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Madagascar Logistics Services

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Geographically and historically, the service and industrial companies are unequally divided and concentrated in-between Antananarivo (the capital and main industrial place), Antsirabe (the main agricultural place) and Toamasina (the main port gateway of the island). The commercial and service sector of Madagascar remains underdeveloped 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 lives on less than $ 2 a day).

Fuel prices are fixed by the government, but the services are operated by the private sector. No major shortages have been recorded, though local shortages may arise due to the inaccessibility of roads.

Transport services have been fully privatized. There are a few transporters with a large vehicle park, but most are small scale with one to three trucks at disposal. Competition for transport on the main roads is fierce, but comparatively lacking for transport on smaller roads.

Manual labor is abundant and inexpensive due to high unemployment rates.    

The telecommunications sector is privatized and there competition for the usual telecom services such as fixed and mobile phone, including data traffic, and internet. Other telecommunications such as payment by mobile can be found as well. Coverage is good in the larger cities, but services diminishes the further out.

The main food groups that can be sourced locally includes cereals (rice, wheat, sorghum), pulses (groundnuts, beans, sesame, soya), tubers (sweet, cassava, potato), vegetables (tomatoes, carrots) and various fruits.

The industrial sector is developing. Madagascar has a fair amount of raw materials, but most are exported to be transformed elsewhere. Some items such as cement, plastic pumps and water pumps are supplied by local companies.