Madagascar is not usually the first place that comes to mind for global investors. The island nation has long been a frontier market—rich in resources and opportunity, yet relatively unexplored by foreign capital. That is precisely what Thomas Ottosen Jr. sees as its strength. As the founder and CEO of Madagascar Invest, Ottosen has made it his mission to demystify this complex, promising market for outsiders and to build bridges of trust and transparency in the process. From his base in Antananarivo, he is helping rewrite the narrative of Madagascar from an aid-dependent economy to an investment frontier brimming with potential.

For years, foreign direct investment into Madagascar remained modest, hampered by political uncertainty and bureaucratic hurdles. In 2023, the country received just $415 million in FDI—a small sum compared to its untapped size. Infrastructure gaps, unclear property laws, and past instability had kept many investors away. Yet Ottosen, a Danish-born entrepreneur who moved to Madagascar in 2016, believes this “quiet potential…waiting for the right partners to come in and unlock it” far outweighs the risks. “Madagascar hasn’t seen the scale of investment it deserves,” he has noted, pointing to its wealth of natural resources and human capital. In other words, the foundation is there—what’s needed is someone to guide investors through the maze and help write the island’s next chapter.

Madagascar: A Frontier Market with Potential

A serene sunset over a coastal property in Madagascar. The country’s unspoiled landscapes and undeveloped real estate are part of its appeal to adventurous investors. Madagascar is often described as a classic frontier market: an economy with vast untapped potential across sectors like business, tourism, export and real estate. Many basic goods and services common elsewhere are not yet available here, which means foreign investors have opportunities to fill critical gaps. The country’s unique biodiversity and growing consumer base add to its allure, but the challenges of doing business cannot be ignored.

Poor infrastructure, complex bureaucracy, and historically opaque property titles have all posed real obstacles to investment. The Malagasy government has introduced reforms to simplify business – from easier company creation to tax breaks and special economic zones – but many of these measures have yet to fully take hold. Meanwhile, regional players like Mauritius and major economies such as China and France have made inroads, particularly in mining, agriculture and textiles. Still, the market remains far from saturated. For those willing to venture in early, Madagascar offers a rare chance to shape emerging industries. “Being early means having the first pick of opportunities, shaping markets, setting benchmarks,” Ottosen explains. He argues that Madagascar “isn’t the next big thing, it could be the next big thing” – but only “if the right partners come in with the right mindset”.

From Aid to Investment: Ottosen’s Vision

Thomas Ottosen Jr.’s journey to becoming a champion of Malagasy investment began on a very different path. Originally from Denmark, he arrived in Madagascar as a development worker involved in sustainable charity projects. What he saw on the ground changed his outlook. Frustrated by the “futility of many well-meaning charitable projects due to bureaucracy and other obstacles,” Ottosen realized that a new approach was needed. In 2018, he pivoted from aid to enterprise, founding Madagascar Invest with a bold mission: to spur Madagascar’s development through foreign business investment. As he puts it, “We believe in trade, not aid,” reflecting his conviction that entrepreneurship and commerce – not charity alone – will drive lasting progress.

Now a Malagasy resident fluent in English, French and the local language, Ottosen has embedded himself in the community he serves. “My passion is to help international clients settle and do business on this beautiful island that I call home – Madagascar,” he says. Colleagues describe him as a quietly determined leader who combines Nordic pragmatism with a deep affection for his adopted country. That combination underpins the ethos of Madagascar Invest. The company’s vision, Ottosen explains, is to make investing in Madagascar “safe and seamless” for international clients, while also fueling local economic growth. It’s a long-term development play as much as a business: by making it easier for outsiders to invest, Ottosen aims to prove that foreign capital can succeed where decades of aid often fell short.

A One-Stop Gateway for International Investors

To turn that vision into reality, Madagascar Invest operates as a one-stop gateway for anyone looking to establish a foothold in the Malagasy market. The firm essentially takes newcomers by the hand and handles the heavy lifting of market entry. “Madagascar Invest takes care of everything for you,” its materials state, and that claim is far from hyperbole.

An artist’s rendering of a planned beachfront villa development in Madagascar. The country’s real estate sector remains largely undeveloped, presenting high-growth opportunities for investors. For a foreign entrepreneur or company, navigating local regulations can be daunting. Ottosen’s team provides end-to-end support to overcome these hurdles:

• Company Formation: Facilitating the entire business setup process in Madagascar – from legal company registration and tax identification to opening local bank accounts. The standard package even provides a local nominee director and virtual business address if needed, ensuring compliance with all requirements so investors can operate from day one.

• Real Estate Assistance: Guiding investors through property acquisitions with full due diligence and legal support. Madagascar’s real estate market can be “difficult to navigate and perilous for the inexperienced buyer,” rife with scams and red tape. Madagascar Invest steps in to make property purchases “smooth, secure, and transparent” – verifying land titles, handling bureaucracy, and even structuring deals so that foreigners can safely lease land on 99-year terms (effectively the equivalent of ownership).

• Strategic Guidance: Leveraging local expertise to identify promising opportunities and forge partnerships. Ottosen’s team doesn’t just drop investors into Madagascar and walk away; they act as advisors and connectors. “We see ourselves as enablers… We help navigate regulations, build partnerships with reliable local players, and de-risk the process,” Ottosen told The CEO Magazine. That means offering clients candid, on-the-ground insight about which sectors are opening up – from agribusiness and renewable energy to tourism and mining – and how to approach them for sustainable success.

