An International Monetary Fund (IMF) team led by Constant Lonkeng visited Antananarivo, Madagascar, from September 4 to 10, 2025. The purpose of the visit was to assess recent economic developments, review the execution of the 2025 budget, discuss policy intentions for the 2026 budget, and evaluate progress on commitments under Madagascar’s IMF-supported programs.
In June 2024, the IMF Executive Board approved an Extended Credit Facility (ECF) and a Resilience and Sustainability Facility (RSF) for Madagascar. The second reviews of these arrangements were completed in July 2025.
At the conclusion of the visit, Mr. Lonkeng stated: “Major shocks this year are clouding Madagascar’s macroeconomic outlook. Recent technical difficulties in the mining sector are compounding external shocks. Inflation is on a downward path but remains elevated—headline inflation stood at 7.9 percent (y/y) in July. Madagascar recently hosted the Indian Ocean Commission (IOC) summit and the Southern African Development Community (SADC) summit, with some spillovers onto the economy.
“Spending commitments outpaced tax collection in the first half of the year; the authorities are activating contingency plans to stay in line with the budget in the months ahead. They have also started working on the 2026 budget, with domestic revenue mobilization remaining the centerpiece of their fiscal strategy, considering the country’s huge development needs.
“On the structural front, the authorities issued a decree operationalizing the institutional framework for the national anti-corruption strategy 2025–2030 and are reviewing the recommendations from the IMF’s governance diagnostic assessment. They have continued implementing the automatic fuel pricing mechanism monthly and are finalizing a national climate finance strategy.
“A formal assessment of Madagascar’s performance and prospects will take place in the context of the upcoming third reviews of the ECF and RSF, with the team scheduled to return to Antananarivo later this year.
“The mission met with President Andry Rajoelina, Prime Minister Christian Ntsay, Minister of Justice Benjamin Rakotomandimby, Minister of Economy and Finance Rindra Rabarinirinarison, Central Bank Governor Aivo Andrianarivelo, and other senior government officials. The team also met with commercial banks and other private sector representatives, including from the textile industry, and development partners.
“The IMF team would like to thank the authorities and various stakeholders for their hospitality and constructive dialogue.”