The International Monetary Fund (IMF) has approved a substantial $658 million financial assistance package for Madagascar, distributed across two key programs, to bolster the country’s economic recovery and enhance its resilience to environmental challenges.
The approved funding, provided through an Extended Credit Facility (ECF) and a Resilience and Sustainability Facility (RSF), aims to stabilize Madagascar’s macroeconomy and address its vulnerability to climate change.
The $337 million ECF program will focus on macroeconomic stability, strengthening fiscal sustainability, and implementing crucial structural reforms. This program is designed to improve governance and create an environment conducive to industrialization and human capital development.
Simultaneously, the $321 million RSF program will work to strengthen public financial management and integrate climate considerations into Madagascar’s economic policies. This initiative will prioritize the sustainable management of natural resources and enhance the country’s ability to withstand the impacts of climate change.
Malagasy authorities have welcomed the IMF’s assistance, recognizing it as a vital tool for long-term economic stabilization and safeguarding future generations from environmental risks. The funding is expected to support the reforms needed to transform the country and create the conditions necessary for sustainable and inclusive economic development.
This new assistance reinforces the IMF’s ongoing commitment to supporting Madagascar’s efforts to strengthen its economy and address the pressing challenges posed by climate change.
TE/ac/Sf/fss/abj/APA