That dollar amount reflects a 17.3% increase from $3 billion during 2018.
Year over year, the overall value of goods exported from Madagascar accelerated by 29.5% compared to $2.7 billion in 2021.
Based on the average exchange rate for 2021, the Malagasy ariary depreciated by -22.8% against the US dollar since 2017 and declined by -6.9% from 2020 to 2021. Madagascar’s weaker local currency made its exports paid for in stronger US dollars relatively less expensive for international buyers.
Best Customers for Madagascar’s Exports
The latest available country-specific data shows that 85.6% of products exported from Madagascar were bought by importers in: United States of America (16.6% of Madagascar’s global total), France (15.7%), mainland China (14.1%), Japan (12%), Netherlands (4.5%), South Korea (4.3%), Indonesia (3.5%), Canada (3.4%), South Africa (3.2%), India (3.1%), Germany (2.8%) and Taiwan (2.4%).
From a continental perspective, 44.4% of Madagascar exports by value were delivered to Asian countries while 29.1% were sold to European importers. Madagascar shipped another 20.1% worth of goods to North America.
Smaller percentages went to Africa (6.1%), Latin America (0.17%) excluding Mexico but including the Caribbean, then Oceania (0.16%) led by Australia.
Given Madagascar’s population of 29 million people, its total $3.5 billion in 2022 exports translates to roughly $120 for every resident in the East African island. That per-capita amount exceeds an average $100 one year earlier in 2021.
Madagascar’s Top 10 Exports
The following export product groups represent the highest dollar value in Malagasy global shipments during 2022 at the 2-digit Harmonized Tariff System (HTS) code level. Also shown is the percentage share each export category represents in terms of overall exports from Madagascar.
- Nickel: US$870.2 million (24.7% of total exports)
- Coffee, tea, spices: $834.5 million (23.7%)
- Clothing, accessories (not knit or crochet): $301.1 million (8.6%)
- Knit or crochet clothing, accessories: $268.7 million (7.6%)
- Other base metals: $218.2 million (6.2%)
- Ores, slag, ash: $204.2 million (5.8%)
- Fish: $124 million (3.5%)
- Gems, precious metals: $93.7 million (2.7%)
- Salt, sulphur, stone, cement: $81.9 million (2.3%)
- Perfumes, cosmetics: $75.5 million (2.1%)
Madagascar’s top 10 exports accounted for 87.2% of the overall value of its global shipments.
Gems and precious metals represents the fastest grower among the top 10 export categories, up by 116.1% from 2021 to 2022. Precious and semi-precious stones exported from Madagascar recorded robust increases.
In second place for improving export sales were miscellaneous base metals via a 105.5% advance.
Madagascar’s shipments of its most valuable export, nickel posted the third-fastest gain in value, rising 69.2% year over year.
The leading decliner among Madagascar’s top 10 export categories was perfumes, cosmetics: which fell -2.4%
The above-listed export products are at the 2-digit Harmonized Tariff System code level.
Drilling down to the more detailed 4-digit HTS codes, Madagascar’s most valuable exported goods are unwrought nickel (24.6% of the total), spice vanilla (15.4%), cloves (7.8%), cobalt (6.2%), unknitted or non-crocheted men’s suits and trousers (3.9%), titanium ores and concentrates (3.8%), crustaceans including lobsters (3%), knitted or crocheted jerseys and pullovers (2.7%), unstrung precious and semi-precious stones (2.6%), then essential oils (2.1%).
Products Generating Greatest Trade Surpluses for Madagascar
The following types of Malagasy product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Nickel: US$868.4 million (Up by 68.9% since 2021)
- Coffee, tea, spices: $831 million (Up by 10.9%)
- Clothing, accessories (not knit or crochet): $277.5 million (Up by 19.7%)
- Knit or crochet clothing, accessories: $259 million (Up by 21.5%)
- Other base metals: $216.7 million (Up by 104.3%)
- Ores, slag, ash: $203.5 million (Up by 8.8%)
- Fish: $99.9 million (Up by 22.6%)
- Gems, precious metals: $93 million (Up by 117.8%)
- Perfumes, cosmetics: $56.7 million (Down by -0.4%)
- Vegetables: $32 million (Down by -27.1%)
Madagascar has highly positive net exports in the international trade of nickel as well as coffee and spices (particularly vanilla). These surplus cashflows indicate Madagascar’s strong competitive advantages under the nickel product category plus the coffee and spices category.
Products Generating Greatest Trade Deficits for Madagascar
Overall Madagascar incurred a -$1.945 billion trade deficit for 2022, expanding by 17.3% from the -$1.66 billion in red ink during 2021.
Below are exports from Madagascar that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Madagascar’s goods trail Malagasy importer spending on foreign products.
- Mineral fuels including oil: -US$1.1 billion (Up by 63.1% since 2021)
- Cereals: -$411.6 million (Up by 17.1%)
- Machinery including computers: -$360.8 million (Up by 7.4%)
- Animal/vegetable fats, oils, waxes: -$260 million (Up by 31.1%)
- Electrical machinery, equipment: -$249.3 million (Up by 16%)
- Vehicles: -$219.5 million (Up by 9.6%)
- Plastics, plastic articles: -$183.1 million (Up by 25.6%)
- Pharmaceuticals: -$175.1 million (Up by 8.7%)
- Salt, sulphur, stone, cement: -$172.1 million (Up by 24%)
- Knit or crochet fabric: -$164.7 million (Up by 27.2%)
Madagascar has highly negative net exports and therefore deep international trade deficits for mineral fuels-related products, notably refined petroleum oils.
Madagascar’s Export Companies
Not one Malagasy corporation ranks among the 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)
In macroeconomic terms, Madagascar’s total exported goods represent 6.8% of its overall Gross Domestic Product for 2022 (an estimated $51.8 billion valued in Purchasing Power Parity US dollars). That 6.8% for exports to overall GDP in PPP for 2022 compares to 5.9% for 2021. Those percentages suggest a relatively increasing reliance on products sold on international markets for Madagascar’s total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Madagascar’s unemployment rate averaged 2.6% for 2022, up from 2.5% in 2021 according to Trading Economics.
Madagascar’s capital city is Antananarivo.
See also Top African Export Countries, Madagascar’s Top 10 Imports, Seychelles Top 10 Exports and Madagascar’s Top Trading Partners
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on April 9, 2023
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on April 9, 2023
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 9, 2023
Investopedia, Net Exports Definition. Accessed on April 9, 2023
International Trade Centre, Trade Map. Accessed on April 9, 2023
Wikipedia, Gross domestic product. Accessed on April 9, 2023
Wikipedia, List of Companies of Madagascar. Accessed on April 9, 2023
Wikipedia, Madagascar. Accessed on April 9, 2023
Wikipedia, Purchasing power parity. Accessed on April 9, 2023
