## Republic of Madagascar: Selected Issues

_IMF Staff Country Reports, March 21, 2025_

## Source details

**Canonical URL:** [Republic of Madagascar: Selected Issues](https://www.imf.org/en/publications/cr/issues/2025/03/21/republic-of-madagascar-selected-issues-562966)

## Other formats

- [Markdown version](/en/publications/cr/issues/2025/03/21/republic-of-madagascar-selected-issues-562966/index.md)
- [Structured JSON version](/en/publications/cr/issues/2025/03/21/republic-of-madagascar-selected-issues-562966/index.json)
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## Bibliographic details
- Published: March 21, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229004114.002

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### Key findings
- Jiro sy rano Malagasy (JIRAMA) is relatively inefficient: the company "produces less than what is generally acceptable, and at a higher cost."
- Electricity is the "second biggest constraint to competitiveness" reported by businesses in Madagascar, based on the Enterprise Survey conducted by the World Bank.
- A recovery plan is currently under preparation by the new JIRAMA management.
- Expansion of production capacity should prioritize renewable energy with a target for renewables to reach 85 percent of the production mix.

### Analysis and objectives
- Primary objective: JIRAMA to reach financial sustainability and no longer be dependent on government transfers.
- Other important objectives: increase electricity access and shift the production mix toward more renewables.
- Cost structure considerations: tariffs should cover recovery costs, explicitly including operational, distribution, commercialization, and investment costs.

### Policy recommendations
- Align tariffs with full recovery costs (operational, distribution, commercialization, and investment).
- Adopt a first-best approach of a single household tariff and use targeted transfers to compensate the most vulnerable households.
- Implement the recovery plan under the new JIRAMA management, with explicit emphasis on expanding renewable generation to achieve the 85 percent production-mix target.

*Source: Republic of Madagascar: Selected Issues.*

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## Content in this bundle

- **Republic of Madagascar: Selected Issues; IMF Country Report No. 25/61; February 11, 2025**
  - [Republic of Madagascar: Selected Issues; IMF Country Report No. 25/61; February 11, 2025 (Markdown version)](/-/media/files/publications/cr/2025/english/1mdgea2025002-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of Madagascar: Selected Issues; IMF Country Report No. 25/61; February 11, 2025 (PDF)](/-/media/files/publications/cr/2025/english/1mdgea2025002-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2025/03/21/republic-of-madagascar-selected-issues-562966_