Further evidence in the last 24 hours that Madagascar is seriously enhancing its sovereign credentials and reputation.
Huge endorsement to be announced as the first country to benefit from IMF and World Bank climate change action. And with almost $700m in loans which should help generate investment and economic resilience.
The World Bank must be pretty confident in the mining code being implemented given this quote and its award of the climate change action to Madacascar already: "This includes IMF support to improve public investment management while the WBG focuses on the implementation of a new mining code to address social and environmental impacts."
------------------------------------------------------------------------ International Monetary Fund and World Bank Group Announce the First Country Benefitting from the Enhanced Cooperation Framework for Scaled-Up Climate Action June 21, 2024 Washington, DC:
The World Bank Group (WBG) and International Monetary Fund (IMF) are pleased to announce that the Enhanced Cooperation Framework for Climate Action is now operational. Madagascar will be the first country benefitting from the Framework in the context of the Resilience and Sustainability Facility (RSF) arrangement approved today by the IMF Executive Board, and the WBG active engagement on climate change in the country.
Climate change is exacerbating poverty in Madagascar. Through the Framework, WBG-IMF coordinated efforts will strive to further support the country’s resilience in the face of climate change, working closely with other development partners.
The Framework aims to support efforts by country authorities to bring together development partners, the private sector and civil society to address the effects of climate change. Building on IMF-WBG analytical expertise and financing instruments, the institutions will jointly provide critical support to the design and implementation of country authorities’ climate actions. This will be done through an integrated, country-led approach to policy reforms and climate investments, including where applicable through complementary and well-sequenced reform measures.
Madagascar is the first country to benefit from this Framework, building on analysis such as the WBG's Country Climate and Development Report (CCDR) and the IMF’s Climate Policy Diagnostics and Climate Macroeconomic Assessment Program (CMAP). Examples of areas where policy synergies and capacity development are being coordinated among the country authorities, the IMF and the WBG include the promotion of green and resilient investments and adaptation interventions that will deliver immediate development benefits.
This includes IMF support to improve public investment management while the WBG focuses on the implementation of a new mining code to address social and environmental impacts. It also covers support for the expansion of renewable energy to help close the gap in electricity access in the country. The WBG will support the reduction of electricity costs and the development of renewable energy production, while the RSF will help to operationalize a dedicated financing vehicle to promote clean energy projects including in rural areas.
Madagascar will also adopt a national climate finance mobilization strategy to strengthen its position as an attractive destination for climate-related investments. The IMF and WBG stand ready to support a country-led platform to mobilize additional programmatic and project climate financing that could be implemented in 2025.
Madagascar Gets $658m IMF Loans to Unlock Growth By Marketforces Africa June 22, 2024
Madagascar has unlocked access to additional $658 million loans from the International Monetary Fund (IMF) executive board following fund support approval under the Extended Credit Facility (ECF) in the amount of US$337 million. This comes in addition to a Resilience and Sustainability Facility (RSF) arrangement in the amount of US$321 million.
In a statement, the multilateral lender said the ECF and RSF-supported programs are aligned with the authorities’ objectives highlighted in the new General State Policy (PGE) adopted in early 2024 and aim to increase Madagascar’s economic resilience and foster long-term inclusive growth.
(20min delay)