Stronger SMEs thanks to the Meso Capital Fund

Since April 2025, a new fund called the Meso Capital Madagascar Fund has been launched to support the country’s very small businesses (VSEs).

Supported by the European Union, this initiative aims to address a major problem: the lack of access to financing for these organizations, which are often overlooked by banks.

At a press conference held in Antananarivo on May 7, a representative of FIVMPAMA (Fivondronan’ny Mpandraharaha Malagasy) explained that this initiative targets several key sectors: agriculture, textiles, crafts, essential oils, energy, and technology. “The objective is to help VSEs better organize themselves, develop, and achieve long-term success,” he explained.

The project plans to raise an initial €5 million, with a target of €20 million within five years. Funding will come from foreign investors, development banks, impact funds, individuals, and members of the diaspora.

This initiative’s operation is distinguished by its collective approach: several small businesses in the same sector are grouped together in a structure called an SPV (Project Company). Together, they share tools, equipment, and premises and gain easier access to markets, which limits risks and improves performance.

The project relies on local partners such as Magma CGA and Taninketsa Indostrialy, and follows a six-stage rollout, from the selection of managers to the official launch.

With this mechanism, small Malagasy businesses will be able to strengthen their strength and contribute to the creation of sustainable jobs. This program could thus become a significant lever for the national economy.