Madagascar: New World Bank Program Set to Provide Reliable and Affordable Energy to Over 2.5 Million People by 2030

WASHINGTON, May 6, 2026-The World Bank Group has approved a $250 million program to help Madagascar accelerate and expand access to affordable and reliable energy while strengthening the financial and operational performance of the national electricity utility, JIRAMA. The Accelerating Sustainable and Clean Energy Access Transformation in Madagascar (ASCENT Madagascar) program will boost Madagascar's efforts to provide electricity and modern cooking solutions to more than 2.5 million people by 2030.

The program is fully aligned with Madagascar's National Energy Compact under Mission 300, which aims to connect 300 million people to electricity across Africa by 2030, and is part of the World Bank's broader ASCENT regional initiative supporting sustainable energy access.

Despite its considerable renewable energy potential, Madagascar remains one of the least electrified countries in Sub-Saharan Africa, with only 36% of the population connected to reliable electricity. Deep-rooted structural challenges at JIRAMA - including a heavy reliance on costly diesel generation, significant technical and commercial losses, and tariffs that fall short of cost recovery - have long deprived households and businesses of reliable power. Meanwhile, the majority of Malagasy families continue to depend on charcoal or wood for cooking, exposing women and children to harmful indoor air pollution while accelerating the pace of deforestation.

ASCENT Madagascar responds to these interconnected challenges through a comprehensive approach that expands energy access while tackling the systemic barriers holding the sector back. The program represents a landmark achievement as Madagascar's first-ever Program for Results (PforR) operation, directly linking World Bank Group financing to independently verified outcomes - ensuring that investments translate into meaningful, measurable improvements in people's daily lives.

"Energy lies at the heart of Madagascar's economic recovery and is essential to unlocking private investment and creating jobs," said Dr. Hery Ramiarison, Minister of Economy and Finance of Madagascar. "This program combines expanded access to electricity with deep reforms to the energy sector, creating the conditions for productivity growth across the economy. By linking financing directly to results, we are ensuring that public resources deliver measurable impact for businesses, communities, and households."

The program will significantly expand electricity access through both grid and off-grid solutions. Around one million people will be connected to the national grid through 200,000 new JIRAMA household connections in urban and peri-urban areas. In parallel, 30 isolated power centers will be hybridized with solar generation and battery storage to reduce diesel use, lower costs, and improve reliability. For remote and climate-vulnerable communities unlikely to be reached by the national grid, the program will support the deployment of mini-grids and solar home systems through the Rural Electrification Development Agency (ADER), delivering 312,500 off-grid connections and bringing electricity to an additional 1.5 million people. To promote clean cooking, ASCENT Madagascar will also support the deployment of 1.5 million clean and improved cooking appliances nationwide. Alongside investments in access, the program will drive critical reforms at JIRAMA to restore financial sustainability and improve service quality.

"Madagascar has everything it needs to power its own transformation, abundant renewable resources and a population ready to seize new opportunities. ASCENT Madagascar is about turning that potential into results and delivering real change for Malagasy families and businesses: more reliable electricity, and better services for health, education, and jobs," said Atou Seck, World Bank Group Country Manager for Madagascar. "By addressing energy access gaps and JIRAMA's structural challenges, we are helping lay the foundation for a more resilient, pro-jobs economy, one that enables the private sector to grow, attract investment, and create opportunities. We are proud to partner with the Government of Madagascar as the country takes a bold step forward with the Program-for-Results approach, focused not just on plans, but on delivery."

ASCENT Madagascar builds on more than a decade of World Bank Group engagement in Madagascar's energy sector and complements ongoing investments, including the Digital and Energy Connectivity for Inclusion in Madagascar Project (DECIM) and support to sector reforms through Development Policy Operations.

Contacts:

World Bank Media Relations: [email protected]