WASHINGTON, July 6th, 2026 - The World Bank Group has approved US$225 million in financing for the Integrated Urban Development and Resilience Project for Jobs (PRODUIRE2) to strengthen climate resilience, improve infrastructure, and create more and better jobs in Greater Antananarivo and Greater Toamasina.
Madagascar's rapidly growing cities face mounting challenges. In early 2026, cyclones Fytia and Gezani caused damages estimated at the equivalent to 3.4 percent of the country's GDP. In Greater Antananarivo, extreme urban poverty has more than doubled over the past decade, despite the capital generating close to 44 percent of GDP. Recurrent flooding, inadequate infrastructure, and insecure land tenure deter private investment, limit economic opportunities, and keep the city's most vulnerable residents locked in poverty.
Building on the World Bank-supported urban resilience program in Antananarivo, PRODUIRE2 will deepen investments in flood protection, drainage, solid waste management, neighborhood upgrading, and land administration in Greater Antananarivo. In Greater Toamasina, where cyclone Gezani damaged 70 percent of the housing stock, the project will focus on rebuilding resilient housing and rehabilitating critical public infrastructure such as schools and health facilities. By 2032, the project aims to bring climate-resilient infrastructure to 1.5 million people, reconstruct 20,000 homes to resilient standards, issue land documentation for 50,000 parcels, and generate approximately 17,000 jobs - laying the groundwork for sustained private investment, jobs, and economic growth.
"When cities work better, people live better. With the support of this new World Bank Group-financed project, families will benefit from safer neighborhoods, better infrastructure, improved access to land services, and greater economic opportunities. This investment will help create jobs, support local businesses, and give more people the chance to build a brighter future for their families," said Dr Herinjatovo Ramiarison, Minister of Economy and Finance of Madagascar. "
The project will also address insecure land tenure - nearly half of the land in Antanarivo lacks formal titles, a key barrier to urban development and investment. PRODUIRE2 will support land regularization and digital land services to help residents obtain legally recognized documentation and streamline transactions. At least 40 percent of new land documents issued will include women as sole or joint rights holders.
"Cyclone Gezani damaged nearly 70 percent of homes in Toamasina and disrupted the lives of thousands of families. Through PRODUIRE2, families will be supported to rebuild stronger homes, while critical public infrastructure and services will be restored and strengthened. The University of Barikadimy, which suffered extensive damage, will be fully rebuilt to higher standards so it can continue serving students for generations to come. In Greater Antananarivo, investments in flood protection, drainage infrastructure, including the Canal C3 ter and Canal C3 bis, solid waste management, and land administration will help reduce flooding and give families greater peace of mind during the rainy season. At its heart, this project is about helping people live more safely, creating better economic opportunities, and enabling families to focus on what matters most: their children's future, their work, and their well-being.", said Atou Seck, World Bank Group Country Manager for Madagascar.
PRODUIRE2 reflects a long-term partnership between the Government of Madagascar and the World Bank Group It will support Antananarivo and Toamasina to become more resilient, inclusive, and dynamic engines of growth.
PRODUIRE2 is supported by the Global Facility for Disaster Reduction and Recovery (GFDRR) and by the Quality Infrastructure Investment (QII) Partnership financed by the Government of Japan, which provide technical and analytical assistance to strengthen Madagascar's framework for disaster risk management, urban resilience, and infrastructure quality.
