THE AMCHAM POST NOVEMBER 16 - 2019

Currently, the country does not yet have the productioncapacity to meet the basic needs of the population, whosemediangrossdomesticproduct per capita per yearisvalued at only $ 205. Chronicpoverty and politicalinstability are the main factorswhich block the process of structural transformation of Madagascar'seconomy.
The Malagasy industrialsytemsremains fragile and representsonly 15% of current GDP. Given the weakness of the buying power of Malagasy people, we first advance an industrializationfocused on mass consumption. This model is to promote the factors ofindustrial production throughincreasingeconomies of scale.
Our analysis of Madagascar'sindustrialsectorisbased on the industrybarometer of Madagascar. Our framework of analysishereisinspiredfrom the statisticalresultsfromthisperiodicstudy.
An overview of the current situation of industryaccording to its contribution to GDP
The graph belowrepresents the evolution of the industrialsector'sshare of GDP. The 2020 target for the secondarysectorwillbe to have a 25% share of GDP.
Chart 2: Evolution of the share of the industrialsector in the GDP.

 Global perception of actors on the industry in Madagascar
1. WORKERS 'APPRAISAL OF THE SECTOR
Overall, 75% of workersexperiencepoliticalinstability, insecurity and inflationary pressures in the economy. Working conditions do not allowworkers to getsatisfaction from the system of professional transition within the sector. Indeed, theyhope for a more incentive-basedmethod to ensuremutual trust betweenemployees and employers.

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