In terms of new electricity code adopted in 1998, Jiro sy Rano Malagasy (Jirama) became a limited liability company, although it was to remain under state ownership for the immediate future. Private investment in the country's power sector is now possible.
Jirama, the state run energy and water supplier, is currently being privatized, and the company is diversifying energy-generation sources in order to increase supplies and reduce costs, thus tackling two factors that have long handicapped mining and other industries. The privatisation process of the company involves the rehabilitation of installations, and, although thermal power plants are believed to be numerous, there is a need for hydroelectricity. Also, within the privatisation process of the company, there is believed to be a need for electricity market liberalisation, especially in production.
In 2002 Madagascar's electricity production was 840.2 million kWh and its electricity consumption was 781.4 million kWh.
