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PRESS RELEASE August 30, 2018

World Bank Supports Madagascar’s Continued Reforms Towards Inclusive and Resilient Growth

WASHINGTON, August 30, 2018 – The World Bank approved today a $60 million grant to support Madagascar’s efforts to strengthen the resilience of families against shocks and create an enabling environment for economic opportunities in rural communities. This operation is the second of a multi-sectoral program of two International Development Association (IDA) grants which started in 2017, to promote inclusive and resilient growth in Madagascar.

Madagascar’s economy is projected to grow at 5.0 percent in 2018, a continuation of the positive trend over the last years. Growth has largely been driven by small enclave industries, and a small but dynamic private sector. Exports for Malagasy goods and services produced under the economic free zones have been performing well. The ongoing scale-up in public investment activities is also leading to growth in the construction industry, in urban areas. As a result, the major drivers of growth are concentrated in industrial and service sectors, which largely benefit the urban population, while the rural population remain engaged in agricultural activities that are excluded from the re-bound in the economy.

This program helps Madagascar tackle one of its key challenges today, which is, ensuring that the poor can benefit more from the country’s continuing improved macroeconomic prospects, said Coralie Gevers, Country Manager for Madagascar. Lifting the Malagasy poor out of poverty requires to build livelihoods that are more resilient in the face of many shocks. Promoting inclusive growth is also vital for enabling the poor to access economic opportunities – on- and off-farm, offering a way out of poverty.”

The reforms included in this second program build on the achievements under the previous operation. The program supports further reforms related to civil registration, social protection and financial inclusion to build the foundations for resilience at the individual and household level. Moreover, it continues to support reforms on land, transfers to local governments, rural road maintenance and energy to increase the ability of rural communities to develop higher-value economic activities and create additional employment opportunities.


PRESS RELEASE NO: 2019/004/AFR

Contacts

Madagascar
Dia Styvanley
+261 32 05 001 27
dstyvanley@worldbank.org
Washington
Ekaterina Svirina
+1-202-458-1042
esvirina@worldbank.org
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