THE INTERNATIONAL Monetary Fund (IMF) has completed the third review of Burkina Faso’s economic program under the Extended Credit Facility (ECF), enabling an immediate loan of approximately $32.8 million.
According to the Fund in a report on its website, this brings the total IMF financial support under the arrangement to $131.3 million, aimed at bolstering the country’s fiscal stability and growth amid persistent security and economic challenges.
The IMF said Burkina Faso’s economy has shown resilience despite ongoing security threats, humanitarian crises, and climate shocks, with its real GDP growth reaching 5.0% in 2024, driven by strong agricultural output and services, which offset contractions in mining and manufacturing.
It however noted that widespread insecurity continues to hinder economic activity, particularly in the gold mining sector, a critical source of export earnings.
Inflation rose to 4.2% in 2024 due to higher food prices but is projected to ease to 3.0% in 2025 as food prices moderate, while the current account deficit widened to 5.7% of GDP in 2024 but is expected to narrow to 3.4% in 2025, supported by record-high gold prices, the Fund stated.
The IMF noted that Burkina Faso’s fiscal performance in 2024 was broadly satisfactory, though the primary fiscal deficit and net domestic financing targets were missed by 0.6% of GDP due to elevated capital spending. The 2025 budget includes corrective measures to address these slippages, with the overall fiscal deficit projected to tighten to between 3.3% and 4.0% of GDP.
Key structural reforms are progressing, with seven out of eight benchmarks met, including measures to enhance fiscal governance and transparency. The government has also cleared domestic arrears from 2023 and adopted a strategy to eliminate all outstanding arrears by the end of 2025.
Risks to Burkina Faso’s economic outlook remain tilted to the downside, primarily due to security threats, climate shocks, and potential shortfalls in external financing. The IMF emphasized the need for continued fiscal consolidation, improved revenue mobilization, and prudent debt management to ensure sustainable growth.
Mr. Kenji Okamura, IMF Deputy Managing Director, commended Burkina Faso’s authorities for their commitment to reforms despite difficult circumstances. “A lasting improvement in socio-economic conditions will require progress on security and structural reforms to foster diversification, fiscal governance, and resilience,” he stated.
The IMF’s continued support is expected to help Burkina Faso navigate its economic challenges while safeguarding social spending and public investment in critical sectors.
Approved in September 2023, the four-year ECF arrangement aims to support Burkina Faso’s economic recovery, strengthen fiscal sustainability, and promote inclusive growth. The program focuses on creating fiscal space, enhancing governance, and building resilience to shocks.
