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Madagascar – A special economic zone dedicated to textiles

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Madagascar – A special economic zone dedicated to textiles

Moramanga_District

The Textile City of Moramanga in Madagascar, located along the main Antananarivo-Toamasina economic corridor, is designed as a special economic zone entirely dedicated to textile-related activities.

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A 600-hectare industrial park is planned for Moramanga, ideally located between the capital and the country's largest port, Toamasina. The establishment of an initial 80-hectare complex dedicated to textiles was made possible through an agreement between the EDBM and the Mauritius Africa Fund Ltd.

Investment opportunities are available in infrastructure development and the provision of public services, particularly the generation of electricity from renewable energy to supply the area.

The national and international contexts are extremely favorable to the development of the textile industry. The return of constitutional order has allowed the country to reintegrate into the AGOA program, a preferential trade agreement facilitating exports from African countries to the United States, one of the leading importing countries for Malagasy textiles.

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Indeed, the textile and clothing (TC) sector constitutes the first manufacturing sector in Madagascar and the largest employer of labor after agriculture, representing 19,35% of GDP, 30% of exports, 7% of foreign direct investment (FDI), up to 15,000 direct formal jobs according to the promoters of the UKTP (United Kingdom Trade Partnership) Project. This project, implemented over the period 2019-2022, aims to improve the competitiveness of the textile and clothing sector in the Big Island, as well as increase exports to the European Union and the United Kingdom. The availability of skilled labor should be mobilized for the future development of the country's textile and clothing industry.

All studies related to the Textile and Clothing sector, supported within the framework of the PAPI, are in line with the new State policy, adopted in January 2019, through the Madagascar Emergence Plan, placing the country's industrialization at the heart of the country's economic recovery (Velirano N°7). This industrialization policy highlights the need to create and develop Industrial Emerging Zones as catalysts for economic development throughout the island. The government, through the Ministry of Industry, Trade and Crafts (MICA), intends to strengthen the existing legislative and regulatory framework, which should allow for the accelerated revival of investments in the industrial sector, through the development of Industrial Zones (IZ).

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