Domestic
World Bank: $225M to Strengthen Cities and Create 17,000 Jobs
The World Bank Group is strengthening its support for Madagascar with new financing of $225 million for the Integrated Urban Development and Employment Resilience Project (PRODUIRE 2). Approved on July 6 in Washington, this program aims to sustainably transform the Greater Antananarivo and Greater Toamasina agglomerations by strengthening their capacity to withstand climate disasters while boosting employment and economic development. This initiative comes at a time of increased vulnerability in urban centers. In early 2026, cyclones Fytia and Gezani inflicted losses on Madagascar estimated at 3.4% of gross domestic product. In the capital, which concentrates nearly 44% of national wealth, extreme urban poverty has more than doubled in a decade. Repeated flooding, inadequate infrastructure, and land security challenges continue to hinder private investment and limit development prospects. Building on the first PRODUIRE project, this new phase plans to intensify flood protection work, improve drainage networks, strengthen solid waste management, rehabilitate several neighborhoods, and further secure land rights in Greater Antananarivo. In Toamasina, where nearly 70% of homes were damaged by cyclone Gezani, the program will finance the reconstruction of more resilient housing and the restoration of essential infrastructure, including schools, health centers, and Barikadimy University, which will be rebuilt to higher standards. Expected results by 2032 are ambitious. Approximately 1.5 million people should benefit from more resilient infrastructure, while 20,000 homes will be rebuilt. The project also provides for the issuance of land titles for 50,000 plots, with at least 40% bearing a woman's name as owner or co-owner, a measure designed to promote better economic inclusion. Additionally, an estimated 17,000 jobs will be created through various construction projects and opportunities generated by investments. For the Minister of Economy and Finance, Dr Herinjatovo Ramiarison, this financing will enable families to live in safer neighborhoods, benefit from better infrastructure, and have more economic opportunities, while supporting local businesses and job creation. For his part, the World Bank Group's representative in Madagascar, Atou Seck, emphasizes that the project goes beyond infrastructure reconstruction. According to him, the objective is also to concretely improve living conditions for residents, reduce risks facing the most vulnerable populations, and enable families to build a more secure future. PRODUIRE 2 also benefits from technical support from the Global Facility for Disaster Reduction and Recovery (GFDRR) and the Quality Infrastructure Investment Partnership (QII), financed by the Japanese government, confirming the commitment of several international partners to more resilient urban development in Madagascar.
Source: Madagascar Tribune