MADAGASCAR – The Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development has approved two financing agreements with Madagascar, amounting to US$65 million.
These loans will support the country’s sustainable socioeconomic growth and energy transition efforts.
Part of the fund, a US$35 million loan, will fund the Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) Clean Cooking Project, which aims to improve access to clean cooking solutions.
The rest of the fund will support the second phase of the Facilitation of Commerce Corridors Project (PACFC II), which aims to enhance Madagascar’s transport infrastructure.
The agreements were signed during the Africa50 investment platform’s annual meeting in Antananarivo, Madagascar.
OPEC Fund president Abdulhamid Alkhalifa stated, “By investing in clean energy and infrastructure, we are helping Madagascar address urgent needs while building a more resilient and prosperous future.
“These projects will positively impact public health, economic growth, and environmental conservation. A healthy population and a healthy economy go hand in hand.”
Clean cooking project: Addressing health and environmental challenges
The SMART Clean Cooking Project focuses on providing clean cooking solutions in Madagascar, where only 1.6% of the population currently has access to clean fuels.
Around 72% of fuel is sourced from forests, with 80% of these forests already lost. Additionally, indoor air pollution from traditional stoves causes approximately 17,000 deaths annually.
The project targets urban areas like Antananarivo and Toamasina, where firewood and charcoal are heavily relied upon. It aims to improve cooking infrastructure, promote sustainable agroforestry, and empower local communities, especially women.
By doing so, it hopes to improve public health, reduce deforestation, and benefit about one million people.
The US$30 million infrastructure loan will focus on developing key transport corridors in Madagascar’s southern regions, including the drought-prone Anosy and Androy areas.
Improved infrastructure will give more than 1.5 million people better access to markets, healthcare, and education, reduce travel time, and boost local trade.
These investments are expected to stimulate agriculture and improve living conditions in Madagascar’s most vulnerable regions.
In addition, the OPEC Fund signed a letter of intent with the AfDB, Africa50, and Madagascar’s Ministry of Energy and Hydrocarbons to promote clean cooking nationwide. This collaborative effort seeks to scale up clean energy solutions nationwide.
Since 1976, the OPEC Fund has approved 36 loans to Madagascar, totaling over US$290 million, with projects spanning energy, transport, and other vital sectors.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
