## cr1885 - Introduction

## Source details

**Canonical URL:** [cr1885 - Introduction](https://www.imf.org/-/media/files/publications/cr/2018/cr1885.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/cr/2018/cr1885.pdf.md)
- [Structured JSON version](/-/media/files/publications/cr/2018/cr1885.pdf.json)

---

### Overview
- Burkina Faso: landlocked West African country with a population estimated at 18.5 million inhabitants in 2015.
- Surface area: 273.187 square kilometres.
- Administrative organisation: 13 regions, 45 provinces and 351 communes including 302 Rural Communes and 49 Urban Communes.
- Presidential and parliamentary elections on 25 November 2015 led to a new political context with regular functioning of republican institutions.
- Government adopted the National Economic and Social Development Plan (PNDES) on 20 July 2016 for the 2016-2020 period.
- PNDES draws on: the Presidential Programme; Prospective National Study (ENP) Burkina 2025; National Land Management and Sustainable Development Plan (SNADDT); Sustainable Development Goals (SDG); African Union Agenda 2063; Community Strategic Framework of ECOWAS.
- PNDES document structure: diagnostic analysis of the economic and social situation; economic and social development strategy 2016-2020; implementation, monitoring and evaluation arrangements.

### Diagnostic analysis of the economic and social situation — key findings
- Economic growth has been erratic since 1960; demographic growth of 3.1% per annum.
- From 1960 to 2014, per capita income increased on average by only 2% per annum.
- Human Development Index (HDI) in 2014: 0.420, ranking Burkina Faso 181st out of 187 countries.
- Poverty: close to 40% of the population lived below the poverty line in 2014, compared to 46.7% in 2009.
- Life expectancy at birth: around 60 years.
- Illiteracy: more than 65% of those over fifteen are illiterate.
- Migratory movements: rural exodus and international migration towards countries of the sub-region.
- Key constraints: persistent social inequalities, an inadequate national productive system, low-skilled human resources and ineffective governance.

### Social dynamics and poverty indicators
- Poverty rate: 46.7% in 2009 → 40.1% in 2014 (decline of six points).
- Depth of monetary poverty: 15.1% in 2009 → 9.7% in 2014.
- Severity of monetary poverty: 6.7% in 2009 → 3/3% in 2014.
- Urban vs rural poverty decline (2009–2014): urban decline 11.6 points; rural decline 7.1 points.
- Distribution of poor: nine out of 10 people living below the poverty line are in the rural areas.
- Multidimensional poverty (2010 data): estimated at 84% (UNDP and Oxford University, 2010).
- Electricity-connected households (national): 18.8% in 2015; urban: 59.8% (2014); rural: 3.0% (2014).
- Poor quality housing: 77% of households; of which 39.5% are in the urban areas and 92% in the rural areas.
- Access to sanitation facilities: increased from 4.7% in 2007 to 8.1% in 2014.
- Internet users: rose from 1% to 9.4% between 2009 and 2015.
- Food insecurity: about 3.5 million Burkinabe, i.e. 20% of the population, are food insecure.
- Chronic infant malnutrition: 25.6% in 2009 → 20.1% in 2014.
- Consumption expenditure of the poorest households: 8.4% of the total consumption expenditure of households; for the poorest households: 44.1%.
- Education: gross enrolment rate (GER) rose from 48.7% in 2003 to 83% in 2014.
- Girl-boy ratio in secondary education: 0.51 in 2004 → 0.62 in 2014.
- Girl-boy ratio in higher education: 0.29 in 1997 → 0.48 in 2013.
- Proportion of women aged 16 to 64 in technical and vocational training: 3.1% in 2010, national average 4.5%.
- Major difficulties: inadequate public policy coordination and the mode of targeting poor populations.
- Inequalities persist in monetary poverty, education, access to economic resources and elective positions, primarily affecting women and young people.
- Income distribution trend (2003-2012): richest 20% had an average income 7 times higher than poorest 20%.
- UNDP estimates: focus on inequalities results in a loss in human development of about 35%; comparable losses: 22.8% at global level and 33.3% in Africa.

