Implementing incentive policies

The Malagasy government needs to enhance the industrial sector to ensure more equitable economic development. According to the Madagascar Industries Union (Sim), the industry offers significant employment opportunities, especially for households in rural areas.

Despite its abundant natural resources and an agricultural economy that accounts for 79.3% of jobs, Madagascar struggles to achieve sustainable economic stability. The Madagascar Industries Union (Sim) notes that while the primary sector is important, it is not sufficient on its own.

According to Sim, the industrial sector, which employs 10% of the workforce and contributes 21.7% to GDP, is vital for diversifying Madagascar’s economy. It reduces reliance on agriculture and significantly impacts the well-being of millions of households, particularly in rural areas.

The industrial sector offers employment opportunities and stable incomes, reinforcing household stability. Entrepreneurship is growing in Madagascar, with registered businesses increasing from 1,602 in 2020 to 1,929 in 2022. This growth includes not only large mining, textile, and agribusiness companies but also many small and medium-sized enterprises. Sim emphasizes that the state must actively address these challenges by implementing incentive policies to support local players.