After a six-year pause, Madagascar relaunched its mid-year budget execution review. Results presented in early August 2026 under Prime Minister Mamitiana Rajaonarison paint a mixed picture: 24.84% execution on domestic financing and just 8.84% on external financing. Faced with these figures, the government has shifted into forced acceleration mode for the second half of 2026.
First Half Raw Figures
Of the 2,026.09 billion ariary programmed in domestically-funded investments, 503.22 billion had been achieved at the halfway mark. Locally-funded infrastructure projects fared slightly better at 32.41% (397.58 billion out of 1,226.63 billion ariary programmed). For external financing — far larger in volume at 6,875.87 billion ariary programmed — the execution rate stands at just 8.84%, representing 608.53 billion ariary achieved.
Roads: The Front Line of Economic Development
Road infrastructure sits at the heart of priorities. Officials estimate that the degraded road network costs approximately 2% of GDP every year. Conversely, quality infrastructure could boost the productive capacity of economic operators by 40%. Roads, schools, health centres, electricity networks and water access dominate the public investment agenda.
Obstacles Identified and Corrective Measures Required
The Prime Minister highlighted several structural bottlenecks: overly cumbersome compensation procedures for affected populations, multiple administrative controls on public procurement, and work methods in need of reform. Each ministry has been directed to submit a corrective plan with precise deadlines before the end of Q3. Transparency and anti-corruption enforcement were also placed firmly on the agenda.
Why It Matters
Accelerating budget execution is not merely an accounting exercise — it is the condition for promised infrastructure projects to become economic reality. For construction firms, suppliers and local subcontractors, every billion ariary unlocked represents a new order. For rural communities, it means a paved road, an electricity connection, a functioning health post. Madagascar has the resources and the plans — the challenge now is to mobilise them with discipline.