The Executive Board of the International Monetary Fund (IMF) has completed its second review under the Extended Credit Facility (ECF) arrangement for Burkina Faso. This decision, made on December 19, 2024, allows for an immediate disbursement of approximately US$31.4 million, increasing the total financial support to about US$94.3 million.
Burkina Faso continues to face economic challenges due to conflict and adverse climate conditions. The country's real GDP growth in 2023 was revised down from 3.6 percent to 3.0 percent but is expected to rise modestly in the coming years. The security situation remains volatile, affecting key sectors such as gold mining and contributing to inflationary pressures driven by food price increases.
Despite these difficulties, fiscal performance has remained robust with improved revenue collection and a projected reduction in the overall fiscal deficit from 6.5 percent of GDP in 2023 to 5.0 percent in 2024. However, risks remain due to potential terrorist threats impacting vital sectors like mining and agriculture.
Progress under the ECF arrangement has been largely satisfactory according to IMF assessments, although not all structural benchmarks were met on time. Authorities have shown commitment towards fiscal governance improvements and have implemented several structural reforms focusing on procurement and treasury management.
Deputy Managing Director Kenji Okamura stated that "Burkina Faso continues to face a fragile security situation on top of large development needs and recurring adverse climate events." He emphasized that meaningful progress on security and structural reforms are essential for stable medium-term growth.
Okamura noted that despite challenging circumstances, program implementation has been satisfactory but warned of significant downside risks ahead. He stressed the importance of maintaining prudent fiscal policies for sustainable growth.
The government aims to reduce its fiscal deficit gradually while ensuring priority social spending is safeguarded. Efforts include managing public sector wages sustainably and advancing energy sector reforms alongside strengthened debt management strategies.