Climate Finance · Landmark Case
First of Its KindClimate-attributed famine, per WFP
The Grand Sud Response
Crisis began 2019 · WFP $78M Flash Appeal, July 2021 · Response ongoing
Four consecutive years of failed rains in Madagascar's deep south — the Grand Sud, around Amboasary and Ambovombe — produced what the World Food Programme has called one of the first famines in modern history driven primarily by climate change rather than conflict. By mid-2021, roughly 1.14 million people needed emergency food assistance, acute malnutrition had nearly doubled in four months, and WFP appealed for US$78 million to reach hundreds of thousands with emergency rations. The response paired that humanitarian appeal with longer-horizon capital: the World Bank's $400 million road-connectivity project explicitly targets the same food-insecure southern corridor, arguing that climate resilience for the Grand Sud has to be built in infrastructure and market access, not just emergency rations.
1.14M+People needing emergency food aid, 2021
$78MWFP flash-appeal target
750K+People assisted since lean season began
2019–Consecutive years of failed rains
Climate & Humanitarian Finance
Read About the Grand Sud Response
Active
$658M$337M ECF + $321M RSF
IMF Extended Credit Facility & Resilience and Sustainability Facility
Approved June 2024 · 36-month combined arrangement
The IMF approved a combined 36-month arrangement worth roughly $658 million — a $337 million Extended Credit Facility alongside a $321 million Resilience and Sustainability Facility. Successive reviews have followed, including a completed first review in February 2025 alongside the 2024 Article IV consultation, and a combined third-and-fourth review mission concluded in April 2026, tying continued disbursement to fiscal reform and climate-resilience commitments.
International Monetary Fund
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Active
$415MWorld Bank commitment
World Bank Post-Cyclone Recovery Plan
Committed April 2022 · Following Cyclones Batsirai and Emnati
In the wake of Cyclone Batsirai and Cyclone Emnati, both striking within weeks of each other in early 2022, the World Bank committed $415 million toward Madagascar’s post-cyclone recovery plan — part of a broader $534.9 million package signed the same week that also funded road connectivity and pandemic-preparedness projects, reflecting a country hit by multiple major cyclones in most storm seasons.
World BankGovt of Madagascar
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Active
$220M625K direct beneficiaries
National Water Project (JIRAMA Reform)
Signed June 2022 · IDA Crisis Response Window
A $220 million IDA Crisis Response Window project targets water access across Greater Antananarivo and secondary towns, reforming the struggling national utility JIRAMA and rebuilding cyclone-damaged water infrastructure — reaching roughly 625,000 direct beneficiaries and touching an estimated 3.4 million people through more resilient services overall, in the same water and power sector whose failures helped trigger the October 2025 political crisis.
World BankIDAJIRAMA
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Active
$400MRoad rehabilitation & connectivity
Connecting Madagascar for Inclusive Growth
Signed April 2022
A $400 million World Bank project rehabilitates 100 km of the RN31 and 400 km of the RN10, plus maintains 500 km of local roads, explicitly designed to improve access to Madagascar’s food-insecure southern Grand Sud region and unlock agricultural potential in the northwest — infrastructure finance built directly around the same climate-vulnerability case as the featured Grand Sud instrument above.
World Bank
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Active
$134.9MIDA + Global Financing Facility
Pandemic Preparedness & Basic Health Services Delivery Project
Signed April 2022
Financed jointly through IDA and the Global Financing Facility, this project strengthens Madagascar’s pandemic preparedness and basic health-service delivery using a One Health approach spanning education, decentralised governance and public-service sectors.
World BankIDAGlobal Financing Facility
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Completed
$1.5M$1.2M govt + $300K WFP
ARC Replica Cyclone Insurance — Tropical Cyclone Freddy Payout
Payout May 2023 · Cyclone Freddy landfall Feb 2023
Madagascar was the first country to enrol in the African Risk Capacity’s Tropical Cyclone insurance product at its November 2020 launch. When Cyclone Freddy made landfall on the east coast in February 2023, causing an estimated $481 million in losses and affecting over 120,000 people, the ARC Replica mechanism triggered a $1.5 million payout — $1.2 million to the government and $300,000 to the World Food Programme — funded through premiums backed by the UK- and Switzerland-financed ADRiFi Multi-Donor Trust Fund.
