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In Madagascar, this sector supports all of the country's major investment programs: road, port, mining infrastructure, industrial buildings, public and social services, housing, etc.
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Heavily dependent on public and private investment projects, its development has been severely affected by the economic slowdown. In recent years, Madagascar has seen a phenomenal increase in construction investment. This peak began in urban areas and gradually spread to rural areas. The phenomenon was further amplified by the fact that the State, by implementing a series of infrastructure projects, has itself taken on a major challenge, a challenge that reflects the multiple commitments made within the framework of the Initiative for the Emergence of Madagascar (IEM).
The construction sector, however, is one of the sectors most affected by the coronavirus crisis. In the 2020 amended finance bill, it recorded a negative growth rate of -1.8%. To address the situation, the government plans to support this sector by opening markets as part of the "Vita Malagasy" promotion. The Malagasy Ministry of Finance and Budget has confirmed that the declines in performance are due to the impacts of the crisis linked to the suspension of external financing for major infrastructure projects. Through the launch of a "Marshall Plan," the presidency has allocated $270 million for construction and infrastructure projects.
Public and parapublic infrastructure are indeed the pillars of development. In the Multisectoral Emergency Plan, an infrastructure program is created with the objectives of supporting economic resilience, creating and safeguarding jobs, and developing the market for SMEs in the construction sector. In order to protect investments, on the one hand, and increase infrastructure safety, on the other, planned construction sites must comply with current construction standards. The Road Fund is intended to manage all funds to be used in the construction, development, rehabilitation, and maintenance of road networks. The implementation of infrastructure projects is among the greatest challenges of the Madagascar Emergence Plan (PEM). The Initiative for the Emergence of Madagascar (IEM) projects are progressing rapidly in the development and housing sector. In Mahajanga, 50,000 housing units are under construction throughout the territory. Work began in Amborovy Mahajanga in October 2019. The "Promotion of housing and modernization of Madagascar" also includes the creation of the town of Tanà-Masoandro and the development of the coastline of the town of Toamasina.
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The government has entrusted the Ministry of Regional Planning and Housing with the rehabilitation of national roads (RN1, RN2, RN3, RN4, RN5, RN5A, RN6, RN7, RN12A, RN13, RN44, RN43), roads in the Antananarivo-city area.
The government thus plans to consolidate the planning of regional and national urban territories as well as growth areas, to develop and implement development plans in decentralized local authorities, and to support the promotion of housing to ensure access to decent housing for every household.
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