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Why now is the time to do business with Madagascar?
• MAP Madagascar Action Plan The M A P is a bold, five-year plan, which establishes direction and priorities for the nation from 2007 to 2012. It states the commitments, strategies and actions that will ignite rapid growth, lead to the reduction of poverty, and ensure that the country develops in response to the challenges of globalization.
(MAP) Commitment 6 High Growth Economy The Madagascar economy is in a dynamic growth trajectory. Since the late 1990s the economic growth rate has been showing solid improvement from an annual growth rate of 2.1% in 1996 to an average rate of 5.5%, one of the highest in the region. Within the framework of the MAP, the objective is to achieve a high growth economy with growth rates reaching between 7% and 10% by 2012. The government will ensure a diversified and strong private sector driven by local and international investment and trade and will generate the fundamental conditions that will support the facilitation of business. • Enhancing International Trade Competitiveness A key objective of the MAP is to enhance international trade competitiveness through export diversification with an emphasis on high value-added products, while ensuring national products meet the standards in quality required at the international level.
• Strengthening of International Trade Relations Madagascar continues to strengthen its partnerships with the international community, which in turn opens new channels for commerce in the global marketplace.
Madagascar enhances its commercial potential through its membership in the following multilateral, inter-regional and bilateral organisations:
• WTO – member since 1995. One of the achievements of the Uruguay Round of multilateral trade talks was to increase the amount of trade under binding commitments. In agriculture, 100% of products now have bound tariffs. The result of all this: a substantially higher degree of market security for traders and investors.
• Preferential access within the framework of Free Trade Areas, in favour of the free movement of goods, capital and people (Common Market on Eastern and Southern Africa - COMESA, Southern African Development Community - SADC, Indian Ocean Commission - COI) for products with competitive advantage.
• Inter-regional Treaty EU-ACP: commercial preference given to and encouraged by the diversity products and transformable raw materials (preferential rule for country of origin).
• Membership of the Indian Ocean Rim Association For Regional Cooperation (IOR-ARC), large entity extending from Africa to South East Asia and Australia;
• At the bilateral level: strengthened relations thanks to leading products (coffee, vanilla, shrimps, spices and other products from fisheries, mining and textile sectors) encouraged by the development of new outlets.
• Participation of Madagascar in the frame of the US African Growth and Opportunity Act (AGOA), translated in exportations under the freedom on custom laws for products under the preferential rule for country of origin
• Continual improvements to the business environment The government has implemented a series of reforms and initiatives to improve the business climate and to facilitate a long-term growth in key export markets including:
• Prioritising an export-oriented development strategy
• Establishing One-Stop-Shop for Exports
• Facilitating access to credits by instituting a special fund for exports
• Setting up export agencies in the targeted countries and organizing activities for promoting Madagascar and its products
• Promoting high quality standards and improving commercial norms and standards
• Adopting an approach for industrial transformation of proximity by drawing together raw materials in each sector and in each region
• Investing in enabling infrastructure, policies and administration
• Facilitate export marketing, insurance and financing.
• Develop mechanisms for product standardization and certification, by implementing a program to support the producers
• Economic events such as the International Trade Fair of Madagascar (F.I.M), ITC fair, Artisan Trade Fair
• Domestic Enterprises, SMEs and the Handicraft Industry Since 2002, the Government has promoted small and medium enterprises (SMEs) through the Chambers of Commerce and Industry, as well as the Chambers of Profession, while the centres for Promoting Craft Industry have been strengthened. Besides providing programs for training the craftsmen, some sectors of production have been restructured through the creation of clusters.
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