A major focus of IFC's work in Madagascar and the wider region is to promote cross-border trade, while supporting the expansion and integration of domestic enterprises into the global economy.
The country is famous for vanilla pods and litchi fruit, and it is rich in other crops and natural resources. Yet geographic isolation and years of political unrest have hampered the growth of local exporters, even as world trade has boomed in recent decades. Export activity is a major driver of economic growth, and increasing this industry is a key focus of Madagascar's Ministry of Economy, Trade, and Industry.
Through its advisory program, IFC supports the efforts of the government and local business community to increase the competitiveness of Malagasy exporting companies and boost their profile on the international market. IFC is also working with the agriculture, textile, and handicraft industries to help local companies reach larger markets in Africa, Europe, and North America.
Improving Skills
Many companies in Madagascar lack the administrative and production skills to win long-term export contracts with overseas buyers. IFC has been instrumental in organizing training for local companies, enabling them to market to and connect with foreign buyers. IFC is also involved in assessing the strengths and weaknesses of companies and helping them prepare for the challenges of the global marketplace.
A major achievement of IFC's work is the creation of the Madagascar Exporting Companies Directory, a detailed list of 700 exporting companies in sectors ranging from agriculture to services. The directory, cofinanced by the French Development Agency and produced with many other partners, is a valuable tool for developing and promoting Malagasy exporters who are ready to partner with potential investors.
Textiles and Litchis
IFC is also supporting the growth of Madagascar's textile industry, which is an increasingly important source of job creation and export possibilities. IFC has helped establish a textile cluster of 24 companies that employs nearly 10,000 people. The cluster is designed to help smaller companies share experiences and costs and to reach larger overseas markets.
Madagascar's litchi exporters are also benefiting from IFC's expertise. Growers of the succulent fruit have attended IFC-coordinated training programs to help meet international standards for importing into European countries as well as reach new markets for future growth.
For more information contact:
Daniel Musiitwa
Communications Officer
Phone: +2711 731 3175
E-mail: dmusiitwa@ifc.org
Published June 20, 2008
