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# [MADAGASCAR] Free Trade Zone SOS: 200,000 Jobs at Risk as GEFP Challenges Government and IMF
- URL: https://businessoi.media/en/madagascar-sos-zones-franches-200-000-emplois-menaces-le-gefp-interpelle-letat-et-le-fmi-en/
- Published: 2026-08-02T02:45:55.000Z
- Updated: 2026-08-02T02:45:55.000Z
- Description: GEFP warns: 200,000 direct jobs are at risk in Madagascar's free trade zones due to fiscal reforms introduced since 2023. The federation is challenging both the government and the IMF.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Économie, emploi, Investissement, Revue matinale, #en

Madagascar's free trade zone federation (**GEFP**) has sounded the alarm: **200,000 direct jobs** are now at risk in the country's export processing zones. The cause: a series of fiscal reforms introduced since 2023 that have altered the operating rules for exporting companies, threatening to undermine one of the island's main economic engines.

## Fiscal Stability Guarantee Under Challenge

Law 2007-037 guaranteed free trade zone companies multi-year fiscal stability. According to the GEFP, successive modifications through finance laws since 2023 — new taxes, additional charges — contravene this commitment. Compounding the issue are **delays in VAT reimbursements** that are squeezing the cash flow of exporting companies. For the federation, this is no longer a theoretical risk: the first closures and activity reductions are already underway.

## A Domino Effect Across the Economy

The GEFP notes that salaries paid in free trade zones cover essential needs: food, rent, school fees, transport and healthcare. One job in the export sector therefore irrigates the entire local economic fabric — transport providers, restaurants, suppliers and artisans. The threat hanging over 200,000 direct jobs represents, in reality, a shock affecting several times that number of people.

## Demands Addressed to Government and IMF

The federation demands clear government commitments: clarification on the future of the free trade zone regime, an independent macroeconomic study on costs and benefits, a credible VAT reimbursement timeline, and prior consultation before any new fiscal measures. The GEFP is also calling on the IMF — whose influence on budget orientations is significant — to incorporate these impacts into its recommendations.

## Why It Matters

Madagascar is simultaneously playing two contradictory hands: its head of state courts Egyptian investors during an official visit while its regulatory framework is undermining already-established industrial partners. This contradiction sends a warning signal to any investor considering a foothold on the island. Madagascar's business environment credibility depends on its ability to honour existing fiscal commitments before making new promises.

*Sources: Newsmada.com, L'Express Madagascar, Midi Madagasikara.*