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# [MADAGASCAR] Public investment: weak H1 2026 budget execution raises government alarm
- URL: https://businessoi.media/en/madagascar-investissement-public-faible-execution-budgetaire-au-s1-2026-le-gouvernement-tire-la-sonnette-dalarme-en/
- Published: 2026-08-03T13:38:20.000Z
- Updated: 2026-08-03T13:38:20.000Z
- Description: Madagascar's Prime Minister flags weak public investment execution in H1 2026. Poor road management costs 2% of GDP annually. A supplementary finance law has been adopted in response.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Finances publiques, Clôture, #en

**Prime Minister Mamitiana Rajaonarison has sounded the alarm: budget execution for infrastructure investments is "very weak" in the first half of 2026.** Insufficient disbursement rates are jeopardising the development projects that Madagascar urgently needs.

## Administrative bottlenecks paralysing public action

According to Finance Minister Dr Herinjatovo Aimé Ramiarison, fund disbursement procedures are overly complex and slow. A concrete illustration: compensation payments owed to residents affected by three-year infrastructure projects can take the entire project duration to process, effectively blocking construction from the very start.

The most affected sectors are roads and transport, energy and industrial development — three pillars critical to the country's economic competitiveness. The cost of this inaction has been quantified: poor road maintenance costs Madagascar roughly **2% of GDP** in annual economic losses.

## Emergency supplementary budget adopted

Against a deteriorating backdrop — cyclones Fitia and Gezani weighed heavily on public finances, compounded by rising oil prices — the government adopted a supplementary finance law. It reintroduces import restrictions and removes certain tax exemptions, including on rice, to preserve fiscal balances.

## Why it matters

Madagascar is targeting 6% growth in 2026, but this goal can only be achieved if public investments materialise on the ground. In a country where subsistence agriculture remains dominant, road and energy infrastructure are direct levers for economic transformation. International partners — the IMF and World Bank — as well as private investors are closely watching the government's capacity to unlock these funds.

*Source: allAfrica / 2424.mg, August 3, 2026.*