Poverty headcount ratio at $2.15 a day (2017 PPP) (% of population)
Equivalent to 580,155 Malagasy ariary for a typical family in rural Madagascar per month.
Global Living Wage Coalition, 2022
Employment in agriculture (% of total employment) (modeled ILO estimate)
Agriculture, forestry, and fishing, value added (% of GDP)
Madagascar has a population of roughly 27 million, of which 62% lives in rural areas and the remaining 38% in urban centers. Although agriculture accounts for almost 64% of total employment, it is a sector that contributes only 4% to the country’s GDP.
Madagascar has one of the highest poverty rates in the world, with approximately 77% of the population living with less than 1.90$ a day. Smallholders constitute the majority of farmers in the country and most of them depend on agriculture for their subsistence. Climate conditions in Madagascar are particularly harsh for farming, which causes yields to be highly uncertain. This is especially a problem for the southern part, where plots are usually below 1 hectare and agriculture serves merely as a source of subsidence. Poor yields are a major threat for farmers to meet their household needs.
The top produced crops in Madagascar are rice, sugar cane, cassava, milled rice and sweet potatoes. As for exports, the top products in terms of quantity are dry beans, shelled groundnuts, raw sugar, prepared fruit, cloves and cocoa beans.
Minimum wage in Madagascar varies according to the skill level and the tenure size of agricultural and non-agricultural workers.
Minimum wages are barely above the poverty level defined by the World Bank, and yet they are often not respected. In the informal sector, which accounts for 85% of the workforce, low wages and excessive overtime are common.
The Global Living Wage Coalition has developed a Living Income Reference Value study for Madagascar, based on the Anker methodology.
The Anker Living Income Reference Value is estimated at 580,155 Malagasy ariary (130 EUR) per month. This value refers to the monthly cost of a basic but decent standard of living for a typical rural Malagasy family. The Anker Living Income Reference Value is 51% higher than the income of a rural family relying on the national minimum wage. It is also 164% higher than the family income at the average agricultural wage.
Living income estimate for a typical family in rural Madagascar to afford the monthly cost of a decent standard of living. Global Living Wage Coalition, 2020.