The World Bank Group has approved US$225 million in financing for the Integrated Urban Development and Resilience Project for Jobs (PRODUIRE2), aimed at strengthening climate resilience, improving infrastructure, and creating more and better jobs in Greater Antananarivo and Greater Toamasina.
In a press release dated July 6, 2026, the World Bank stated that Madagascar’s rapidly growing cities are facing mounting challenges, noting that cyclones Fytia and Gezani caused damages estimated at 3.4% of the country’s GDP in early 2026.
The Bank further disclosed that in Greater Antananarivo, extreme urban poverty has more than doubled over the past decade, despite the capital generating close to 44% of the country’s GDP.
It added that recurrent flooding, inadequate infrastructure, and insecure land tenure continue to deter private investment, limit economic opportunities, and keep the city’s most vulnerable residents locked in poverty.
As a response to this the World Bank believes that 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% of the housing stock, the project will focus on rebuilding resilient housing and rehabilitating critical public infrastructure such as schools and health facilities, the Bank stated.
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, according to the Bank.
The World Bank further disclosed that the project will also address the insecure land tenure, noting that nearly half of the land in Antananarivo lacks formal titles, a key barrier to urban development and investment by supporting land regularization and digital land services.
This according to the world bank will help residents obtain legally recognized documentation and streamline transactions, with at least 40% of new land documents issued expected to include women as sole or joint rights holders.
The World Bank noted that PRODUIRE2 reflects a long-term partnership between the Government of Madagascar and the institution, and will support Antananarivo and Toamasina in becoming more resilient, inclusive, and dynamic engines of growth.
It added that the project is supported by the Global Facility for Disaster Reduction and Recovery (GFDRR) and 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.
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