Madagascar and IMF Reach Staff-Level Agreement on Second Reviews of Credit and Sustainability Programs
The International Monetary Fund (IMF) has reached a staff-level agreement with Madagascar on the second reviews of its Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) programs. The agreement follows an IMF mission led by Constant Lonkeng, which visited the country from April 2 to 14.
Upon final approval by the IMF Executive Board, Madagascar stands to receive approximately $108 million—comprising SDR 36.66 million (about $51 million) under the ECF and SDR 40.73 million (about $57 million) under the RSF.
IMF staff commended Madagascar’s improved performance under the program, noting that nearly all end-December 2024 targets were met. Key achievements include a lower-than-expected fiscal deficit, stable tax revenues, and progress in areas such as public financial management, disaster risk planning, and carbon storage initiatives.
“The authorities remain committed to reforms focused on domestic revenue mobilization, spending prioritization, and good governance,” said Mr. Lonkeng. He also stressed the importance of contingency planning amid global economic uncertainty and the role of exchange rate flexibility in preserving external viability.
The IMF team highlighted the urgent need for Madagascar to finalize and implement a recovery plan for JIRAMA, the state-owned utility company. A well-executed plan could improve energy and water access, lower production costs, and reduce fiscal pressures.
The mission welcomed the ongoing rollout of solar kits in rural areas and encouraged the continuation of targeted compensation to cushion kerosene price increases as the automatic fuel pricing mechanism is applied.
In addition, the IMF applauded Madagascar’s recent adoption of a national anti-corruption strategy and called for swift implementation to enhance transparency and accountability, particularly in public finance management and resource allocation through the Malagasy sovereign wealth fund.
The IMF team engaged with President Andry Rajoelina, Prime Minister Christian Ntsay, several ministers, Central Bank Governor Aivo Andrianarivelo, civil society, business leaders, donors, and other stakeholders.
The IMF praised the Malagasy authorities for their openness and cooperation during the discussions and reiterated its commitment to supporting Madagascar’s economic recovery and long-term development goals.
