Madagascar's Ministry of Finance launched preliminary consultations in September 2026 for the preparation of the Initial Finance Bill (PLFI) for 2027. In Anosy, working sessions brought together representatives of the private sector and civil society around the key budgetary priorities for the coming fiscal year — a participatory approach rarely seen in the region, illustrating the new authorities' ambition to break with a tradition of opaque budgeting.
Energy, Water and Public Services at the Heart of Budget Priorities
The discussions highlighted three consensus priorities. Energy comes first: expanding access to electricity remains a fundamental prerequisite for any economic development strategy, as the majority of Madagascar's population still lacks access to a reliable grid. Clean water and sanitation infrastructure constitute the second major challenge, with glaring gaps in rural and peri-urban areas. Finally, improving public service delivery in vulnerable regions was identified as an essential lever for reducing territorial inequalities.
The private sector, represented by GPME, FCCIM, EFOI, CMAM, individual entrepreneurs and EDBM (Economic Development Board of Madagascar), also raised recurring concerns: state payment delays, fiscal transparency, tax categorisation for artisans, and equitable infrastructure development across the territory.
A Context of Rising Growth
These consultations take place against a backdrop of improving economic conditions. The 2026 Finance Law had projected 4.8% growth for the current fiscal year, driven by the mining sector, agribusiness and foreign investment dynamics. For the PLFI 2027, the authorities aim to consolidate this trajectory while addressing the social expectations expressed during the 2025 political transition.
EDBM, which plays a key role in attracting foreign direct investment, emphasised the need to simplify the business regulatory framework and accelerate the digitalisation of administrative procedures, with a view to improving Madagascar's ranking in international ease-of-doing-business indices.
Why This Matters
The participatory approach taken by Madagascar's Ministry of Finance sends a positive signal to international partners and private investors. In a country where budget visibility has often been lacking, opening the consultation process ahead of the PLFI submission reflects a commitment to more inclusive economic governance. For the Indian Ocean region, Madagascar remains a high-potential market — and the quality of its budget framework directly conditions the confidence of multilateral lenders and regional private operators.