### Productive system, sectoral structure and employment
- Average economic growth rate: at least 5% per annum since 1964.
- 1994-2014 sectoral shares in GDP: services sector exceeded 45%; agriculture varied between 28% and 31%; industry fluctuated between 14% and 24%.
- Structural inadequacies: low agricultural productivity dominated by subsistence farming and rainfall variability; decline in manufacturing due to uncompetitive industries; weak agro-industrial development; “informalisation” of the tertiary sector; poor access to financial services; narrow export base; insufficient human resources for structural transformation.
- Vulnerabilities: climate change, volatility of export product prices (gold and cotton), declining Overseas Development Assistance (ODA).
- Business climate impediments: slow implementation of structural reforms, high costs of technical inputs, low-skilled human resources, weak support facilities, narrow productive base.
- Women employed in public and formal private sectors: 20.0% → 24.17% in 2013.
- Unemployment rate (national) in 2014: 6.6%.
- Rural unemployment (2014): youths under 25 at 14.1%; women at 9.9%.
- Women’s political participation: proportion of seats occupied by women in Parliament was below 30% in 2015.
- Under-employment: 24% of workers are affected.
- Social security coverage: barely 5% of workers have social security cover.
- Unemployment among graduates: 34.5% for higher education graduates and 17.2% for secondary education graduates.

### Human capital and demographics
- Population in 2015: 18.5 million inhabitants; projected to reach 21.5 million in 2020.
- Demographic growth rate: 3.1%.
- Youthful population: 67% under 25 years old.
- Number of children per woman: 6.6 in 2015, compared to 5.5 in West Africa.
- Demographic dependency rate: 92.2%.

### Human capital and social indicators — findings
- Health indicators:
  - Maternal mortality: 330 per 100 000 new births.
  - Infant mortality: 43 per 1 000 new births.
  - Chronic malnutrition: 30.2% in 2015, which "contributes to the death of one out of two children."
  - Structural constraints: inadequate provision of health services; poor access; low-skilled human resources; poor technical facilities; governance issues in health institutions.
- Education indicators and constraints:
  - Net enrolment rate (2015): 65.7%.
  - Primary completion rate: 58.4% of pupils complete primary education.
  - Higher education distribution: 63% of students enrolled in the social sciences and humanities.
  - Technical education and vocational training: 3.4% of the total education system population in 2015.
  - Systemic issues: non-professionalising education, need to improve quality and alignment with labour market, construct skills training and apprenticeship facilities, promote teaching profession.
- Water, sanitation and environment:
  - Rural access to drinking water: 58.5% in 2011 → 65% in 2015.
  - Urban access to drinking water: 80% in 2011 → 89.9% in 2015.
  - Access to sanitation (2015): 12% in rural areas and 34% in urban areas.
  - Major challenges: mobilization and sustainable management of water resources; improved access to water and sanitation services; protection of ecosystems; improved knowledge of national water resources.
- Scientific research:
  - Constraints: poor coordination of national scientific research; low valuation of findings; obsolete facilities; ageing human resources; insufficient public funding.
- Employment and labour market:
  - Employment structure: 94.6% of workers in the informal sector versus 6.4% in the modern sector.
  - Formal jobs (2015): 685 625 total.
    - Share of formal jobs held by women: 24.2%.
    - Government employees: 154 846 (22.6% of formal jobs), one third of whom are women.
    - Private sector workers registered with CNSS: 530 679 (77.4% of formal jobs), 21.6% of whom are women.
- Urbanisation and housing:
  - Urbanisation rate: 31.50% in 2016, with urban population growing twice as fast as the national population.
  - Concentration: 62% of the urban population live in the regions of Ouagadougou and Bobo-Dioulasso.
  - Consequences: growing shortage of housing; proliferation of squatter housing.
  - Policy challenges: systematising regional planning and development; access to decent housing.

