Malagasy Prime minister, Kolo Roger, and IMF's Deputy Managing Director, Min Zhu
The IMF resumed its relationship with Madagascar earlier this year (july 2014) after peaceful elections in December 2013, and in mid June 2014 approved a $47.1 million emergency loan to help the country meet urgent balance of payment needs.
IMF's Deputy Managing Director Min Zhu said that the government's fuel subsidy programme - which costs 1.5% of gross domestic product (GDP) - was not reaching the vulnerable.
« Studies show the poorest people do not benefit from the major part of the subsidy. The big chunk of the money goes to the middle and upper class », he said.
« The government needs to prepare a targeted programme to help the poorest because if there is an oil price increase the poor will suffer ».
Without giving a specific forecast, Zhu said in a separate statement that Madagascar's economic growth was expected to rise further in 2015 compared with a 3% forecast for this year, helped mostly by the mining sector.
« The country needs to move back to higher, sustainable, and inclusive growth, which will raise living standards, create more jobs, accelerate poverty reduction and improve the investment environment », Zhu said.
The IMF has scheduled talks in October 2014 where it will raise the issue of reforms in revenue collection, investment in education and healthcare and promotion of fiscal transparency, Zhu said.
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