One example of the firm’s holistic approach is in real estate. Madagascar Invest maintains a curated selection of real estate opportunities in Madagascar for its clients, from beachfront land to city properties. Crucially, the company vets each listing to ensure it has a “true and legal title,” and handles the paperwork so that every property is correctly registered in the buyer’s name. The entire transaction is structured at no direct cost to the buyer – Madagascar Invest takes its fee from the seller’s side – a model that builds confidence that the advice given is unbiased. The firm can even assist with setting up local holding companies for real estate purchases (to optimize ownership and tax advantages) and with obtaining residency permits for investors who buy property.

This soup-to-nuts service model has gained significant traction. According to company figures, Madagascar Invest has already helped register 400+ new companies in the country and facilitated over 200 property deals, securing more than 300 residency permits for foreign investors along the way. In total, Ottosen’s team has now served upwards of 1,000 clients from around the world – a remarkable number for a firm still only a few years old. That growth reflects not just a hunger for profit, but also a demand for trustworthy guidance in a market that outsiders find hard to read. Madagascar Invest has positioned itself as that trusted guide.

Building Trust through Transparency and Local Insight

Operating in a frontier market means that local insight and trust are everything. Foreign investors in Madagascar face real concerns – opaque regulations, convoluted processes, the risk of corruption – making it essential to have a dependable local partner. Ottosen understood from the outset that Madagascar Invest’s credibility would depend on total transparency and tangible results on the ground.

To build trust, the company emphasizes a “no surprises” approach. All fees and steps are disclosed upfront, and as noted, property transactions come with full legal backing and clear documentation. “We only list properties that have a true and legal title,” Ottosen assures, and deals are structured so that clients avoid common pitfalls like hidden ownership issues or informal payments. By effectively absorbing the friction of bureaucracy, his team lets investors focus on the opportunity rather than the paperwork. “Madagascar Invest exists to absorb some of that friction, whether it’s understanding local regulations, securing the right land, or helping set up cross-cultural teams,” Ottosen explains. With the right guidance in place, he argues, “the rewards far outweigh the risks” of this market.

Local knowledge is another pillar of the firm’s approach. Madagascar Invest’s staff includes Malagasy professionals and expats like Ottosen who have spent years navigating the system. The firm is headquartered in Antananarivo but has agents in several major cities across the country, extending its reach well beyond the capital. That on-the-ground network enables rapid problem-solving – whether it’s verifying a permit in a remote province or finding trustworthy suppliers for a new venture. In a country where personal networks often matter as much as formal rules, having insiders on your side can make all the difference.

Perhaps most importantly, Ottosen preaches patience and partnership. Rather than chase quick wins, he encourages investors to commit for the long haul. “It’s not about dropping capital and walking away. It’s about building sustainable, long-term value – for the investor and for Madagascar,” he says. A case in point is a recent project where Madagascar Invest helped an Indian company establish an organic spice processing facility outside Antananarivo. The venture now exports niche spice products to Europe and East Asia, turning a healthy profit while also creating local jobs and opening a new export category for the country. “That’s the kind of win-win we’re always aiming for,” Ottosen notes of the project. Each success story like this not only boosts the firm’s reputation, but also builds confidence among Malagasy officials and communities that foreign investment, done right, can be a positive-sum game.

Outlook: Turning Potential into Progress

As Madagascar gradually opens up, Thomas Ottosen finds himself at the forefront of an exciting – if challenging – moment. The government’s latest development plan emphasizes attracting more private investment, and a new investment law in 2023 has modernized some rules for foreign ventures. Global trends like the search for new supply chains and sustainable resources also play in Madagascar’s favor. But converting potential into reality will require more entrepreneurs and investors willing to take the leap – and to do so with eyes open and partners they trust.

Ottosen is optimistic. He sees a growing number of international clients who, having done their homework, are drawn by Madagascar’s “huge upside potential” and unique opportunities. These pioneers understand that entering an unfamiliar market comes down to finding the right local expertise and building trust. That is exactly what Madagascar Invest promises to provide. “Our goal is to make it accessible, secure, and profitable to invest in Madagascar,” Ottosen says – in turn making it possible for the country itself to thrive.

If early investors succeed, they won’t just earn returns; they will help set the tone for Madagascar’s economic future. “Most global investors still see Madagascar as off the radar,” Ottosen observes. But if he has his way, that is poised to change. By building confidence in a once-overlooked market, Thomas Ottosen Jr. and Madagascar Invest are transforming “Why Madagascar?” from a skeptic’s question into the next great frontier.

Sources:

1. Madagascar Invest – Company Website and FAQ (Accessed 2025)

2. The CEO Magazine – Interview with Thomas Ottosen (Published 2024)

3. Lloyd’s Bank – Madagascar Investment Climate Overview

4. Madagascar Invest – Real Estate Guide

5. Madagascar Invest – Company Profile (Thomas Ottosen Bio)

6. The CEO Magazine – “Madagascar Invest Invites Indian Investors…”

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Company Name: Madagascar Invest
Contact Person: Tsanta Fifaliana
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Country: Madagascar
Website: https://madagascarinvest.com/