Madagascar exported US$3.23 billion worth of goods around the globe in 2023.
That dollar amount results from a 25.9% advance starting from $2.56 billion five years earlier during 2019 but a -8% retreat compared to $3.51 billion in 2022.
Madagascar’s top 5 customers buying its exported goods are mainland China, Oman, India, France and South Africa. Collectively, that quintet of major trading partners bought over half (53.4%) of overall export sales from Madagascar during 2023.
Applying a continental lens, 44.2% of Madagascar exports by value was delivered to Asian countries while 32.5% was sold to customers in Europe. Madagascar shipped another 16.9% worth of products to North America.
Smaller percentages went to Africa (6%), Oceania (0.22%) led by Australia, then Latin America (0.19%) excluding Mexico but including the Caribbean.
Madagascar’s Top Trading Partners
Below is a list showcasing 25 of Madagascar’s top trading partners in terms of export sales. That is, countries that imported the most Malagasy shipments by dollar value during 2023. Also shown is each import country’s percentage of total Malagasy exports.
- mainland China: US$963.7 million (20% of total Malagasy exports)
- Oman: $649.4 million (13.5%)
- India: $448.1 million (9.3%)
- France: $295.8 million (6.1%)
- South Africa: $209.2 million (4.3%)
- United Arab Emirates: $203.1 million (4.2%)
- United States: $158.7 million (3.3%)
- Malaysia: $148.6 million (3.1%)
- Mauritius: $136.1 million (2.8%)
- Pakistan: $118.6 million (2.5%)
- Egypt: $117.8 million (2.4%)
- Germany: $104.4 million (2.2%)
- Qatar: $101.8 million (2.1%)
- Italy: $74.3 million (1.5%)
- Türkiye: $69.4 million (1.4%)
- Poland: $63.7 million (1.3%)
- Brazil: $63.7 million (1.3%)
- Japan: $62.7 million (1.3%)
- Spain: $56.9 million (1.2%)
- Netherlands: $53.5 million (1.1%)
- Indonesia: $50.8 million (1.1%)
- Belgium: $50.6 million (1.1%)
- Vietnam: $48.6 million (1%)
- South Korea: $45 million (0.9%)
- Argentina: $43.1 million (0.9%)
The bulk of sales (90.2%) for Malagasy exports in 2023 are attributed to the above 25 trade partners.
Strongest gains from 2022 to 2023 belong to customers in Poland (up 111.1%), Brazil (up 63.2%), Egypt (up 50.1%), Germany (up 19.2%) and France (up 11.7%).
Recording the severest declines were buyers in Argentina (down -60.2% from 2022), Türkiye (down -30.7%), Qatar (down -26.6%), Indonesia (down -26%), Pakistan (down -25.4%) and South Africa (down -22.2%).
Countries Causing Highest Trade Deficits for Madagascar
Madagascar recorded an overall -US$1.58 billion trade deficit for 2023, reducing by -19.8% from the -$1.97 billion in red ink during 2022.
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.
- mainland China: -US$695.3 million (country-specific trade deficit in 2023)
- Oman: -$649.1 million
- India: -$312.3 million
- United Arab Emirates: -$178.9 million
- Malaysia: -$137.7 million
- South Africa: -$117.6 million
- Egypt: -$116.4 million
- Pakistan: -$115.2 million
- Qatar: -$101.7 million
- Mauritius: -$98.1 million
Among Madagascar’s trading partners that cause the greatest negative trade balances, Malagasy deficits with Egypt (up 53%), United Arab Emirates (up 9.6%) and Oman (up 8.1%) grew at the fastest pace from 2022 to 2023.
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.
Countries Generating Greatest Trade Surpluses for Madagascar
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.
- United States: US$259.2 million (country-specific trade surplus in 2023)
- South Korea: $227.8 million
- Japan: $211.2 million
- France: $190.5 million
- Netherlands: $156.3 million
- Canada: $98.1 million
- Türkiye: $65.8 million
- Taiwan: $58.1 million
- Indonesia: $53.2 million
- Singapore: $44.3 million
Among Madagascar’s trading partners that generate the greatest positive trade balances, Malagasy surpluses with Singapore (up 236.2%), South Korea (up 127%) and the Netherlands (up 46.9%) grew at the fastest pace from 2022 to 2023.
In addition, Madagascar went from enduring an -$89.5 million deficit trading with Türkiye in 2022 to generating the trade surplus listed above for 2023.
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.
Madagascar’s Export Companies
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 Top African Export Countries, Madagascar’s Top 10 Imports, Seychelles Top 10 Exports and Madagascar’s Top 10 Exports
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on May 26, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on May 26, 2024
Investopedia, Net Exports Definition. Accessed on May 26, 2024
International Trade Centre, Trade Map. Accessed on May 26, 2024
Wikipedia, Gross domestic product. Accessed on May 26, 2024
Wikipedia, List of Companies of Madagascar. Accessed on May 26, 2024
Wikipedia, Madagascar. Accessed on May 26, 2024