World Bank commits $1.3 billion support for Madagascar

News Hour:

The World Bank Group pledged $1.3 billion over the next three years to support Madagascar’s development through its national development plan. The announcement was made at the Donors and Investors Conference for Madagascar, held in Paris on December 1 and 2, 2016.

Madagascar is renowned for its exceptional biodiversity and abundant natural resources. However, due to successive crises, 90% of the population live below the poverty line and half of the children under five suffer from chronic malnutrition.

“Madagascar recovers from a long political, economic and social crises. In order to accompany the country on the right track of an inclusive and sustainable growth, the World Bank decided to provide an exceptional funding to Madagascar to help the Government pursue the necessary reforms that will boost the economy and expand the access to basic services and markets by the population,” said Makhtar Diop, World Bank Vice President for the Africa Region.

This exceptional funding consists of $1 billion grant and concessional loans and will support agriculture development, improve nutrition and access to education, and connect farmers and fishers to markets by rehabilitating the road network. The World Bank Group commitment includes $330 million from IFC, the World Bank’s private-sector lending arm.

“The progress noted in Madagascar is promising and is generating renewed interest from investors. IFC is committed to supporting investments that will contribute to the inclusive and sustainable development of the country, particularly in agribusiness, infrastructure, especially renewable energy and transport, and finance,” highlighted Oumar Seydi, Regional Director of IFC.

The World Bank Group and the Government of Madagascar also signed two grant agreements during the Conference. The first one of $35 million, will support the Government’s response to the drought in the South of Madagascar by providing cash transfers, livelihood recovery grants and nutrition services to extreme poor households in the five most affected districts. The second grant, which amounted $65 million is a budget support that aims at supporting the Government to improve public finance management, the investment climate and to attract investments.

At the Conference, the Malagasy State has mobilized a record amount of $6.4 billion for the period 2017-2020. This funding will support the implementation of the National Development Plan, a reform strategy and investment program that will seek to promote an inclusive and sustainable growth.

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
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