Ratings agency S&P Global placed Madagascar on ‘CreditWatch’ with negative implications as coup leader Michael Randrianirina was sworn in as president following weeks of anti-government protests.
“We think the political uncertainty will hinder policymaking and reform implementation in the near term, consequently weighing on investment, growth, and fiscal consolidation and possibly on debt service,” the agency said. S&P also revised its GDP growth forecasts for Madagascar down to 3.0% for 2025 to 2026, from 4.1%.
Youth-led demonstrations against power and water outages in Madagascar quickly swelled into broader discontent and calls for the resignation of former President Andry Rajoelina, who fled the country last week. In 2024, about 80% of Madagascar’s 32 million inhabitants lived below the World Bank’s daily poverty line of $2.15.
