Driving job creation and economic growth

The African Development Bank (AfDB) has successfully concluded its business linkage program, which supported 300 micro, small, and medium enterprises (SMEs) across Madagascar.

The program, running from 2020 to September 2024, aimed to stimulate job creation and economic growth by fostering private sector development. It reached 300 SMEs from 18 regions of Madagascar, with a significant focus on agriculture (40 %) and services (25 %). Many of these businesses are led by young people and women, highlighting the program’s commitment to inclusive economic growth.

The AfDB’s initiative primarily concentrated on providing skills training, market access, and financing opportunities. As a result, participating businesses reported an average revenue growth of up to 35.85 %, with profits increasing by nearly 50 %, according to AfDB data.

The program was carried out in collaboration with the Federation of Chambers of Commerce and Industry of Madagascar, the Economic Development Board of Madagascar, and private sector organizations. The Ministries of Industrialization and Trade, as well as Agriculture and Livestock, also played a vital role in helping these businesses grow their capital and expand.

The ultimate goal of the program was to empower SMEs to scale up, achieve greater efficiency, and create better employment opportunities, especially for women and youth in key sectors critical to Madagascar’s economic development. In addition to training and personalized support, participating companies benefited from trade events that expanded their market opportunities. Furthermore, a credit guarantee system introduced with local banks improved SME access to financing, helping them secure the capital they needed to grow.