Date Posted

World Bank approves $225 million for Madagascar urban resilience project

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The World Bank Group has approved $225 million in financing to support a major urban development initiative aimed at strengthening climate resilience, improving infrastructure and creating jobs in Madagascar’s two largest urban centres, Antananarivo and Toamasina.

 

The Integrated Urban Development and Resilience Project for Jobs, known as PRODUIRE2, is designed to help Madagascar address growing urban challenges while supporting long-term economic growth.

 

The funding comes as Madagascar continues to recover from the impact of Cyclones Fytia and Gezani, which struck earlier in 2026 and caused damage equivalent to 3.4% of the country’s gross domestic product.

 

Rapid urbanisation, recurring flooding, inadequate infrastructure and insecure land ownership have also placed increasing pressure on the country’s cities, particularly Antananarivo, where extreme urban poverty has more than doubled over the past decade despite the capital accounting for nearly 44% of national economic output.

 

The project will expand investments already underway in Antananarivo, focusing on flood protection, drainage systems, waste management, neighbourhood upgrades and land administration. In Toamasina, where Cyclone Gezani damaged around 70% of homes, the programme will prioritise the reconstruction of climate-resilient housing and the rehabilitation of key public facilities, including schools and healthcare infrastructure.

 

By 2032, the project is expected to provide climate-resilient infrastructure to approximately 1.5 million people, rebuild 20 000 homes to higher resilience standards, deliver land documentation for 50 000 properties and create an estimated 17 000 jobs.

 

Minister of Economy and Finance Dr Herinjatovo Ramiarison said the project would improve living conditions while expanding economic opportunities.

 

“When cities work better, people live better. With the support of this new World Bank Group-financed project, families will benefit from safer neighbourhoods, better infrastructure, improved access to land services and greater economic opportunities,” said Ramiarison.

 

A significant component of the programme will address land tenure challenges. Nearly half of the land in Antananarivo lacks formal ownership documentation, limiting investment and urban development. PRODUIRE2 will support land regularisation efforts and introduce digital land services to simplify registration processes. At least 40% of new land documents issued under the programme will include women as sole or joint rights holders.

 

World Bank Group Country Manager for Madagascar Atou Seck said the project would help communities recover from recent disasters while strengthening resilience to future shocks.

 

“Cyclone Gezani damaged nearly 70% of homes in Toamasina and disrupted the lives of thousands of families. Through PRODUIRE2, families will be supported to rebuild stronger homes, while critical public infrastructure and services will be restored and strengthened,” said Seck.

Seck added that investments in flood management, drainage infrastructure and land administration would help reduce flood risks and improve quality of life in Antananarivo.

 

–World Bank/ChannelAfrica–