Although prices at the pump are imposed by the government, the downstream oil sector in Madagascar is fully liberalized at present. Its management is carried out by private operators. The Ministry of Water, Energy and Hydrocarbons is responsible for the definition of hydrocarbon policy, and the Malagasy Office for Hydrocarbons (OMH), a regulatory body under its supervision, supervises , regulation and control of the sector.

There are 4 distributors in Madagascar (TOTAL, JOVENNA, GALANA, SHELL) forming a hydrocarbon platform: CECAM or Supply and Movement Coordination Cell.

The standards used for the handling and storage of hydrocarbons are derived from the ASTM or American Society for Technical Materials International.

The quantity of hydrocarbon imported per month is about 50 000 m3 (all kind of products) for the 4 distributors for the whole Malagasy territory.

There had never been a shortage of fuel in the country, but it happen that some areas such as Sainte Marie or Ampanihy are struggling to obtain supplies because of the inaccessibility of the roads or the delayed refuelling.

The Office Malgache des Hydrocarbures (OMH) is the national fuel authority.

All fuel imported in Madagascar is already refined.

No problems of fuel supply, most areas have petrol station.

Information may also be found at: Website of the Office Malgache des Hydrocarbures which is updated regularly. 

Fuel stations in Madagascar:

• Présence de Station Jovena en Province

• Carte de présence de Station Jovena à Tananarive

• Carte des stations GALANA

• Présence nationale des stations TOTAL

 

For more information on government and fuel provider contact details, please see the following links: HQ staff will input links to sections

 

4.1 Government Contact List and

 

4.7 Fuel Providers Contact List here.

 

A link to the Madagascar fuel stations location list (GLCSC_LCA_MADAGASCAR_ Fuel station location list_june 2017)

 

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly. 

 

 Fuel Pricing

 

Since 2009, OMH is in charge of administering oil prices per month under the supervision of the Ministry of Energy, Hydrocarbons and Water.

 

This price is nationalised regardless the region or city where it is sold.

 

Prices at the pump is given according the following parameters:

 

-       Reference Price Border (PRF) : 38%

-       Transport and storage: 10%

-       Delivery : 13%

-       Taxes and Fees: 35%

 

 

For real time updates and more information on fuel prices evolution in Madagascar, please see the following links: http://www.omh.mg/codes/structure_prix.php

Seasonal Variations  

While during the rainy season the transport of hydrocarbon product can be costly, priced are nationally given by the government depending the import rate, not considering any seasonal variations.

 

 

Fuel Transportation

 

 

The Toamasina Terminal, being the main port of Madagascar with oil infrastructures and sufficient storage capacity, and because of its proximity to the capital, is the main receipt deposit of imported products. However, other auxiliary imports (mainly in Gasoil and Jet Fuel) are irregularly made in secondary ports, such as Mahajanga, Antsiranana and Nosy-Be.

 

• Once the products are unloaded, the logisticians are charged by the distributors with the installation of products throughout the island. This is done in the following way:

 

• For the highlands (Antananarivo, Antsirabe, Fianarantsoa), the Ambatondrazaka region and the South east, the supply of petroleum products is provided by trucks and tank wagons.

 

• For the North and South parts, the products are transferred from the Toamasina Terminal to the coastal depots by two coasters.

 

• For the areas not served by coasters (Antsohihy and Maintirano), the transfer of products is done through barges.

 

Nevertheless, supplie lendings are occasionally made between certain depots in the event of insufficient stocks due to various incidents (delays in the arrival of coasters, technical breakdowns, etc.).

 

For more information on fuel storage capacity in Madagascar, please see the following links:

 

Standards, Quality and Testing

 

 

 

 

 

 

 

 

 

 

If it is needed, they can delegate the testing to the following companies:

 

 

 

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

 

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

 

For information on Madagascar Fuel additional details, please see the following documents:

Présence de Station Jovena en Province

Carte de présence de Station Jovena à Tananarive

Carte des stations GALANA

Présence nationale des stations TOTAL

Information may also be found at: Website of Mytravelcost on Madagascar which is updated monthly. 