### Governance and institutional constraints — findings
- Political governance progress: creation and strengthening of republican institutions; professionalising defence and security; consolidation of the rule of law; contributions to peace and security; improvements in social cohesion and national solidarity.
- Remaining governance challenges:
  - Administrative governance: maintaining institutional stability; modernising administration; establishing a service administration; strengthening independence of justice; restoring State authority; systematising stakeholder involvement in public policy.
  - Economic governance: consolidate consistency and rationalisation of economic policies; institute management for development results; improve mobilization of domestic and external resources; increase effectiveness of public spending and accountability.
  - Local governance: update decentralisation framework; accelerate transfer of powers, resources and assets; strengthen capacities of local development actors in project management.

### Major structural transformation challenges (diagnosis)
- Three major challenges:
  - Good governance and improved quality of institutions: stability of republican institutions; efficient legal and judicial system; national culture for safeguarding and promoting national pride and identity.
  - Availability and employability of skilled human resources: requires substantial investments in education, medical cover and control of high population growth.
  - Development of productive bases and competitiveness: weak industrial development and low competitiveness of job-generating commodity production and processing sector; dependence on availability of Water, Energy, Transport and Telecommunications; orient research to national needs; reallocate resources from low-productivity to higher-productivity activities.

### PNDES strategy, vision, objectives and expected impacts
- Vision by 2020: "Burkina Faso, a democratic, united and cohesive nation, transforming the structure of its economy to achieve a strong and inclusive growth, through sustainable consumption and production".
- Core principles: national leadership; equity; subsidiarity and partnership; results-based management (RBM); proactivity.
- Overall objective: structurally transform the Burkinabe economy to achieve a strong, sustainable, resilient, inclusive growth generating decent employment for all and improved social welfare.
- Expected impacts and numeric targets:
  - Improved effectiveness of political, administrative, economic, local and environmental governance.
  - Achievement of an average annual growth rate of 7.7% creating at least 50 000 jobs every year.
  - Decline in the poverty rate from 40.1% in 2014 to 35% in 2020.
  - Drop in the demographic growth rate from 3.1% in 2015 to 2.7% in 2020.
  - Acceleration of human capital development and adoption of sustainable production and consumption methods.
  - Growth trajectory: increase from 5.7% in 2016 to 7.7% per annum during the 2016-2020 period.
- Two main levers for transformation:
  - Create environment favourable to industrial development by strengthening output support sectors.
  - Revive competitive and sustainable industrial development through developmental investments of up to 8 408.2 billion francs CFA.

### PNDES impact indicators — values and targets
- Values 2015:
  - Incidence of poverty: 40,1%
  - Incidence of poverty in the rural areas: 47,5%
  - Depth of poverty: 3,3%
  - Economic growth rate: 4,0%
  - Share of manufacturing industry in GDP: 6,6%
  - Share of manufactured goods in the exports of goods: 10,6% (2014)
  - Labour productivity (in thousands of cfaf): 818,6
  - Average number of decent employments created per annum: 22 700
  - Demographic growth rate: 3,1% (2006)
- Targets 2018:
  - Incidence of poverty: 38%
  - Incidence of poverty in the rural areas: 44%
  - Depth of poverty: 2,7%
  - Economic growth rate: 8,2%
  - Share of manufacturing industry in GDP: 8%
  - Share of manufactured goods in exports: 15%
  - Labour productivity (in thousands of cfaf): 950
  - Average number of decent employments created per annum: ≥ 50 000
  - Demographic growth rate: 2,8%
- Targets 2020:
  - Incidence of poverty: < 35%
  - Incidence of poverty in the rural areas: < 38%
  - Depth of poverty: 1,6%
  - Economic growth rate: 8,0%
  - Share of manufacturing industry in GDP: 12%
  - Share of manufactured goods in exports: 20%
  - Labour productivity (in thousands of cfaf): 1 050
  - Average number of decent employments created per annum: ≥ 50 000
  - Demographic growth rate: 2,7%

