Overview
Madagascar’s macroeconomic outlook has been affected by weaker external demand, the increased spread of the pandemic, and significant losses of revenue. Since the first reported cases on March 20, 2020, the number of confirmed COVID-19 cases stands at 41,488 (850 deaths, 40,774 recovered) as of June 3, 2021.
The authorities continue to implement mitigation measures to accommodate the impact of the pandemic to ensure the health of the population and preserve macroeconomic stability. The national state of emergency first declared on March 23, 2020 and followed by several lockdowns and gradual ease of quarantine measures was lifted on October 18, 2020. On March 26, 2021 authorities reinstated restrictive measures and declared a second wave of the pandemic, as the number of COVID-19 cases were increasing, and new variants were detected. While a full lockdown was avoided, on May 17, 2021 curfew was imposed on four regions, including total lockdown over the weekends. Following the activation of their national contingency plan, the authorities are taking measures to increase health spending, help the most vulnerable, support the private sector, and preserve the stability of the financial sector. In support of these measures, a multisectoral and interdisciplinary coordination unit Covid-19 Operational Command Center (CCO) was established at central, regional and local levels.
Reopening of the economy. Despite lifting the state of emergency on October 18, 2020, mask wearing remains mandatory (failure to wear one may result in 24-hour arrest or mandatory public works) and public events remain restricted to no more than 100 attendees. Domestic flights require 48-hour testing prior to boarding for all passengers. As of March 27, 2021, all international flights remain suspended. The COVID-data portal has been reactivated, and the Special Intervention Battalion will be redeployed to assist medical staff in monitoring COVID cases and patients.
Official Resources
No data
COVID-19 Restrictions
Movement Restrictions:
- Is a curfew in place? Yes, in closed regions there is a curfew from 10 PM to 4 AM.
- Are there restrictions on intercity or interstate travel? Domestic flights are suspended. Travel to and fromclosed regions is suspended.
Transportation Options:
- Are commercial flights operating? Domestic flights are suspended. International flights are suspended but some extraordinary flights are operating to leave Madagascar. If you are seeking to leave, please contact Air France or Ethiopian Airlines.
- Is public transportation operating? Yes
- Hand gel is provided. Passengers, drivers, and assistants all must wear masks.
Fines for Non-Compliance:
- Failure to wear a mask in public can result in arrest for 24 hours.
Economic Measures
Key Policy Responses as of June 3, 2021
FISCAL
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Key measures include: (i) targeted investments to strengthen the health system following the activation of the national contingency plan in coordination with the WHO to protect against the pandemic; (ii) expansion of social assistance to the most vulnerable, including cash-transfers and in-kind necessities to the poorest and those unemployed; and (iii) supporting private sector through tax relief, suspension of government fees and waived social contributions. As of end of July, medicine and medical equipment were exempted from paying import duties.
MONETARY AND MACRO-FINANCIAL
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The central bank provided monetary policy support and acted to safeguard financial stability. The central bank is providing liquidity to the commercial banks, reaching MGA 609 billion (about 1.2 percent of GDP) at end December2020 and relaxed some mandatory deposit limits to encourage banks to defer delayed payments on existing loans and increase lending to businesses.
EXCHANGE RATE AND BALANCE OF PAYMENTS
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The authorities are maintaining the flexible exchange rate regime. Based on the latest available data, the central bank has made interventions in response to market tensions on the foreign exchange market and large fluctuations in the EUR-USD exchange rate, and in 2020 the exchange rate depreciated respectively by about 5 percent vis-à-vis US$ and 16 percent vis-à-vis EUR€.
