Following five consecutive years of severe drought, Madagascar faces profound economic challenges, with annual crop losses estimated at USD 122 million and food insecurity affecting nearly 69 per cent of the population. Agriculture, forestry, and fisheries contribute 23 per cent of GDP and employ 69 per cent of the population, but the sector’s dependence on small-scale, rainfed farming leaves it acutely exposed to climate risks.

This adaptation project seeks to drive a systemic transition from climate-vulnerable subsistence farming to a sustainable, market-oriented, and climate-resilient agricultural economy. It focuses on strengthening smallholder farmers and local actors across five priority value chains, vanilla, clove, coffee, pepper, and peanut, while scaling up proven approaches from the baseline initiative “Adaptation of Agricultural Value Chains to Climate Change (2017–2022)” (PrAda 1) to broaden impact.

It is structured around three interconnected and complementary components designed to address technological, financial, and institutional barriers to climate-resilient agriculture (CRA):  climate-resilient production systems, financial services for CRA investments, and an enabling entrepreneurial and institutional environment for climate-resilient agricultural services. Together, these interventions aim to enhance smallholder resilience, expand access to finance, and establish enabling conditions for long-term sustainability of agricultural value chains.