4.1 Madagascar Government Contact List

In Madagascar, transport services have been liberalized over the last fifteen years. In the road sub-sector, prices are freely set by the carriers themselves and costs are deemed to be high by users due to the lack of adequate infrastructure (poor road conditions, outdated means of transport ) and the high price of fuel.

The freight transport service is actually very unbalanced: with strong competition on the most frequented areas (e.g. RN2: Antananarivo - Toamasina) and monopolies in areas where roads are in poor condition (e.g. RN13: Ihosy - Fort-dauphin).

In spite of the large number of agencies or transport companies, the transport of  food and other goods  is very difficult in some areas, especially during the rainy season, due to road conditions.

Foreign operators are allowed to operate on the domestic market although none has been identified until now.

The following tables include the main companies assessed in Antananarivo able to give all legal documentation and offering a large coverage. More transporters can be found in the following list: 

 

 

 

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

For contact details and information of trucks and tonnage available, please select the document below:

Madagascar Local Transporters List

4.8 Madagascar Transporter Contact List
 

 

Madagascar officially has 4 million unemployed citizens, mostly young people. The situation is very alarming, because each year the number of youngsters joining the jobseekers ranks increases significantly. 

According to official statistical data (Instat), between 400 000 and 500 000 young graduates add each year to the labour market, but due to the current political and economic challenges, employment rates remain low.. As a result, the labour market is young (half of the population is under 24), abundant and cheap. 

 According to the law, the following points are mandatory: 

-       the employee must have a contract of employment 

-       the employee must have a pay slip with each payment 

-       the employee must pay the IRSA (Impôt sur les revenus salariaux et assimilés) . {If salary less than 250,000Ar, IRSA = 2,000Ar (monthly)  and if the salary is more than 250,000Ar, IRSA = 20% gross wage (monthly)} 

-       the employer needs to declare the employee to CNAPS (Caisse Nationale de Prévoyance Sociale) 

. 1% for the employee (monthly) 

. 13% for the employer (monthly) 

-       the employer needs to declare the employee to OSTIE (Organisation Sanitaire Tananarivienne Inter Entreprise) or to contract another health insurance. 

. 1% for the employee (monthly) 

. 5% for the employer (monthly) 

 

Labour Rate(s) Overview 

	Cost  (Local Currency & USD - $)	Rate as of April 2023
Daily General Worker (Unskilled casual labour)	7’500 MGA per day  2,5 USD / per day	Annexe of the decree 2017-143  (minimum salary is 155.523 Ar per month for 173,33 hours)
Daily General Worker (Semi-skilled labour)	10’000 MGA per day  3,3 USD / per day	n/a
Skilled Worker	20’000 MGA per day  6,6 USD / per day	n/a

 

Given the importance of the telecommunications sector for the social and economic development of Madagascar, the Government carried out a first reform in 1993 with the separation of the telecommunications post.

Subsequently, telecommunications proved to be a key factor for success in all sectors of the economy, and a second reform was initiated in 1996 with a view to liberalizing the sector and ending the monopoly of the State, which was no longer able to keep pace with technological advances.

The 1996 Law established the Malagasy Office for the Study and Regulation of Telecommunications (OMERT), whose main role is to provide regulatory functions enabling all operators involved in the sector to develop their activities in accordance with the regulations in force.

As of April 1, 2015, OMERT has been replaced by the ARTEC (Communication Technology Regulatory Authority) which, in addition to telecommunications, also supports information and communication technologies.

 

The telecommunications sector in Madagascar currently has 12 operators providing the following services:

- Fixed telephony service provided by the incumbent TELecom MAlagasy (TELMA)

- GSM and Internet standard mobile telephony service offered by the four operators: Orange Madagascar, Airtel Madagascar, Telma mobile, Gulfsat/Blueline

- Telecommunications service offered by Iridium Africa Services Corporation

- Data transmission service offered by Telma Global Net and Gulfast Madagascar

- Internet service provided by the two Internet service providers Blueline and Telma Global Net

- Other telecommunication services, such as the electronic payment processing service by the Monetics Treatment Center of Madagascar (CTMM), the provision of the IRIDIUM satellite mobile telephone service by GLOBAL Plus, the resale of mobile telephone, SMS and data provided by BLUELINE, the provision of INMARSAT and IRIDIUM-type mobile telecommunications services by VIA SPACE MADAGASCAR.

