The Republic of Madagascar has become the 22nd country to join the Africa Finance Corporation (AFC), a leading infrastructure solutions provider in Africa.
The organization establishes a treaty between member states with intentions of developing and financing infrastructure, natural resources, and industrial assets, all for economic development and growth. The AFC, since its creation in 2007 has invested $5.5 billion across 28 African countries.
This announcement is coming at a time when Madagascar has sustained positive economic growth over the last five years. The island nation has a GDP growth that outperforms several other economies within the region, driven by the implementation of a new economic and social development strategy.
According to the AFC, this sustained growth has been led predominantly by the tertiary sector, with the performance of the export industry leading to a trade surplus of plus -0.8 percent of GDP, well above the African average of -12.97 percent deficit.
“It is my pleasure to welcome Madagascar as the 22nd Member State of AFC,” Samaila Zubairu, President and CEO of AFC said. “Over the past decade, Madagascar has undergone reforms demonstrative of its commitment towards sustainable growth through key developments within its tertiary sector.”
Madagascar’s strategy, spearheaded by the National Development Plan (NDP), focuses on developing inclusive growth and sustainable development especially within rural communities where much of the population lives below the poverty line.
As a country that is focused on reducing poverty, the development of infrastructure plays a crucial role in this. “We see AFC as a key solution provider towards our development goals and look forward to working closely in the coming years,” said Richard Randriamandrato, the country’s Minister of Economy and Finance.
Prospective states to join the corporation include Tanzania, Mozambique, Ethiopia, Egypt, Namibia, Senegal, and Mali.