Madagascar faces growing corruption risks despite reform push, says IMF

Madagascar is facing a severe governance and corruption crisis that threatens its economic future, according to a major new report by the International Monetary Fund (IMF). The study, prepared by experts from the IMF’s Fiscal Affairs Department (FAD), Legal Department (LEG), Monetary and Capital Markets Department (MCM) and Finance Department (FIN), says corruption remains deeply rooted in the country’s political and administrative systems despite years of reform promises.

The report was based on discussions with government ministries, judges, anti-corruption agencies, financial institutions, civil society groups and international partners. While the IMF acknowledged that President Andry Rajoelina’s administration has publicly committed itself to fighting corruption through a new National Anti-Corruption Strategy for 2025–2030, it concluded that practical results remain limited.

Corruption Hurting Economy and Public Trust

According to the IMF, corruption in Madagascar goes far beyond petty bribery. The report describes a system where political and economic elites hold strong influence over state institutions and major sectors of the economy. This has weakened accountability, damaged public trust and slowed development.

The IMF says corruption is reducing the effectiveness of government spending by diverting money away from essential services such as healthcare, education and infrastructure. Investors are also discouraged by weak institutions, legal uncertainty and poor enforcement of rules.

International corruption rankings cited in the report show Madagascar performing far below regional averages, with governance indicators worsening over the past decade.

Mining and Gold Sector Under Scrutiny

The report places particular attention on Madagascar’s extractive industries, especially gold mining. Although the country exports large amounts of minerals and precious resources, the government receives only a small share of the revenues.

In 2022, extractive exports accounted for nearly 44 percent of Madagascar’s total exports, but state earnings from the sector remained very low. The IMF blames weak oversight, illegal exports, opaque licensing systems and collusion between officials and private actors.

Gold mining is described as especially vulnerable to corruption and smuggling. Large quantities of gold reportedly leave the country illegally, depriving the state of much-needed revenue. Local authorities often lack the resources and technical capacity to control illegal mining activities.

The government introduced new regulations in 2024 aimed at improving oversight of gold operations and increasing traceability, but the IMF says implementation is still incomplete.

Anti-Corruption System Seen as Weak and Fragmented

Madagascar has created several anti-corruption bodies over the years, including the Independent Anti-Corruption Bureau (BIANCO), the Anti-Corruption Courts (PAC), the Financial Intelligence Service (SAMIFIN) and the Illicit Asset Recovery Agency (ARAI).

However, the IMF argues that too many institutions now operate with overlapping responsibilities and poor coordination. Investigations often face delays, while agencies struggle to share information effectively. Limited budgets and staff shortages further weaken the system.

The report also raises serious concerns about impunity. Despite many corruption allegations involving powerful figures, prosecutions remain rare. The High Court of Justice, responsible for trying senior political leaders, reportedly has not pursued any major prosecutions since its creation.

The judiciary itself is described as underfunded and vulnerable to political pressure. Courts lack personnel, infrastructure and digital systems, while legal protections for officials often make corruption investigations difficult.

IMF Calls for Transparency and Stronger Reforms

The IMF says Madagascar’s biggest challenge is not the absence of laws but the failure to enforce them effectively. The report calls for stronger judicial independence, better coordination among anti-corruption agencies and greater transparency across government institutions.

Among its key recommendations are publishing asset declarations of senior officials, improving public access to government information, strengthening whistleblower protections and making large public contracts and mining agreements publicly available.

The IMF also stresses the importance of digital reforms to improve public administration and reduce opportunities for corruption. However, it warns that technology alone will not solve governance problems without political will and independent oversight.

Despite its critical tone, the report says Madagascar still has opportunities for reform through active civil society groups, growing public awareness and support from international partners. But it concludes that lasting progress will depend on whether authorities are willing to move beyond promises and take concrete action against corruption at all levels of the state.