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Madagascar has unveiled a landmark $150 million initiative to revolutionise its agricultural sector while confronting the growing threat of climate change. Launched under the Inclusive Agricultural Value Chains Programme (DEFIS+), the six-year effort seeks to improve food security, enhance market access, and boost the climate resilience of agricultural ecosystems, infrastructure, and production systems. The initiative is expected to benefit nearly five million smallholder farmers, either directly or indirectly, across six regions in the southern and central parts of the country.
The programme is being jointly implemented by the Green Climate Fund (GCF) and the International Fund for Agricultural Development (IFAD), with GCF contributing $53.8 million in grants and loans, and IFAD providing $97 million in co-financing. This collaboration represents a significant investment in building long-term agricultural sustainability and poverty alleviation in one of Africa’s most climate-vulnerable nations.
At the launch ceremony, Madagascar’s Minister of Agriculture and Livestock, François Sergio Hajarison, emphasised that the programme reflects the government’s strategic priorities, as outlined in its General State Policy and the Initiative for the Emergence of Madagascar. The country is treating climate resilience not merely as an environmental concern, but as a cornerstone of economic development. Minister of the Environment Max Andonirina Fontaine echoed this sentiment, stating that DEFIS+ exemplifies how national climate action can bring transformative change to rural regions.
Representatives from GCF and IFAD reaffirmed their commitment to Madagascar’s sustainable development goals. Dr Euan Low of GCF highlighted the project’s alignment with national priorities and its potential to uplift millions out of poverty. IFAD’s Regional Director, Sara Mbago-Bhunu, added that the initiative builds on existing achievements and provides vital additional financing to scale up innovative, inclusive interventions.
With 59% of Madagascar's population living in rural areas and agriculture contributing 23% to GDP, the DEFIS+ programme is well-positioned to produce tangible socio-economic impacts. Ahead of its launch, the programme team held a three-day workshop involving all stakeholders to ensure effective coordination and implementation.
Business and Investment Opportunities in Madagascar’s Agricultural Sector:
The launch of DEFIS+ opens up a range of business and investment opportunities in Madagascar’s agricultural value chains. Investors and agritech firms can explore partnerships to provide climate-smart farming tools, sustainable irrigation systems, and digital platforms for farm management and market access. Infrastructure developers and logistics providers have the chance to contribute to the modernisation of rural transport and storage systems, improving supply chain efficiency. Additionally, green financing institutions can collaborate on funding mechanisms tailored to smallholder farmers. With a growing emphasis on sustainability and inclusive growth, Madagascar’s agricultural sector presents fertile ground for enterprises committed to impact-driven and scalable solutions.