Madagascar

Due to strong and uncontrolled growth, Madagascar’s cities are home to acute poverty with its consequences: insecurity, squalor, slums and urban precariousness. They also suffer from air and water pollution and recurrent flooding. Urban development presents both an environmental and social risk and an opportunity for the economic development of the country.

AFD’s actions aim to promote sustainable cities, in both the capital Antananarivo and the main provincial cities. AFD’s financing targets the four core functions of cities: provide widespread access to essential services (water, lighting, etc.), foster urban mobility, promote decent housing conditions, and support economic activities and local employment.

At the same time, we help improve the governance of urban municipalities and build their capacities to plan the territory’s development and urban investments.
 

Every year, Madagascar needs to import between 200,000 and 500,000 tons of cereals, which accounts for 5 to 15% of its needs. Since 1960, rural poverty has increased, due to the lack of modernization of agriculture. Madagascar’s biodiversity is today under great threat from human activities. In addition, the very small size of farms (less than 1 ha on average) and land insecurity are major obstacles to their development.

AFD seeks to support Madagascar’s agricultural policy and considers that agricultural development and biodiversity conservation are inextricably linked in Madagascar. The projects we finance aim to improve farmers’ performance and climate resilience through agroecology, build the capacity of local actors to control their environment and support biodiversity-friendly rural development.
 

Since 2009, there has been a deterioration of the performance of Malagasy students in international assessments. Vocational education is unsuited to business needs.

AFD works with the Malagasy authorities to improve the quality of education in primary and secondary schools. It also supports the administration and companies through a partnership-based approach to revitalize vocational training.

Only 10% of people in Madagascar benefit from a formal job. It is estimated that 80% of them are underemployed. Yet Madagascar has a diversified entrepreneurial base which is capable of exporting. These companies do, however, remain small.

AFD supports job creation by allocating guarantees for business investment. Over 100 companies have already benefited from loans guaranteed by AFD.

We also support microfinance for microenterprises and individual entrepreneurs.

The institutional instability which has marked the last sixty years is largely due to the economic underperformance of Madagascar – GDP per capita has been declining since 1960. However, the country has just experienced a democratic change, which suggests that governance will improve.

Following on from France’s action in Madagascar, AFD is supporting the restoration of an accessible, effective and incorruptible justice system that contributes to the rule of law. It also works to promote the emergence of more effective urban municipalities that are close to citizens.

Our crosscutting objective in each of our sectors of operation is to support the development of transparent, effective and accountable institutions.