EXAMPLES OF CAPITAL COSTS

CONSTRUCTIONS (including the earthwork)	Bungalow equipped : from 300 to 500€ / square meter
PERMANENT ACCESS INTERNET BY SATELLITE	Investment: 5000€, monthly fees: 250€

EXAMPLES OF COSTS OF OPERATION

COST OF LABOUR (employers' loads include)
Minimum wage	30€/month
Technician	100€/month
Tally higher, Ingenieur, chef	250 € with 400 €/month
ELECTRICITY	Power generating unit: from 0,12 to 0,25 €/kWh
Power generating unit + wind power (constant wind on a coline with 200 meters of the land)
Generator + solar energy
WATER
Presence of a natural source on the land
Construction of well if necessary	1000€/10 meters
TELECOMUNICATIONS
If Internet  connection by satellite	cost of the VOIP (from 0,03 to 0,25€/minute)
Two GSM networks in range	National: 0,10€/minute - France, the USA, Canada: 0,30€/minute - Other destinations from 0,60 to 1,5€/minute

GUARANTEE OF THE INVESTMENTS

In January 2007 the World Bank wrote an encouraging report on the conditions of investment in Madagascar. The Large island belongs to the nine classified as countries “interesting destinations” by the multilateral Agency of guarantee of the investments (Miga) organization attached to the World Bank.
The good course of the presidential elections of December 2006 is also an encouragement for the investment in Madagascar.

• Madagascar is member of the AMGI, Agence Multilateral Guarantee of the Investments of the World Bank.
• Adhesion with the ATI-ACA, Arranges for the insurance of the Trade in Africa or African Trade Insurance Agency, organization guaranteeing the commercial transactions and the financial transactions against the political risks.
• Signature of the reciprocal protection of the investments between France and Madagascar
• Signature of the reciprocal protection of the investments between Mauritius and Madagascar

PRINCIPAL ASSETS AND COMPARATIVE ADVANTAGES

• Will of the country to open with the investments
• Freedom to undertake for the foreigners
• Economic potentials of the country: possibilities of exploiting raw materials local
• Skilful labour, offering a quality ratio/very competitive cost
• Adhesion of the country with the COI (Commission of the Indian Ocean), COMESA, (Common Market of Southern Africa and the East) and soon with the SADC (the Community for the Development of the Southern Africa), offering advantages within the framework of the exchanges with the other Member States of these regional groupings.
• Profiting from facilities AGOA and agreement from cotonou
• Eligibility of Madagascar to the MILLENIUM CHALLENGE ACCOUNT (MCA) like first recipient

INCENTIVE THE INVESTMENT

• Economic policy marked in favour of the private sector, the Malagasy number one being him even an operator of the private sector, by the preparation of environment favourable with the investor.
• Tax cuts (additional cf: taxation) are granted to the companies which carry out investments
• For the exporting activities, a whole of inciting measurements of a financial, tax and social nature is offered. (additional cf: Legislation applicable to the companies of frank zone)
• Importation regulations liberalized
• New measurements authorizing the access from abroad to the land and buildings
            (cf: Law n° 2003-028 of August 27, 2003)
• The tax reduction of the customs tariffs and tax on the imports of the goods of equipment, utility travelling materials and certain inputs and goods (cf: Law n° 2003-026 of August 27, 2003 and Loi n°2004-024 of June 3, 2004). A collection containing the list of tax-free goods available and is put on sale at the bookshops.
• The installation of the initiative 3P (Private Public Partnership)
• The installation of the Single Counter for the Investments and the Development of the Companies (GUIDE) to simplify the administrative procedures of creation of company and investment.
• Definition of the 3 PEAK (Integrated Poles of Growth) for Nosy Be, Tananarive and Fort Dolphin in order to create a harmonious growth
• Better legal framing and greater transparency of the market
• Liberalization of the Malagasy airspace

Last articles on the investment in Madagascar

• Lexpress.mu 

The Councils useful on the investment in Madagascar

• Access Madagascar (the World Bank)
• Embassy from France to Madagascar 
• Crédit Lyonnais Madagascar
• Ministry for Toursime
• The Chamber of Commerce of Antananarivo 
• TECHNICAL AND ECONOMIC INFORMATION CENTER

International financial assistances

• The co-operation Free-Madagascan
• The French Agency for Development (AFD)
• IFC
• The United Nations for the Development
• United Nations Development Programs 
• Luxembourg co-operation 
• European Investment Bank
• Pro€Invest
• Center for the Development of Company (CDE)
• Development and relations with the ACP countries (Comission European)
• European subsidies, European structural funds and Community Businesses 

Do not hesitate to contact us. We are interested by all proposals and projects for all sizes.

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