WASHINGTON, April 2, 2015—The World Bank Group’s Board of Executive Directors approved today a total of US$100 million in budget support for the Government of Burkina Faso to reduce agriculture and transport costs, improve transparency and accountability in mobilizing public resources, and minimize the country’s vulnerability to shocks.
Burkina Faso is a landlocked, low-income country in the Sahel region with a high population growth rate facing many challenges including structural vulnerabilities, trade shocks, and inadequate ability to provide basic services to the country’s population. The lack of governance, increased youth unemployment and significant inequalities among the population were the main contributors to the recent unrest in the country.
“The transitional authorities are committed to addressing governance issues and restoring political and economic stability in Burkina Faso, said Mercy Miyang Tembon, the World Bank’s Country Manager for Burkina Faso. “The World Bank supports these efforts by providing resources and technical assistance that focus on promoting governance.”
The budget support approved today includes a US$50 million dollar IDA credit and a US$50 million IDA grant for the Fourth Growth and Competitiveness Operation, the fourth and final in a programmatic series of Development Policy Operations launched in May 2012. It builds upon previous reforms in the cotton sector, trade and transportation, public financial management, and transparency in the mining sector.
The operation will support policies that improve the way the government invests in agriculture and transport, reduces the costs in these areas in order to promote trade, increase production of goods, and ultimately give people access to jobs, higher income, and better livelihoods.
“In the last decade Burkina has experienced solid growth driven by sound economic management and strong gold and cotton production,” said Samba Ba and Mariam Diop, Senior Economists for Burkina Faso and Task Team Leaders for the operation. “However, transformational interventions are necessary to improve productivity in important areas of agriculture, manufacturing, and other key services in order to create a more inclusive growth.”