African Risk CapacityAfrican Development BankWorld Food Programme
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Active
$10M+FY26 grants, plus earlier facilities
Global Shield Financing Facility & National Contingency Fund
Cat DDO since 2020 · Contingency Fund first activated Feb 2025
Building on a Catastrophe Deferred Drawdown Option Madagascar first drew on in 2020, the World Bank-backed Global Shield Financing Facility is now funding a Climate Shock Response Window aimed at roughly 1,750 micro, small and medium enterprises, alongside the National Contingency Fund, which was activated for the first time in February 2025 in response to Cyclone Dikeledi.
World BankAfrican Risk Capacity LtdREPAIR Platform
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Active
$157MEndowment capital base
FAPBM — Foundation for Protected Areas & Biodiversity of Madagascar
Founded early 2000s · $157M capital base (2025)
FAPBM operates as an endowment-model trust fund — investing capital rather than spending it down — co-founded by the Malagasy government, Conservation International and WWF. Now Africa’s leading biodiversity trust fund, it has grown to a $157 million capital base supporting 75 protected areas across more than 6 million hectares, financed in part by Conservation International, WWF, Agence Française de Développement, the Global Environment Facility and KfW.
Conservation InternationalWWFAgence Française de DéveloppementKfW
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Completed
$20M≈€13M converted debt
Madagascar–France Debt-for-Nature Swap
Signed June 2008
France and Madagascar converted roughly $20 million (13 million euros) of bilateral debt into biodiversity financing, pushing FAPBM’s endowment past its initial $50 million target and supporting then-President Ravalomanana’s pledge to triple the size of the country’s protected-area network.
Govt of FranceGovt of MadagascarFAPBM
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Active
$940MTotal investment, plus $35M WB port financing
QMM Ilmenite Mining Joint Venture
Operating since 2009 · Taolagnaro, southeast coast
Rio Tinto holds 80% of the QMM ilmenite mining joint venture, with the Malagasy government holding the remaining 20%, in a project representing roughly $940 million of investment near Taolagnaro; the World Bank separately financed about $35 million toward the Ehoala port infrastructure the mine depends on. The operation has drawn sustained community and environmental controversy over compensation, coastal-forest loss and, more recently, water-contamination concerns near the mine site.
Rio TintoGovt of MadagascarWorld Bank
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Active
$250/kgGovernment export price floor
Vanilla Export Price Floor
Policy ongoing · 2024–2025 harvest 1,600–1,800 tonnes
Madagascar supplies more than 80% of the world’s natural vanilla. To shield farmers from extreme volatility — prices spiked above $500 per kilogram around 2017–2018 before crashing amid oversupply and competition from synthetic vanillin and newer producing origins — the government has set a minimum export price floor of $250 per kilogram for cured vanilla, though field prices in some regions still fall below that benchmark when buyer demand weakens.
Govt of Madagascar
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Active
Self-FinancingEntrance & guiding fees
Madagascar National Parks Ecotourism Financing
Ongoing · Nationwide protected-area network
Madagascar National Parks charges entrance and guiding fees across its nationwide reserve network, reinvesting revenue into park operations and community-benefit programs in a model similar in spirit to Rwanda’s gorilla-permit revenue sharing. Research on the network’s finances has also flagged a structural vulnerability: heavy dependence on international tourist arrivals leaves park budgets exposed to exactly the kind of shocks — pandemics, political instability — Madagascar has repeatedly faced.
Madagascar National Parks
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Pipeline
N/AGovernance risk factor
African Union Suspension & Political Transition Risk
October 2025 coup · Transition roadmap targets 2027 elections
Madagascar’s financing story has repeatedly run through political rupture: a 2009 coup that triggered years of donor aid suspension, a contested December 2023 presidential election, and — most recently — an October 2025 military takeover after Gen Z-led protests over water and electricity shortages led President Rajoelina to flee the country. The African Union suspended Madagascar’s membership days later, and Colonel Michael Randrianirina was sworn in as transitional president, with elections promised within roughly 24 months. Every instrument on this page now operates inside that unresolved transition.
African UnionGovt of Madagascar
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