide range of agricultural production resulting in unique agricultural bio-products & opportunities Agriculture (food) Agriculture (non-food) AgroindustryAgribusiness (input & suplies ) Rice, maize, fisheries, aquaculture, livestock, herbs and spices, coffee, cocoa, vanilla Cotton, sisal, Flowers, essential oils Fruits and vegetables processing, packed fresh fruits and vegetables, bio fuels Tools and machinery, crop protection, fertilizer, seeds, packaging

OPPORTUNITIES Agri-Business Processing and packaging of natural resources and agricultural produce Establishment of organic and product-specific zones with a parallel modernization of practices and equipment Sustainable fisheries management Modernization of methods and machinery

OPPORTUNITIES (5/9) Light manufacturing Preferential access to regional market of more than 400 millions consumers Comparative advantage in textile Food CanningWoodworkTanning Fruits & vegetables Spices Fishes Furnitures Flooring Musical instruments Ship buiding Leather wear Upholstery fabric fashionwear

SectorKey reasons for selection Oil Seeds Unmet local demand for edible oil, animal feed and fuel; booming global demand and prices Madagascar has right land and climate and irrigation potential; potential counter to deforestation Many FDI prospects Sugar Less than 20% of local demand met; even if all existing capacity is restored, will still need to double capacity to reach benchmark consumption levels; global demand and prices are strong Madagascar has right land and climate and irrigation potential Good FDI precedents in other Sub-Saharan countries Fresh Vegetables Growing local demand for quality fresh vegetables (for tourism sector, mining towns and urban middle class), plus potential to serve Indian Ocean and (longer term) Middle East Very successful local precedents (e.g. Lecofruit), but more investment needed to achieve consistency and scale Mauritius and Reunion customers already seeking suppliers; similar FDI precedents in Kenya and elsewhere Fruit Unmet global demand for exotic new fruits Madagascar has right conditions (e.g. Lychee success) but fails to capture full potential Foreign processors and growers should enable Madagascar to increase revenues, by enabling more processing and opening new markets Beverages Positive global demand and prices for Cocoa and Coffee, particularly high-quality, single origin, organic and fair-trade Madagascar has strong image and good potential conditions, but variable trackrecord Foreign farmers and processors can help to bring consistency and scale Agribusiness

Sector Market Attractiveness Madagascar Competitiveness FDI Impact/ Welcome FDI Prospects Overall Good Dema nd Supply constra ints Good Prices Existing investors Underlying assets Limited barriers FDI impact FDI welcome? Global precedent Existing leads Good targets Jewelry Handicrafts Leather products Stone products Wood products Metal products Glass / packaging Simon Bell, John Hargreaves, Henri Tsimisanda, May 2008 Light industry

Open Discussions Closing remarks Antaninarenina 101 Antananarivo - Republic of Madagascar Tél. : (261) / Fax : (261) Web site : ECONOMIC DEVELOPMENT BOARD OF MADAGASCAR Your success is our priority