Thanks to blazin’ Wi-Fi, Madagascar has found its niche as a global outsourcing hub

With the fastest internet in Africa, Madagascar has grown to be a major player in the BPO sector for french-speaking markets.


January 14, 2019

With the digital economy’s increasing demand for speedy data-processing and real-time call services, outsourcing sectors in Asia and Africa have boomed over the last 15 years.

While India and the Philippines are go-tos in markets like the US and the UK, Madagascar has become a major player in French-speaking markets, where countries like Morocco and Senegal have long-dominated.

Fastest net in the East

Per Quartz, there were only a few business processing and outsourcing (BPO) companies in Madagascar in 2005. But since the arrival of cable internet in 2009, the number has ballooned to 233.

(Fun fact: Madagascar has the fastest internet in Africa — even faster than some first world countries such as the UK, France, and Canada.)

And with speed comes an influx of new business and the demand for a healthy infrastructure around their employees.

Taking notes from Morocco

Morocco has set the standard in the BPO sector for competitive salaries, social benefits (pensions, health insurance), extensive on-the-job training, and advocating for women hires.

But, Madagascar is also 50% cheaper than Morocco, encouraging many companies in competing areas to migrate to the distant island-neighbor — Hmmm, kind of like the number of Silicon Valley startups flocking to the Midwest...

In Madagascar, BPO salaries start at $130 a month (nearly 3x the minimum wage)… not bad for a country with 75% of its citizens living on less than $1.90 a day. 

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.