Economics & Development

Accelerating Sustainable and Clean Energy Access Transformation – Madagascar and Comoros for Madagascar and Comoros, the development objectives are to increase access to sustainable and clean energy in both countries, and in Madagascar to also improve the financial performance of Jiro sy Rano Malagasy (JIRAMA). Components for Madagascar: Component 1. Increased access to on-grid electricity, supporting renewable hybridization of isolated centers, reinforcement of distribution networks, and new grid connections to expand reliable service. Component 2. Improved Jiro sy Rano Malagasy (JIRAMA) financial viability and performance, establishing predictable operational subsidies, systematic arrears reduction to private suppliers and sector agencies, and loss-reduction measures to strengthen liquidity and revenue efficiency. Component 3. Improved Jiro sy Rano Malagasy (JIRAMA) governance and institutional capacity, introducing performance contracts, timely disclosure of audited financial statements, and biannual performance reporting to enhance accountability and transparency. Component 4. Expanded energy access through Distributed Renewable Energy (DRE), implemented by Agence de Développement de l’Electrification Rurale (ADER) through structured subsidy mechanisms for mini grids, standalone solar systems, and productive use of energy to reach underserved and climate-vulnerable areas. Component 5. Increased access to clean and improved cooking solutions, deploying scalable, performance-based incentives for technologies such as liquefied petroleum gas, electric cooking, solar cookers, bioethanol, biogas, and improved biomass stoves. Sub-components for Madagascar: Sub-component 1.1. Compact Delivery and Monitoring Unit (CDMU) and targeted technical assistance to the Ministry of Economy and Finance (MEF), Ministry of Energy and Hydrocarbons (MEH), Electricity Regulatory Authority (ARELEC), Agence de Développement de l’Electrification Rurale (ADER), and Jiro sy Rano Malagasy (JIRAMA). Sub-component 1.2. Job creation and inclusion through training, incubation, and catalytic support. Sub-component 1.3. Program coordination, independent verification, and digital Monitoring, Reporting and Verification (d-MRV) deployment to enable results tracking and access to carbon finance. Components for Comoros: Component 1. Network strengthening and modernization of system operations, financing medium-voltage and low-voltage rehabilitation and expansion, redundancy and voltage regulation, and modernization with Supervisory Control and Data Acquisition (SCADA), Distribution Management System (DMS), Energy Management System (EMS), smart metering, Meter Data Management (MDM), and mapping with Geographic Information System; Sub-components include 1.1. Rehabilitation and expansion of distribution networks, 1.2. Modernization of system operation and utility performance improvement, 1.3. Resettlement and livelihood restoration for project-affected people, and 1.4. Owner’s Engineer support for preparation and supervision. Component 2. Electricity and clean cooking access expansion, delivering last-mile grid connections with harmonized connection rules and fees, distributed renewable solutions and energy efficiency measures, and foundational clean cooking market development through assessments, standards, pilots, and targeted inclusion of female-headed households; Sub-components include 2.1. Last-mile grid connections, 2.2. Increasing access through DRE and energy efficiency, and 2.3. Clean cooking solutions. Component 3. Technical assistance, institutional strengthening, and project implementation support, building capacity in the Ministry of Energy, Water and Hydrocarbons (MEEH), National Water and Energy Regulatory Agency (ARSEE), and Société Nationale de l'Electricité des Comores (SONELEC), deploying a d-MRV platform, advancing sector studies and market frameworks, establishing a dedicated Project Implementation Unit, and promoting women’s internships and employment across sector institutions; Sub-components include 3.1. Technical assistance and capacity building for MEEH and ARSEE, 3.2. Technical assistance and capacity building for SONELEC, and 3.3. Project management and implementation support.

This document provides practical guidance for policymakers and debt managers on assessing feasibility and implementing liability management operations (LMOs) supported by credit enhancements (CEs). It serves as a step-by-step practical manual, drawing on lessons from recent LMOs and the results of a survey on CE availability conducted among major multilateral providers. The guidance is intended to support decision-making but should be applied with due consideration to country-specific circumstances, constraints, and policy objectives. The document, published as a Global Sovereign Debt Roundtable (GSDR) Cochairs document, is non-binding and will be updated periodically to incorporate new insights and evolving practices that further facilitate the effective use of LMOs.

The economy contracted by an estimated 5.4 percent in 2025, driven by a decline in the hydrocarbon sector expected to persist over the medium term. Weak growth in labor-intensive sectors, agriculture and services, is expected to increase poverty by 1 percentage point. Fiscal and external balances deteriorated as exports declined. A sharper-than-expected decrease in oil output represents the main downside risk to the outlook.