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GAFSP Helps Madagascar Beef Up its Zebu Export Market

Challenge

More than 80 percent of Madagascar’s population earns less than $2 a day—and agriculture is the dominant employment sector. Underinvestment and capacity constraints have weakened Madagascar’s livestock sector, causing the zebu cattle stock to dwindle to six million from 23 million in the 1980s.

Solution

Backed by a $7 million combined IFC and GAFSP Private Sector Window loan and extensive advisory support from IFC and the World Bank, BoViMa—short for Bonne Viande de Madagascar—is building a modern feedlot and slaughterhouse close to Tolanaro in Madagascar’s impoverished South. The feedlot will source zebu and animal feed from local breeders and farmers, supporting a wide network of jobs and trade.

Separately, the World Bank will provide $53 million to the Madagascar government to help fund an initiative that will train veterinarians, rehabilitate laboratories, and provide better animal care. These improvements will allow Madagascar to issue internationally recognized animal health certificates, opening up the export market. Zebu meat will be shipped overseas through a modern port at Tolanaro that was partly funded by the World Bank. 

Under an innovative structure, the GAFSP portion of the income generated from this project will be reinvested into a Community Reinvestment Fund (CRF), which will be used to finance community development projects including schools and health centers across Madagascar. 
 

Country

Madagascar

Funding

Private

Focus area

  • Fragility
  • Inclusive Business

Supervising entity

IFC

Results

The project is expected to help BoViMa create jobs and generate significant economic activities in one of the poorest regions of Madagascar. By establishing first modern slaughterhouse, it will help introduce best practices in health and safety standards.

The project is expected to finance the sale of US$7.7 million of livestock and US$6.6 million of animal feed annually, benefitting approximately 20,000 local cattle and goat herders. 

The project will source cattle and goats from approximately 12,500 smallholder herders, and procure approximately 20,000 tons per annum of food crops from 1,000 smallholder farmers for animal feed. This will lead to an expected increase in income and access to markets for herders, farmers and their families across Madagascar, one of the most fragile countries in the world.

In total, over one hundred new jobs will be created through this project, over a third of which will be for women.

Contact

Mr. Niraj Shah
Head, GAFSP Private Sector Window 
nshah1@ifc.org
Washington, DC 
Tel: 202 473 3743


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The Global Agriculture & Food Security Program (GAFSP) is dedicated to fighting hunger, malnutrition, and poverty in low-income countries by supporting resilient and sustainable agricultural systems that benefit and empower poor and vulnerable smallholder farmers. Since its inception in 2010, GAFSP has received contributions totaling $1.7 billion from Australia, the Bill & Melinda Gates Foundation, Canada, Germany, Ireland, Japan, the Netherlands, Norway, South Korea, Spain, the United Kingdom, and the United States, with funds going to countries that have strategic, innovative, and credible plans already in place to improve agricultural productivity and food security.

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