Facilitating Madagascar’s economic transformation through AGOA

A delegation from the Ways and Means Committee of the U.S. Congress, led by its chairman, Jason Smith, undertook a two-day visit to Madagascar to evaluate the progress made by the country under the African Growth and Opportunity Act (AGOA).

On March 28, at the Iavoloha State Palace, the delegation met with the President of the Republic of Madagascar, as well as government representatives and business leaders, to discuss the challenges and opportunities facing Madagascar under Agoa.

AGOA, at the heart of U.S. economic policy in Africa, is a trade preference program allowing over 1,800 products, in addition to over 5,000 products produced in eligible countries, to enter the U.S. market duty-free. Madagascar, reintegrated into the program in 2014, seeks to fully capitalize on the benefits of this market through its National Agoa Strategy (2022-2025).

During the meeting, the President emphasized the importance of AGOA in Madagascar’s economic transformation, particularly in industrialization. « We have taken many steps to accelerate the industrialization of Madagascar, including the textile industry in which AGOA plays a significant role. We have initiated several legal reforms to attract investors, including the investment law and the new mining code », he stated.

Thanks to Agoa, textiles from Madagascar account for 49.3 % of exports to the United States, followed by vanilla at 20.7 % and titanium ores at 10 %.