Madagascar Economy Profile - Doing Business 2019
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Doing Business 2019 Madagascar
Economy Profile
Madagascar
Page 1
Doing Business 2019 Madagascar
Economy Profile of Madagascar
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Madagascar
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Madagascar
Ease of Doing Business in DB 2019 Rank
Region Sub-Saharan Africa
190 1
Madagascar
Income Category Low income 161
DB 2019 Ease of doing business score
Population 25,570,895
0 100
City Covered Antananarivo 48.89
DB 2019 Ease of Doing Business Score
0 100
79.58: Mauritius (Rank: 20)
70.31: Kenya (Rank: 61)
55.53: Mozambique (Rank: 135)
51.61: Regional Average (Sub-Saharan Africa)
48.89: Madagascar (Rank: 161)
48.66: Comoros (Rank: 164)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Madagascar
1
28
55
81
82
Rank
99
109
124
132 136
138
136
150
162
163
183 185
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Madagascar
100
88.10
80
62.62 60.95
Score
60
51.67
44.72 46.55
40.00
40 37.54
34.24
22.48
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Madagascar
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Madagascar
Starting a Business - Madagascar
Standardized Company
Legal form Socièté a Responsabilité Limitée (SARL)
Paid-in minimum capital requirement MGA 0
City Covered Antananarivo
Indicator Madagascar Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedure – Men (number) 5 7.4 4.9 1 (New Zealand)
Time – Men (days) 8 23.3 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 33.0 44.4 3.1 0.0 (Slovenia)
Procedure – Women (number) 5 7.6 4.9 1 (New Zealand)
Time – Women (days) 8 23.4 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 33.0 44.4 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 10.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Madagascar and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
94.34: Mauritius (Rank: 21)
88.10: Madagascar (Rank: 81)
82.41: Kenya (Rank: 126)
78.52: Regional Average (Sub-Saharan Africa)
72.25: Comoros (Rank: 164)
67.56: Mozambique (Rank: 174)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Madagascar
Figure – Starting a Business in Madagascar – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
8 35
7 30
Cost (% of income per capita)
6
25
Time (days)
5
20
4
15
3
10
2
1 5
0 0
1 2 3 4 *5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Madagascar
Details – Starting a Business in Madagascar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Apply for a tax identification number (NIF) and verify the necessary forms 1 day no charge
and registration fees at the One-Stop Shop (EDBM)
Agency : EDBM
A new company can be registered at the One-Stop Shop (EDBM). Upon arrival at
EDBM, the entrepreneur needs to stop at the front office to apply for a tax identification
number (NIF), for verification of the documents to be submitted for registration and of
the amount to the paid to the tax authority.
The front office will apply for the tax identification number online for the applicant
(through a process called NIFONLINE) and will verify whether the forms were correctly
filled and that no information is missing. The forms are available online and the
entrepreneurs can either print them at home or obtain them at the registry.
2 Register the company, pay the registration fees and apply for a license 4 days see comments
(carte professionnelle), for registration at INSTAT and for the publication of
a notice of company incorporation
Agency : EDBM
The entrepreneur must apply for company registration at EDBM, by presenting the
company's articles of association, paying the registration fees in cash and applying for a
license and registration at the National Statistics Institute (Institut National de la
Statistique Malgache - INSTAT) at EDBM.
Alternatively, the entrepreneur has the option to pay the registration fees with a nominal
check previously obtained at a bank.
Fee schedule:
• Commercial registration fee: MGA 16,000
• Deed registration costs: MGA 2,000
• Institut National de la Statistique Malgache (INSTAT) registration costs: MGA 40,000
• Tax Authority registration cost: 0.5% of share capital
• Provisional income tax: MGA 320,000
Once the registration is finalized, the entrepreneur will receive the incorporation
document called the K-Bis. This is the document that compiles the relevant information
regarding the company. It includes the tax ID, the registration number and the date of the
newspaper publication.