### Strategic axes and objectives
- Axis 1: Reform the institutions and modernize the administration
  - Strategic objectives:
    - Promote good political and administrative governance.
    - Promote good economic governance.
    - Strengthen decentralisation and promote good local governance.
  - Expected impacts: reinforced democracy, human rights, justice and peace; reinforced security and civil protection; effective and efficient public administration; improved business environment; reactivated local economies and reduced regional disparities via effective regional planning.
- Axis 2: Develop human capital
  - Strategic objectives:
    - Promote population health and accelerate demographic transition.
    - Increase the offer and improve the quality of education, higher education and training to match the needs of the economy.
    - Promote research and innovation serving structural transformation.
    - Promote decent employment and social protection for all, including young people and women.
    - Improve living environment, access to water, sanitation and good quality energy services.
  - Expected impacts: guaranteed access to quality health services; improved nutritional state of population; launched demographic transition acceleration; improved access to quality education and higher education adapted to transformation needs; focused research and innovation; guaranteed decent employment and social protection; reduced social and gender inequalities; guaranteed access to water, sanitation and quality energy; planned urban growth and access to decent housing and public buildings.
- Axis 3: Stimulate sectors with growth potential for the economy and employment
  - Strategic objectives:
    - Sustainably develop a market-oriented and sustainable agro-sylvo-pastoral, wildlife and fisheries sector.
    - Develop a competitive industrial and artisanal sector with high added value generating decent employment.
    - Promote trade and expansion of high value-added service industries generating decent employment.
    - Develop quality and resilient infrastructure to promote structural transformation.
    - Reverse environmental degradation and sustainably ensure natural resource management.
  - Expected impacts: enhanced contribution of primary sector to food security and productive employment; reinforced resilience of agro-sylvo-pastoral households; more dynamic industrial and artisanal sector in wealth creation, employment and export; improved contribution of cultural, tourist and sporting industries; greater mining sector spillovers; formalized and dynamic tertiary sector generating decent employment; reinforced marketing of local products; improved capacities to mobilize and manage water resources; improved quality, reliability and accessibility of infrastructure; improved contribution of competitiveness and growth poles; sustainable management of environment and natural resources; strengthened capacities to mitigate and adapt to climate change for a transition towards the green economy.

### Implementation, monitoring and evaluation — arrangements and instruments
- Implementation instruments and actors:
  - Instruments: sectoral policies; local development plans; growth poles and competitiveness; strategic reforms; developmental investments; communication on the PNDES.
  - Actors: the State; local authorities; the private sector; civil society organisations; technical and financial partners; the Burkinabe population including the Diaspora.
- Monitoring and evaluation mechanisms and tools:
  - Components: technical monitoring component and technical evaluation component formalized and set up by the Steering Committee/PNDES.
  - Tools to be developed by the Permanent Secretariat/PNDES, CSD and CRD: overall performance measurement framework; sectoral and regional logical frameworks; Ministerial Annual Work Plan (AWP); framework for monitoring strategic reforms and structuring investments; a web tool to instantly visualize indicator trends; quarterly, half-yearly and annual global, sectoral and regional reports.
  - Indicators: output, outcome and impact indicators.
- Organisational framework:
  - Organs: National Steering Committee of the PNDES (CNP/PNDES); Permanent Secretariat of the PNDES (PS/PNDES); Sectoral Frameworks for Dialogue (CSD); Regional Frameworks for Dialogue (CRD).
  - Bodies: annual review; sectoral reviews; regional reviews.

