microREPORT #70: Madagascar Aromatic & Medicinal Plants Value Chain Analysis

This assessment, by ACDI/VOCA and IRG, of Madagascar’s aromatic and medicinal plant industry integrates the value chain approach (VCA) developed under USAID’s Accelerating Microenterprise Advancement Project Business Development Services (AMAP BDS) Knowledge and Practice Task Order and the Nature, Health, Wealth and Power (NHWP) framework developed under USAID/FRAME and adapted by the USAID/Madagascar Mission.

The two frameworks share a concern with harnessing markets to reduce poverty and promote equity. VCA uses the industry sector as a starting point, and NHWP uses natural resource-dependent producers as a starting point. Combining the two analytical frameworks situates fundamental environmental and social issues within a broader context of competitiveness and long-term industry sustainability. One purpose of this study is to examine the potential advantages of a joint value chain–NHWP approach. An analysis of Madagascar’s AMP sector suggests that value chain analysis can be enhanced through full consideration of the role of natural resource management, health concerns and governance issues. It also suggests that value chain analysis can be an important tool for understanding the linkages between local-level NHWP dynamics and broader market systems.