 

Telephone Net Work: Fast growing network from three different companies

For information on Madagascar Telecommunications contact and additional details, please see the following links:

4.11 Madagascar Additional Supplier Contact List

Telecommunication Regulations

Procedures for NGOs wishing to submit an application for frequency allocation:

-       Request to use the HF and VHF frequencies to be sent to the Director of Frequency Management and Numbering.

-       Filing of the attached form duly completed with the application quoted above (in annexe)

-       Payment of fees and frequency fees mentioned in the proforma invoice according to the data in the form.

Existing Humanitarian Telecoms Systems

As per today, no Telecom Humanitarian system in existing yet. The local ICT Working group (UN agencies, NGOs, Government) are in the process of setting it up, and it will be co-managed by the Ministry of Telecommunication and the BNGRC

WFP is leading the ETC services for the other agencies, a network of frequencies

Internet Service Providers (ISPs)

Madagascar is currently in the age of high speed broadband through the two major international capacity providers. With the expendable capacity of 8.3 Gbps and 10 000 Km long, the fibre optic submarine EASSY (East Africa Submarine System) currently connects the Big Island with East Africa, the Indian Ocean and the rest of the world .

With 2 segments, LION (Lower Indian Ocean Network) the first one connecting Mauritius and Reunion, and the second one Reunion to Madagascar, with over 1 000 Km long and with a capacity of up to 2.3Gbps. Mauritius and Reunion are the two connection points to the SAT-3 / WASC / SAFE linking itself from Europe to Asia via southern Africa.

A third cable called FLY come soon in the northwest and will secure simultaneously EASSY and LION by interconnecting Moroni (Comoro), Mahajanga (Madagascar) and Mayotte (Comoro).

Available ISP Providers in Madagascar include: Airtel, Orange, Telma and Blueline (Gulfsat)

Mobile Network Operators (MNOs)

Mobile network is quite widespread in the main towns of Madagascar but coverage remains inexistent in the countryside. However, more than half of the population (11.416.599 in 2015) have access to the mobile network and mobile money services are well used by the population.

Depending of the provinces, some operators have a better coverage than their concurrent (ex: Airtel is mostly covering the south while Orange is more spread in the north), but generally Orange is more reliable than the other operator, and has the best quality of service in terms of client orientation.

Regarding the connectivity, it is generally working well in the biggest town or province capitals, but the reliability depends on the availability of power, cut off can happen for some hours or a day in any location.

The Malagasy mobile phone operators are: Orange, Airtel, Telma, Gulfsat (VSAT – Ku Band)

 

N.B. For the mobile money, while most of the peoples are using this kind of service, the problem for some individuals could be that they must have a National ID prior getting sim card.

For information on MNOs please visit the GSM Association website. 

For contact information on suppliers of other commodities then food, please select the following contact list:

4.11 Madagascar Additional Supplier Contact List

Overview

The majority of the Malagasy population are farmers and / or cattle ranchers, which explains the abundance of commodities (meat, vegetables, rice) in most of the parts of the island. In the southern area, the situation is different due to an arid climate and insufficiency of rain; foodstuffs are scarce especially agricultural products, and more expensive than in other regions.

 Other first necessity products such as sugar, oil and flour, are imported from all over the world. In the main towns of Madagascar there are generally one or more supermarkets where different kind of imported products are available. Basic food and first necessity items can be bought everywhere in the streets at the level of retailers or wholesalers or in local markets, which are numerous in Madagascar.

In the countryside, commodities are available in local markets but the type and quantity of products sold depend of the area. In the south and in other regions, some products like sugar or salt or butter are very rare due to supply difficulties (bad road conditions).  

Local product collectors are the main suppliers in the public markets and regularly supply retailers and wholesalers in Madagascar.