### Financing plan and funding pattern (figures in billions of CFAF)
- Overall cost of the plan: 15 395.4 billion CFA francs (average annual cost: 3 079.1 billion CFA francs).
- Proportion devoted to capital expenditure (including capital transfers): 54.6% corresponding to 8 408.2 billion francs CFA for the period.
- Funding pattern:
  - State of Burkina Faso funding: up to9 825.2 billion CFA francs (63.8%).
  - Required financing: 5 570.2 billion CFA francs (36.2%).
- Annual cost and financing breakdown (2016–2020):
  - 2016:
    - Cost of plan: 1 998,4
    - Current expenditure: 1 049,3
    - Debt amortization: 145,7
    - Capital expenditure: 803,4
    - Own resources: 1 286,9
    - Financing requirements: 711,4
  - 2017:
    - Cost of plan: 2 952,0
    - Current expenditure: 1 146,5
    - Debt amortization: 145,7
    - Capital expenditure: 1 659,9
    - Own resources: 1 769,6
    - Financing requirements: 1 182,4
  - 2018:
    - Cost of plan: 3 199,8
    - Current expenditure: 1 248,5
    - Debt amortization: 145,7
    - Capital expenditure: 1 805,7
    - Own resources: 1 999,5
    - Financing requirements: 1 200,3
  - 2019:
    - Cost of plan: 3 484,7
    - Current expenditure: 1 347,9
    - Debt amortization: 145,7
    - Capital expenditure: 1 991,1
    - Own resources: 2 242,9
    - Financing requirements: 1 241,8
  - 2020:
    - Cost of plan: 3 760,6
    - Current expenditure: 1 466,7
    - Debt amortization: 145,7
    - Capital expenditure: 2 148,2
    - Own resources: 2 526,3
    - Financing requirements: 1 234,3
  - Total (2016-2020):
    - Cost of plan: 15 395,4
    - Current expenditure: 6 258,9
    - Debt amortization: 728,3
    - Capital expenditure: 8 408,2
    - Own resources: 9 825,2
    - Financing requirements: 5 570,2
  - In % of overall cost:
    - 100
    - 40,7
    - 4,7
    - 54,6
    - 63,8
    - 36,2
- Innovative funding options mentioned:
  - National tax systems; issuance of government bonds; voluntary contributions and lotteries; fund raising by Burkinabe abroad; bonds backed by donor countries and sold on financial markets; allocations from funds generated by sale of emission quotas; public-private partnerships (PPP); subsidized loans; crowdfunding; mass shareholding.

### Risk analysis — main risks identified
- Six main risks that could undermine PNDES results:
  - Security risk.
  - Risk of sociopolitical unrest.
  - Financial risk.
  - Risk related to climate hazards.
  - Risk related to international and regional conditions.
  - Risk related to stakeholders’ lack of commitment.

*Source: MINEFID (2016), Burkina Faso (content extracted from the PNDES diagnostic and strategy sections).*

### Introduction

### cr1885 - Introduction

### Overview
- Burkina Faso is a landlocked West African country with a population estimated at 18.5 million inhabitants in 2015.
- Surface area: 273.187 square kilometres.
- Administrative organisation: 13 regions, 45 provinces and 351 communes including 302 Rural Communes and 49 Urban Communes.
- Presidential and parliamentary elections: 25 November 2015 led to a new political context with regular functioning of republican institutions.
- The Government prepared and adopted, on 20 July 2016, the National Economic and Social Development Plan (PNDES) to be implemented during the 2016-2020 period.
- The PNDES draws on: the Presidential Programme; Prospective National Study (ENP) Burkina 2025; National Land Management and Sustainable Development Plan (SNADDT); Sustainable Development Goals (SDG); African Union Agenda 2063; Community Strategic Framework of ECOWAS.
- The PNDES document is divided into three parts: the diagnostic analysis of the economic and social situation, the economic and social development strategy 2016-2020 and the implementation, monitoring and evaluation arrangements.

### Diagnostic analysis of the economic and social situation — key findings
- Economic growth has been erratic since 1960; strong demographic growth of 3.1% per annum.
- From 1960 to 2014, per capita income increased on average by only 2% per annum.
- Human Development Index (HDI) in 2014: 0.420, ranking Burkina Faso 181st out of 187 countries.
- Poverty: close to 40% of the population lived below the poverty line in 2014, compared to 46.7% in 2009.
- Life expectancy at birth: around 60 years.
- Illiteracy: more than 65% of those over fifteen are illiterate.
- Migratory movements: rural exodus and international migration towards countries of the sub-region.
- Key constraints to inclusive and sustainable human development: persistent social inequalities, an inadequate national productive system, low-skilled human resources and ineffective governance.