3 Register employees with Social Security 1 day no charge
Agency : EDBM
The company must register its employees with the National Social Security Fund (Caisse
Nationale de Prevoyance Sociale), and file two copies of an application form (bulletin
d'adhesion nouveau membre) along with a list of names of all employees and their
identity cards to enroll for health insurance.
4 Register employees for health insurance 1 day no charge
Agency : OSTIE
Registration with an insurance scheme is mandatory.
OSTIE is the public insurance scheme and registration is free of charge. However,
companies can choose to offer the services of a private insurance scheme. In case they
chose to do so, the additional cost is not deductible from taxes.
5 File a declaration of start of activities to the Labor Inspectorate 1 day (simultaneous no charge
Agency : Labor Inspectorate with previous
As foreseen in art. 251 of the Labor Code, new companies shall submit a declaration of procedure)
start of activities to the Labor Inspectorate. This declaration can be submitted after the
employee registration with Social Security.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Madagascar
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Madagascar
Dealing with Construction Permits - Madagascar
Standardized Warehouse
Estimated value of warehouse MGA 67,404,240.20
City Covered Antananarivo
Indicator Madagascar Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 16 14.7 12.7 None in 2017/18
Time (days) 185 145.7 153.1 None in 2017/18
Cost (% of warehouse value) 36.3 8.8 1.5 None in 2017/18
Building quality control index (0-15) 6.0 8.5 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Madagascar and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
82.51: Mauritius (Rank: 15)
72.57: Mozambique (Rank: 64)
69.22: Comoros (Rank: 85)
63.49: Kenya (Rank: 128)
58.59: Regional Average (Sub-Saharan Africa)
37.54: Madagascar (Rank: 183)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Madagascar – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
30
180
160
25
Cost (% of warehouse value)
140
120 20
Time (days)
100
15
80
60 10
40
5
20
0 0
1 *2 *3 4 5 6 7 8 9 10 11 12 * 13 14 15 16
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Madagascar
Figure – Dealing with Construction Permits in Madagascar and comparator economies – Measure of Quality
15 14.0
11.0
Index score
10 9.0 8.5
6.0
5 4.0
0
Madagascar Comoros Kenya Mauritius Mozambique Sub-Saharan Africa
Details – Dealing with Construction Permits in Madagascar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain property registration certificates 21 days MGA 8,000
Agency : Land Administration Department (Service des Domaines)
BuildCo must obtain four copies of all the property registration documents.
2 Obtain official topographical plan of the plot 21 days MGA 20,000
Agency : Topographical Services (Service Topographique)
Four copies of the official topographical plan for the property with coordinates are
needed.
3 Obtain geo-technical study of the land 11 days MGA 17,353,125
Agency : Private licensed company
A soil test is a necessary step for the development of the project. The soil investigation
helps to determine the bearing capacity of the land, which helps to determine the load
capability, the type and depth of foundation, in order to make sure to select a suitable
construction technique.
4 Request an alignment permit from the Commune of Antananarivo 1 day no charge
Agency : Commune of Antananarivo
The alignment permit is a mandatory document to obtain a building permit. The request
for this permit is made on a standard form and is submitted by the owner, in duplicate, to
the City Council (Commune d’Antananarivo), along with proof of ownership.
The planning officer will prepare a sketch of alignment and a report (procès verbal)
detailing the constraints of alignment with the road allowances of the Master Plan
(delimitation of the unbuildable portion). The file is then sent to the Régional de
l’Aménagement du Territoire et de la Ville, which verifies that the file is in conformity
with the rules of urban planning and the provisions of the Master Plan of the Commune.
The file is then returned to the Town Hall.
A receipt showing that the request was made will be given back to BuildCo and at the
same time, an appointment date will be provided for the site visit with the owner and 2
inspectors.
5 Receive inspection from SRAT 5 days no charge
Agency : SRAT (Provincial Service of Land)
The inspection is carried out by the Provincial Service of Land (Développement
Aménagement du Territoire, SRAT) and the land owner. These inspections are necessary
to obtain SRAT’s approval of the building permit. In addition to the first inspection
before the start of construction work, SRAT may carry out several other random
inspections. Technical directives for construction work include, among other things, a
check of the center line of the street, the street boundaries, blind walls, and openings in
walls.