The main products supplied by the collectors on internal trade are usually cereals (rice, wheat, sorghum, etc.), legumes (groundnuts, beans, sesame, soya, etc.), tubers (sweet, cassava, potato ...), vegetables (tomatoes, carrots…) and fruits (all types but according to the seasons).

Large cities have several slaughterhouses which are the main suppliers of zebu meat and pork for butchers and supermarkets.

Vanilla, cloves and litchi are among the main exported products of Madagascar. Unfortunately, actually more and more people are substituting foods crops for export crops, leaving the population withless ressources to eat. 

Most of the ready-to-eat products (meat, dairy product, etc.) are manufactured in the country and are available on the local market throughout the year but in generally, this type of product is expensive and most of the people cannot afford it.

 

Additional information can be located from sources which are regularly maintained and reflect current facts and figures. For more specific and detailed overviews of food availability and market conditions, please consult the following sources:

WFP Vulnerability and Analysis Mapping (VAM): http://vam.wfp.org/CountryPage_overview.aspx?iso3=MDG

USAID Famine Early Warning Systems Network (FEWS NET): http://www.fews.net/southern-africa/madagascar

 

For more information on food supplier contact details, please see the following link: HQ staff will input a link to section 4.10 Supplier Contact List here.

Retail Sector

Retailers are numerous and are present in all regions of Madagascar. Commodities such as sugar, salt, rice, oil and first necessity products (soap, candles, matches, etc.) are available from these resellers throughout year. For their supplies, retailers are in contact with both national and regional wholesalers. The rate of bankruptcy or closure is relatively low despite the low purchasing power of the population. In the majority of cases, purchases are made in cash with the official Malagasy currency (the Malagasy Ariary-MGA) but in the supermarkets of the big cities, payment with credit card is available.

     

 

Wholesale – MAGRO AAA (MAlagasy GROssiste)

MAGRO is Madagascar's largest agro-food production and sales company. This national company was founded 20 years ago and has points of sale everywhere in the country. MAGRO works with local product collectors in several regions of the country and has its own production and food processing as well as farms. The company, as the name suggests: Malagasy Wholesaler, is one of the largest food suppliers of local markets and resellers (wholesaler and retailer) from all over the big island.

 

 

 

 

**For non-FOOD products please see section 3.5.2 Additional Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

 

Overview

The commercial sector of Madagascar is ongoing a difficult period due to the low standard of living conditions of the population. Private companies adapt their products according to the purchasing power of consumers, (in 2016, 90% of the population lived on less than $ 2 a day).

Many companies work with individuals (subcontractors or service providers) to expand their business area and to ensure a better profits. Madagascar still struggles to deal with the informal sector and its notable impact on the commercial sector structure. 

For more information on company contact details, please see the following link: HQ staff will input a link to section 4.11 Additional Services Contact List here.

Accommodation

 The real estate sector in Madagascar is considered one of the key factors of development. Because of the growth of this sector, it is preferable to approach real estate agencies to ensure the credibility of the goods and avoid scams.

 

The hotels are numerous and vary according to the level of standing, ranging from a 5-star establishment to the lowest level. Aside from hotels, there is also the possibility to find guest houses or hostels. In the countryside, hotels are scarce and often uncomfortable; it’s recommended to contact the local authority to find safe and secure places to stay.   

 

http://www.madagascar-hotels-online.com/2-choisir-categorie-hotel.html

 

https://www.tripadvisor.fr/Hotels-g293808-Madagascar-Hotels.html

 

Electricity and Power

The main source of power in Madagascar is from hydraulic and thermal system. The power generation is controlled by the Government through the JIRAMA. It provides the major electricity production  throughout the country and monopolizes the market, especially in the capital. Unfortunately, this company does not produce enough to satisfy local needs even if it collaborates with some privates companies to provide power. Indeed, power cuts are common and last on average one hour to three days depending on the areas.

In remotes areas, the population begins using renewable energies as solar plates, wind turbines provided by other small companies. 

