An island country in the Indian Ocean located off East Africa’s coast, Madagascar shipped US$2.7 billion worth of goods around the globe in 2021.

That dollar amount reflects a -3.7% decrease since 2017 but a 38.2% upturn from 2020 to 2021.

Based on the average exchange rate for 2021, the Malagasy ariary depreciated by -22.9% against the US dollar since 2017 and declined by -1.1% from 2020 to 2021. Madagascar’s weaker local currency makes its exports paid for in stronger US dollars relatively less expensive for international buyers.

Madagascar’s most valuable exported products include vanilla, raw nickel, titanium ores and concentrates, cloves, unknitted and non-crocheted male suits, jackets and trousers, cobalt, crustaceans including lobsters, knitted or crocheted jerseys and pullovers, essential oils, and knitted or crocheted t-shirts and vests. Collectively, those products represent 70.7% of Madagascar’s overall export sales in 2021.

The latest available country-specific data shows that 87.8% of products exported from Madagascar were bought by importers in: France (19.8% of the global total), United States of America (18.7%), China (13.4%), Japan (8.8%), Canada (5.5%), Netherlands (5.3%), Germany (4.6%), India (3.9%), South Africa (3.3%), Taiwan (1.7%), Indonesia (1.5%) and Singapore (1.2%).

From a continental perspective, 35.5% of Madagascar exports by value were delivered to European countries while 33.8% were sold to importers in Asia. Madagascar shipped another 24.2% worth of goods to North America.

Smaller percentages went to fellow African countries (6%), Oceania (0.3%) led by Australia then Latin America (0.1%) excluding Mexico but including the Caribbean.

Given Madagascar’s population of 28.3 million people, its total $2.7 billion in 2021 exports translates to roughly $100 for every resident in the East African island. That per-capita amount compares to an average $70 one year earlier in 2020.

Madagascar’s Top 10 Exports

The following export product groups represent the highest dollar value in Malagasy global shipments during 2021 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.

1. Coffee, tea, spices: US$752.6 million (27.8% of total exports)
2. Nickel: $508.2 million (18.8%)
3. Clothing, accessories (not knit or crochet): $265.7 million (9.8%)
4. Knit or crochet clothing, accessories: $222.4 million (8.2%)
5. Ores, slag, ash: $186.2 million (6.9%)
6. Fish: $111.6 million (4.1%)
7. Other base metals: $104.5 million (3.9%)
8. Perfumes, cosmetics: $77.5 million (2.9%)
9. Salt, sulphur, stone, cement: $49.1 million (1.8%)
10. Vegetables: $46.8 million (1.7%)

Madagascar’s top 10 exports accounted for 85.9% of the overall value of its global shipments.

Nickel was the fastest grower among the top 10 export categories, up by 246.2% from 2020 to 2021.

In second place for improving export sales was miscellaneous base metals which rose 215.9%.

Madagascar’s shipments of vegetables posted the third-fastest gain in value up by 56.5% year over year.

The lone decliner among Madagascar’s top 10 export categories was fish which fell -1.9%

Drilling down to the more detailed 4-digit HTS codes, Madagascar’s most valuable exported goods are the spice vanilla (22.9% of total), unwrought nickel (18.5%), titanium ores and concentrates (5.3%), cloves (4.2%), unknitted or non-crocheted men’s suits and trousers (4.1%), cobalt (3.9%), crustaceans including lobsters (3.6%), knitted or crocheted jerseys and pullovers (3.4%), essential oils (2.9%) then knitted or crocheted t-shirts and vests (2%).

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.

1. Coffee, tea, spices: US$748.2 million (Up by 25.8% since 2020)
2. Nickel: $508 million (Up by 247.9%)
3. Clothing, accessories (not knit or crochet): $231.3 million (Up by 30%)
4. Knit or crochet clothing, accessories: $212.2 million (Up by 21.1%)
5. Ores, slag, ash: $186 million (Up by 43.9%)
6. Other base metals: $104.4 million (Up by 220.7%)
7. Fish: $82.3 million (Down by -17.8%)
8. Perfumes, cosmetics: $57.1 million (Up by 7.2%)
9. Vegetables: $43.1 million (Up by 61.7%)
10. Gems, precious metals: $42.5 million (Down by -55.9%)

Madagascar has highly positive net exports in the international trade of coffee and spices (particularly vanilla). These surplus cashflows indicate Madagascar’s strong competitive advantages under the coffee and spices category.

Products Generating Greatest Trade Deficits for Madagascar

Overall Madagascar incurred a -$1.66 billion trade deficit for 2021, expanding by 30.6% from the -$1.27 billion in red ink during 2020.

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.

1. Mineral fuels including oil: -US$668.2 million (Up by 73.2% since 2020)
2. Cereals: -$351.1 million (Up by 70.9%)
3. Machinery including computers: -$336.5 million (Up by 34.4%)
4. Electrical machinery, equipment: -$213.8 million (Up by 34.9%)
5. Vehicles: -$199.7 million (Up by 7.3%)
6. Animal/vegetable fats, oils, waxes: -$197 million (Up by 29.1%)
7. Pharmaceuticals: -$160.6 million (Up by 14.5%)
8. Plastics, plastic articles: -$145 million (Up by 32.7%)
9. Salt, sulphur, stone, cement: -$137.1 million (Up by 206.7%)
10. Knit or crochet fabric: -$128.9 million (Up by 62.7%)

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 5.9% of its overall Gross Domestic Product for 2021 (an estimated $46.1 billion valued in Purchasing Power Parity US dollars). That 5.9% for exports to overall GDP in PPP for 2021 compares to 4.3% for 2020. 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 was an estimated 1.9% for 2021, up from 1.7% in 2020 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 March 31, 2022

International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average)

. Accessed on March 31, 2022

International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on March 31, 2022

Investopedia, Net Exports Definition. Accessed on March 31, 2022

International Trade Centre, Trade Map. Accessed on March 31, 2022

Wikipedia, Gross domestic product. Accessed on March 31, 2022

Wikipedia, List of Companies of Madagascar. Accessed on March 31, 2022

Wikipedia, Madagascar. Accessed on March 31, 2022

Wikipedia, Purchasing power parity. Accessed on March 31, 2022