ATI
COUNTRY PROFILE
Madagascar
Madagascar is a low economic transformer with an overall ATI score of 16.4, reflecting its struggles on four dimensions: export competitiveness, productivity increases, technology upgrading, and human well-being.
Antananarivo
30.3 million
2.4 %
4.0 %
US $529
Madagascar’s Performance on the African Transformation Index
The overall African Transformation Index score measures the five dimensions of DEPTH.
Overall score
16.3 /100
Score change
since 2000
At a glance
- Madagascar is a low economic transformer with an overall ATI score of 16.4, reflecting its struggles on four dimensions: export competitiveness, productivity increases, technology upgrading, and human well-being.
| Score /100 |
Change since 2000 | ||
 |
Diversification |
43.2 |
-10.0
|
 |
Export competitiveness |
13.1 |
-2.1
|
 |
Productivity increases |
0.8 |
-3.2
|
 |
Technology upgrading |
3.4 |
-1.4
|
 |
Human well-being |
21.2 |
-0.4
|
Diversification of production and exports measures countries’ capability to produce and export a widening array of goods and services.
Score
43.2 /100
Score change
since 2000
At a glance
- Madagascar's economy lacks variability in its production and export structure. The manufacturing sector remains small and underdeveloped, contributing about 10 percent to GDP, while the service sector holds the largest share of GDP, contributing about 52 percent.
- The economy is heavily reliant on a narrow range of exports, making it susceptible to external shocks; the top 5 exports constitute about 60 percent of total exports.
- Madagascar’s share of manufactures and services in total exports has almost halved, from 83.5 percent in 2004 to 49 percent in 2020.
Export competitiveness is measured as the ratio of a country’s share in the world’s exports of non-extractive goods and services to its share in world non-extractive GDP.
Score
13.1 /100
Score change
since 2000
At a glance
-
Madagascar's export competitiveness has declined over the last decade after peaking in 2008.
- The country primarily exports low-sophistication non-extractive commodities, such as unprocessed agricultural products and textiles.
- Infrastructural deficiencies, including poor transport and energy networks, and a technology gap undermine the manufacturing sector's ability to compete globally.
Productivity increases measure the value added per unit of labor in agriculture, manufacturing, and services.
Score
0.8 /100
Score change
since 2000
At a glance
- Productivity in Madagascar is significantly low across all sectors.
- Although agriculture is the largest employment sector, labor productivity in this sector has been low, with output per worker declining from $445 to $362 over the last two decades due to low uptake of improved technologies and practices.
- Similarly, productivity in the service sector tumbled from $3728 to $1801 during this period.
- The industry (manufacturing and construction) sectors also saw minimal improvements in productivity, with a peak of $4392 in 2008, before gradually declining to $1846.
- Madagascar's weak performance on productivity further hampers its economic transformation as well as its ability to sustain growth and attract investment.
Technology upgrading measures the medium-and high-technology content in total production activities and total commodity exports.
Score
3.4 /100
Score change
since 2000
At a glance
- Madagascar lags on technology upgrading, scoring 3.42, far below the African average of 29.7.
- The share of medium and high-technology in the country’s total production is minimal, and Madagascar has struggled to incorporate advanced technologies into its manufacturing processes.
- This has continually impacted the export structure of the economy, with the country exporting low-sophistication products.
Human well-being measures economic and social outcomes and enablers in terms of incomes, income inequality, formal employment, and female participation in formal labor markets.
Score
21.2 /100
Score change
since 2000
At a glance
- Madagascar's performance on human well-being is far below the African average of 42.5.
- Despite some progress improving the economic welfare of its populace, the country continues to face high levels of poverty.
- Real income has not risen enough to offset persistent poverty and inequality.
- The country’s labor market is characterized by a high prevalence of informal and low-productivity jobs, with limited progress increasing formal employment and the share of females in formal employment.
Discover more from the ATI
ATI Scorecard
Explore the data behind the economic transformation progress of 30 African countries between 2000-2020.
Growth with DEPTH
Explore the ATI in DEPTH and see how African countries performed on each dimension between 2000-2020.
Methodology
Learn more about our methodology, sources, and how we calculate the index.
Country Profiles
To explore the results of the index in greater detail and provide context and analysis, the ATI report includes 11 case studies.
Downloads
