Vara Mada: $26.7 billion in potential economic activity for Madagascar

TOLIARA, 30 April 2026 — Vara Mada, a subsidiary of Energy Fuels, today released the findings of an economic analysis conducted by Ernst & Young (EY), highlighting the project’s transformative potential for Madagascar. Over the project’s 39-year lifespan, $26.7 billion could be injected into the Malagasy economy.
The project could generate nearly $130 million annually in tax revenue for the state and support thousands of jobs each year during its operational phase—a potential boon for the country’s economic development.
Amid heightened focus on the development of the Atsimo-Andrefana region, these findings provide concrete insights into the resources the project could mobilize for the national economy, the state, and local communities.
A structuring economic lever at the national level

• $890 million in initial investment.
• Nearly $130 million per year in tax revenue, equivalent to 3-4% of the state’s annual budget.
• Nearly $500 million per year in GDP contribution, or roughly 3% of Madagascar’s economy.
• Over $19 billion in cumulative GDP contribution over the project’s lifetime.
• The project alone could double foreign investment in Madagascar.
• $300 million in social investments.

If successfully implemented, the project would also sustain economic activity for young people, creating thousands of jobs annually during the operational phase.

A tangible contribution to essential services for the population and regions
For example, an annual allocation of $130 million could enable the state to simultaneously fund:

• The annual salaries of 30,000 teachers,
• 5,000 healthcare workers, and
• 20,000 security personnel, thereby improving access to education, strengthening healthcare, and increasing security services across the country.

The analysis also highlights significant potential benefits for Malagasy businesses, with a substantial share of procurement and contracts expected to be sourced locally—particularly in services, maintenance, transportation, energy, and infrastructure.
“These findings demonstrate the scale of what Vara Mada can mean for Madagascar. Beyond the numbers, they reveal a considerable potential for economic and social transformation. I approach this with great responsibility and a clear commitment: ensuring this value creation translates into concrete, long-term improvements for local communities. I will continue to engage in open dialogue with all stakeholders and authorities.” Mike van Akkooi, Managing Director of Vara Mada.
By publishing these results, Vara Mada aims to foster a better understanding of the project’s impact and enrich dialogue with all stakeholders