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)