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PRESS RELEASE March 29, 2018

Burkina Faso: World Bank Approves $50 Million to Boost Private Investment and Job Creation

WASHINGTON, March 29, 2018—Today, the World Bank approved additional financing in the form of a $50 million International Development Association (IDA)* grant to Burkina Faso for the Bagre Growth Pole Project.

The additional financing will cover the cost of supplying electricity, building roads, and conducting the diagnostics (site assessment, demand survey, and master plan) for an industrial park for agricultural transformation which were not achieved under the existing credit as a result of cost overruns for the construction of irrigation canals. It will also finance a pilot project aimed at improving land tenure and continue to support activities that improve the investment climate such as effective investment promotion systems.

“This new injection of funds will allow the Government of Burkina Faso to establish the essential infrastructure and services needed to create the first successful growth pole in the country, and in turn attract more private investment to agricultural value chains in the Bagre area. A robust growth pole will boost employment and contribute to improving the lives of the surrounding population, especially smallholder farmers,” says Martin Maxwell Norman, the World Bank’s Task Team Leader for the project.

The Bagre Growth Pole Project supports activities that are in line with the current National Economic and Social Development Plan (PNDES) – especially when it comes to leveraging key sectors such as agriculture for increased job growth.

“Our support for entrepreneurship in agriculture and agro-processing and the development of value chains aims to decrease rural poverty, grow the share of manufacturing that contributes to GDP and exports, and increase the average number of productive jobs created each year,” notes Cheick Kanté, World Bank Country Manager for Burkina Faso.

With this additional financing, the closing date of the project has been extended from November 30, 2018, to November 30, 2020.

* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.5 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $18 billion over the last three years, with about 54 percent going to Africa.