Financial Deterioration, Liquidity and Recovery Planning in a State-Owned Utility: Evidence from Madagascar

Background This study examines financial deterioration and recovery planning in Madagascar’s state-owned electricity and water utility, JIRAMA. Methods Financial statements for 2021–2023 were analysed alongside the 2025–2028 recovery plan, comparing annual net losses, operating cash flows, year-end cash and financing arrangements. Results Net losses increased from MGA 378 billion in 2021 to MGA 962 billion in 2023. Operating cash flows were negative in 2022 and 2023 despite positive year-end cash. In 2022, cash increased alongside a larger loss. The recovery plan envisages improved collection, cost containment and a reduction in State subsidies. Conclusions The case documents how continuity financing accompanied financial deterioration and identifies the financial dimensions addressed by the recovery plan.