The World Bank Group has approved $225 million in financing for the Integrated Urban Development and Employment Resilience Project (PRODUIRE 2). This new program aims to strengthen city resilience against climate risks, improve essential infrastructure, and create more jobs in Greater Antananarivo and Greater Toamasina.
The funding comes at a critical time as Madagascar's cities experience rapid growth while facing mounting challenges. Cyclones Fytia and Gezani caused damage estimated at 3.4% of national GDP. In Greater Antananarivo, extreme urban poverty has more than doubled over the past decade, despite the capital generating nearly 44% of national wealth. Recurring floods, infrastructure deficits, and land insecurity hinder private investment, limit economic opportunities, and keep many vulnerable households in precarity.
In Antananarivo, PRODUIRE 2 will intensify investments in flood protection, drainage, solid waste management, neighborhood rehabilitation, and land security. In Toamasina, where Cyclone Gezani damaged nearly 70% of homes, the project will support reconstruction of more resilient housing and restoration of essential public infrastructure, including schools and health centers.
By 2032, the project will enable 1.5 million people to access resilient infrastructure, support reconstruction of 20,000 homes, facilitate land titles for 50,000 parcels, and contribute to creating approximately 17,000 jobs.
"When cities function better, residents live better," said Dr Herinjatovo Ramiarison, Madagascar's Minister of Economy and Finance. "Thanks to this World Bank-funded project, families will benefit from safer neighborhoods, better infrastructure, improved access to land services, and more economic opportunities. This investment will help create jobs, support local businesses, and give more Malagasy the means to build a better future."
"Cyclone Gezani damaged nearly 70% of homes in Toamasina and disrupted thousands of families' lives," said Atou Seck, World Bank Group Representative to Madagascar. "Through PRODUIRE 2, communities can rebuild stronger homes while essential infrastructure and services are restored and strengthened. The University of Barikadimy, severely damaged by the cyclone, will be completely rebuilt to higher standards. Beyond infrastructure, this project aims to improve daily life: living in safer environments, accessing more economic opportunities, and allowing parents to focus on what matters most—their children's future, their work, and their well-being."