The World Bank approved on July 7, 2026 a $225 million loan for Madagascar under the PRODUIRE 2 project. The objective: rebuild and climate-proof two major urban areas devastated by cyclones Fytia and Gezani in early 2026, while generating 17,000 jobs over six years.
Cyclones Fytia and Gezani: a massive economic shock
The two successive cyclones that struck Madagascar in early 2026 caused damage estimated at 3.4% of national GDP. The country's two main urban agglomerations — Antananarivo and Toamasina — suffered massive destruction of infrastructure, housing and urban networks. It is in this post-disaster emergency context that the World Bank mobilised this large-scale financing, the largest ever allocated to Madagascar under an urban development project.
1.5 million people set to benefit
The PRODUIRE 2 project aims to equip 1.5 million people with «climate-resilient infrastructure» in Greater Antananarivo and Greater Toamasina. In practical terms, this translates into the reconstruction of 20,000 homes built to new climate resilience standards, and the formalisation of 50,000 plots through land title grants — historically one of the biggest obstacles to real estate development in Madagascar.
17,000 jobs over six years
Beyond the physical rebuilding, the project is expected to create around 17,000 urban jobs throughout its lifetime, running until 2032. These positions will span the construction sector, urban engineering and associated services, providing a direct economic recovery lever in two cities that concentrate a large share of Madagascar's overall economic activity.
Toamasina: a strategic East African hub
Toamasina is not just any city — it is Madagascar's main port and one of the most important maritime gateways in East Africa. Its accelerated reconstruction, backed by this financing, reinforces its strategic positioning in regional trade flows, particularly in the context of the new EPA that Mauritius, Madagascar, Comoros and Seychelles have just signed with the European Union.
Why it matters
For Madagascar, this $225 million financing is not merely post-disaster aid: it is an opportunity to reshape the urban fabric of its two most economically active cities, embedding climate standards that prepare the country for future shocks. For regional investors, the rebuilding of Toamasina sends a clear signal: the island is consolidating its logistics infrastructure at a decisive moment for trade flows across the Indian Ocean.