Madagascar: Intra-Africa trade and tariff profile

Intra-Africa trade profile for 2018

In 2018, Madagascar exported and imported goods to and from the rest of Africa to the value of US$239.6 million and US$482.9 million, respectively. Intra-Africa exports accounted for 8% of Madagascar’s total exports and imports for 12% of total imports for 2018. Some highlights:

• Madagascar’s trade with the rest of Africa has steadily increased; from 2016 to 2018 intra-Africa exports and imports increased by 15% and 21% respectively. From 2017 to 2018, Madagascar’s intra-Africa exports increased by 14%, while intra-Africa imports increased by 13%.

• In 2018, Madagascar’s main export products were vanilla (19% of total intra-Africa exports), cobalt mattes (13%), vegetable saps (7%) and t-shirts (6%). Although still the main export product, vanilla exports declined by 21% from 2017 to 2018.

• Imports of coal, wheat flour, petroleum oils, pasta and undenatured ethyl alcohol accounted for 34% of Madagascar’s intra-Africa imports for 2018. However, imports of coal declined by 8% from 2017 to 2018, while wheat flour imports increased by 29%.

• 68% of Madagascar’s intra-Africa trade is with South Africa and Mauritius. 43% and 27% of Madagascar’s exports were to South Africa and Mauritius. Madagascar also sourced 46% of intra-Africa imports from South Africa (6% of Madagascar’s total imports from all sources) and 21% from Mauritius (3% of Madagascar’s world imports).

• In terms of total trade (exports + imports) with the rest of the continent, other main trading partners (excluding South Africa and Mauritius) include Egypt (14% of total trade), Morocco (5%) and Kenya (3%).

Intra-Africa import tariffs

Most of the goods imported into Madagascar from other SADC and COMESA member states enter duty-free. Furthermore, imports from Mauritius, Seychelles and Comoros are granted preferential access in the Madagascan market under the Commission of the Indian Ocean (COI) agreement. The DRC, Eritrea, Ethiopia, Somalia and Tunisia are all in the process of accession to the COMESA free trade area. Imports from the DRC, Somalia and Tunisia are currently levied Madagascar’s MFN applied tariffs until tariff phase‑down by these countries under COMESA has taken place. Imports from Eritrea and Ethiopia are granted preferential access in accordance with the tariff phase down achieved under COMESA – imports from Eritrea are granted an 80% reduction in the MFN applied tariff, while imports from Ethiopia are only granted a 10% reduction in the MFN applied tariff.