### Social dynamics and poverty indicators
- Poverty rate dropped from 46.7% in 2009 to 40.1% in 2014 (a decline of six points).
- Depth of monetary poverty: dropped from 15.1% to 9.7% between 2009 and 2014.
- Severity of monetary poverty: dropped from 6.7% to 3/3% between 2009 and 2014. 
- Urban vs rural poverty decline (2009–2014): urban decline 11.6 points; rural decline 7.1 points.
- Distribution of poor: nine out of 10 people living below the poverty line are in the rural areas.
- Multidimensional poverty (2010 data): estimated at 84% (UNDP and Oxford University, 2010).
- Electricity-connected households (national): 18.8% in 2015; urban: 59.8% (2014); rural: 3.0% (2014).
- Poor quality housing: 77% of households; of which 39.5% are in the urban areas and 92% in the rural areas.
- Access to sanitation facilities: increased from 4.7% in 2007 to 8.1% in 2014.
- Internet users: rose from 1% to 9.4% between 2009 and 2015.
- Food insecurity: about 3.5 million Burkinabe, i.e. 20% of the population, are food insecure.
- Chronic infant malnutrition: declined from 25.6% in 2009 to 20.1% in 2014.
- Consumption expenditure of the poorest households: 8.4% of the total consumption expenditure of households; for the poorest households: 44.1% (text presents both figures adjacent; preserved exactly as in source).
- Education: gross enrolment rate (GER) rose from 48.7% in 2003 to 83% in 2014.
- Girl-boy ratio in secondary education: improved from 0.51 in 2004 to 0.62 in 2014.
- Girl-boy ratio in higher education: rose from 0.29 in 1997 to 0.48 in 2013.
- Proportion of women aged 16 to 64 in technical and vocational training: 3.1% in 2010, against a national average of 4.5%.
- Major systemic difficulties to combat poverty and vulnerability: inadequate public policy coordination mechanisms and the mode of targeting the poor populations.
- Inequalities persist in monetary poverty, education, access to economic resources and elective positions, primarily affecting women and young people.
- Income distribution trend: decline in poverty rate is followed by an increase in the share of incomes of the poorest 20% and a decline in the incomes of the richest 20%.
- During 2003-2012 the richest 20% had an average income 7 times higher than that of the poorest 20%.
- UNDP estimates: focus on inequalities results in a loss in human development of about 35%; comparable losses: 22.8% at global level and 33.3% in Africa.

### Productive system, sectoral structure and employment
- Average economic growth rate: at least 5% per annum since 1964.
- 1994-2014 sectoral shares in GDP: services sector exceeded 45%; agriculture varied between 28% and 31%; industry fluctuated between 14% and 24%.
- Structural inadequacies: low productivity of the agricultural sector dominated by subsistence farming and rainfall variability; decline in manufacturing due to uncompetitive industries; weak development of agro-industrial sector; “informalisation” of the tertiary sector; poor access to financial services; narrow base of export products; insufficient human resources for structural transformation.
- Vulnerabilities: climate change, volatility of export product prices (gold and cotton), declining Overseas Development Assistance (ODA).
- Business climate impediments: slow implementation of structural reforms, high costs of technical inputs, low-skilled human resources, weak support facilities, and narrow productive base.
- Women employed in public and formal private sectors: increased from 20.0% to 24.17% in 2013.
- Unemployment rate (national) in 2014: 6.6%.
- Rural unemployment (2014): youths under 25 at 14.1%; women at 9.9%.
- Women’s political participation: proportion of seats occupied by women in Parliament was below 30% in 2015.
- Under-employment: 24% of workers are affected.
- Social security coverage: barely 5% of workers have social security cover.
- Unemployment among graduates: 34.5% for higher education graduates and 17.2% for secondary education graduates.

### Human capital and demographics
- Population in 2015: 18.5 million inhabitants; projected to reach 21.5 million in 2020.
- Demographic growth rate: 3.1%.
- Youthful population: 67% under 25 years old.
- Number of children per woman: 6.6 in 2015, compared to 5.5 in West Africa.
- Demographic dependency rate: 92.2% (text truncated in source at this figure).

