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# [MADAGASCAR] AfDB Approves $68 Million to Strengthen Financial Governance and Economic Resilience
- URL: https://businessoi.media/en/madagascar-la-bad-approuve-68-millions-de-dollars-pour-renforcer-la-gouvernance-financiere-et-la-resilience-economique-en/
- Published: 2026-10-06T02:48:03.000Z
- Updated: 2026-10-06T02:48:03.000Z
- Description: The AfDB approved $68 million (Phase 2) to modernize Madagascar's tax administration, create an independent electricity regulator, and strengthen PPP legislation.
- Author: Emmanuel TAOCHY
- Tags: Madagascar, Investissement, Finances publiques, Revue matinale, #en

**The African Development Bank has approved a $68 million program to consolidate Madagascar's financial governance and attract greater private investment.** This second-phase financing brings the cumulative program total to $136 million.

## A Two-Tranche Concessional Package

The program is structured as two concessional loans: **$27.2 million** from the African Development Fund and **$40.8 million** from the Transition Support Facility, totaling $68 million. Combined with Phase 1, the cumulative envelope reaches **$136 million** (source: AfDB).

## Tax Reform and Investment Attractiveness

A key pillar is tax administration modernization, targeting an increase in tax revenues from **10.5% to 12% of GDP** by end-2026\. The program also modernizes public-private partnership legislation to provide a more secure legal framework for foreign investors.

## Energy and Governance: Two Strategic Pillars

The program aims to establish an independent electricity regulator and a National Sustainable Energy Fund — critical to mobilizing private capital in the energy sector. An anti-corruption strategy running to 2030 will strengthen budgetary transparency.

The AfDB notes Madagascar needs to mobilize **$7.3 billion per year by 2030** to fund its development needs — achievable only with stronger institutions.

## Why It Matters

This financing signals multilateral confidence in Antananarivo's reform path. For private investors hesitating to commit to Madagascar, the modernization of fiscal and PPP frameworks is a decisive signal. The island has the resources; it has lacked the institutions to unlock them.