Madagascar Urbanization Review - Leveraging cities as drivers of growth and structural transformation - Policy Note

Jul 19, 2026

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Madagascar Urbanization Review policy note assesses how ongoing urbanization can be harnessed to drive economic growth, reduce poverty, and expand productive employment. It highlights that, despite rapid urbanization, Madagascar’s urbanization is not delivering comparable gains in GDP per capita or poverty reduction. Key findings point to stagnant services value-added, rising extreme poverty, and urban informality concentrated in low-productivity non-tradable jobs. The note outlines a roadmap of reforms to better align migration dynamics and improve job creation and productivity transitions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages16

Reading Time40 min

AccessFree to download

Key findings from the Urbanization Review

Urbanization as a driver of growth, poverty reduction, and jobs

Urbanization challenges in Madagascar

Migration dynamics: push factors and rural-to-urban movement

Informality in urban labor markets and job structure

A Proposed Roadmap: Key reform areas and priority actions

Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized Pub lic Disclosure Authorized MADAGASCAR URBANIZATION REVIEW 2024 LEVERAGING CITIES AS DRIVERS OF GROWTH AND STRUCTURAL TRANSFORMATION POLICY NOTE © Maur ice Brand MADAGASCAR Leveraging cities as drivers of growth and structural transformation URBANIZATION REVIEW © 2024 International Bank for Reconstruction and Development This work is a product of the staff of The World Bank with external contributions. The findings, interpretations and opinions expressed herein do not necessarily reflect the views of the World Bank, its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data cited in this work. The boundaries, colors, denominations and any other information appearing on the maps in this work do not imply on the part of the World Bank any judgment as to the legal status of any territory and in no way signify that the institution recognizes or accepts these boundaries. Rights and permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given, under the following conditions: Attribution-Please cite the work as follows: The World Bank. 2024.“Madagascar Urbanization Review: Leveraging cities as drivers of growth and structural transformation.” Translations-If you create a translation of this work, pleaseadd the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank shall not be liable for any content or error in this translation. Adaptations-If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank. Third-party content-The World Bank does not necessarily own each component of the content contained within the work. The World Bank therefore does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish toreuse a component of the work, it is your responsibility to determine whether permission is needed for that reuse and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; [e-mail: pubrights@worldbank.org](e-mail: pubrights@worldbank.org) Image credits—The images used in this report are from the World Bank and/or from other sources, which are mentioned on a case-by-case basis in the credit for each photo. Design. Mpanao Hatsarana, MpH™ The Madagascar Urbanization Review of Madagascar conducted by the World Bank aims to provide policy advice to the Government of Madagascar (GoM) on how to harness the ongoing urbanization in the country to achieve economic growth, poverty reduction, and the creation of productive employment. This Note is organized in two parts: 1 Key findings from the Madagascar Urbanization Review 2 A Proposed Roadmap: Key reform areas and priority actions 4 LEVERAGING CITIES AS DRIVERS OF GROWTH AND STRUCTURAL TRANSFORMATION KEY FINDINGS FROM THE URBANIZATION REVIEW URBANIZATION OFTEN CONTRIBUTES TO ECONOMIC GROWTH AND POVERTY REDUCTION, MADAGASCAR SHOULD SEIZE THIS OPPORTUNITY Urbaniz

FAQs

Why can urbanization contribute to economic growth and poverty reduction?

Urbanization can drive growth by creating hubs for innovation and trade, connecting firms and people, and improving productivity, which supports productive job creation when harnessed correctly.

What is the main problem with urbanization outcomes in Madagascar?

Urbanization is not effectively contributing to economic growth and poverty reduction. Services value-added has stagnated since 1990, GDP per capita remains lower than comparators, and extreme poverty has increased.

What explains rural-to-urban migration in Madagascar according to the note?

Migration is driven primarily by “push” factors that force people to leave rural areas, such as declines in agricultural output and increasing climate-induced disasters and shocks, rather than the “pull” of cities.

Jul 19, 2026

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