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# [MADAGASCAR] Public Investment: 24% Execution Rate and Roads That Cost 2% of GDP
- URL: https://businessoi.media/en/madagascar-investissements-publics-taux-dexecution-a-24-et-des-routes-qui-coutent-2-du-pib-en/
- Published: 2026-08-20T02:45:34.000Z
- Updated: 2026-08-20T02:45:34.000Z
- Description: Madagascar held its first budget review in 6 years: only 24% execution, degraded roads costing 2% of GDP annually. The government is calling for urgent corrective action from each ministry.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Économie, Finances publiques, Investissement, Revue matinale, #en

Madagascar held its first budget execution review in six years. Gathered in Ivato at the International Conference Centre, the administration delivered an unvarnished assessment: the overall domestic financing execution rate stands at just **24.84%** — 503.22 billion ariary out of 2,026.09 billion programmed. For infrastructure alone, the figure barely reaches **32.41%**.

### Well-Identified Causes

Prime Minister Mamitiana Rajaonarison did not soften the diagnosis: despite some concrete achievements, overall execution remains weak. Finance Minister Herinjatovo Aimé Ramiarison identified a recurring bottleneck: «Compensation procedures for persons affected by major projects frequently slow investment progress.» Administrative red tape and governance issues make up the other major brake.

On the external financing side, performance is even more stretched: just **8.84%** execution (608.53 billion ariary out of 6,875.87 billion programmed). For externally funded infrastructure, the rate reaches **17.47%** — international donors and lenders have disbursed at a faster pace than the state itself.

### Roads: The Nerve Centre of Economic Growth

Finance Minister Ramiarison highlighted the invisible cost of underinvestment: «Poor road quality costs Madagascar roughly **2% of GDP** annually.» But the reverse is equally striking: quality roads can increase farmers' productive capacity by **40%**. That single statistic illustrates the scale of potential gains from a properly executed infrastructure programme.

### Why It Matters

The revival of the semi-annual budget review — absent for six years — is itself a positive signal: the government intends to steer public spending, not merely authorise it. Each ministry must now propose corrective measures with specific timelines. For foreign investors, traceability and transparency of public funds are non-negotiable. Madagascar has made the diagnosis; now it must demonstrate execution capacity.

*Source: Newsmada / AllAfrica, August 2026 — Budget Execution Review, Ivato.*