Madagascar’s Top Trading Partners

Madagascar’s Top Trading Partners

by Flagpictures.org

Officially named the Republic of Madagascar, this island country in the Indian Ocean is located off Africa’s south-east coast.

Madagascar shipped US$2.8 billion worth of products around the globe in 2017. That figure represents a tiny 0.02% sliver of overall global exports estimated at $15.952 trillion for one year earlier in 2016.

From a continental viewpoint, $1.2 billion or 43.2% of Malagasy exports by value were delivered to European countries while 27.5% were sold to Asian importers. Madagascar shipped another 21% worth of goods to North America.

At 7.8%, a smaller portion of Malagasy exports were bought by African importers.

Madagascar’s Top 15 Trading Partners

Top 15

Below is a list showcasing 15 of Madagascar’s top trading partners in terms of export sales. That is, countries that imported the most Malagasy shipments by dollar value during 2017. Also shown is each import country’s percentage of total Malagasy exports.

  1. France: US$630.4 million (22.5% of total Malagasy exports)
  2. United States: $525.7 million (18.8%)
  3. Germany: $203.7 million (7.3%)
  4. China: $176.4 million (6.3%)
  5. Netherlands: $140.4 million (5%)
  6. Japan: $105.7 million (3.8%)
  7. India: $86.5 million (3.1%)
  8. South Africa: $83.4 million (3%)
  9. Singapore: $83.2 million (3%)
  10. South Korea: $79.2 million (2.8%)
  11. United Arab Emirates: $78.3 million (2.8%)
  12. Mauritius: $75.7 million (2.7%)
  13. Spain: $69.7 million (2.5%)
  14. Canada: $62.3 million (2.2%)
  15. Vietnam: $53.1 million (1.9%)

Almost nine-tenths (87.7%) of Malagasy exports in 2017 were delivered to the above 15 trade partners.

South Korea (down -8.1%) and South Korea (down -17.6%) were the only top importers that decreased their purchases from Madagascar from 2016 to 2017. Among the other 13 countries, gains ranged from a minimum of 2.2% for India up to 217.6% for the United Arab Emirates.

Deficits

Overall Madagascar incurred a -$865.1 million trade deficit for 2017, expanding by 22% from the -$708.9 million shortfall in 2016.

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.

It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.

Madagascar incurred the highest trade deficits with the following countries:

  1. China: -US$580.5 million (country-specific trade deficit in 2017)
  2. United Arab Emirates: -$201.7 million
  3. India: -$184.5 million
  4. Saudi Arabia: -$151.7 million
  5. Pakistan: -$138.7 million
  6. South Africa: -$107.5 million
  7. Egypt: -$84.2 million
  8. Malaysia: -$79 million
  9. Turkey: -$64.8 million
  10. Brazil: -$59.3 million

Among Madagascar’s trading partners that cause the greatest negative trade balances, Malagasy deficits with Brazil (up 84.4%), India (up 69.6%) and Egypt (up 67.4%) grew at the fastest pace from 2016 to 2017.

These cashflow deficiencies clearly indicate Madagascar’s competitive disadvantages with the above countries, but also represent key opportunities for Madagascar to develop country-specific strategies to strengthen its overall position in international trade.

Surpluses

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

Madagascar incurred the highest trade surpluses with the following countries:

  1. United States: US$418.1 million (country-specific trade surplus in 2017)
  2. France: $383.3 million
  3. Netherlands: $114.6 million
  4. Germany: $98.4 million
  5. Singapore: $76.9 million
  6. Canada: $49.1 million
  7. Japan: $46.9 million
  8. Vietnam: $33.7 million
  9. Spain: $28 million
  10. Sweden: $24.3 million

Among Madagascar’s trading partners that generate the greatest positive trade balances, Malagasy surpluses with United States (up 121.6%), Vietnam (up 86.4%) and Canada (up 81.4%) grew at the fastest pace from 2016 to 2017.

These positive cashflow streams clearly indicate Madagascar’s competitive advantages with the above countries, but also represent key opportunities for Madagascar to develop country-specific strategies to optimize its overall position in international trade.

Companies

Companies Servicing Malagasy Trading Partners

Not one Malagasy corporation ranks among Forbes Global 2000.

Wikipedia lists companies based in Madagascar. Selected examples are shown below:

  • Air Madagascar (international/domestic airliner)
  • Karenjy (automobiles)
  • Madacom (telecommunications, internet services)
  • Madagascar Oil (oil, gas)
  • Madarail (national railways)


 
See also Madagascar’s Top 10 Exports, Top African Export Countries, Top South African Trading Partners and Madagascar’s Top 10 Imports

Research Sources:
The World Factbook, Field Listing: Imports – Commodities, Central Intelligence Agency. Accessed on February 7, 2018

Trade Map, International Trade Centre, www.intracen.org/marketanalysis. Accessed on February 7, 2018

Investopedia, Net Importer Definition. Accessed on June 30, 2016

Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on June 30, 2016

Alibaba, Sourcing Buyers. Accessed on June 30, 2016