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# [MADAGASCAR] World Bank Grants $225 Million to Build Climate-Resilient Cities
- URL: https://businessoi.media/en/madagascar-banque-mondiale-225-millions-de-dollars-pour-lurbanisme-resilient-dantananarivo-et-toamasina-en/
- Published: 2026-07-19T08:42:16.000Z
- Updated: 2026-07-19T08:42:16.000Z
- Description: The World Bank commits $225 million to Madagascar's PRODUIRE II urban project: 1.5 million beneficiaries, 20,000 homes, 17,000 jobs across Antananarivo and Toamasina.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Investissement, Flash de mi-journée, #en

The World Bank has approved a **$225 million concessional loan** to Madagascar for the PRODUIRE II project, a landmark urban resilience initiative targeting the country's two largest cities. The announcement, confirmed this week, represents the largest single urban financing commitment in Madagascar's recent history.

## Antananarivo and Toamasina: Two Cities, One Vision

PRODUIRE II focuses on **Greater Antananarivo** and **Greater Toamasina**, which together concentrate a growing share of Madagascar's urban population and face acute climate and infrastructure vulnerabilities. In Toamasina, the situation is particularly urgent: Cyclone Gezani destroyed **70% of the city's housing stock**, leaving tens of thousands of families in severe precarity.

In Antananarivo, priorities include flood protection, drainage improvement, waste management, and the rehabilitation of informal settlements. Land tenure security is also a central pillar of the programme.

## 1.5 Million People in the Frame

The World Bank's figures convey the scale of the project:

- **1.5 million people** will benefit from climate-resilient infrastructure
- **20,000 housing units** will be rebuilt or upgraded
- **50,000 land plots** will receive secured titles
- **17,000 direct and indirect jobs** will be created during the construction phase

## Building on a Long-Term Commitment

This loan continues the original PRODUIRE project, launched in 2018 with an initial $75 million disbursement and extended by an additional $50 million in 2020\. The jump to $225 million in the second phase reflects the World Bank's confidence in Malagasy institutional capacity — and the scale of remaining needs.

## Why It Matters

Madagascar ranks among the world's most disaster-prone countries. Cyclones, floods and droughts repeatedly strike both coastlines, deepening urban poverty. By financing durable infrastructure and formal land governance, the World Bank is betting on a resilience model that goes beyond post-disaster reconstruction. For regional investors, the formalisation of 50,000 land plots also opens concrete opportunities in construction, building materials and urban services.

*Sources: Le Journal des Archipels, Direction générale du Trésor (East Africa & Indian Ocean brief, week of 6 July 2026)*