Climate investment to boost agricultural value chain in Madagascar

  • Article type News update
  • Publication date 04 Jun 2025

A USD 150 million project that will increase the resilience of smallholder farmers and the wider agricultural value chain in Madagascar was launched today.

The Inclusive Agricultural Value Chains Programme (DEFIS+) will directly or indirectly support almost 5 million smallholder farmers. The six-year programme will enhance market access, food security and the climate resilience of agricultural production systems, infrastructure and ecosystems. 

The Green Climate Fund (GCF) is partnering with the International Fund for Agricultural Development (IFAD) to deliver the programme across six regions in southern and central Madagascar. The GCF is providing USD 53.8 million in grants and loans alongside USD 97 million in co-financing from IFAD.

The Minister of Agriculture and Livestock, François Sergio Hajarison welcomed the project launch. “In the face of climate challenges, His Excellency the President of the Republic, together with the Government of Madagascar, through the General State Policy and the Initiative for the Emergence of Madagascar, has made climate resilience and agricultural transformation a national priority. The DEFIS+ project is both a concrete illustration of this and a strategic tool,” Minister Hajarison said.

The Minister of the Environment and Sustainable Development, Max Andonirina Fontaine, said the project demonstrated the country’s commitment to scaling up climate action. “In Madagascar, we are ensuring that the fight against climate change truly contributes to transforming the regions. DEFIS+ will be an example of this: by strengthening the resilience of ecosystems and agriculture, we are improving the lives of rural populations and moving towards more sustainable development,” Minister Fontaine said.

Dr Euan Low, GCF Sub-Regional Lead for East and Southern Africa Region said the project was part of the Fund’s growing partnership with the country: “The Government has told the Green Climate Fund that we must ensure that our investments in Madagascar deliver lasting climate resilience and lift people out of poverty. The GCF takes this as a call to action. We are committed to working closely with IFAD, in alignment with the country's climate agenda, to deliver results that improve the lives and livelihoods of climate-vulnerable communities.”

IFAD Regional Director for East and Southern Africa, Sara Mbago-Bhunu, said the new programme complements and pushes forward achievements to strengthen climate resilience and bolster food security in Madagascar. “This transformative additional financing will empower the programme to expand its interventions, holistically address the challenges of smallholders and equip them with innovative solutions to support long-lasting resilience,’’ she said.

Madagascar faces significant challenges in its agricultural sector, which is the backbone of its economy. Fifty-nine per cent of its population lives in rural areas, and agriculture accounts for 23 per cent of GDP. 

Ahead of the project launch, IFAD and GCF, in collaboration with the Government of Madagascar, organised a three-day workshop to support operationalisation of the programme team.