Madagascar is an island country located in the Mozambique Channel in the southwest Indian Ocean. It is the fourth largest island in the world with a total surface area of 587,040 km2, including several small outlying islands. With an endemism rate close to 90 percent in flora and fauna, Madagascar is one of the world’s 25 biological "hotspot" countries. Agriculture, livestock management, and fishing are the primary sectors of the economy, contributing around 43 percent to the GDP and providing livelihoods for 75 percent of the population. Fisheries and aquaculture play an important economic and social role, contributing 7 percent to the GDP, 24 percent to exports, and providing approximately 500,000 jobs.
Madagascar is among the world’s poorest countries with approximately 78 percent of the population living in rural areas. Some 93 percent of the population lives with less than $2 per day. The country averaged an infant mortality rate of 5.8 percent in 2013 and a high malnutrition rate estimated at 36.8 percent. Madagascar is also particularly vulnerable to adverse climate impacts, with agriculture, fisheries, water resources, forest cover, biodiversity, and public health threatened as carbon concentrations in the atmosphere rise.
Madagascar’s marine and coastal ecosystem is home to 75% of the marine macrofauna in the Western Indian Ocean.
In order to progress towards more robust natural resource governance and more inclusive economic development, Madagascar is utilizing PPCR and SREP resources under the CIF. In January 2015, the SREP Sub-Committee allocated of $50 million to Madagascar. The African Development Bank, the World Bank Group, as well as the International Finance Corporation will be supporting the Government of Madagascar in the development of the SREP Investment Plan. Through stakeholder consultations and meetings with relevant government ministries, the Investment Plan will focus on the specific institutional, financial, and economic barriers to scaling up renewable energy in Madagascar. PPCR will address the specific vulnerabilities of Madagascar by strengthening institutional capacity, channeling public investments towards infrastructure, and working with the agriculture sector to fortify food and livelihood security. Both of these funds are focusing on poverty alleviation and economic expansion while protecting Madagascar’s rich natural capital.