Madagascar's Ministry of Economy and Finance and the Prime Minister’s disaster management unit convened development partners to develop a common funding roadmap for the country’s African Risk Capacity sovereign insurance. The initiative seeks predictable, multiyear financing that can provide rapid funds after major climate disasters while limiting pressure on the national budget. Premium requirements for the 2026-2027 coverage period are estimated at USD 4 million, comprising USD 1 million for drought, USD 2 million for tropical cyclones and USD 1 million for floods. State funding is supplemented by partner support through African Development Bank and World Bank programs. With some support arrangements nearing completion, Madagascar aims to use the Global Shield framework to secure continued financing for coverage against its principal climate risks.

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