Improving hydroelectric projects

The Malagasy government aims to achieve a growth rate of around 5% by 2025. According to the explanatory statement of the 2025 Initial Finance Bill (LFI 2025), this goal can be attained through a combination of structuring projects and efficient public finance management.

The government is under pressure to address the energy sector. A study conducted by the BFM during the second quarter of this year highlighted that power outages are among the key factors hindering business activities. To tackle this issue, LFI 2025 emphasizes the importance of transitioning to hybrid energy solutions. The bill states that the capacity of solar power plants, which stood at 50 MW in 2024, will be increased to 250 MW by 2025, with 150 MW financed by the Malagasy government.

The bill also prioritizes the improvement of hydroelectric projects such as Mandraka III and Volobe. Several major projects are outlined in the state budget, including national roads like RN13, the Antananarivo-Toamasina highway, the Anosizato Flyover, the Kianja Maki Andohatapenaka sports complex, the Corridor Development and Trade Facilitation Project (PACFC Phase III), and the Lake Village project in Ivato, which was recently announced. Regarding revenue, the government forecasts tax collections amounting to 1.2 billion USD.