Madagascar, the world’s fifth-largest island, hosts 95% of its reptiles, 89% of plant species, and 92% of mammals. Also, the country has rich natural resources: gold, manganese, fertile land, forests, and fisheries.
Agriculture makes up around 24% of the GDP and employs 80% of the population, mainly through rice and vanilla. Forests and fisheries also support tourism and exports. Yet, 75% of the population still lives below the poverty line, making it one of the poorest countries in the world.
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Madagascar’s Natural Resources And Their Locations
Here are the resources that have been discovered in Madagascar, including their locations:
| Natural Resources | Locations |
|---|---|
| Chromite | Ranomena (Southeast). |
| Ilmenite (Titanium Ore) | Tolagnaro (Southeast), Morombe (West), Tambohorano (West). |
| Nickel | Ambatovy (near Antananarivo-Tomasina railroad), Fenoarivo, Mananjary (East coast). |
| Cobalt | Ambatovy (near Antananarivo-Tomasina railroad). |
| Gold | Graphite System, Vohibory System, quartz reefs and veins in greenstone belts, and alluvial deposits along riverbeds. |
| Graphite | Graphite System across the island. |
| Copper | Ambatovarahina, Besakoa, Daraina. |
| Iron Ore | Soalala, Bekisopa, Fasintsara, Fenoarivo, Ambohimahavonjy, Alaotra, Maevatanana, Mantasoa. |
| Coal | Besalampy (Northwest of Toliara). |
| Zircon and Monazite | Tolagnaro (Southeast), Mahajanga, Morombe. |
| Bauxite | Manantenina (Southeast), Farafangana (Southeast), and Ankaizina (Northwest of Antananarivo). |
| Precious Stones | Ilakaka (Southwest), Andilamena (Central East), Vatomandry (East). |
| Rare Earth Elements | Ambatofinandrahana, Berere, Itasy, Maharidaza. |
| Manganese | Ampanihy, Bekily, Lac Alaotra, Mahamvo. |
Madagascar’s Natural Resource Discoveries
Madagascar produced around 84,910 ounces of gold in 1904. Production declined slightly to 76,197 ounces in 1905. Gold was found in quartz reefs and alluvial riverbeds. In the early 1900s, Madagascar became a major source of high-quality graphite, with deposits spread across the island.
By the mid-20th century, large ilmenite deposits were found near Tôlan̈aro, leading to expanded operations during the colonial period and later under Rio Tinto’s QIT Madagascar Minerals project.
In the 2000s, the Ambatovy nickel-cobalt deposit was discovered near Toamasina. One of the world’s largest lateritic nickel mines, it began production in 2014 and operates as a joint venture between Sherritt International, Sumitomo Corporation, and Korea Resources Corporation.
Between 1967 and 2016, arable land expanded by about 1.15% annually, with agriculture playing a key part in Madagascar’s economy. By 2016, roughly 6% of the country’s land was arable.
From 1999 to 2010, 615 new species were discovered in Madagascar, including 41 mammals and 61 reptiles, reinforcing its status as a biodiversity hotspot.
Over 2,300 native plants are used medicinally, though 90% are commercially untapped. Recent studies identified rare earth elements in pegmatites across Ambatofinandrahana, Berere, Itasy, and Maharidaza.
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Viability Of Madagascar’s Natural Resources
Madagascar’s natural resources are economically viable based on factors like extraction costs, global demand, and potential revenue.
The Ambatovy nickel-cobalt mine, one of the largest globally, continues to support the economy despite setbacks from volatile commodity prices.
In 2020, mining made up around 3% of the nation’s GDP, with nickel and cobalt being the major exports. However, long-term viability depends on sustainability.
Deforestation and habitat loss driven by agriculture and mining pose serious threats to Madagascar’s unique biodiversity. Roughly 90% of the island’s original forest cover has been lost.
Export Potential Of Madagascar’s Natural Resources
Madagascar’s economy depends on natural resources, with mineral exports, agriculture, and fisheries continuing to lead export earnings:
| Resources | Export Contribution | Key Markets |
|---|---|---|
| Nickel | 24.7% | Asia (China, Japan), Europe |
| Cobalt | 6.2% | Asia (China), Europe |
| Vanilla | 17% | U.S., Europe |
1. Mineral Exports
Nickel and cobalt were key contributors, with nickel contributing up 24.7% and cobalt 6.2% of total exports. Together, they generated around $1.3 billion. Major buyers included China, Japan, and Germany.
While global demand rose due to the energy transition, falling nickel prices and infrastructure restrictions limited growth.
Ilmenite continued to support Madagascar’s status as a leading global supplier. Demand came from Asia and Europe, where it is used in titanium dioxide for paint and coatings.
Gold exports resumed in 2024 following the 2023 ban lift, reaching 10 tons. A new UAE-backed refinery, expected in 2025, could boost capacity to 15 tonnes.
The UAE and Europe were the top buyers. While high prices supported revenue, illegal mining and regulatory issues created obstacles.
2. Agricultural Exports
Vanilla held strong at 17% of total exports, valued at $500 million. The U.S. and Europe drove demand in food and cosmetics markets.
Prices rose during the 2024–2025 season, though volatility and synthetic alternatives threatened stability. Coffee and cloves are notable in European and Asian spice markets.
3. Fisheries
Tuna and shrimp exports brought in about $100 million, with strong demand from Spain, France, and Japan.
Economic Impact Of Madagascar’s Natural Resources
Madagascar’s economy relies on its natural resources, with mining, agriculture, and fisheries being the main sectors driving growth, employment, and export revenue.
1. Contribution To GDP
The mining sector contributes around 10% to the GDP, driven by exports of nickel, cobalt, and other minerals. In 2024, mining exports reached approximately $1.5 billion, according to the World Bank.
Agriculture accounts for 30% of the GDP. It supports the majority of the population through small-scale farming, with rice, maize, and vanilla as key products.
Vanilla is particularly important as a major export. The fisheries sector adds about 5% to the GDP and generates around $100 million in export revenue in 2024, based on FAO data.
2. Employment And Income Generation
Agriculture is the largest, engaging nearly 80% of the workforce. Most workers are involved in subsistence or small-scale farming.
The mining sector employs about 5% of the workforce, though informal mining likely involves more people. Fisheries support roughly 10% of workers, mostly in artisanal operations near the coast.
3. Export Revenue
Minerals such as nickel, cobalt, and graphite accounted for over 30% of Madagascar’s total exports in 2024, according to the ITC Trade Map.
Vanilla is the country’s top agricultural export, making up about 17% of total exports, followed by coffee and cloves. In the fisheries sector, tuna and shrimp are the primary exports.