(Ecofin Agency) - Last Wednesday, the International Monetary Fund (IMF) approved an $86 million loan for Madagascar after its first review of the country’s economic performance, under a programme backed by an Extended Credit Facility. The money will be provided immediately, bringing total financing under the programme to around $129.61 million.

The funding will enable Malagasy authorities pursue the implementation of reforms aiming to boost economic growth in a more sustainable and inclusive manner by increasing investments in infrastructures and human capital.

The loan will also help boost social spending while supporting financial sector and advance structural reforms.

Madagascar is one of the world’s poorest countries, despite its reserves of nickel, cobalt, gold, uranium and many more minerals.

The 2009 Coup d’Etat scared off foreign investors. Also, according to IMF’s estimates, the draught that hit the country between 2016-ending and the beginning of 2017 and the Enawo cyclone which killed 81 people, injured 253 and affected more than 430,000, cost the nation about $400 million, that is 4% of its gross domestic product.

Fiacre E. Kakpo