7.27 billion dollars per year. This is the amount Madagascar needs to mobilize by 2030 to finance its development under the Sustainable Development Goals (SDGs) scenario, according to the 2026 Country Report by the African Development Bank (AfDB) Group. This requirement far exceeds currently available resources, with the financing gap estimated at 7.18 billion dollars annually. In this scenario, the largest deficits are in industry and infrastructure, at 4.1 billion dollars, followed by education, at 1.7 billion dollars.
The state of tax revenue illustrates the scale of the challenge facing the Great Island. Tax revenue accounted for approximately 10.5% of GDP in 2025, a level below the sub-regional benchmark of 15%. The AfDB highlights the significant weight of the informal sector and the low efficiency of VAT collection. The report also identifies underutilized resources: public-private partnerships, institutional investors, pension savings, the diaspora, natural capital, and international private investments. However, mobilizing these would require strengthening institutions and risk-sharing mechanisms.
To reduce this gap, the AfDB believes Madagascar must diversify its funding sources beyond traditional public resources. Adam Amoumoun, Country Manager for the African Development Bank Group in Madagascar, states that “to achieve its development ambitions, Madagascar will need to mobilize resources on a large scale, both domestically and externally.” He encourages “accelerating reforms aimed at diversifying funding sources, strengthening resource mobilization capacity, and enhancing the implementation capacity of productive investment programs.”
For the AfDB, the challenge is to secure the necessary funding while improving the country’s ability to generate its own resources. In the short term, it recommends strengthening tax compliance, rationalizing exemptions, developing digital revenue collection systems, and better controlling public spending. In the medium term, it advocates for the gradual formalization of the economy, the deepening of capital markets, and the implementation of instruments to better leverage diaspora capital and climate-related financing.
Captured & Published at: 2026-09-15 11:38:35 (Madagascar Local Time EAT)
Original Source: https://www.2424.mg/croissance-madagascar-doit-mobiliser-727-milliards-de-dollars-par-an-dici-2030-pour-financer-son-developpement-selon-la-bad/
