Digital sector represents Only 1.7 % of GDP

The digital sector contributes relatively little to the gross domestic product (GDP). Although the sector has been expanding for several years, it is expected to generate more revenue for the national economy.

According to official data, the digital sector accounts for only 1.7 % of Madagascar’s GDP. While it is a field that generates jobs and labor, it can also create added value. The Minister of Digital Development, Posts, and Telecommunications, Stéphanie Delmotte, pointed this out during the closing of the first series of digital startups supported by the “Miary Digital” program. According to the Minister, this contribution to the national economy is relatively low compared to other African countries. For nations like Nigeria, for example, the digital sector’s contribution to GDP can reach as much as 20 %. In Madagascar, it is projected to average around 10 %.

However, the government aims to implement strategies to increase the share of ICT (Information and Communication Technology) in the economy. Policymakers wish to proceed gradually. « We are putting in place all the necessary measures to support the private sector, which is making significant investments in ICT and modernizing infrastructures. It is also crucial to find solutions to reduce internet costs so that these services can benefit a wider population », explained the government official.

According to the Digital Strategic Plan (PSN), Madagascar aims to raise the digital sector’s share of GDP to 6 % by 2028. Despite the modest nature of this target compared to other African nations, it is already an ambitious goal for Madagascar. The country’s digital transition faces financial challenges, particularly in job creation.