The recent announcement of the granting of a loan of 321 million dollars over three years to Madagascar by the World Bank and the International Monetary Fund to support actions in favor of the climate reveals the urgency and the need to act in the face of to climate change in this country. The severe drought that hit the far south of the Big Island has had devastating repercussions on crops and access to food, highlighting the devastating impact of climate on the Malagasy population.
Through this loan, the World Bank and the IMF intend to promote resilience and sustainability in Madagascar, by encouraging reforms aimed at combating climate change and promoting green and resilient investments. This is a strong signal that encourages the Malagasy State to undertake ambitious initiatives to strengthen its capacity to face climate-related environmental and economic challenges.
The Minister of the Environment, Max Fontaine, welcomes this opportunity which will allow Madagascar to adopt crucial reforms to strengthen its climate resilience and promote sustainable development. Among the proposed reforms, the overhaul of the decree on access to the forest carbon market is essential to attract investments in land restoration and promote a more attractive approach for the private sector.
The creation of the National Sustainable Energy Fund is also a key measure to support off-grid electrification and encourage private investment in this strategic sector. Likewise, the gradual elimination of fuel subsidies and the harmonization of taxes on diesel and gasoline demonstrate the Malagasy government’s commitment to adopting ambitious environmental policies.
This loan conditional on the implementation of environmental and economic reforms underlines the crucial importance of environmental protection to guarantee a sustainable future in Madagascar. As one of the few countries to sequester more carbon than it emits, Madagascar has a key role to play in combating climate change and preserving its unique biodiversity.
In conclusion, this loan from the World Bank and the IMF marks an important turning point for Madagascar in terms of sustainable development and climate resilience. It is now up to the government and people of Madagascar to seize this opportunity to build a more sustainable and prosperous future for all.