6 Obtain the alignment permit from the Commune of Antananarivo 20 days MGA 97,500
Agency : Commune of Antananarivo
The Urban Commune checks the design plans and supporting documents to ensure that
no documents are missing.
Page 11Doing Business 2019 Madagascar
7 Request and obtain the planning requirements from SRAT 7 days no charge
Agency : Service Regional de l'Amenagement du Territoire (SRAT)
Once the alignment permit has been obtained, BuildCo must obtain the planning
requirements (presciption d’urbanisme). This planning requirement document is obtained
from the Service Regional de l'Amenagement du Territoire (SRAT) in one week. This
document is necessary to show that the entrepreneur has the right to build on that land.
The required documents are:
- Official plan of the land with laborde coordinates (1 copy)
- Certificate of legal status that is less than 3 months old (1 copy)
- Duly complete form to request the prescription d'urbanisme obtained at the City Hall
Analakely (1 copy)
- Alignment authorization (issued by the CUA)
- Alignment Sketch (issued by the CUA)
8 Request and obtain building permit 45 days MGA 3,951,800
Agency : Commune of Antananarivo
The building permit is now completed in 3 steps:
(i) obtain the alignment permit
(ii) obtain the planning permission certificate
Once these two steps are completed, BuildCo may now request the building permit and
submit all necessary documents. Only completed applications are accepted at the
Commune Urbaine d'Antananarivo (CUA- one-stop shop).
The cost is calculated based on the volume of the building before SPAT issues its opinion.
The cost can vary from MGA 1,000.00 to MGA 2,000.00 per cubic meter.
Documents to be provided are:
- Alignment permit issued by the CUA
- Official survey plan of the land with laborde coordinates obtained from the Topographic
Service Anosy (1 copy)
- Proof of ownership that is less than 3 months old (1 copy)
- Alignment with prescription planning permission (1 copy)
Documents for the applicant:
- Technical data sheet completed and signed by architect (1 copy)
- Certified copy of the ID (carte d’identite nationale) (1 copy)
- 2 stamped and addressed envelopes
- Pictures of the land and its surroundings
- All required plans including the site plan with the septic tank location clearly marked
The fee for a building permit is fixed by the "arrêté municopal numéro 120/CUA/CAB/15
portant fixation des droits et taxes fiscaux et parafiscaux de la Commune urbaine
d'Antananarivo pour l'année 2018": The cost per square meter is MGA 3,000 besides a
general fee of MGA 25,000 of administrative fees and MGA 25,000 for encroachment
permits (permission de voirie). Therefore, the cost breakdown is as follow: MGA 3,000 *
1300,6 +50,000.
9 Inform SRAT upon completion of construction 1 day no charge
Agency : Service Regional de l'Amenagement du Territoire (SRAT)
BuildCo must inform Service Regional de l'Amenagement du Territoire (SRAT) in person
upon completion of construction and request the final inspection in order to obtain the
Occupancy permit. (Certificat d'Habiter).
At that time, a certified copy of the building permit as well as a certified copy of the
Nationl ID must also be provided in order to make that request
10 Receive final inspection at the end of construction by SRAT 1 day no charge
Agency : SRAT (Provincial Service of Land)
The final inspection and approval by SRAT are required to obtain the certificate of
occupancy.
11 Receive inspection by fire protection service 1 day no charge
Agency : Fire Service (Pompiers)
12 Obtain occupancy certificate 30 days MGA 235,000
Agency : Commission
This authorization is mandatory and must be obtained prior to occupying a new building.
It is also useful for obtaining an official number for the building and ensuring that a
building permit has been issued for the said building.
Apply for water connection 1 day no charge
13 Agency : JIRAMA
14 JIRAMA inspects the building to prepare an estimate 1 day no charge
Agency : JIRAMA
BuildCo receives the cost estimates 2 weeks after JIRAMA inspects the building and can
pay them immediately and acquire the connection one week later.
