Agriculture remains insufficiently linked to processing industries in Madagascar. A study by Dr. Hugues Rajohnson highlights the difficulties in supply and sector structuring, advocating for public support, particularly through fiscal measures.
Madagascar struggles to connect its agricultural production to the needs of its industries. In a recent study on agricultural development and local transformation, Dr. Hugues Rajohnson, a lecturer and economist at the University of Antananarivo, provides an overview of Malagasy agro-industrial sectors. Despite their potential, many remain underutilized and poorly structured.
According to the researcher, “Madagascar is an agricultural country, so it is natural that industrialization should begin with agro-industry.” He adds, “However, very few sectors are connected to industries, and the structured sectors—which are few—are underdeveloped, while most simply lack any structure.”
The study draws on World Bank data: agriculture, forestry, and fishing accounted for 22.2% of Madagascar’s GDP in 2023 and 21.9% in 2024. It also notes that the sector employs over 70% of the active population. Meanwhile, the manufacturing industry represented 13.1% of GDP in 2024. “This imbalance reflects a structural reality: Madagascar cultivates, but transforms little. For comparison, manufacturing value-added reaches 24.2% of GDP in Thailand and 24.3% in Vietnam,” notes Hugues Rajohnson.
The researcher examined several sectors, including maize, which he notes is marked by insufficient production to meet industrial needs. The study estimates production at 266,000 tons in 2023, against a demand of 381,216 tons for activities such as animal feed, flour milling, and starch production.
“The Malagasy problem is not just that industrial value escapes in the form of raw materials; it is that the raw material does not exist in sufficient quantities to feed the already installed processing capacities,” the author analyzes.
The Ministry of Agriculture, for its part, puts forward an estimate of current production at 450,000 tons and aims for 1.5 million tons by 2030, with the goal of covering the needs of local industrialists.
However, yields remain low, averaging around one ton per hectare. The figures cited place them below those of Zambia (2.5 tons per hectare) and Tanzania (1.7 tons in 2025). This low productivity limits the volumes available for processing.
The study also notes obstacles in the rice, cassava, and extra-fine green bean sectors. Depending on the product, low yields, limited volumes, or insufficient integration into global trade circuits hinder their development and competitiveness.
During a press conference presenting the study on Friday, Dr. Hugues Rajohnson stated that private initiatives are not enough to develop agro-industry. “To achieve the emergence of a substantial agro-industrial fabric, public intervention must be proactive and use all the tools at its disposal,” the researcher explained.
He advocates for a cross-cutting public policy combining research, access to credit, mechanization, agricultural extension, and innovation. Taxation, according to him, is another lever to promote local transformation.
“The Mozambican model, for example, is striking for Madagascar. With the goal of developing several agro-industries, the country began supporting the cassava sector—a raw material for beer production—through an incentive-based fiscal policy. Cassava production thus increased to over 9 million tons per year and became a staple for several processing industries. It is therefore essential to adapt taxation to encourage local transformation and the creation of value-added,” he emphasized.
Captured & Published at: 2026-10-13 05:53:46 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/10/transformation-locale-agriculture-et.html
