Madagascar's SaaS industry shows steady growth, with over 150 providers contributing to an annual revenue of approximately MGA 9.8 billion (USD 2.4 million) in 2026. Despite this, the churn rate remains relatively high at 12.5%, indicating room for improvement in customer retention strategies. The average monthly subscription fee is around MGA 65,000 (USD 16), reflecting moderate affordability among local businesses and consumers.
Digital adoption continues to expand, with a 38% digital penetration rate among internet users. This growth supports SaaS market development, but challenges like limited infrastructure and digital literacy impact customer loyalty and revenue stability. Continued investment in digital infrastructure and user engagement is vital for further expansion of Madagascar's SaaS ecosystem in the coming years.