The Malagasy diaspora represents a significant yet largely untapped economic asset for Madagascar. According to the African Development Bank (AfDB), nearly $1.4 billion in potential capital remains underutilized among Malagasy communities living in high-income countries such as France, Canada, and several European nations.
Although relatively small in size, the Malagasy diaspora is considered highly skilled and well integrated into developed economies. This situation offers Madagascar a strategic opportunity to mobilize more expertise, investments, and financial transfers from its citizens living abroad.
Currently, remittances sent by the diaspora to Madagascar are estimated at between $450 million and $500 million annually. However, a large share of these funds is mainly directed toward family support and real estate, with limited investment in productive sectors capable of sustainably supporting the country’s economic growth.
In response, several initiatives are being developed to better structure diaspora engagement. Malagasy authorities, together with international partners, aim to encourage productive investments, knowledge transfer, and entrepreneurial projects led by Malagasy nationals abroad. The government now considers the diaspora a key pillar of the country’s economic diplomacy.
At a time when Madagascar continues to face major economic challenges and high poverty levels, mobilizing this human and financial resource is seen as a crucial step toward accelerating national development and strengthening the country’s economic resilience.
