France to Accompany Madagascar in its Green Transition with Volobe Dam
In the morning of 23 April 2025, the Presidential plane with Emmanuel Macron touched down at the Ivato International Airport in the suburbs of the Madagascar’s capital Antananarivo. Much like Trump, Macron is in Tana to seal some deals as well as to attend the 5th Summit of the Indian Ocean Commission which will focus on #FoodSecurity as well as #Mayotte.
The biggest deal appears to be the Volobe Hydropower Plant (HPP) which has been under discussion for decades. After many years of negotiations, the French National Electricity Company (EDF) will take a stake in Compagnie Generale d’Hydroelectricite de Volobe (CGHV), the SPV set up for the project.
A signing ceremony took place in the presence of French President Emmanuel Macron and Malagasy President Andry Rajoelina. The Agreement was signed by three parties: Beatrice Buffon, Executive Director of EDF Group and Chair and CEO of EDF Renewables, Amine Hiridjee, CEO of Axian Group, and Demba Diallo, Director of Development at Africa50. According to the Agreement, EDF and Axian will each hold a 37.5% stake in CGHV, while Africa50 will hold the remaining 25%.
“I am glad to see the EDF teams pooling their expertise to see this complex project through. The Volobe hydropower plant will generate green renewable energy at an affordable and competitive rate in order to contribute to the development and #decarbonization of the Malagasy economy.”
EDF Renewables CEO Beatrice Buffon
The Volobe HPP is rated at 120 MW and is situated in the north-east of Madagascar, not far from Toamasina, the largest seaport in Madagascar. The Agreement is based on the DBOT (Design, Build, Operate and Transfer) model and the electricity produced will be sold to the Malagasy National Electricity Company (JIRAMA) according to terms defined by a Power Purchase Agreement (#PPA).
The Volobe dam will generate some 750 GWh of green electrical energy annually. The energy produced is sufficient to provide electricity to nearly 40% of the population of Madagascar, a country where the electrification rate is barely 36%. The project will cost an estimated EUR 600 million and is expected to become operational by 2030.
While in Tana, Macron also expressed interest in the #CriticalMinerals that are essential for the #EnergyTransition and are available in large quantities in Madagascar. On the other hand, Rajoelina expressed the wish to rehabilitate railways built by France during the colonial era. The Madagascar-France Joint Commission will convene in Paris in June 2025 to pursue the dialogue on issues of common interest.
