Madagascar – Construction, a structuring activity

Heavily dependent on public and private investment projects, its development has been severely affected by the economic slowdown. In recent years, Madagascar has seen a phenomenal increase in construction investment. This peak began in urban areas and gradually spread to rural areas. The phenomenon was further amplified by the fact that the government, by implementing a series of infrastructure projects, has itself taken on a major challenge, a challenge that reflects the multiple commitments made under the Initiative for the Emergence of Madagascar (IEM).

The construction sector, however, is one of the sectors most affected by the coronavirus crisis. In the 2020 amended finance bill, it recorded a negative growth rate of -1.8%. To address the situation, the government plans to support this sector by opening markets as part of the "Vita Malagasy" promotion. The Malagasy Ministry of Finance and Budget has confirmed that the declines in performance are due to the impacts of the crisis linked to the suspension of external financing for major infrastructure projects. Through the launch of a "Marshall Plan," the presidency has allocated $270 million for construction and infrastructure projects.

Public and parapublic infrastructure are indeed the pillars of development. The Multisectoral Emergency Plan (PEM) establishes an infrastructure program with the objectives of supporting economic resilience, creating and safeguarding jobs, and developing the market for SMEs in the construction sector. In order to protect investments and increase infrastructure safety, planned construction sites must comply with current construction standards. The Road Fund is intended to manage all funds for the construction, development, rehabilitation, and maintenance of road networks. Implementing infrastructure projects is one of the biggest challenges of the Madagascar Emergence Plan (PEM). The Madagascar Emergence Initiative (IEM) projects are making great strides in the development and housing sector. In Mahajanga, 50,000 housing units are under construction throughout the country. Work began in Amborovy Mahajanga in October 2019. The "Promotion of housing and modernization of Madagascar" also includes the creation of the town of Tanà-Masoandro and the development of the coastline of the town of Toamasina.