In early August 2026, a Malagasy delegation led by Colonel Michaël Randrianirina travelled to Cairo to meet Egypt's General Authority for Investment and Free Zones (GAFI). About ten local Malagasy business operators joined the official delegation — a concrete signal of the intent to move beyond diplomatic discourse.
"It's time to invest in Madagascar"
Addressing his Egyptian counterparts, the head of state outlined key sector priorities: energy, logistics, and infrastructure. He set clear expectations: "complete, well-structured, and sustainable projects", with commitments to "implement and maintain projects and transfer technology".
Madagascar projects 6% growth in 2026, according to Africa24 and the African Development Bank. Yet this potential contrasts with persistent structural obstacles: inadequate energy access, administrative burdens, and fiscal instability since 2023.
A local private sector under pressure
The outreach to Egyptian capital comes against a backdrop of friction between the government and the local business community. The Groupement des Entreprises de Madagascar (GEM) suspended its participation in government consultations in late June 2026. The Employers' Federation (GEFP) warned of up to 200,000 jobs at risk, citing "growing instability of the rules of the game" and new fiscal obligations introduced since 2023.
The cooperation agreements signed between Egypt and Madagascar during the roundtable include economic commitments whose details are expected in the coming weeks.
Why it matters
Madagascar is diversifying its funding sources beyond traditional partners. The rapprochement with Egypt — North Africa's largest economy and a hub of the Africa–Middle East corridor — could open new financing channels for the island nation. For the broader Indian Ocean region, it also signals that Arab and North African capital is now actively looking at the area.
Sources: L'Express Madagascar, AllAfrica, Newsmada, August 2026