IMF Staff Concludes Visit to Madagascar
IMF News, September 11, 2025
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- IMF Staff Concludes Visit to Madagascar
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- Published: September 11, 2025
Visit scope and context
- IMF team led by Mr. Constant Lonkeng visited Antananarivo during September 4–10, 2025.
- Objectives: assess recent economic developments and the outlook; take stock of the 2025 budget execution; discuss contours of—and policy intentions under—the 2026 budget; gauge progress in the authorities commitments under Madagascar’s Fund-supported programs.
- The IMF Executive Board approved in June 2024 an Extended Credit Facility (ECF) and a Resilience and Sustainability Facility (RSF) arrangements for Madagascar (see PR 24/232).
- The second reviews of the ECF and RSF were completed in July 2025 (see PR 25/239).
- A formal assessment of Madagascar’s performance and prospects will take place in the context of the upcoming third reviews of the ECF and RSF, with the team scheduled to return to Antananarivo later this year.
Macroeconomic developments and outlook
- Major shocks this year are clouding Madagascar’s macroeconomic outlook.
- Recent technical difficulties in the mining sector are compounding external shocks.
- Inflation: headline inflation stood at 7.9 percent (y/y) in July.
- Madagascar recently hosted the Indian Ocean Commission (IOC) summit and the Southern African Development Community (SADC) summit, with some spillovers onto the economy.
Fiscal position and budget execution
- Spending commitments outpaced tax collection in the first half of the year.
- Authorities are activating contingency plans to stay in line with the budget in the months ahead.
- Work on the 2026 budget is underway.
- Policy priority: domestic revenue mobilization remains the centerpiece of the authorities’ fiscal strategy, considering the country’s huge development needs.
Structural and governance reforms
- The authorities issued a decree operationalizing the institutional framework for the national anti-corruption strategy 2025–2030.
- Authorities are reviewing the recommendations from the IMF’s governance diagnostic assessment.
- The authorities have continued implementing the automatic fuel pricing mechanism monthly.
- The authorities are finalizing a national climate finance strategy.
Engagement and meetings
- The mission met with:
- President Andry Rajoelina
- Prime Minister Christian Ntsay
- Minister of Justice Benjamin Rakotomandimby
- Minister of Economy and Finance Rindra Rabarinirinarison
- Central Bank Governor Aivo Andrianarivelo
- Other senior government officials
- The team also met with commercial banks and other private sector representatives, including from the textile industry, and development partners.
Key statements and next steps
- The IMF team expressed thanks for hospitality and constructive dialogue.
- A formal assessment is expected with the third reviews of the ECF and RSF when the team returns later this year.
Press Release No. 25/291 — September 11, 2025