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Madagascar Discloses COVID-19 Related Spending Amid Commitments to Transparency

In a move towards greater transparency, Madagascar has disclosed details of its spending related to the COVID-19 pandemic. The information was made available on the Ministry of Economy and Finance’s website, providing insight into the country’s efforts to mitigate the impact of the pandemic.

COVID-19 Related Spending

According to the report, the government received external grants and loans totaling over US$600 million in 2020, with around US$450 million already disbursed. These commitments include:

  • World Bank programs augmented to address the pandemic, such as:
    • Social safety net programs
    • Support for tourism and agribusiness sectors
    • Additional financing for the Basic Education Support Project

Spending by Ministries and Categories

The website also provides information on spending by ministries, categories of spending, and subcategories, including:

  • Hospitalization
  • Treatment
  • Care
  • Examples of specific COVID-19 related spending:
    • MGA 42 billion (US$11 million) for the purchase of rice distributed to vulnerable populations
    • MGA 25 billion (US$7 million) for transfers to public schools to compensate for cancelled registration fees

Procurement Contracts

Furthermore, the website provides information on procurement contracts, including:

  • Purpose
  • Amount
  • Names of awardees
  • As of March 8, 109 out of 127 listed contracts can be downloaded
    • Details on the authorized representative or agent signing each contract on behalf of the company

Commitment to Transparency

The authorities have also committed to publishing ex-post delivery reports for executed contracts and intend to continue until all remaining contracts are published.

Additional Information

Additionally, the Ministry of Health’s website publishes detailed monthly information on stocks of:

  • Medication
  • Medical equipment
  • Personal protective equipment provided in the fight against the pandemic
    • This information is available by region and municipality, as well as for each hospital or health center

Challenges Facing Madagascar

Madagascar faces significant challenges, including:

  • Widespread poverty
  • High income inequality
  • Low human capital indicators
  • Corruption issues that have been exacerbated by political crises and natural disasters
  • The pandemic has further amplified these crises and delayed measures to support the unfinished structural reform agenda

International Monetary Fund (IMF) Recognition

The IMF has also recognized Madagascar’s commitment to transparency, stating that “fund engagement remains crucial to help address Madagascar’s fragilities and challenges and promote inclusive and sustained growth.” The IMF’s proposed Extended Credit Facility arrangement will support the pandemic recovery, preserve macroeconomic stability, and advance the reform momentum to raise and sustain inclusive growth.

Conclusion

In conclusion, Madagascar’s disclosure of COVID-19 related spending is a significant step towards greater transparency and accountability. As the country works towards rebuilding its economy and addressing long-term fragilities, it is essential that this commitment to transparency continues to guide its efforts.