Business Climate

Factors Influencing the Economic Environment

The business climate refers to the set of conditions that influence the development and strategic decisions of companies. It includes sociodemographic, economic, political, legal, infrastructural, technological, and environmental factors, which define the overall framework within which economic actors operate.

Overview

The business climate in Madagascar relies on a constantly evolving legal, institutional, and economic framework. The reforms undertaken aim to enhance competitiveness, improve the country's attractiveness, and facilitate private investment.

Country performance

Reforms

Legal framework

Investment Law

Achievements

Technical support and facilitation in drafting the bill (2019-2023)
Active participation in the legislative process with the MICC, the National Assembly, and the Senate

Results / Impacts

Enshrining the principles of "fair and equitable treatment" and "equal treatment"
Creation of a chapter dedicated to incentives and their eligibility conditions
Legal clarification of the concepts of "investment" and "investor"

Digitization of public services for investors

Achievements

orinasa.edbm.mg
Achievements orinasa.edbm.mg Digital platform for business creation, modification, and deregistration
MATAC
Digitization of building permit issuance with the CUA
Provision of IT equipment and internet connection for the COA one-stop shop
Implementation of e-work solutions for procedure management

Results / Impacts

Company creation possible in just 3 days
Alignment application procedure fully available online

Other Adopted Reforms

Achievements

Mining Code revision
Adoption of the National Action Plan on Investment (NAPI) within SADC
Drafting of regulatory texts in support of ministries (Orinasa decree, AEI order...)
Signing of an Industrialization Pact with MICC

Results / Impacts

Enhancing the country's attractiveness through new legislative frameworks
Better understanding of sector-specific incentive measures by economic actors

ZEF Regime

Achievements

Close collaboration with relevant ministries/entities, particularly the DCD, for issuing ZEF approvals

Results / Impacts

Clearing pending approval requests since 2022

B-READY

Achievements

Preparatory work to replace the Doing Business indicator (suspended in 2020 by the World Bank)
Contribution to setting up B-Ready indicators
EDBM designated as the focal point for B-Ready in Madagascar

Results / Impacts

Madagascar is among the 55 pilot countries for B-Ready
Provision of reliable indicators to measure the business environment and the country's attractiveness

Investment Law

Achievements

Joint work with SAMIFIN to align frameworks with FATF standards
Strengthening internal capacity in AML/CFT

Results / Impacts

Development of an action plan with SAMIFIN
Improved transparency regarding beneficial owners
Strengthening financial intelligence

Investment Law

Achievements

Implementation of a dashboard bringing together the three areas of intervention: PPD (Public-Private Dialogue), Reforms, and Indicators

Results / Impacts

Improved visibility on activity progress
Enhanced security and traceability of information

Investment Law

Achievements

Technical support and facilitation in drafting the bill (2019-2023)
Active participation in the legislative process with the MICC, the National Assembly, and the Senate

Results / Impacts

Enshrining the principles of "fair and equitable treatment" and "equal treatment"
Creation of a chapter dedicated to incentives and their eligibility conditions
Legal clarification of the concepts of "investment" and "investor"

Digitization of public services for investors

Achievements

orinasa.edbm.mg
Achievements orinasa.edbm.mg Digital platform for business creation, modification, and deregistration
MATAC
Digitization of building permit issuance with the CUA
Provision of IT equipment and internet connection for the COA one-stop shop
Implementation of e-work solutions for procedure management

Results / Impacts

Company creation possible in just 3 days
Alignment application procedure fully available online

Other Adopted Reforms

Achievements

Mining Code revision
Adoption of the National Action Plan on Investment (NAPI) within SADC
Drafting of regulatory texts in support of ministries (Orinasa decree, AEI order...)
Signing of an Industrialization Pact with MICC

Results / Impacts

Enhancing the country's attractiveness through new legislative frameworks
Better understanding of sector-specific incentive measures by economic actors

B-READY

Achievements

Preparatory work to replace the Doing Business indicator (suspended in 2020 by the World Bank)
Contribution to setting up B-Ready indicators
EDBM designated as the focal point for B-Ready in Madagascar

Results / Impacts

Madagascar is among the 55 pilot countries for B-Ready
Provision of reliable indicators to measure the business environment and the country's attractiveness