Despite a wealth of natural resources and development potential in agriculture, tourism and mining, Madagascar is one of the world’s poorest countries. High poverty levels in rural areas, low agricultural productivity and a rapidly growing population all negatively impact on natural resources. Biologically unique forests are being sacrificed to meet the rising need for new farmland and fuelwood. Bushfires and illegal logging further exacerbate the loss of forest areas. Inappropriate traditional agricultural methods cause soil to erode and soil quality to decline. The basis of survival for both Madagascar’s people and its unique wildlife is under serious threat.Following consultations between the

Governments of Madagascar and Germany, GIZ (formerly GTZ) is thus concentrating the main thrust of its work on environmental policy, conservation and natural resources management.
Outside these priority areas we are still implementing projects in the following fields on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ):

• Particularly in rural areas, the limited availability of electricity supplies is severely hindering Madagascar's economic and social development. For this reason, we are supporting die Rural Development and Electrification Agency and municipal authorities, private operators and investors, in planning and implementing projects that promote rural electrification using renewable energy sources. 
• Madagascar is one of the countries so far least affected by AIDS. Although low, infection rates are now rising. GIZ is supporting the implementation of the country's Multisectoral HIV/AIDS Strategy. 

As the change of government that took place in Madagascar in March 2009 was not in keeping with democratic principles, German development cooperation has currently suspended activities at ministerial level in all projects and programmes.