Madagascar’s mining sector is undergoing a decisive transformation, emerging as a cornerstone of national development and a compelling destination for global investors. Although mining contributes around 5% of GDP, its impact on external accounts is far greater: minerals represent more than 40% of national exports and support roughly 12% of national employment. With both large-scale industrial projects and an extensive small-to-medium operator base, the sector delivers vital regional spillovers, from job creation to service-sector development.
A sweeping modernization of the regulatory framework now underpins the sector’s new direction. The 2023 Mining Code, followed by comprehensive implementing decrees in 2024, aligns Madagascar with international best practice. Key reforms include electronic permits, “use it or lose it” rules to eliminate dormant titles, mandatory EITI compliance, and competitive tenders for strategic zones where the State holds a non-dilutable 10% equity stake. Nearly 1,000 non-compliant titles have already been cancelled, freeing ground for serious investors.
Environmental and social governance is central. Projects must secure environmental and social permits through public hearings, commit to structured CSR agreements with communities, and ensure that at least 80% of employees are Malagasy. Local procurement and skills transfer are now enforceable obligations.
Geologically, Madagascar offers a rich portfolio: hydrocarbons in the western basin, heavy mineral sands along the east coast, significant rare earths, world-class graphite reserves, manganese, iron ore, and uranium potential. Competitive tenders, investment-stability mechanisms, and inter-ministerial facilitation committees ensure clarity and speed for major projects.
OMNIS, the State agency for mining and hydrocarbons, plays a strategic role. “Our goal is for oil and gas, and strategic minerals, to make a real contribution to Madagascar’s macroeconomic growth,” says Ms. Nantenaina Rasolonirina, Acting General Manager. With a new bid round for hydrocarbons underway and strong interest from Gulf partners, including the UAE, Madagascar aims to position itself as a new frontier in Africa’s resource landscape.
For investors seeking transparent processes, geological diversity, and long-term partnership, Madagascar’s doors are open.
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