Madagascar looks to deepen investment ties with the UAE, says country’s top diplomat

Madagascar is seeking to deepen investment co-operation and strengthen ties with the UAE, the country’s top diplomat said during a visit to the Emirates as part of a high-level delegation to take part in a two-day business forum.

The Madagascar Business Forum was held in Dubai this week. It brought together more than 60 Malagasy business owners and entrepreneurs to connect with Emirati counterparts.

“This forum is part of our efforts to reinforce both economic and diplomatic ties between our two nations,” Madagascar’s Foreign Minister, Rafaravavitafika Rasata, told The National.

Over the past nine years, Madagascar and the UAE have cultivated a growing relationship marked by strategic co-operation across various sectors, including infrastructure development, humanitarian aid, economic investment and digital innovation.

Madagascar views the Emirates as a strategic partner for economic recovery and development, while the UAE sees the island nation as a gateway to African markets and a partner in advancing sustainable development initiatives in the Indian Ocean region.

Emirates Airline launched direct flights from Dubai to Antananarivo last year and increased its services from four weekly flights to six as of April, responding to demand for both passenger and cargo transport.

“This demonstrates growing confidence in our market,” said Ms Rasata. “It is a huge opportunity to position Madagascar not only as a tourist destination but also as a land of opportunity for investors.”

Untapped potential

Situated in the western Indian Ocean, Madagascar is the fourth-largest island in the world – larger in land mass than Germany and Spain combined. Despite its size and natural wealth, the country remains relatively undiscovered by international travellers.

Surrounded by well-known Indian Ocean holiday destinations like the Maldives, Seychelles and Mauritius, Madagascar stands out for its biodiversity and eco-tourism appeal.

“Our country has won the Indian Ocean’s Leading Green Destination award seven times, and since then, we have been really focusing on tourism,” noted the minister. “We’re prioritising sustainable and community-based tourism that highlights local culture.”

She also pointed to agriculture as a key area for potential Emirati investment, particularly in the context of food security.

“Madagascar is a vast country – I would even call it a quasi-continent,” she said. “With nearly 600,000 square kilometres of land, and 36 million hectares of arable land, there is immense potential for agribusiness and agricultural transformation.”

Regional engagement

Madagascar sits at a strategic location along key Indian Ocean shipping lanes, serving as a maritime crossroads between Africa, Asia and the Middle East. Its position near major east-west trade routes makes it a potential hub for maritime commerce, naval logistics and regional connectivity.

“We’re extending our main port in Toamasina, and this expansion, expected to be completed by 2026, will further cement our role as a trade hub,” said Ms Rasata.

She added that the country’s natural assets, including housing 5 per cent of the world’s biodiversity, position it uniquely on both the economic and ecological fronts.

“Madagascar has a major role to play – not only as a strategically located country but also as a dynamic market with investment opportunities in agriculture, tourism and renewable energy for Gulf countries and other partners.”

Challenges at home

Despite these ambitions, Madagascar faces domestic hurdles. A February 2025 World Bank report said that Madagascar's economy is recovering, but growth remains insufficient and uneven to significantly improve living standards.

“Economic growth remained at 4.2 per cent in 2024. Growth is expected to gradually pick up this year, with projections averaging 4.7 per cent over 2025–2027,” the report said.

Ms Rasata emphasised the need to tackle rural poverty, noting that around 80 per cent of the Malagasy population lives in rural areas and depends on agriculture for survival.

“Our focus is on transforming the agricultural sector to support food security, create jobs and add value,” she said. “Madagascar is already Africa’s third-largest rice producer after Nigeria and Egypt. Our goal is to become the first, and to meet local demand, which still requires importing 500,000 tons annually.”

She also underscored the importance of attracting both foreign and domestic investment to support this transformation.

The World Bank has stressed the urgency of accelerating structural reforms in energy, digital infrastructure and mining to sustain higher growth. Among the most pressing concerns is Madagascar’s struggling energy sector.

Only about one third of the country’s 30 million people have access to electricity, according to the International Monetary Fund. Critics cite mismanagement, poor governance and corruption at the state utility Jirama as core obstacles.

“Our energy challenge is existential and we’re treating it as such,” said Ms Rasata. “There is strong political will to ensure our national utility can meet local demand and expand investment in renewable energy.”

She outlined the government’s target to double the country’s energy generation capacity by 2030, with 70 per cent coming from green sources.

“All our efforts are aligned with this goal,” she added.