Madagascar - Industrialisation and Financial Sector Support Project (PAISF)

Project Summary

Approval Date 28 Oct 2020
Signature Date 12 Nov 2020
Planned Completion Date 30 Jun 2024
Last Disbursement Planned Date 30 Jun 2024
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Environmental Category 1
Commitment U.A 12,080,000
Status Implementation

Project General Description

The Industrialization and Financial Sector Support Project (PAISF) is based on a long-term approach aimed at transforming Madagascar's industrial sector and positioning it as the main driver of growth and creation of decent jobs for the most vulnerable population, particularly women and young graduates. The PAISF is complementary with the Bank's other projects in the country. In particular, the PAISF is a continuation of the of the Investment Promotion Support Project (PAPI) and will carry out priority activities that could not be implemented under the latter. It is an institutional support operation to help build a robust industrial sector that can create decent jobs, especially for the most marginalized groups of the population, namely women and young people, as well as address the country's vulnerability by strengthening its resilience. The PAISF has two (2) operational components, namely: (i) development of industrialization; and (ii) development of an enabling financial sector for industrialization. The third component relates to project management. The project total cost is estimated at UA 12.08 million.

Project Objectives

The project’s objective is to create conditions that would attract private investment in Madagascar's manufacturing sector, particularly in areas where the country has comparative advantages (textiles, food processing, etc.).In particular, the project will aim to accelerate the development of Industrial Emergence Zones that will capitalize on Madagascar's comparative advantages, develop regional value chains, and attract international investors. The project will also support regional industrialization on the Ghanaian model of "one factory, one district" so that industrial development is inclusive throughout the country. In addition, it will facilitate the establishment of a long-term sustainable public-private partnership (PPP) fund to involve the private sector in the development of transformative infrastructure. Finally, the National Industrial Development Fund (FNDI) will provide financial assistance to Madagascar’s SMEs while supporting their integration into industrial value chains.


The main project beneficiaries are:(i) Madagascar as a whole, through building the institutional capacity of structures responsible for industrial development and private investment promotion, including structures in charge of PPPs; (ii) enterprises (small and medium-sized), which will benefit from an institutional framework that is more conducive to investment and provides broader access to financing; (iv) women and young entrepreneurs, who will receive support from the FNDI; (v) the entire population of Madagascar, who will be the indirect final beneficiaries of the positive impacts of industrial development, attraction of private investment in transformative infrastructure, the creation of decent jobs, and improvement of the quality of life of the population.

Participating Organization

African Development Fund
Ministry of Industry and Trade


IATI identifier 46002-P-MG-H00-002
Last Update 24 Mar 2023


Contact Details

Name Thomas VIOT

Geographic Location

Country Madagascar
Coordinates Location Name
-18.75 46.75 Antananarivo Province