The textile industry in Madagascar has experienced remarkable growth since the early 20th century. Today, it stands as the country’s leading manufacturing sector and a vital component of the national economy. From cotton cultivation to garment production and distribution, the industry employs a significant portion of the population and contributes substantially to the nation’s exports. However, despite its economic importance, challenges persist, particularly regarding working conditions.

The main free trade zones for textile production

Madagascar hosts several free trade zones dedicated to textile production, including EPZ Filatex and the Antananarivo free trade zone. These zones benefit from numerous tax and regulatory advantages, making them attractive to foreign investors.

• EPZ Filatex, Madagascar’s first industrial free zone, covers over 17.2 hectares of industrial premises. It offers foreign investors solutions for setting up production activities.
• The Antananarivo EPZ is home to Actual Textiles, a clothing company that manufactures garments for European and South African fashion brands.

These free trade zones play a crucial role in the development of Madagascar’s textile industry, helping to attract more and more international brands.

Cotton growing in Madagascar

Cotton growing in Madagascar is primarily concentrated in the southern region, particularly around Tuléar, where cotton is valued for its strong, pristine fibers. Despite a crisis at the turn of the century due to falling prices, cotton production has slowly begun to recover. By 2004, production reached nearly 14,000 tonnes, demonstrating the sector’s resilience.

However, growing cotton remains challenging for Malagasy farmers due to climatic conditions and the use of pesticides. Efforts are underway to modernize farming practices and boost productivity.

Notably, cotton is a vital component of cropping systems in tropical and subtropical regions, often integrated with food crops.

The impact of the cotton industry on Madagascar’s economy

The cotton industry is pivotal to Madagascar’s economy, providing essential raw material for the textile sector and serving as a significant employment source, especially in the southern regions. Malagasy cotton, renowned for its quality, also boosts the country’s exports.

Transforming cotton into yarn and fabric adds substantial value, generating jobs and income as raw materials are converted into semi-finished and finished products. This process is crucial to the economy, as the production of cotton yarn feeds the textile industry, a cornerstone of Madagascar’s economy that employs nearly 30 % of the formal industrial workforce.

Additionally, the cotton industry contributes in the country’s industrialization, a primary goal of the Malagasy government, which aims to increase the industrial sector’s share to 25 % of GDP.

Major companies in the textile sector

Presentation of leading companies

Madagascar’s leading textile companies significantly contribute to the national economy and demonstrate adaptability in a competitive environment. Groupe Filatex, founded in 1979, pioneered the establishment of industrial free zones in Madagascar, showcasing its strategic vision and remaining a key player in the textile sector’s expansion.

AKANJO, established in 1998, is renowned for its collaboration with top French fashion houses, producing luxury ready-to-wear and haute couture products. The company is also distinguished by its commitment to sustainable development, being the first Malagasy company to receive the Engaged RSE label at the « confirmed » level.

Other notable companies in Madagascar’s textile sector include SUMATEX and the Ciel textile group’s enterprises: Aquarelle, Floreal, Laguna Clothing, and Tropic Knits. These companies highlight the textile industry’s ability to attract major international players, demonstrating Madagascar’s expertise and significant economic potential.

The world’s biggest groups present in Madagascar

As a textile production hub, Madagascar has attracted several global giants, including the SOCOTA Group and the CIEL Group, both of which have proven their competitiveness in international markets.

The SOCOTA Group, a major player in Madagascar’s textile industry, is renowned for its expertise, recognized by prestigious brands. The CIEL Group, through its subsidiaries Aquarelle and Floreal, has invested heavily in Madagascar’s textile sector, significantly contributing to the growth of the local economy.

• SOCOTA Group
• CIEL Group

Other international groups have also chosen to invest in Madagascar, such as Actual Textiles, which specializes in the manufacture of garments for European and South African brands.

• Actual Textiles

These global groups present in Madagascar demonstrate the potential and competitiveness of the Malagasy textile industry on the international stage.

Influence of textile companies on the Malagasy economy

Textile companies significantly impact the Malagasy economy by generating employment, stimulating economic growth through increased production, and contributing to the country’s GDP. According to the World Bank, Madagascar’s textile sector is expected to boost its performance by 35 % by 2022. Foreign direct investment has further propelled this growth, with the sector expanding by 14 % in the first quarter of 2023.

Madagascar’s garment industry accounts for 19.35 % of the country’s GDP, making it a lucrative destination for top brands. The textile industry stands as Madagascar’s leading manufacturing sector and is the largest employer after agriculture. Moreover, Madagascar is the top exporter of textile products to the European Union and the United States in sub-Saharan Africa.

However, the industry faces challenges, including the need to improve working conditions and develop sustainable textiles.

Main destination countries for Malagasy textile products

Madagascar’s textile industry has won over a large number of importing countries. Madagascar’s main customers include :

• The United States, which accounts for 16.5 % of Madagascar’s textile exports. This is due in particular to the benefits of the African Growth and Opportunity Act (AGOA), which allows preferential duty-free access for certain Malagasy products.
• France ranks second with 15.7 % of textile exports. France has long-standing trade links with Madagascar.
• China follows close behind with 14.2 %. Despite its status as the world’s leading textile producer, China also imports textile products from Madagascar.
• Japan and the Netherlands complete the top 5, accounting for 12 % and 4.5 % of Madagascar’s textile exports respectively.

These figures demonstrate the attractiveness of Malagasy textile products on the international market and underline the importance of exports for the local textile industry.