RicherFin · Sovereign Projects

Industrialisation and Financial Sector Support Project (PAISF) — Madagascar

Madagascar · Nationwide · four identified pilot industrial zones · Industrialisation and financial sector

Overview

The Industrialisation and Financial Sector Support Project (PAISF) is an institutional-support project intended to strengthen the conditions for industrial development in Madagascar and improve access to finance for businesses. Approved by the African Development Fund in October 2020, it combines institutional reform, preparation of industrial zones, development of public-private partnerships and support for SME-financing mechanisms.

The project covers the development of Industrial Emergence Zones, structuring of the National Industrial Development Fund, preparation of a PPP mechanism and improvement of the regulatory environment for industrialisation. Four pilot industrial zones have been identified in Alaotra-Mangoro, Vakinankaratra, Diana and Atsinanana.

Implementation experienced major delays. The report prepared in early January 2026 recorded disbursement of only 15.11% of the loan and considered achievement of all objectives by the then closing date of 30 June 2026 unlikely. The African Development Bank nevertheless published another implementation report in June 2026 and project-related activity remained documented after that date.

Key project information

Official name
Industrialisation and Financial Sector Support Project (PAISF)
Status
Under implementation in the latest identified public documentation
Current phase
Implementation · technical assistance and institutional development
Country
Madagascar
Coverage
Nationwide · four identified pilot industrial zones
Sector
Industrialisation and financial sector
Sub-sectors
Industrial development · private investment · SME financing · public-private partnerships
Project structure
Public institutional-support project financed by a concessional loan
RicherFin project ID
01ccedca-d406-47d9-969c-1a367db80650
AfDB project ID
P-MG-H00-002
Estimated total cost
UA 12.69 million including government counterpart
ADF financing
UA 12.08 million
Government counterpart
Approximately US$854,000 according to the Ministry of Economy and Finance
Financing approval
28 Oct 2020
Loan agreement signed
12 Nov 2020
Effective date
08 Dec 2021
First effective disbursement
12 Aug 2022
Closing date in latest accessible detailed financial report
30 Jun 2026

Financing

PAISF is financed principally by a concessional African Development Fund loan. The appraisal report presents total cost of UA 12.69 million including national counterpart funding, with the ADF loan accounting for UA 12.08 million.

At 5 January 2026, UA 1.825 million had been disbursed, or 15.11% of the loan, leaving UA 10.255 million undisbursed. The same report highlighted low commitment and implementation difficulties near the then scheduled closing date of 30 June 2026.

Total project cost
UA 12.69 million
Approved ADF financing
UA 12.08 million
Documented national counterpart
Approximately US$854,000
Instrument
African Development Fund concessional loan
Disbursed at 05 Jan 2026
UA 1.825 million