Madagascar – Electricity, a priority

Many sectors, such as tourism, agriculture, agri-food, and telecommunications, are counting on the development of the electricity sector to bolster their growth. For businesses, power outages represent a source of additional costs, as these outages force economic operators to rely on generators. Furthermore, the high cost of energy in Madagascar, among the highest in Africa, undermines the country's competitiveness as an investment destination. Unstable and expensive energy remains a deterrent to investment. However, Madagascar possesses considerable renewable energy potential (hydroelectric, solar, wind) that has not yet been sufficiently developed. Within the framework of the General State Policy (PGE) and the National Plan for the Emergence of Madagascar (PEM), the plan is to reach an electrification rate of 501 TWh by 2023 and 701 TWh by 2030.

Universal access to reliable, sustainable, and affordable energy services is a key priority among the seventeen objectives of the 2015 New Energy Policy (NEP), which established the framework and objectives for the deployment of renewable energy. Since 2017, the new Electricity Code has completed a process of simplifying procedures and strengthening market liberalization, particularly in transmission and distribution.

By developing its hydroelectric power, Madagascar is reducing its dependence on fossil fuels, the import costs of which weigh significantly on the country's economy and the financial viability of JIRAMA, the national water and electricity company.

Through the Ministry of Energy, the Rural Electrification Development Agency (ADER) implements the rural electricity sub-sector policy. ADER develops projects based on indicative master plans in all 22 regions. It promotes economically viable, competitive, and more efficient alternative energy sources to serve households and production units, while developing a public-private partnership system by mobilizing all necessary financial resources to fund investments.