MADAGASCAR: €73 million for electrification and sustainable agriculture

In Madagascar, the European Union (EU) and the French Development Agency (AFD) are pledging €73.2 million to finance electrification using solar energy and the development of sustainable agriculture through the preservation of forest ecosystems.

The financing agreements were signed recently between the Malagasy authorities and local officials from the European Union (EU) and the French Development Agency (AFD). The two institutions have pledged €40 million to implement the TalakyBe project, which aims to conserve and enhance the value of forests, as well as intensify and diversify sustainable agriculture.

TalakyBe will be implemented in 25 rural councils in the Anosy region in south-east Madagascar. Among the activities planned is the establishment of a development and management plan for the new protected area created in February 2018, as well as a system for monitoring activities (agricultural and otherwise) and providing early warnings based on drone-type technologies. The project, funded to the tune of €20 million by each partner, is also aimed at preserving and restoring forest landscapes, as well as developing a range of targeted agricultural services to strengthen ecosystem-based adaptation.

Electrification via photovoltaic solar energy

The other financing agreement (€33.2 million) concerns the electrification of rural areas. AFD will contribute 22 million euros, with 11.2 million euros in co-financing from the EU. The Agence de développement de l’électrification rurale (ADER) will use this financing to electrify 130 localities through mini-electricity grids powered by photovoltaic solar energy in the regions of Androy, Anosy, Menabe, Melaky and Atsimo Andrefana.

Under this project, subsidies will be granted “to private concessionaires operating in these regions who have responded to calls for projects launched by Ader, in order to reduce electricity tariffs”, AFD points out. According to AFD, the solar mini-grids deployed in rural areas will provide electricity to at least 175,000 people. This should increase the rate of access to electricity in a country where 85% of the population is deprived of this basic service, according to official figures.

To accelerate electrification, the Malagasy government wants to increase the country’s installed electricity capacity, while focusing on decentralised solutions and small photovoltaic solar power plants. Malagasy President Andry Rajoelina visited the rural council of Ramena on Saturday 12 August 2023 to inaugurate a 2.4 MWp photovoltaic solar power plant at Ankorikihely. The plant, built under a public-private partnership (PPP) between the Malagasy government and Diego Green Power, will supply power to at least 3,600 homes in the Antsiranana II district in the north of the island.


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