ANTANANARIVO, Madagascar
Madagascar has secured $68 million in concessional financing to support a new phase of economic and governance reforms aimed at strengthening public finances, expanding energy access and attracting private investment.
The funding will support the second phase of the Financial Management and Economic Resilience Support Program, a reform initiative designed to improve fiscal management, boost competitiveness, and increase the country’s resilience to economic shocks.
The financing package comprises a $27.2 million concessional loan from the African Development Fund and a $40.8 million concessional loan from the African Development Bank Group’s Transition Support Facility. With the latest approval, total funding under the two-phase program reaches $136 million.
The program builds on gains achieved during its first phase, including the rollout of a modern tax administration system nationwide and the adoption of a national anti-corruption strategy to guide accountability efforts through 2030.
In the second phase, authorities plan to deepen reforms in public financial management and improve the business environment to broaden fiscal space and encourage investment.
The program also supports establishing an independent electricity regulator and a National Fund for Sustainable Energy, which will finance off-grid and rural electrification projects.
The measures are expected to expand access to electricity in underserved areas, where nearly 80% of Madagascar’s poor population lives.
In addition, a modernized public-private partnership framework is expected to provide greater legal certainty for investors in clean energy and infrastructure projects.
Tax revenues are projected to increase from 10.5% of gross domestic product to 12% by the end of 2026, according to program targets.
“Madagascar has demonstrated the political will and institutional capacity to implement meaningful reforms under difficult circumstances,” Adam Amoumoun, the African Development Bank’s country manager for Madagascar, said in a statement. “This program consolidates those gains and opens the door to a more resilient, inclusive and transparent economy.”
The financing comes as Madagascar’s government, formed in March 2026, has reaffirmed its commitment to economic reforms while continuing to engage with international development partners.
The latest funding is expected to support those efforts as the country seeks stronger growth, improved governance and broader access to essential services.
