OUAGADOUGOU, June 27, 2024 – The World Bank today launched two significant economic reports for Burkina Faso: the Burkina Faso Economic Update and the Country Economic Memorandum (CEM).
The Economic Update highlights recent economic trends in the country and analyzes the short- and medium-term economic outlook. The April 2024 edition, titled “Sustaining the Momentum of Social Assistance Reform,” indicates that the economy grew modestly by 3.2% in 2023, primarily supported by the services sector. However, growth in the mining sector was hampered by a security crisis. The report notes that social assistance spending, amounting to about 2.6% of GDP, has been inefficient due to system fragmentation. It suggests that accelerating reforms such as the Single Social Registry and the Support Program for the Empowerment of Poor and Vulnerable Households (PAMPV) could enhance the effectiveness of social assistance.
The CEM is one of the World Bank's major analytical documents. It examines Burkina Faso's economic developments over past decades and constructs long-term growth scenarios while offering public policy recommendations for more efficient, sustainable, and inclusive growth. The document launched today observes that recent economic growth has not sufficiently transformed Burkina Faso’s economy or significantly reduced extreme poverty levels. Policy options suggested include raising agricultural productivity, increasing technological sophistication among firms, improving resource allocation through better transport infrastructure, and achieving gender equality.
"The CEM was greatly enriched by exchanges with Burkinabe and international researchers during a symposium organized at Thomas Sankara University of Ouagadougou in March 2023," said Daniel Pajank, World Bank Lead Economist for Burkina Faso and co-author of the report. "The synthesis report includes many policy options that Burkina Faso can use to transition to a better growth model."
Additionally presented was the Sahel Country Climate and Development Report (CCDR), which focuses on climate change constraints on long-term development in Burkina Faso. This report aims to identify key policies and measures addressing these constraints while aligning with national development and climate priorities in Sahel countries. It supports implementing Nationally Determined Contributions (NDCs) by prioritizing resilience-building policies and emission reduction strategies.
Hamoud Abdel Wedoud Kamil, World Bank Country Manager for Burkina Faso, stated: "The World Bank is also a knowledge bank in addition to providing financing. The reports launched today are decision-making tools designed to drive innovation beyond public policies for greater impact on populations, especially the most vulnerable."