Madagascar is looking to speed up its public investment projects. The disbursement rate remains low, hampering much of the country's development initiatives. Prime Minister Mamitiana Rajaonarison and Finance Minister Herinjatovo Aimé Ramiarison met yesterday at the Ivato International Conference Centre.

Public investments remain insufficient, with vital national projects suffering as a result. This assessment was made yesterday at the Ivato International Conference Centre during the semi-annual budget execution review. In the first half of the year, the disbursement rate for public investment projects remained weak.

Consequently, the State cannot keep pace with major financing projects, whether roads, energy infrastructure, or industrial development, due to the low disbursement rate of public funds. "Budget execution for infrastructure investments is very weak, while the country needs solid infrastructure to support its economic development," lamented Prime Minister Mamitiana Rajaonarison yesterday.

The head of government explained that administrative delays and procedures for disbursing essential funds are penalizing the country in implementing its structural projects. Concrete benefits are not yet being felt by the population. "If we can disburse funds quickly, the country will change significantly," he added.

This semi-annual review had not taken place for six years. "This may explain why these budget execution anomalies were not detected earlier. In some cases, because disbursements take time, compensations for families affected by public utility projects are delayed. This slows down projects that should be executed quickly," explained Dr Herinjatovo Aimé Ramiarison, Minister of Economy and Finance.

Same timeframe

According to the government official, in some projects planned to last three years, disbursements for compensations take the same amount of time. This hampers progress on major projects. The same applies to maintenance of public infrastructure. "If roads are impassable, the country loses nearly 2% of its GDP each year. Conversely, if they are well maintained, businesses can increase their competitiveness. Disbursing these funds would accelerate such projects," confirmed the Finance Minister.

For the second half of the year, the government intends to correct course. The country has been hit by various crises. Cyclones Fitia and Gezani, which paralyzed the economic heart of Madagascar, along with rising oil prices, led the executive to revise some forecasts downward. Combined with massive imports, these difficulties resulted in a sharp drop in tax revenues.

They fell 10% compared to the first quarter of 2025. With the supplementary finance law recently adopted for the second half, the country has curbed imports, notably by eliminating tax exemptions on certain products, such as rice and secondhand clothing. According to figures presented during this semi-annual review, the second quarter was more favorable. Imports decreased and tax revenues increased 6% compared to 2025.