The African Development Bank Group (AfDB) has approved a US$67.3-million loan for Madagascar to support the implementation of the first phase of the bank’s Financial Management and Resilience Support Programme for 2024-2025.
AfDB country manager Adam Amoumoun said the programme is expected to contribute to the creation of favourable conditions for strong and inclusive economic growth “by strengthening economic and financial governance, and improving economic resilience.”
“It is supporting the Malagasy authorities in implementing the priority reforms of Madagascar’s General State Policy 2024-2028 and New Energy Policy for 2015-2030,” Amoumoun said.
He added: “It will help remedy the investment deficit by increasing the budget, through releasing additional resources for economic recovery, while improving governance in the energy sector.”
This loan, sourced from the African Development Fund – the bank’s concessional financing window – also includes funding from the Transition Support Facility.
Key components of the programme include the rollout of an integrated tax administration system that is expected to modernise tax management in Madagascar by facilitating local revenue collection, enhancing taxpayer management and combating tax fraud.
The programme would also establish a national register of beneficial owners of legal entities, enabling better identification of business controllers and facilitating anti-corruption investigations.
In addition to tax reforms, the programme seeks to bolster governance in the energy sector by supporting the action plan of Madagascar’s public corporation responsible for electricity and water services and reducing its reliance on state support.
JN/APA