Madagascar

Situated in the Indian Ocean off the coast of southern Africa, Madagascar—the world’s fifth-largest island—is endowed with abundant mineral, agricultural and marine resources, and boasts a burgeoning tourism industry. With several trade agreements with the United States and the EU, in addition to memberships in various regional communities, Madagascar welcomes commercial partnerships and foreign investment.

Still, due to chronic political instability and mismanagement of the country’s finances and resources, the population faces persistently high poverty rates and widespread food insecurity. Foreign investors, despite laws granting them the same treatment as domestic investors, face additional scrutiny and unexplained delays. Additionally, convoluted administrative procedures, corruption and outdated labor laws undermine free economic activity. Inadequate infrastructure, as well as vulnerability to fluctuations in commodity prices and climatic hazards, compound the country’s woes.