The International Monetary Fund (IMF) has approved the second review under Burkina Faso’s Extended Credit Facility (ECF) arrangement, unlocking an immediate disbursement of approximately US$31.4 million (SDR 24.08 million). This brings total IMF support to the country to nearly US$94.3 million (SDR 72.24 million).
Despite a challenging environment marked by ongoing security risks and climate-related disruptions, Burkina Faso’s economic performance under the ECF arrangement has largely been satisfactory. The country has met most of its performance targets, including robust revenue collection and fiscal discipline, though some structural reforms have faced delays.
In the face of persistent insecurity, particularly impacting key sectors like gold mining, real GDP growth for 2023 has been revised down to 3.0 percent. The IMF projects moderate growth at 4.2 percent in 2024 and 4.3 percent in 2025, with inflation expected to rise to 3.6 percent due to higher food prices. A projected improvement in the current account deficit—driven by higher gold prices despite weaker production—reflects a cautiously optimistic outlook.
However, risks remain high, with the security situation continuing to hinder economic activities, especially in agriculture and mining, sectors vital to both Burkina Faso’s economy and broader regional markets. Terrorist threats have compounded challenges, straining government revenues and escalating social and spending pressures. These difficulties are felt not only in Burkina Faso but across the Sahel region, including neighboring Burundi, where similar challenges persist.
Burkina Faso’s government has made strides in fiscal reforms, emphasizing transparency and good governance. Notable progress includes improving fiscal management and addressing long-standing arrears, although some benchmarks, such as the audit of government arrears, were completed with delay. The IMF has highlighted the importance of continued fiscal discipline and the need to enhance resilience to climate change, a concern shared by many African nations, including Burundi, where climate shocks have also contributed to economic strain.
The IMF’s support is crucial for Burkina Faso as it navigates its recovery. As noted by IMF officials, a lasting economic recovery will depend on progress in improving security, diversifying the economy, and fostering resilience to climate change. These efforts align with broader goals of sustainable development, which resonate across the African continent, particularly in countries like Burundi, which are grappling with their own unique sets of economic and political challenges.
As Burkina Faso continues on its reform path, the IMF stresses the importance of continued commitment to fiscal reforms, including efforts to reduce the fiscal deficit to 3 percent of GDP by the end of the arrangement. These reforms aim to ensure sustainable growth while safeguarding essential social spending—a goal that resonates strongly across Africa, where economic resilience and social equity are key to addressing widespread poverty and inequality.