Page 12Doing Business 2019 Madagascar
15 Request and obtain permission for water connection from Commune of 30 days MGA 285,000
Antananarivo
Agency : Commune of Antananarivo
Once JIRAMA has provided both the cost estimate and the survey plan (plan croquis de
JIRAMA), BuildCo must request an authorization from the Municipality to connect to
water. Without this authorization, JIRAMA cannot proceed with the connection work.
16 Obtain water connection 21 days MGA 2,500,000
Agency : JIRAMA
The fee for water connection is around MGA 2.5 million.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Madagascar
Details – Dealing with Construction Permits in Madagascar – Measure of Quality
Answer Score
Building quality control index (0-15) 6.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect; Civil
servant reviews
plans.
Quality control during construction index (0-3) 0.0
What types of inspections (if any) are required by law to be carried out during construction? No inspections 0.0
(0-2) are legally
required during
construction..
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice during
construction.
Quality control after construction index (0-3) 2.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 0.0
What are the qualification requirements for the professional responsible for verifying that the University degree 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering.
What are the qualification requirements for the professional who supervises the construction University degree 0.0
on the ground? (0-2) in engineering,
construction or
construction
management.
Page 14Doing Business 2019 Madagascar
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Madagascar
Getting Electricity - Madagascar
Standardized Connection
Price of electricity (US cents per kWh) 15.7
Name of utility Jiro sy rano malagasy (JIRAMA)
City Covered Antananarivo
Indicator Madagascar Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 6 5.2 4.5 3 (25 Economies)
Time (days) 450 112.0 77.2 18 (3 Economies)
Cost (% of income per capita) 4866.9 3456.5 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 0 1.6 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Madagascar and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
86.24: Mauritius (Rank: 34)
76.80: Kenya (Rank: 75)
71.02: Mozambique (Rank: 100)
57.72: Comoros (Rank: 139)
49.00: Regional Average (Sub-Saharan Africa)
22.48: Madagascar (Rank: 185)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Madagascar
Figure – Getting Electricity in Madagascar – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
450 4500
400 4000
Cost (% of income per capita)
350 3500
300 3000
Time (days)
250 2500
200 2000
150 1500
100 1000
50 500
0 0
1 *2 3 *4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Madagascar and comparator economies – Measure of Quality
8
7
6
6
Index score
5
4 4
4
3
2 1.6
1
0 0
0
Madagascar Comoros Kenya Mauritius Mozambique Sub-Saharan Africa
Page 17Doing Business 2019 Madagascar
Details – Getting Electricity in Madagascar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to JIRAMA and await estimate 15 calendar days MGA 0
Agency : Jiro sy rano malagasy (JIRAMA)
The application can be submitted by mail, letter, or in person at one of the utility’s
agencies. The client will need to attach some documents to the application, with the
client’s personal and professional details, a description of the works and of the electrical
installation, as well as a notarized Signing Authority (“pouvoir de signature”).
2 Receive external inspection by JIRAMA 1 calendar day MGA 0
Agency : Jiro sy rano malagasy (JIRAMA)
When the utility has received the application, it inspects the client’s site to determine the
specifics of the connection and prepare an estimate of the connection fees.
3 Obtain right of way from local authority 50 calendar days MGA 60,000
Agency : Local authority (Commune)
The customer needs to obtain a right of way from the 'Commune' before paying the
estimate so that the utility can carry out the external works of expanding the overhead
network.
4 Buy material for external works from local store 18 calendar days MGA 0
Agency : Local store
The material for a 140-kVA connection is usually not available in the utility’s stock. The
client can then choose to either buy the material from a local store or ask the utility to
obtain it. Preference is to buy material on the local market.
5 Obtain testing of material and await completion of external works 19 calendar days MGA 55,748,923
Agency : Jiro sy rano malagasy (JIRAMA)
Only the utility is in charge of the external works. The client needs to pay the connection
fees at the utility’s offices for the works to start. In this case an expansion of the network
(installation of a unit substation) is necessary. JIRAMA tests the client's material before
carrying out the works to check they are conform to its standards. The material is
inspected to ensure its conformity to the utility's technical standards before the works
start.
