Donor commitments could kickstart Madagascar recovery

Significance

The aim was to build on progress made in July when the government secured a three-year IMF Extended Credit Facility (ECF) programme. The country’s central bank reported that donors committed to over 6.4 billion dollars in financial support, with subsequent estimates as high as 10 billion dollars.

Impacts

• Passing budgetary measures will prove difficult due to a thin parliamentary majority.
• The government will likely prioritise EU reform and infrastructure demands -- Brussels has pledged 800 million euros over four years.
• Failure to implement governance reforms could lead to a suspension of IMF funding.