Madagascar - Agribusiness - A law on organic agriculture

The rapid growth in organic exports, which reached $110 million in 2019, compared to $23 million in 2012, confirms the importance of the organic sector in Madagascar. Exports are mainly typical and/or high-value-added products such as spices, fruits and vegetables, essential oils, shrimp, cocoa, palm oil, etc.

Working in concert with private sector partners such as SYMABIO (Malagasy Organic Agriculture Union) and CASEF (Agricultural Growth and Land Security), the Ministry of Agriculture, Livestock and Fisheries hopes that the establishment of a regulatory framework for the sector will now allow Malagasy products to benefit from organic certification.

Today, organic farming involves 23,000 producers and 177 companies, according to MAEP figures. To obtain organic certification, producers and economic operators previously had to comply with European, American, or Japanese regulations. Thanks to this new law, the requirements for placing products on the market will be simplified; exporters will no longer need dual certification to meet the standards of importing countries.

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FDI in the agricultural sector

Access to land, with secure titles, remains the main challenge for investors. This problem is particularly significant for foreign investors in agriculture. As part of the PSAEP and its National Investment Plan for Agriculture, Livestock, and Fisheries (PNIAEP), the Government aims to facilitate investor access to land by identifying large areas known as "agricultural industrial zones" (ZIAs), which would benefit from incentive schemes and specific land tenure status. These areas are expected to be defined by consensus between decentralized structures and the local population, will be integrated into the National Land Use Plan (SNAT), and are expected to welcome 1,000 new private investors by 2025. However, neither the PSAEP program document nor the accompanying Policy Letter provide, with the exception of a reference to this two million hectare area, any guidance on the procedures for granting them or the management of these areas.

In early 2020, the Malagasy government allocated 60,000 hectares of arable land to an Emirati group, Elite Agro LLC, with a view to achieving food self-sufficiency. This land is located in the Bas Mangoky plain, in the southwest of the Big Island. The goal is to achieve food self-sufficiency by lending the land, with no compensation other than a lower-cost purchase of crops, for the domestic market and possible export. The Emirati group will pay the many agricultural workers who will grow rice, corn, wheat, soybeans, Cape peas, and peanuts, for an estimated production of 1.05 million tons per year. This partnership is for a one-year trial period, after which a definitive contract can be signed.