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The Construction Sector in Madagascar
BY Carole Veitch
Madagascar
11 May 2018
R 10 080.00 (ZAR)  
estimated $ 730.26 (USD) *
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The Construction sector in Madagascar


The Malagasy construction sector is characterised by a high level of informality and most of the country’s micro-sized and small building firms remain unregistered. Many registered contractors collaborate with their unregistered counterparts, enlisting the services of informal sub-contractors for smaller projects and/or specific tasks. High-value projects are usually awarded to large foreign construction companies, which through their respective subsidiaries have established a presence in Madagascar. Over the past five years the contribution of the construction industry to the country’s GDP has averaged less than US$400m per annum which represents less than 4% of GDP.


Much-Needed Infrastructure Projects


Since gaining independence from France in 1960, Madagascar has experienced recurrent periods of political turmoil and instability that have derailed much-needed infrastructure development initiatives. The country remains highly dependent on financial assistance from international donors and over the period 2017-2020, US$2bn of the total donation of US$6.4bn has been specifically earmarked for the construction of transport infrastructure. Energy security supported by a reliable power supply system is widely regarded as a prerequisite for economic growth and with the rate of urbanisation averaging 4.47% per annum, demand for affordable housing in the metropolitan areas also presents opportunities for companies in the construction sector.


Report Coverage


The detailed report on the Malagasy construction sector focuses on conditions in the domestic market, the opportunities for construction companies and the factors that influence the success of the industry. Profiles for 14 companies active in the sector are provided. Included are Vision Madagascar, a local company and its subsidiary Vima Construction, which employ almost 200 people, and Colas Madagascar SA, the leading construction company which is part of the Colas Group, which, in turn is a subsidiary of French group, Bouygues SA.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 3
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 5
4. SIZE OF THE INDUSTRY 6
5. STATE OF THE INDUSTRY 10
5.1. Local 10
5.1.1. Corporate Actions 17
5.1.2. Regulations and Government Policies 17
5.2. Continental 19
5.3. International 22
6. INFLUENCING FACTORS 24
6.1. Economic Environment 24
6.2. Investment in Infrastructure 25
6.3. Urbanisation 27
6.4. Corruption 27
6.5. Input Costs 27
6.6. Cyclicality 28
6.7. Health and Safety Concerns 28
6.8. Technology, Research and Development (R&D) and Innovation 29
6.9. Labour 30
6.10. Environmental Concerns 30
7. COMPETITION 32
7.1. Barriers to Entry 32
8. SWOT ANALYSIS 33
9. OUTLOOK 34
10. INDUSTRY ASSOCIATIONS 35
11. REFERENCES 35
11.1. Publications 35
11.2. Websites 37
APPENDIX 1 39
The Global Competitiveness Index 2017-2018: Madagascar 39
COMPANY PROFILES 40
CHINA ROAD & BRIDGE CORPORATION 40
CIMELTA MADAGASCAR SA 42
COLAS MADAGASCAR SA 44
CONSTRUCT SARL 46
GENERAL ENTERPRISES 47
MADARAIL SA 49
OTI MADAGASCAR SA 51
PRO IMMO CONSTRUCTION 52
SARA ET CIE SARL 53
SINO MALAGASY DE TRAVAUX PUBLICS 54
SOCIETE DE BATIMENT ET TRAVAUX SA 55
SOCIETE DE CONSTRUCTIONS ET DE BATIMENTS 56
VINCI SA 58
VISION MADAGASCAR 71