To attract foreign direct investment in sustainable tourism in Madagascar, several risks must be addressed including regulatory hurdles, economic instability, and government unreliability issues like corruption. The World Bank's Private Sector Window and public-private partnerships can help reduce investment risks in tourism projects. A "cascade approach" to sustainable infrastructure finance moving from commercial to public and concessional resources can mobilize capital for viable projects. Guarantees from the Madagascar government can also help attract investment by reducing risks. Green bonds and catastrophe bonds are suitable financial instruments to promote environmentally friendly and climate-resilient tourism development.

1. Attracting FDI in the field of sustainable
development in Madagascar

2. Major sightseeing of Madagascar:
1. Ranomafana National Park
2. Masoala National Park
3. Andasibe-Mantadia
4. Royal Hill of Ambohimanga
5. Ifaty
6. Avenue of the Baobabs
7. Nosy Be
8. Tsingy de Bemaraha
9. Isalo National Park
10. Ile Sainte Marie

3. 10 years growth
Madagascar's International tourism, number of arrivals had a positive growth of 313
(%) in the last 10 years from (2002 to 2012).
Last 10 years average
Madagascar had an average International tourism, number of arrivals of 234 (
thousands of ) in the last 10 years from (2002 to 2012).
Madagascar during the Great Recession
Madagascar's International tourism, number of arrivals had a negative growth
(decline) of 47.8% during the Great Recession
Madagascar since the end of the Great Recession
Madagascar's International tourism, number of arrivals had a positive growth of
57.1% since the end of the Great Recession
Value & Rank
The International tourism, number of arrivals of Madagascar is 256 ( thousands of )
with a global rank of 149.
Madagascar compared to other Countries
The International tourism, number of arrivals of Madagascar is similar to that of Haiti,
Monaco, Côte d'Ivoire, Belize, Gabon, Antigua and Barbuda, Tajikistan, Suriname,
Burkina Faso, Togo with a respective International tourism, number of arrivals of 295,
292, 289, 277, 269, 247, 244, 240, 238, 235 ( thousands of )
and a global rank of 144, 145, 146, 147, 148, 150, 151, 152, 153, 154.

4. Instruments for local Government of Madagascar:
1. creating transparency and public awareness of such transactions up to the point of validating tax
returns for large transfers which will help the country that is being robbed blind by the few in the ruling
class. The justification for this approach is that all parties have to collaborate to achieve the WBGs twin
goals of “Eradicating extreme poverty & Enhancing shared prosperity.”
2. MDBs should incentivize and mobilize more capital to go to the middle market, youth, women, and
people at the bottom of the pyramid. Work with these groups directly like some NGOs are doing and avoid
the government black hole in some of Madagascar. This capital should be in form of funding for SMEs and
entrepreneurship at the mid-market and BOP levels. This funding should not be handouts. It should be a
condition for those large infrastructure projects. Infrastructure development is great and should be
pursued but there’s a limit to the number of long-term jobs that can be created by infrastructure
projects. This suggestion is consistent with domestic resource mobilization strategies (DRM) and the
expansion of the tax base especially when you take into consideration that up to 60% of the people in the
lower income group of LIC economies are either unemployed or grossly underemployed. Mobilizing
Madagascar’s human capital in this manner will enable more infrastructure projects to move into the
bankable category. When compared to tourism infrastructure projects, it takes relatively little capital and
insurable risks to create such entrepreneurial activities and put us all in a better position of eradicating
poverty and achieving the SDGs as well as creating a true win-win for all.

5. To attract private investors in the field of
tourism in Madagascar, investment risks need
to be addressed. These risks include *
regulatory hurdles
* economic instability such as currency
devaluation
* government unreliability (war, conflict,
economic recession and corruption)

6. One of the basic tool of enhancing investment climate in Madagascar will
be IDA's Private Sector Window which will help to reduce investor risks
for tourism projects.
The Cascade Approach Private Sector solutions must be considered first
then public private partnership.
Sustainable Infrastructure Finance Through a Cascade Approach cab be
evolved via:
a) commercial financing
b) upstreaming financing and market failures
c)Public and Concessional Resources for Risk Instruments and Credit
Enhancement
d)Public and Concessional Financing including Sub-Sovereign.
Guarantees from the government of Madagascar can help mobilize
capital for viable projects that would not otherwise go ahead without
these protection and by reducing Project Risk, Guarantees expand access
to funding for a broader universe of investor and savers.

7. From Climate Finance Madagascar has an opportunity to build an
environmentally-friendly projects that is capable flexible and focused
enough to be able to pursue the twin goals of development and climate.
These are not separate goals. There is no such thing as sustainable
development outside of the context of climate change and outside of the
context of nationally determined development objectives. That’s why
here Financial Instruments:
1) Green Bonds
2) Catastrophe Bonds. GREEN BONDS AS AN INSTRUMENT FOR
SUSTAINABLE INVESTMENT

8. 1. http://mecometer.com/whats/madagascar/international-tourism-number-of-
arrivals/