6 Sign supply contract and await final connection 366 calendar days MGA 9,801,267.76
Agency : Jiro sy rano malagasy (JIRAMA)
The final connection is carried out after the client has signed a supply contract and paid
an advance on consumption. The installation of the meter is carried out by the utility.
Madagascar had suffered from some capacity issues over the last few years. New power
projects completed recently (JIRAMA installed an extra 66MW on Tana interconnected
network) did however, increase the existing capacity so that more customers can obtain
supply. Despite the availability of supply, JIRAMA still needs to deal with a back-log of
applications submitted over the many years when obtaining a connection was not yet
possible. The utility also accepts new applications and prepares estimates of connection
costs for those.
Delays are due to treating old and new applications and the lack of meters.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Madagascar
Details – Getting Electricity in Madagascar – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.ore.mg/
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2019 Madagascar
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2019 Madagascar
Registering Property - Madagascar
Indicator Madagascar Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 6 6.2 4.7 1 (4 Economies)
Time (days) 100 53.9 20.1 1 (New Zealand)
Cost (% of property value) 9.1 7.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 8.5 8.8 23.0 None in 2017/18
Figure – Registering Property in Madagascar and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
78.74: Mauritius (Rank: 35)
57.70: Comoros (Rank: 114)
55.97: Kenya (Rank: 122)
52.94: Mozambique (Rank: 133)
52.62: Regional Average (Sub-Saharan Africa)
44.72: Madagascar (Rank: 162)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Madagascar – Procedure, Time and Cost
Time (days) Cost (% of property value)
100 6
5
Cost (% of property value)
80
4
Time (days)
60
3
40
2
20
1
0 0
1 *2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2019 Madagascar
Figure – Registering Property in Madagascar and comparator economies – Measure of Quality
30
25
Index score
20 18.0
16.0
15
10 8.5 8.8
7.0 7.5
5
0
Madagascar Comoros Kenya Mauritius Mozambique Sub-Saharan Africa
Details – Registering Property in Madagascar – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request two copies of the certificate of registration and the legal situation 21 days MGA 4,000; (MGA
of the land at the Land Registry 2,000 per copy)
Agency : Land Registry (Service des Domaines et de la Conservation Foncière)
This certificate is an extract from the property registry books and must be obtained in the
past three months maximum. It gives the situation of previous registrations on the
Registry books and indicates the identity of the current owner of the land. It also shows
any encumbrances on the property. According to Article I of the Decree No. 21
020/2012-VPDAT/SG/DGSF of the Deputy Prime Minister in charge of Development
and Planning, effective August 2, 2012, the cost of a copy of the certificate is MGA
2,000.
2 Request two topographical extracts with coordinates at the ‘Service de la 21 days MGA 10,000; (MGA
Topographie’ 5,000 per plan)
Agency : Topographic service (Service de la Topographie)
The coordinates allow the marking of the property and are expressed in ‘x’ and ‘y’. The
plan has to be signed by both parties and is annexed to the request for authorization of the
real estate transaction. This extract can also be traced by a sworn surveyor to delimit the
part of the land to be ceded, in case the operation does not cede the entire property.
According to Article 14 of Decree No. 21 021/2012-VPDAT/SG/DGSF of the Deputy
Prime Minister in charge of Development and Planning, effective August 2, 2012, the
rates are:
-1,000 MGA by plan size 720 mmx 1020 mm,
- 1,000 MGA by plan size 520 mm X 720 mm,
- 1000 MGA by plan size 420 mm X 620 mm
-500 MGA per plane for size 320mm X 420 mm
-500 MGA per plane for the format 210 X 297 mm
Nevertheless, the cost and time noted here are for a simple plan, intended for a transfer
whereby the buyer is not planning on making changes or constructions to the property.
For more complex uses of the property, a more detailed plan would have to be drawn,
costing up to MGA 5000 (which is more aligned with the case study assumptions).
