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# [MADAGASCAR / AFRICA] IMF releases $155 million: Madagascar targets 3.8% growth in 2026
- URL: https://businessoi.media/en/madagascar-afrique-le-fmi-debloque-155-millions-de-dollars-cap-sur-3-8-de-croissance-en-2026-en/
- Published: 2026-10-10T08:46:53.000Z
- Updated: 2026-10-10T08:46:53.000Z
- Description: The IMF's Executive Board approved a $155 million disbursement for Madagascar on September 30 under the ECF and RSF arrangements, projecting 3.8% growth in 2026 despite ongoing structural challenges.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Afrique, Flash de mi-journée, Finances publiques, Investissement, #en

**Antananarivo, October 10, 2026** — The IMF's Executive Board officially approved on September 30 the third and fourth combined reviews of the Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) arrangements with Madagascar. The decision unlocks an immediate disbursement of **$155 million** — approximately $100 million under the ECF and $55 million under the RSF.

### A waiver despite a missed fiscal target

The approval was not without complications. Madagascar had failed to meet the primary balance criterion as of end-June 2025\. The Board nonetheless granted a waiver, deeming overall program implementation « broadly satisfactory » given exceptional circumstances: a political transition, devastating cyclones, prolonged disruptions at Jirama — the state water and electricity utility — and surging oil prices.

### Reforms demanded, timelines negotiated

In exchange for this disbursement, the IMF maintains its structural requirements. Madagascar must rationalise tax exemptions and strengthen its tax and customs administrations, whose revenues remain « well below projections ». The Jirama recovery plan must be implemented swiftly. The automatic fuel price adjustment mechanism must be fully operational by January 2027, with targeted support for vulnerable households.

Concrete progress has been made, however: the adoption of a first green budget, the launch of a National Climate Finance Strategy, and the establishment of an anti-corruption action plan — though some measures remain behind schedule.

### 3.8% growth projected, but widening current account deficit

The IMF projects growth of **3.8%** for Madagascar in 2026, up from 3.1% in 2025\. But the current account deficit is widening to **8.3% of GDP** (from 6% in 2025), driven by import demand and the energy bill.

### Why it matters

This $155 million disbursement comes at a pivotal moment for Madagascar's economy. Maintaining the ECF-RSF programme with the IMF sends a credibility signal to international investors — and is also the prerequisite for unlocking World Bank and European Union budget support, two of Madagascar's essential financing partners. « The dialogue continues, but the reality is changing, » sums up Eklou Kodjovi, IMF Resident Representative in Madagascar.