Madagascar in 2025: A Nation at the Crossroads of Climate Change, Development, and Political Reform
Current State of Affairs
The Republic of Madagascar currently finds itself in a precarious situation, facing a series of complex, interlocking challenges resulting in a multi-faceted humanitarian crisis.
Economic and Development Initiatives
As of February 2025, the World Bank has committed $3.5 billion to Madagascar, encompassing 17 national projects and 5 regional operations. A key focus is the Support to Resilient Livelihoods Project, which aims to build resilience through multi-sectoral development, local governance, and infrastructure improvements.
Economic projections suggest growth averaging 4.7% from 2025 to 2027, with industrial production and services leading the expansion. The tourism sector is expected to maintain positive momentum, driven by increasing international travel and Madagascar’s efforts to establish itself as a key tourism destination.
Environmental and Humanitarian Challenges
The eastern and northeast coasts have been particularly affected by devastating natural hazards, causing significant losses to homes, livelihoods, and public infrastructure. These environmental challenges are profoundly altering Madagascar’s landscape and increasing the likelihood of mass population displacements.
The combined effects of sustained drought and floods have worsened food insecurity, while widespread environmental degradation has affected a third of the island’s land resources, severely impacting livelidings, agriculture, and food security.
Recent Developments and International Support
A significant legal development occurred on July 23, 2025, when the International Court of Justice ruled that states are obligated to protect the environment and observe the Paris Agreement on climate change, establishing that states in breach of their obligations can be held legally responsible.
In a positive development, January 2025 saw the launch of the DECIM Fund, worth $97 million, under the Digital and Energy Connectivity for Inclusion in Madagascar Project, aimed at supporting private sector initiatives.
Looking Forward
Madagascar requires urgent assistance across the humanitarian-development-peace nexus to address its multiple crises, including substantial support for strengthening population resilience and adaptive capacity to climate change. Additionally, authorities and civil society organizations need adequate support to address the vulnerabilities of migrants and tackle other mobility dimensions of the ongoing crises.
