Strengthening public financial management

The Government of Madagascar, through the Ministry of Economy and Finance (MEF), officially launched the first phase of the Financial Management and Economic Resilience Support Program (PAGFRE).

This event was marked by the signing of financing agreements in partnership with the African Development Bank (AfDB). The program, aimed at strengthening public financial management and supporting the country’s economic resilience, is backed by 50 million Units of Account (UA). Of this, 20 million UA are financed by the African Development Fund, while 30 million UA come from the Transition Support Facility.

PAGFRE 1 outlines various economic and financial measures to bolster macroeconomic stability. Additionally, the program offers an opportunity to expand the national budget by allocating resources to critical sectors such as energy. Implementing priority reforms to maximize tax revenues, improve the efficiency of public spending, and combat corruption is vital, with tools like the Integrated Tax Administration System (SAFI) playing a key role.

The program places a strong emphasis on the energy sector. It aims to increase the share of renewable energy in the national energy mix from 45 % to 55 % by 2025. PAGFRE is expected to contribute to an energy transition that will reduce production costs and enhance the country’s economic competitiveness. Furthermore, PAGFRE anticipates significant improvements in economic governance and the management of state-owned enterprises like Jirama, by boosting their transparency and performance.