The report shows that Madagascar has opportunities to add more value to its critical energy transition minerals – and to diversify its economy well beyond the mining sector.
The country has resources including nickel, cobalt, graphite and ilmenite. But its integration into global markets remains focused mainly on upstream activities, with limited domestic value addition and weak links to the rest of the economy.
Madagascar can diversify its economy well beyond minerals
The report identifies 259 potential products across 23 sectors. Of these, 209 products present global export opportunities, with a weighted potential of about $1.1 billion.
These opportunities are not limited to essential minerals. They also include plastics, chemicals, apparel and textiles, machinery and food processing.
The report underlines that diversification will depend on strengthening a broader industrial base.
Validated opportunities could generate nearly 20,000 jobs
Following validation with stakeholders, the report identifies 124 actionable products across eight priority sectors. Their implementation would require about $1.82 billion in investment over several years. They also present the potential to create 19,696 direct and indirect jobs.
Apparel and textiles lead in terms of employment, with 39 validated products, about $120 million in investment and 8,576 potential jobs.
Food processing also shows strong potential, with about $69 million in investment and 2,055 potential jobs.
The report also highlights an important social dimension. In the priority sectors, women currently account for about 52% of total direct employment, mainly due to apparel and food processing.
Regional markets can support diversification
Regional markets also offer estimated opportunities. In the Southern African Development Community, export opportunities beyond essential minerals reach $275.1 million. They are led by chemicals, paper and paperboard and food processing.
In Africa outside the Southern African Development Community, the report identifies 120 export opportunities, with an estimated value of $653.9 million. The main sectors are paper and paperboard, chemicals and plastics.
The priority is to strengthen productive capacities
The report warns that extractive activities risk remaining enclaves if they are not better integrated into the national economy.
Their impact will depend on the links created with local firms, suppliers, industrial services and manufacturing sectors.
The report recommends strengthening skills, financing, infrastructure, business support, innovation and market access. The goal is to gradually build the capacities needed for broader and more sustainable diversification.