WASHINGTON, June 18, 2025 — The World Bank has approved $100 million from the International Development Association (IDA) for Madagascar’s second Equitable and Resilient Growth Development Policy Operation (DPO) to break down critical barriers that have constrained private sector growth and better job opportunities.
This DPO, the second in a series of three, aims to unlock Madagascar’s economic potential by creating more jobs and opportunities for its people through targeted reform in critical sectors, especially in telecommunications, energy and mining. In telecommunications, market liberalization since 2023 increased competition including the entry of new operators and a significant price drop in internet, making internet access more accessible and affordable for families and businesses. In mining, formalizing the sector will create jobs while generating revenue that benefits the local communities and protect the environment. In energy, strengthening the national utility JIRAMA will reduce power outages and nearly double clean energy generation to provide reliable electricity for businesses and families. This initiative also supports Madagascar’s efforts to achieve Mission 300, as part of the country’s National Energy Compact. The operation also supports improved government financial management to ensure public resources are used more effectively and transparently.
“Electricity is one of the biggest challenges holding back Madagascar’s development. Frequent power cuts disrupt daily life and make it hard for businesses to grow”, said Atou Seck, World Bank Country Manager for Madagascar. “With this budget support and building on its ongoing efforts, the World Bank is stepping up to improve energy access in Madagascar. A large part will help strengthen JIRAMA to deliver more reliable, affordable electricity. With stable electricity and digital access, Madagascar can unlock growth, create jobs, and build a more resilient future.”
The Government of Madagascar has taken key steps to advance reforms in critical sectors. In telecommunications, global licenses have been granted to operators, encouraging competition and better access. In the energy sector, efforts are underway to improve electricity supply and expand access by strengthening the national utility company JIRAMA’s governance and financial sustainability. In mining, the government is implementing the new Mining Code and renewing exploration permits to stimulate activity. The 2025 budget removed some tax incentives in order to reinforce the management of tax expenditures and increase domestic revenue.
“This support is a testament to years of sustained government efforts to carry out ambitious reforms that unlock Madagascar’s economic potential. This second operation signals confidence in the progress we’ve made, especially in advancing the digital and energy sectors, improving tax policy, and strengthening public financial management”, said Rindra Hasimbelo Rabarinirinarison, Madagascar Minister of Economy and Finance. “We deeply appreciate the World Bank’s continued partnership, which will help us build on these achievements and drive our reform agenda forward.”
