WASHINGTON, September 18, 2018 – The World Bank approved today a $70 million International Development Association (IDA)* credit to Madagascar for the second phase of the Second Integrated Growth Poles and Corridors series of projects. This second phase will support the development of tourism and agribusiness in Madagascar and enhance access to infrastructure and services in targeted regions, including Diana, Anosy, Atsimo-Andrefana, and the island of Sainte Marie.
The Second Integrated Growth Poles and Corridors project will help develop the private sector through investment promotion and facilitation, providing support to sectoral institutions at national, regional and local level to attract and sustain private investments. The project will also contribute to upgrade key rural access roads to production sites, as well as urban roads and services essential for tourism investment. It will help improve service delivery and local public investment capacity. The project is expected to directly benefit as many as 15,000 farmers, increase annual passenger traffic by more than 400,000, and cumulatively create almost 18,000 jobs and attract $25 million in private investment.
“By expanding employment opportunities, raising household incomes, and upgrading key infrastructure and services, the first phase of the project changed the economic landscape and the lives of thousands in the targeted regions and at the national level,” said Coralie Gevers, World Bank Country Manager for Madagascar. “For example, cocoa farmers supported by the project have seen a 50% increase in the price they receive, compared to other farmers, and the project has been key in supporting the restructuring of Air Madagascar and the rehabilitation of some major tourism sites. This project will use that base to leverage more private investments and scale up impact, while supporting climate adaptation and environmental sustainability.”