- Madagascar’s economy expected to grow by 4.5% in 2024, up from 4.4% in 2023.
- The growth forecast is supported by ongoing financial reforms and improved funding conditions.
- The African Development Bank’s report highlights the need for increased climate funding.
Madagascar’s economy is set to experience robust growth in 2024, with a projected increase of 4.5%, climbing further to 5.3% in 2025. This forecast comes in the wake of a 4.4% growth in 2023 and is attributed to significant financial reforms.
The African Development Bank’s report, presented on July 31, 2024, emphasizes the role of these reforms in stimulating economic activity and structural changes.
Madagascar’s Economy Poised for Significant Growth with Financial Reforms
Key discussions at the report presentation focused on the importance of reforming the global financial architecture to support Madagascar’s development goals. The Bank’s Country Strategy Document aims to accelerate economic transformation through industrialization and green job creation. The active portfolio in Madagascar includes 18 operations amounting to USD 1.16 billion, reflecting the Bank’s commitment to supporting the country’s economic growth.
Discussions surrounding the report highlighted the necessity of transforming the global financial architecture to facilitate Madagascar’s development. Key officials, including Minister Max Fontaine and chief of staff Florence Andrianaivohery, stressed the need for diversified funding sources and improved lending conditions to support the country’s growth initiatives.
The African Development Bank’s strategy for Madagascar, outlined in the 2022-2026 Country Strategy Document, focuses on industrialization and creating green jobs. The mid-term review of this strategy indicates satisfactory progress, with a continued emphasis on accelerating structural transformation. The Bank’s active portfolio in Madagascar stands at USD 1.16 billion across 18 operations.
Minister Fontaine also pointed out the critical need for increased climate funding to address Madagascar’s significant environmental challenges. This call for enhanced climate finance aligns with the report’s recommendations and the Bank’s broader goals for sustainable development in the region.
Madagascar’s economic outlook for 2024 is promising, with projected growth supported by financial reforms and strategic investments. The emphasis on reforming global financial structures and increasing climate funding is crucial for sustaining this growth trajectory and addressing environmental needs.
Kevin Chika Urama’s statement on the importance of reforming the global financial architecture highlights the Bank’s role in driving Madagascar’s economic transformation and structural changes.
