Over 6 years, Madagascar’s customs revenue has shown a consistent increase. This trend reflects economic dynamics, trade exchanges, and significant legislative adjustments. Let’s explore the main components of this revenue and the variations observed from 2019 to 2024.
Customs revenue : Major pillar of the economy
The Malagasy customs are a crucial source of income for the state, contributing to nearly 50 % of public revenue. Besides its fiscal mission, the institution plays a security role for the economy and protects the national territory against external threats. This includes combating illicit products and protecting local producers from unfair competition.
Evolution of overall customs revenue
Despite economic fluctuations, total customs revenue has shown sustained growth. This income increased from 2,748.3 billion MGA in 2019 to 3,438.7 billion MGA in 2024. In 2020, this fiscal perception registered a 20 % decrease due to the Covid-19 pandemic. Thanks to the global economic recovery, this revenue increased by 30 %. Overall fiscal revenue, including customs contributions, reached 7,695.6 billion MGA in 2024 compared to 5,618.2 billion in 2019.
Import VAT and customs duties
Customs duties (DD) and import VAT are also major components of customs revenue. DD recorded a fluctuating trend, amounting to 604.7 billion MGA in 2019. A notable decrease occurred in 2020 with 498.3 billion, before a gradual recovery reaching 782.8 billion in 2024.
However, import VAT represents a significant portion of customs revenue. In 2019, this tax brought in 1,346.2 billion MGA. Similar to DD, VAT slightly decreased to 1,135.9 billion the following year. Nevertheless, continuous growth quickly compensated, reaching 1,688.6 billion in 2024.
Contributions of taxes on petroleum products
The contributions of revenue from petroleum products are high due to their economic weight and import volume. In 2019, taxes on petroleum products (TPP) generated 285.3 billion MGA. Meanwhile, VAT on these products (TVP) brought in 511.3 billion. These figures varied slightly over the years, reaching 263.9 billion and 701.9 billion respectively in 2024. Despite international price fluctuations, total revenue from these products increased from 796.6 billion MGA in 2019 to 965.8 billion in 2024.
Non-petroleum products also contribute significantly to customs revenue, reaching 1,951.8 billion MGA in 2019. Revenue from non-petroleum goods decreased in 2020 before continuing a recovery observed at 2,473 billion in 2024.
Impacts of reforms and legislative adjustments
New legislation and reforms also impact customs revenue. For instance, the 2024 finance law introduces significant adjustments to enhance transparency and optimize fiscal revenue. These provisions concern declarations recorded before January 22, 2024.
However, the application of export duties on certain products intended for export in 2023 is the most notable. This mechanism aims to align customs practices with Madagascar’s economic and social development objectives. Authorized companies can benefit from total or partial exemptions, depending on their contribution to development plans.
Perspectives and improvement efforts
Reforms undertaken by the DGD, supported by international partners such as UNDP, consolidate the role of customs in the national economy. Digitization, optimization of controls, and continuous improvement of procedures enhance overall efficiency. These efforts, combined with legislative adjustments, should increase fiscal revenue while facilitating trade and investment.
Beyond increasing revenue, modernizing Malagasy customs is a crucial lever for sustainable development and economic integration in Madagascar. To meet the growing demands for performance and transparency, the Directorate General of Customs (DGD) is adopting a reform strategy. This transformation aims to enhance the efficiency of customs procedures, stimulate trade, and increase fiscal revenue.
International support and digitization
In November 2023, the United Nations Development Programme (UNDP) supported the efforts to modernize Malagasy customs through a project funded by USAID. This program, ending in November 2025, aims to reduce customs clearance times and optimize revenue collection. The actions are organized around three axes:
- Improving customs risk management, reducing fraud, and better anticipating irregularities.
- Optimizing workflows, digitizing processes, and adopting modern tools.
- Enhancing compliance with customs standards and raising awareness among economic operators.
A clear governance framework guides these initiatives, with a steering committee for strategic orientation and a technical committee for operational follow-up. This project, funded with 1.249 million USD, complements efforts to improve post-clearance controls and secure revenue.
