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 2019. Also shown is each import country’s percentage of total Malagasy exports.

1. France: US$526.4 million (20.5% of total Malagasy exports)
2. United States: $514.4 million (20.1%)
3. China: $167 million (6.5%)
4. Japan: $165.9 million (6.5%)
5. Germany: $143.1 million (5.6%)
6. South Korea: $123.2 million (4.8%)
7. Netherlands: $115.3 million (4.5%)
8. United Arab Emirates: $95.2 million (3.7%)
9. South Africa: $86.1 million (3.4%)
10. India: $73.7 million (2.9%)
11. Canada: $73.2 million (2.9%)
12. Taiwan: $47 million (1.8%)
13. United Kingdom: $45.2 million (1.8%)
14. Spain: $43.9 million (1.7%)
15. Mauritius: $41.2 million (1.6%)

Almost nine-tenths (88.2%) of Malagasy exports in 2019 were delivered to the above 15 trade partners.

Strongest gains from 2018 to 2019 belong to South Korea (up 41.8%), United Kingdom (up 11.6%), China (up 11.3%) and Spain (up 8%).

Year-over-year declines ranged from -5.9% for India up to -35.8% for Pakistan.

Overall Madagascar incurred a -$1.3 billion trade deficit for 2019, expanding by 43.5% from the -$928.5 million in red ink during 2018.

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$707.7 million (country-specific trade deficit in 2019)
2. United Arab Emirates: -$285.8 million
3. India: -$240.4 million
4. Pakistan: -$107.6 million
5. Egypt: -$106.6 million
6. South Africa: -$89.1 million
7. Malaysia: -$83.6 million
8. Qatar: -$77 million
9. Turkey: -$75.8 million
10. Mauritius: -$59.7 million

Among Madagascar’s trading partners that cause the greatest negative trade balances, Malagasy deficits with Qatar (up 236.9%), Mauritius (up 66.9%) and India (up 36.4%) grew at the fastest pace from 2018 to 2019.

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.

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$430.1 million (country-specific trade surplus in 2019)
2. France: $264.7 million
3. South Korea: $85.4 million
4. Netherlands: $64.5 million
5. Canada: $62.1 million
6. Japan: $61.9 million
7. Germany: $44.5 million
8. Sweden: $32.3 million
9. United Kingdom: $19.6 million
10. Morocco: $17.6 million

Among Madagascar’s trading partners that generate the greatest positive trade balances, Malagasy surpluses with United Kingdom (up 151%), South Korea (up 96%) and Morocco (up 60.1%) grew at the fastest pace from 2018 to 2019.

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 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)