Madagascar needs to mobilize $7.27 billion annually by 2030, according to the AfDB

The AfDB highlights that Madagascar’s gross domestic product (GDP) growth slowed from 4.3% in 2024 to 3.2% in 2025. It forecasts a further increase of 3.0% in 2026, amid ongoing external pressures and internal structural constraints.

However, starting in 2027, the AfDB anticipates an improvement in the economic situation, with projected growth of 4.5%. This recovery is expected to be driven by the extractive industries, tourism, telecommunications, infrastructure investments, and a gradual improvement in the business climate.

The report, titled “Mobilizing Large-Scale Resources for Madagascar’s Development Financing in a Fragmented World,” assesses the country’s funding gap and recommends diversifying capital sources. Dorette Mbinison Ratsiavahana, the Director General of the Treasury and Alternate Governor at the AfDB, called for enhanced support from technical and financial partners.

Mobilizing more domestic resources

According to the AfDB, the response cannot rely solely on external borrowing. The institution advocates for reforms aimed at strengthening financial systems, improving domestic revenue mobilization, and increasing the country’s capacity to convert available funding into productive investments.

Adam Amoumoun, the AfDB’s Country Director in Madagascar, believes the country must accelerate reforms to diversify its funding sources and improve the execution of investment programs. The goal is to reduce dependence on an increasingly constrained international environment for low- and middle-income countries.

The AfDB also encourages Malagasy authorities to engage with the New African Financial Architecture for Development, a continental initiative aimed at improving access to capital and strengthening African financing mechanisms.

In its 2026-2028 debt management strategy, the Malagasy Ministry of Economy and Finance estimates the gross financing need at 8,651.2 billion ariary for 2026, of which 5,839.4 billion must come from external financing.