The Malagasy Government, through the Emergency Management Prevention and Support Unit (CPGU) at the Prime Minister's Office, and the Ministry of Economy and Finance (MEF), brought together technical and financial partners to discuss establishing a multi-year, predictable, and sustainable financing mechanism for sovereign insurance premiums within the framework of the Global Shield.
Discussions with partners should help define a common roadmap to secure funding, strengthen the state's budgetary resilience and improve the country's capacity to respond to disasters.
The goal is to enable the state to access financial resources quickly when a major disaster strikes, while limiting the strain on the national budget, says the MEC in a statement. Madagascar currently has coverage in place against drought, tropical cyclones, and, since 2026, floods. These mechanisms have already enabled the mobilisation of funds following disasters, particularly during cyclones.
For the 2026-2027 campaign, the required compensation is estimated at $4m: $1m for drought, $2m for tropical cyclones, and $1m for floods. Funding is based on government contributions as well as support from partners, notably through the African Development Bank's ADRiFi and MDTF programmes and the World Bank's REPAIR programme.
Beyond the 2026-2027 campaign, the challenge now is to establish a multi-year, predictable, and sustainable financing mechanism for sovereign insurance premiums. This approach is particularly important as some support mechanisms are gradually coming to an end. Through the Global Shield, Madagascar intends to consolidate existing financing and ensure the continuity of its protection against major climate risks.
Launched at COP27 by the Vulnerable Twenty (V20) Group of Finance Ministers and the Group of Seven (G7), the Global Shield against Climate Risks?aims to increase protection for climate-vulnerable economies and communities by providing and facilitating substantially more and better pre-arranged and trigger-based finance against disasters and climate risks.
Madagascar faces increasing risks associated with cyclones, droughts, floods, and other climate hazards.