World Bank Approves $200M Project to Transform Madagascar’s Connectivity and Climate Resilience

At the heart of the initiative is the rehabilitation of the 371-kilometre Tananarive–Côte Est railway, a vital line linking the capital Antananarivo to the country’s main port in Toamasina.

Madagascar is set for a major overhaul of its transport system following the World Bank Group's approval of $200 million in financing for a landmark Multimodal Transport and Logistics Project—an ambitious initiative aimed at rebuilding critical infrastructure, strengthening supply chains, and boosting economic growth in one of Africa's most climate-vulnerable nations.

The project represents a strategic shift toward integrated, climate-resilient transport development, targeting railways, ports, inland waterways, and regional airports in a coordinated effort to modernise the country's connectivity backbone.

A fragile system under strain

Transport infrastructure is central to Madagascar's economy, supporting trade, agriculture, tourism, and exports. Yet decades of underinvestment—combined with repeated cyclones and flooding—have left key corridors severely degraded and highly vulnerable to disruption.

Weak connectivity continues to constrain economic opportunities, increase transport costs, and isolate communities, particularly in rural and coastal regions.

The new project seeks to address these challenges by strengthening resilience, improving efficiency, and ensuring year-round reliability across critical transport networks.

Revitalising a historic railway corridor

At the heart of the initiative is the rehabilitation of the 371-kilometre Tananarive–Côte Est railway, a vital line linking the capital Antananarivo to the country's main port in Toamasina.

Upgrades will:

• Restore and strengthen key sections of the railway

• Improve freight capacity and reliability

• Reduce congestion on road networks

In addition, the project will support the development of a rail-road dry port and logistics hub near Antananarivo, designed to streamline cargo handling, ease pressure on Toamasina port, and enhance the movement of goods between inland and coastal areas.

Upgrading ports and restoring inland waterways

The maritime and inland waterway components of the project are equally transformative.

Key interventions include:

• Rehabilitation of Majunga (northwest) and Tulear (southwest) ports, including quays, access infrastructure, and operational facilities

• Improvements to ensure year-round functionality and cyclone resilience

A major highlight is the restoration of approximately 200 kilometres of the Pangalanes Canal, a historically significant inland waterway along Madagascar's eastern coast.

Through dredging, bank protection, and installation of modern navigation systems, the canal will be revitalised as a climate-resilient transport route—reconnecting remote coastal communities and enabling safer, more efficient movement of goods and people.

Strengthening regional air connectivity

Recognising the importance of aviation in a geographically diverse and disaster-prone country, the project will also invest in:

• Safety and security upgrades at regional airports in Toamasina, Fort-Dauphin, and Tulear

• Enhancements to climate resilience and operational reliability

These improvements are expected to support tourism, maintain domestic connectivity, and ensure critical access for emergency response and disaster relief operations.

Impacting millions of lives

The project is expected to benefit approximately 3.8 million people, delivering wide-ranging economic and social impacts.

Key beneficiaries include:

• Businesses and traders through improved logistics and reduced costs

• Farmers and fishers gaining better market access

• Coastal and rural communities experiencing reduced isolation

• Tourism operators benefiting from improved connectivity

• Passengers enjoying safer and more reliable transport options

Communities along the northern railway corridor, particularly around Antananarivo, are expected to see significant gains in freight efficiency and reduced congestion, while restored waterways and upgraded ports will open new economic pathways for coastal populations.

Driving economic growth and resilience

Madagascar's Minister of Economy and Finance, Dr Hery Ramiarison, described the project as critical to unlocking growth and strengthening national cohesion.

"Improving transport is a national priority. Weak connectivity has long limited job creation and economic development. This project will help connect markets, reduce isolation, and create new opportunities across the country," he said.

World Bank officials emphasized the project's long-term vision of building resilience against climate shocks.

"This is about creating a transport system that works even in the face of cyclones and floods," said Atou Seck, World Bank Country Manager for Madagascar. "By investing across rail, ports, waterways, and airports simultaneously, we are helping safeguard supply chains and ensure continuity for people and businesses."

Institutional reforms and private sector participation

Beyond infrastructure, the project places strong emphasis on strengthening institutions responsible for managing transport systems.

Key reforms include:

• Enhancing safety oversight across sectors

• Modernising governance frameworks

• Improving operational efficiency and service quality

• Creating conditions to attract private sector investment, particularly in rail and logistics

These measures aim to ensure long-term sustainability and reduce reliance on public funding.

Part of a $1.1 billion transport transformation strategy

The Multimodal Transport and Logistics Project complements ongoing World Bank initiatives in Madagascar's road sector, including:

• The Madagascar Road Sector Sustainability Project

• The Connecting Madagascar for Inclusive Growth Project

Together, these programmes bring total World Bank Group investment in Madagascar's transport sector to approximately $1.1 billion, forming a comprehensive strategy to modernise infrastructure across all major modes of transport.

The project is also expected to receive co-financing from the Asian Infrastructure Investment Bank (AIIB), further strengthening its financial and technical capacity.

A turning point for Madagascar's connectivity

As Madagascar continues to grapple with the dual challenges of climate vulnerability and economic development, the launch of this multimodal project represents a pivotal moment.

By integrating infrastructure upgrades with institutional reform and climate resilience, the initiative aims not only to rebuild transport systems—but to transform them into engines of inclusive growth, connectivity, and long-term sustainability.