Madagascar: African Development Fund approves a grant of over $9 million to strengthen protection and sustainable use systems for natural capital and ecosystems

The Board of Directors of the African Development Fund – the African Development Bank Group’s concessional financing window – approved a donation of $9.42 million to Madagascar to implement climate resilience through the Preservation of Biodiversity in National Parks Project.

The grant, agreed on 18 December 2024 in Abidjan, comes from the Climate Action Window, a mechanism of the Fund, created during the 16th replenishment round to help combat the significant shortage of climate finance in Africa. The window is split into three sub-windows – adaptation, mitigation and technical assistance – and is aimed at the least developed countries on the continent.

The project aims to strengthen the resilience of agricultural protection system value chains and preserve and ensure the sustainable use of natural capital and ecosystems to increase Madagascar’s resilience to climate change. It plans to develop the capacity of communities living alongside the national parks to adapt to climate change, develop and refurbish access roads to ensure the parks are accessible in every season, build sustainable conservation infrastructure, provide water from boreholes and micro-dams, and construct public primary schools, along with five basic health centres to benefit local communities.

Furthermore, the project will help secure the land in the protected areas concerned and support the local economy through income-generating activities. The various support activities, particularly training and awareness-raising campaigns, will help establish a sense of responsibility among the direct beneficiaries in how they carry out development initiatives.

“The project is targeting direct investment in climate-smart agriculture to improve agricultural production, the conservation of natural habitats and ecosystems, the development of socioeconomic infrastructure, and the participation of local people, by creating job opportunities to improve their livelihoods,” commented Adam Amoumoun, head of the African Development Bank’s Country Office for Madagascar.

“Activities to conserve and maintain protected areas will have a positive impact in terms of reducing carbon emissions in the three intervention areas; this will be incorporated into a study on implementing contractual payment mechanisms for ecosystem services and the development of a carbon market,” he added.

The project’s direct intervention area covers three national parks – Lokobe, Nosy Hara and Andringitra – and surrounding areas. Three other national parks – Montagne d’Ambre, Ankarafantsika and Analamazaotra Mantadia – will benefit from the training and capacity-building component for young people and women.

Cover photo: The project supported by the African Development Fund through its Climate Action Window will help strengthen protection, conservation and sustainable use systems for natural capital and ecosystems in Madagascar.