In 2022, 75.2% of Madagascar’s population was in poverty. There has been a steady decline in poverty within rural areas however, poverty within urban areas has ripened, seeing an increase of 31.5% over the past decade. This shocking growth in poverty within Madagascar’s urban areas is due to several factors with the COVID-19 pandemic and a large quantity of cyclones being the main causes. Fortunately, efforts for poverty reduction in Madagascar are underway and making a difference.

Food Insecurity

This level of poverty has led to a ripening level of food insecurity, seeing 204,000 of the Madagascan population in the highest level of severity (IPC phase 4) and 859,000 in the second highest level of severity (IPC phase 3) in 2020.

In response to this, the Madagascan government received $227 million credit in April 2023 from the World Bank and the French Development Agency to restructure rural infrastructure. This restructuring and development program aims to aid approximately 165,000 farmers and 150,000 homes by implementing training on forms of agriculture to cope with their climate. In addition to blockchain input vouchers and 30,000 hectares of watersheds, it aims to help reduce food insecurity and further develop the rural economy.

Roads and Transport

In addition to tackling food insecurity, the Madagascan government are also rehabilitating roads, with 40 KM of the RN44 already complete and with work on rural roads not yet finished. This may have a knock-on effect on the education sector. As the restructuring is halving the travel time, it is allowing more children to attend school, helping to increase the completion of primary school from 62% for girls and 57% for boys. This will likely allow these children to grasp more skills and attain a higher-level job later in life. It may also benefit trading, as markets would become more accessible to the public allowing more local trade to occur. UNESCO’s research proves this, which infers that world poverty could be reduced by half if all adults finished high school.

Energy Access

Another aspect of Madagascar’s poverty reduction plan is to increase accessibility to electricity as, currently more than 18 million people currently lack electricity. It is crucial to improve the accessibility to electricity to facilitate the growth of enterprises, which is necessary to provide a better job market. Atou Seck, the World Bank Country Manager for Madagascar, has addressed this issue as a crucial aspect to provide improvement as he states, “Addressing poverty in Madagascar requires bold pro-growth reform that will improve the business climate, promote competition as well as build human capital, invest in connectivity, access to energy and digital infrastructure.”

In terms of initiatives, the Madagascan government has been approved for a $400 million credit for the Digital and Energy Connectivity for Inclusion in the Madagascar Project (DECIM). This project will likely increase energy access in Madagascar from 33.7% to 67% and add 3.4 million internet users, helping further Madagascar’s connectivity as a nation and allowing businesses to develop and generate larger profits, thus aiding poverty reduction in Madagascar.

In conclusion, Madagascar is one of the most impoverished countries in the world. However, there are several initiatives helping develop and further Madagascar’s economy, while aiding poverty reduction in Madagascar.

– Max O’Shea

Max is based in Chester, UK and focuses on Business and Technology for The Borgen Project.

Photo: Flickr