The government of Madagascar has implemented various policies and initiatives to promote economic growth and development. The 2019 Plan Emergence de Madagascar (PEM) is a comprehensive development plan that focuses on poverty reduction, food security, disaster resilience, and rural development. The plan aims to support the country’s economic growth and improve the living standards of its citizens. The PEM identifies good governance as a linchpin, with four foundations encompassing human capital development, inclusive and sustainable economic growth, and economic opportunity within the most promising growth sectors. Improvements in these areas will contribute to a healthier and better-educated population, a more accountable government, and more resilient communities. These will in turn catalyze greater and more inclusive economic activity that Madagascar requires to finance further investments to address its development challenges and lessen its heavy reliance on donor funding.
The Madagascar government has prioritized infrastructure development as a key driver of economic growth. This includes investments in transportation, energy, and telecommunications networks, which are essential for attracting private sector investment and fostering economic diversification. The government has also implemented bold reforms in the mining, telecom, and energy sectors to promote market competition, transparency, and private sector participation. These reforms aim to unlock opportunities for economic advancement and address elite capture. The country’s unique biodiversity, dense forests, and unparalleled touristic assets make it an attractive destination for eco-tourism and adventure tourism. The government has been working to develop the tourism sector, which has the potential to create jobs and generate revenue for the country.
Agriculture is a significant sector in Madagascar, employing a large portion of the population. The government has been working to improve agricultural productivity and support the development of agribusiness, which can create jobs and contribute to the country’s economic growth. However, Madagascar still faces significant economic challenges, including weak governance, inadequate human and physical capital development, and slow structural transformation. The government needs to continue implementing bold reforms and addressing these challenges to unlock the country’s potential for growth and development. The World Bank is helping the Madagascar government to fight poverty and improve the living standards.
