The International Monetary Fund has approved two combined disbursements totalling $155 million for Madagascar, following the joint completion of the third and fourth reviews of programs supported by the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
What the Executive Board Approved
The disbursement is split between two windows: SDR 73.32 million — approximately $100 million — under the ECF, and SDR 40.73 million — around $55 million — under the RSF. The Board described programme implementation as "broadly satisfactory." The mission was led by Constant Lokeng, who presented findings at a press briefing in Antananarivo.
Growth Trajectory Confirmed
The IMF maintained its projections at 3.1% for 2025, 3.8% for 2026, and 4.5% for 2027 — contingent on political stability, oil price management, and resilience to climate shocks. Madagascar is navigating a political transition while contending with chronic electricity and water shortages, difficulties in the extractive sector, and continued cyclone exposure.
What the Fund Expects Next
The IMF is asking Antananarivo to increase spending on health, education, and social protection, while strengthening tax and customs revenue collection. On fuel subsidies — which disproportionately benefit wealthier households — a full return to the automatic price adjustment mechanism is planned from January 2027. Economist Rivo Rakotoarisoa summed up the challenge: « We must turn this financing margin into economic results that endure over time. »
Why It Matters
For investors and development partners active in Madagascar, the dual ECF-RSF validation sends a strong signal of fiscal credibility. It clears the path for additional co-financing — particularly from the World Bank and the AfDB — and reinforces the country's capacity to attract private capital during a still-fragile institutional transition. The $155 million disbursement also provides essential liquidity to fund ongoing structural reforms without resorting to commercial borrowing.