 

Financial Service Providers

Several types of financial services are available in Madagascar:

-       primary banks such as BOA, BFV, BNI, located everywhere in Madagascar

-       microfinance institutions like MICROCRED and ACCES BANQUE

-       small micro agricultural credits as CECAM, OTIV

 

BOA

The Bank of Africa (BOA) is a private sector institution present in Madagascar for the past 18 years. This company has operations in several African countries and is active in all markets:

-       Retail: the bank offers a wide range of products for individuals, professionals, TPE, PME.

-       Corporate: leasing, international operations, large companies.

-       Institutional

-       Microfinance and Mesofinance

 

 

 

BFV

The Banky Fampandrosoana ny Varotra (BFV) is a private sector institution present in Madagascar for 19 years. This company is a subsidiary of SOCIETE GENERALE group and present in several cities in Madagascar. All type of banking operation are available at the level of each agency in Madagascar.

 

BNI

BNI Madagascar is a private sector institution present in Madagascar for several years. This company was a subsidiary of Crédit Agricole Group, since 2014, the bank has been majority owned by the consortium Indian Ocean Financial Holdings Limited. All type of banking operation are available at the level of each agency in Madagascar.

Clearing and Forwarding Agents

Freight forwarders are service providers that are approved by the State and their role is to ensure the collection of duties and taxes in the Malagasy State. Any transit operation will pass through freight forwarders approved in customs in Malagasy territory without exception especially at the international level.

Handling Equipment

Some large companies specialized in selling materials and handling equipment are located in the capital and especially in the major port and airport cities. Generally, each institute uses its own materials for its operations.   

Postal and Courier Services

The Malagasy post is still operational and regularly deals with short and long distance courier throughout the whole country and in international level. Other companies are available to provide service in sending freight: air or postal or door to door; such as DHL or Colis Expresse.

Printing and Publishing

Large printing and publishing companies are present in the major cities of the country. Several partnerships are in place with small businesses such as cyber caffes, available everywhere and generally dealing with the general populations everyday's needs.

Taxi Companies

Taxis are only available in the main towns of Madagascar and can be different depending on the areas:

-  The city taxis are owned by individuals and are convenient for all the population and generally available everywhere at any time; some have mobile phones to facilitate communication with their regular customers. They are professionals and have to be registered at government level but most of them are old and not well maintained.

-  The airport registered taxis linking the city centers to the airport. They are more professional and their cars are in a better condition.

Most of the agencies travel or hotel recommend their client by using it for security reasons

-  Other kind of transportation such as Tuk-Tuk or rickshaw are available out of the capital, they are cheaper and most of the inhabitants are using them.

Vehicle Rental

All major cities have tour operators and agencies to provide car rental. Most of the time, they will be offered with a driver, who may be a guide and especially a good mechanic in case of problem. Hotels can also provide vehicle rental network that are often a little cheaper but without insurance. The car dealers in the capital often offer rental vehicle service.

Waste Management and Disposal Services

Each cities of Madagascar have his own waste management system, but generally, there is a company or agencies under the supervision of the local authority which collects the waste (e.g. SAMVA for Antananarivo). They are autonomous and have their own planning to manage well the garbage removal in all around the town. The problem is that they suffer of a lack of materials like trucks to carry out their task and they are forced to subcontract with the local transporter.

The government does not yet have a recycling project at this time and consequently, waste management company are obliged to forward waste in the places granted by the municipality.

WASTE DISPOSAL-NON-HAZARDOUS

Incineration remains the most used method of disposing garbage. Waste is collected by a company or agency and usually transported to a specific place (municipal landfills) outside the cities for burning.

WASTE DISPOSAL-HAZARDOUS

The waste management system in Madagascar does not have a sorting system. All types of waste are sent to municipal landfills for incineration. Hospitals and several industries have their own incinerators to dispose of their waste.

A few private companies, such as the ADONIS ENVIRONNEMENT GROUP, which brings together several Malagasy companies, make treatment and recovery of hazardous waste (medical waste, hydrocarbon waste) in the major cities of Madagascar (Antananarivo, Tamatave)

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider