Moderate Use of Semi-Concessional and Commercial Borrowing

The Malagasy government estimates its gross financing requirement for the 2026 fiscal year at 8,651.19 billion ariary.

This amount, presented by the Ministry of Economy and Finance within the framework of the Annual Financing Plan (AFP), corresponds to the resources that the State will need to mobilize to cover its expenditures, investments, and financial commitments that cannot be financed by ordinary revenues.

According to the guidelines adopted in the Medium-Term Debt Strategy, the authorities favor moderate use of semi-concessional and commercial borrowing, while seeking to maintain the sustainability of public debt. External financing will constitute the main source of resources, representing nearly two-thirds of the total requirements. The amount expected from international partners is estimated at 5,839.35 billion ariary.

The main donors identified are multilateral institutions such as the International Development Association (IDA), the African Development Bank (AfDB), and the European Investment Bank (EIB). Bilateral partners, including China, the French Development Agency (AFD), and the Japan International Cooperation Agency (JICA), will also contribute to financing the state budget.

At the same time, the government intends to strengthen resource mobilization on the domestic market. Domestic financing is expected to reach 2,811.84 billion ariary, representing 32.5% of the total requirement. This funding will primarily come from the issuance of government securities and temporary advances granted by the Central Bank to support public treasury management.

Through this strategy, the government seeks to ensure the financing of its development priorities, particularly infrastructure and basic services, while limiting the risks associated with excessive dependence on external financing.