Faced with Madagascar’s growing exposure to climate disasters, the government intends to strengthen the country’s financial capacity to respond to emergencies.
Madagascar’s Ministry of Economy and Finance announced on Wednesday the establishment, with the support of several technical and financial partners, of a joint roadmap aimed at securing funding, strengthening fiscal resilience and improving disaster response capacity.
The objective is to enable the country to quickly mobilize financial resources in the event of a major disaster, while limiting the impact of such events on the national budget.
Madagascar already has insurance mechanisms covering several climate risks, including drought, tropical cyclones and floods. In the past, these mechanisms have also made it possible to mobilize funding following disasters, notably after cyclones.
For the 2026-2027 period, insurance premium requirements are estimated at $4 million. This amount includes $1 million for drought coverage, $2 million for tropical cyclones and $1 million for floods.
The financing of these premiums is based on contributions from Madagascar and several partners, including the African Development Bank and the World Bank.
Beyond the 2026-2027 period, the Malagasy authorities aim to establish a multi-year, predictable and sustainable financing mechanism for sovereign insurance premiums.
This approach aims to consolidate the financing mechanisms already available and ensure the continuity of the country’s financial protection against major climate risks.
For Madagascar, the challenge is therefore to have resources that can be mobilized quickly after a disaster, while strengthening the predictability of the financing required for climate risk management.
