Investing in Madagascar

Madagascar's Investment Law 2023-002 defines statutory investment as durable capital or assets placed in a Malagasy company while accepting economic risk. It covers shares and parts, company bonds, corporate debt, loans, shareholder current-account advances, movable and immovable property, security interests, intellectual property, business assets and know-how. The statutory definition excludes portfolio investment and government debt, so legal protection under that definition should not be confused with every financial asset available in the country. Common investment paths include incorporating or acquiring a Malagasy company, joining a project through a joint venture, buying private company equity or debt, and financing operating businesses. EDBM, the Economic Development Board of Madagascar, helps with company creation and investor facilitation. Company registration involves the RCS and the competent administrations; an EDBM guide reports digital registration in Analamanga in about 48 hours, but timing depends on the case and location. A company normally needs at least one resident social representative. Sector permits, beneficial-ownership information, accounting, tax registration and environmental approvals may also apply. Government securities provide a more standardized option. BTA means Bons du Trésor par Adjudication, or Treasury bills sold through an auction process. BTF means Bons du Trésor Fihary. The 2026 official BTA issuance sheet lists banks, companies and individuals as eligible participants, with maturities of 4, 12, 24, 36 and 52 weeks. The minimum amount is MGA 20,000,000 for each maturity, with additions in MGA 10,000,000 increments. Settlement uses a cheque or transfer through the relevant bank or authorized intermediary, and interest is subject to IRCM. BTA are obtained through the Trésor Public and the banking or intermediary system, while the BFM reports a secondary market. In the first half of 2024, BTA outstanding amounted to about MGA 571.3 billion, accepted yields averaged about 10.8%, and reported secondary transactions totaled about MGA 9.6 billion across 70 transactions. Non-bank participation was 34.5%, while banks remained dominant, so resale cannot be treated like trading on a deep retail exchange. A real-asset investment may use a long-term lease, agricultural or tourism project, energy infrastructure or another operating asset. Foreigners cannot directly own land in Madagascar. A renewable emphyteutic lease can last up to 99 years, and foreign-controlled Malagasy companies generally use this structure. The land title or certificate, lease chain, permits, community obligations and environmental review require separate checks. Gold panning, artisanal mining and small-scale fishing are reserved for national investors, while sector laws, reciprocity rules and treaties can change access in other activities. Export-oriented eligible businesses may use a ZEF, meaning a Zone or Entreprise Franche, with statutory fiscal, customs, financial and social incentives. A ZEF is an operating-business framework, not a passive portfolio substitute. PPPs, concessions and sector licences can provide other project structures. Promoted areas identified by EDBM include agribusiness, mining, information and communication technology, light industry and textiles, renewable energy, tourism, infrastructure and aquaculture. Intellectual property can also form part of an investment when the relevant rights are locally registered or held. A practical portfolio may combine a BTA maturity ladder for accessible liquidity, private operating-company or project equity and debt, and a real-asset sleeve based on properly documented leasehold interests. Currency exposure matters because MGA depreciation, inflation and restrictions on conversion can reduce returns measured in another currency. The June 2026 research record reports year-on-year inflation of 8.6%. Other risks include political and sovereign uncertainty, limited credit access, power outages, cyclone and drought exposure, commodity-price changes, land disputes, weak data outside the formal sector, corruption, permit changes, tax rules and illiquid private holdings. Diversifying by issuer, sector, geography, maturity and MGA versus convertible-currency exposure reduces concentration but does not guarantee a return or prevent loss. Malagasy and foreign investors receive equal treatment under the investment law, subject to legal restrictions. Property protection applies, and expropriation requires a public purpose, legal and non-discriminatory treatment, and prior fair and effective compensation. Profits, dividends, royalties, management fees, expatriate income and certain proceeds can be transferred without prior approval, but declarations to the Ministry of Finance, tax compliance, authorised intermediaries and freely convertible currency requirements apply. Other capital and financial transactions may need prior Finance Ministry approval. Investors must follow public-order, health, safety, sanitation, human-rights, anti-bribery, environmental and community obligations, including relevant local hiring, supply, training and site-restoration duties. Madagascar does not have an established domestic stock exchange, ETF or mutual-fund access evidenced by the reviewed official sources, and no regulated local crypto or digital-asset product was evidenced. Bank deposits, payment services and ordinary borrowing belong to adjacent banking and debt subjects rather than investment itself. A dispute normally begins with an amicable process; after six months without resolution, the applicable contract, treaty, Malagasy courts or a written case-specific CAMM or CIRDI process may apply. Choosing a forum can end later parallel recourse.