World Bank Approves $225 Million to Strengthen Urban Climate Resilience in Madagascar

The World Bank Group has approved $225 million in financing to strengthen urban climate resilience, improve infrastructure and support job creation in Madagascar’s two largest urban centres, Greater Antananarivo and Greater Toamasina.

The financing will support the Integrated Urban Development and Resilience Project for Jobs, known as PRODUIRE2. According to the World Bank, the project is designed to expand climate-resilient infrastructure, improve urban services, support land administration and create more economic opportunities in cities that are increasingly exposed to flooding, cyclones and rapid population growth.

The announcement comes as Madagascar faces a growing convergence of climate vulnerability, urban poverty and infrastructure deficits. The World Bank said cyclones Fytia and Gezani caused damage in early 2026 estimated at the equivalent of 3.4% of the country’s GDP. In Greater Antananarivo, extreme urban poverty has more than doubled over the past decade, despite the capital area generating close to 44% of national GDP.

Focus on Antananarivo and Toamasina

PRODUIRE2 will build on earlier World Bank-supported urban resilience work in Antananarivo, Madagascar’s capital and largest urban economy. In Greater Antananarivo, the project will deepen investments in flood protection, drainage, solid waste management, neighbourhood upgrading and land administration.

The drainage and flood-control component is particularly significant for low-lying and densely populated neighbourhoods that face recurrent flooding during heavy rainfall. The World Bank said planned investments include drainage infrastructure linked to the Canal C3 ter and Canal C3 bis, as well as solid waste management improvements that can reduce blocked drains and flood risks during the rainy season.

In Greater Toamasina, Madagascar’s main port city, the project will focus on recovery and resilience after cyclone damage. The World Bank said Cyclone Gezani damaged nearly 70% of homes in Toamasina, while also disrupting public infrastructure and services. PRODUIRE2 will support the reconstruction of resilient housing and the rehabilitation of critical public infrastructure, including schools, health facilities and the University of Barikadimy.

The project’s targets are substantial. By 2032, it aims to provide climate-resilient infrastructure for 1.5 million people, reconstruct 20,000 homes to resilient standards, issue land documentation for 50,000 parcels and generate around 17,000 jobs.

Land Tenure as a Climate Resilience Issue

A notable element of the programme is its focus on land administration. The World Bank said nearly half of the land in Antananarivo lacks formal titles, which creates uncertainty for households, discourages investment and complicates urban planning.

PRODUIRE2 will support land regularisation and digital land services to help residents obtain legally recognised documentation and make transactions more efficient. At least 40% of new land documents issued under the project are expected to include women as sole or joint rights holders.

This matters for climate resilience because insecure tenure can limit households’ ability to invest in safer housing, access finance or participate in formal rebuilding programmes after disasters. Clearer land documentation can also support better urban planning, infrastructure delivery and private investment in areas where informal settlement patterns and flood exposure overlap.

Climate Adaptation and Economic Development

Madagascar is among the countries most exposed to climate-related shocks, despite contributing a very small share of global emissions. The World Bank has previously noted that the country contributes around 0.09 percent of global greenhouse gas emissions, while facing severe impacts from cyclones, droughts and floods. Over the past 20 years, Madagascar has experienced 35 cyclones, eight floods and five severe droughts, according to the World Bank’s climate analysis.

The economic implications are significant. The World Bank’s Madagascar Country Climate and Development Report warned that climate change could push an additional 1.68 million people into poverty by 2050 without adaptation measures. It also estimated that under a business-as-usual scenario, climate impacts could reduce GDP by 5.8 percent by 2050, while targeted adaptation investments and reforms could limit the decline to 1.7 percent.

That context helps explain why urban resilience is increasingly viewed not only as a disaster-risk priority, but also as an economic development issue. Madagascar’s cities are important centres of employment, trade, services and public administration. When floods, cyclones or inadequate infrastructure disrupt urban systems, the effects can extend across supply chains, household incomes, public services and private investment.

The World Bank’s 2024 climate report identified climate-resilient cities as one of five key sectors for resilient growth in Madagascar, alongside water, food and energy security, the blue economy, resilient transport and human development. It also highlighted the need for improved waste management, urban infrastructure upgrades and nature-based solutions to address growing flood and landslide risks.

Implications for Stakeholders

For public authorities, the project will test whether climate finance can be integrated into practical urban management. Flood protection, drainage, waste systems and land services are closely connected. If implemented in isolation, their impact may be limited. If coordinated, they can reduce climate risk while improving public health, mobility, housing security and the business environment.

For households, the most direct benefits are expected to come through safer neighbourhoods, more resilient homes, better access to urban services and improved land documentation. For local businesses, reduced flood disruption and clearer land administration could support investment and continuity of operations, especially in areas where infrastructure failures frequently interrupt trade and transport.

For international climate and development finance providers, PRODUIRE2 is another example of adaptation funding being channelled into urban systems rather than only rural or ecosystem-based programmes. This reflects a broader reality for climate-vulnerable countries: as urban populations grow, resilience investments must increasingly address housing, drainage, waste, land governance and public infrastructure in cities.

The World Bank said the project is supported by the Global Facility for Disaster Reduction and Recovery and the Quality Infrastructure Investment Partnership, financed by the Government of Japan, which will provide technical and analytical assistance for disaster risk management, urban resilience and infrastructure quality.

While the approved financing is sizeable, Madagascar’s wider adaptation needs remain much larger. The World Bank has estimated that urgent climate-resilience investments and reforms across five priority sectors would cost about $3.37 billion by 2030, while total needs to 2050 could reach nearly $7.5 billion.

PRODUIRE2 therefore represents an important but partial response to Madagascar’s urban climate challenge. Its long-term value will depend on implementation capacity, transparent delivery, maintenance funding and whether new infrastructure and land systems can keep pace with rapid urban growth and rising climate risks.

Source: www.sustainabilitynewsafrica.com