3 Request authorization to conduct a real estate transaction at the Regional 11 days no charge
Planning Service (Ambatomena Antananarivo)
Agency : Regional Planning Service (Ambatomena Antananarivo)
The administrative document requested indicates, by way of a report on the urban plan, if
the property is located in specific zones and if it has zoning issues or encumbrances. It is
necessary to attach the certificate of the legal situation (less than 3 months old) and the
copies of the plan. Only the Director of the Urban Planning Department is authorized to
approve the file. Sometimes, if the Director is away, this can cause delays.
Page 22Doing Business 2019 Madagascar
4 Notary drafts and notarizes the sale agreement 3 days MGA 1,361,063.6;
Agency : Notary (Notary fees are
In 2007, Madagascar adopted a new law: "Loi 2007.026 du 12/12/2007 portant statut du assessed in
notariat a Madagascar". This law, published in the Official gazette Nº 3181 on April 14th, installments for the
2008, makes it mandatory to use the services of a notary for all property transaction for a
administration
value above 15 000 000 MGA.
account multiplied by
the coefficient 1 or
Notary fees are assessed as follows according to the Arrêté n°30 286/2011 of October 17,
2011 available at http://www.notaires.mg/?p=51: CA1:
3% from 0 to
The rate varies depending on the administration account multiplied by a coefficient which 10,000,000 MGA
is calculated as follows: 2.5% from
1) for the administration account multiplied by the coefficient 1 or CA1: 10,000,001 MGA to
- from 0 to 10,000,000 MGA: 3% 20,000,000 MGA
- from 10,000,001 MGA to 20,000,000 MGA and up 2.5% 2% from 20,000,001
- from 20,000,001 MGA to 40,000,000 MGA and up 2% MGA to 40,000,000
- above 40 million MGA: 1.5% MGA
2) for the administration account multiplied by the coefficient 2 or CA2:
1.5% above 40
- from 0 to 10,000,000 MGA: 5%
million MGA)
- from 10,000,001 MGA to 20,000,000 MGA: 4%
- from 20,000,001 MGA to 40,000,000 MGA: 3.5%
- above 40 million MGA: 2%
The cost for notarizing the sale agreement corresponds to the CA1 range calculation.
5 Registration of sale agreement at the Office of Property Registry 4 days MGA 3,370,212.01;
Agency : Tax Authority (5 % property value
Fiscal procedure for paying the registration fees on the property and the tax on the for registration fees)
appreciation of the property. Fees are determined by the General Tax Code 2013 Article
2.2.39
Capital gains tax for companies transferring property is no longer applicable according to
the Loi des Finances 2007.
6 Request transfer to be recorded in the books at the Land Registry 60 days MGA 1,363,084.8;
Agency : Land Registry (Service des Domaines et de la Conservation Foncière) (2% property value
The property right is not transferred until it has been transcribed on the books at the Land (transfer tax) + MGA
Registry. When the notary or the buyer file for registration at the Land Registry, the 15,000 (fixed fee))
"Duplicata" must be attached to the sale and purchase agreement duly notarized. Once the
transcription is done, the Registrar will give the "Duplicata" to the new buyer with his
name written as the new owner of the property. According to Article I of the Decree No.
21 020/2012-VPDAT/SG/DGSF of the Deputy Prime Minister in charge of Development
and Planning, effective August 2, 2012, the cost is 2% + fixed fee of 15,000 MGA.
Takes place simultaneously with previous procedure.
Page 23Doing Business 2019 Madagascar
Details – Registering Property in Madagascar – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 1.0
What is the institution in charge of immovable property registration? Service des
Domaines et de
la Conservation
Foncière
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Service de
Circonscription
Topographique
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 4.5
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, on public 0.5
publicly available–and if so, how? boards
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5
immovable property registration in the largest business city made publicly available–and if boards
so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a legally Yes, on public 0.5
binding document that proves property ownership within a specific time frame–and if so, how boards
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the Yes 0.5
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Anyone who 0.5
pays the official
fee
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, on public 0.5
and if so, how? boards
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, on public 0.5
specific time frame—and if so, how does it communicate the service standard? boards
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