*cr1885 - Introduction*

### 87.4 in West Africa, a low school completion rate, disparities in access to drinking

### 87.4 in West Africa, a low school completion rate, disparities in access to drinking water, a low rate of access to skills training

### Human capital and social indicators — findings
- Health indicators:
  - Maternal mortality: 330 per 100 000 new births.
  - Infant mortality: 43 per 1 000 new births.
  - Chronic malnutrition: 30.2% in 2015, which "contributes to the death of one out of two children."
  - Key structural constraints: inadequate provision of health services; populations’ poor access to health services; low-skilled human resources; poor technical facilities of health structures compared to international standards; governance of health institutions (notably the health information system).
- Education indicators and constraints:
  - Net enrolment rate (2015): 65.7%.
  - Primary completion rate: 58.4% of pupils complete primary education.
  - Higher education distribution: 63% of students enrolled in the social sciences and humanities.
  - Technical education and vocational training: 3.4% of the total education system population in 2015.
  - Systemic issues: general-purpose non-professionalising education system misaligned with labour market needs; need to improve quality of basic education; match training from secondary, higher and technical education to productive sector and structural transformation needs; construct school facilities for skills training and apprenticeship; promote the teaching profession.
- Water, sanitation and environment:
  - Rural access to drinking water: grew from 58.5% in 2011 to 65% in 2015.
  - Urban access to drinking water: 89.9% in 2015, against 80% in 2011.
  - Access to sanitation (2015): 12% in rural areas and 34% in urban areas.
  - Major challenges: mobilization and sustainable management of water resources; improved access to water and sanitation services; protection of existing ecosystems; improved knowledge of national water resources.
- Scientific research:
  - Institutional and organisational constraints leading to poor coordination of national scientific research; low valuation of national research findings; obsolete research facilities and equipment; ageing human resources; insufficient public funding for research.
- Employment and labour market:
  - Employment structure: 94.6% of workers in the informal sector versus 6.4% in the modern sector.
  - Formal jobs (2015): 685 625 total.
    - Share of formal jobs held by women: 24.2%.
    - Government employees: 154 846 (22.6% of formal jobs), one third of whom are women.
    - Private sector workers registered with CNSS: 530 679 (77.4% of formal jobs), 21.6% of whom are women.
- Urbanisation and housing:
  - Urbanisation rate: 31.50% in 2016, with urban population growing twice as fast as the national population.
  - Concentration: 62% of the urban population live in the regions of Ouagadougou and Bobo-Dioulasso.
  - Consequences: growing shortage of housing; proliferation of squatter housing.
  - Policy challenges: systematising regional planning and development; access to decent housing.

### Governance and institutional constraints — findings
- Political governance progress: creation and strengthening of republican institutions; professionalising defence and security; consolidation of the rule of law; contributions to peace and security; social cohesion and national solidarity improvements.
- Remaining governance challenges:
  - Administrative governance: maintaining institutional stability; modernising administration; establishing a service administration; strengthening independence of justice; restoring State authority; systematising stakeholder involvement (private sector, civil society) in public policy preparation and implementation.
  - Economic governance: consolidate consistency and rationalisation of economic policies; institute management for development results; improve mobilization of domestic and external resources; increase effectiveness of public spending and accountability.
  - Local governance: update strategic decentralisation implementation framework; accelerate transfer of powers, resources and assets; strengthen capacities of local development actors in project management.

### Major structural transformation challenges (diagnosis)
- Three major challenges for sustainable structural transformation:
  - Good governance and improved quality of institutions: stability of republican institutions; efficient legal and judicial system; national culture for safeguarding and promoting national pride and identity.
  - Availability and employability of skilled human resources: requires substantial investments to accumulate human capital through improved education outputs, medical cover and control of high population growth.
  - Development of productive bases and competitiveness: weak industrial development and low competitiveness of job-generating commodity production and processing sector; transformation depends on availability and accessibility of technical production factors (Water, Energy, Transport and Telecommunications); orient development research towards national needs; reallocate resources from low-productivity activities towards higher-productivity activities.

### PNDES strategy, vision, objectives and expected impacts
- Vision by 2020: "Burkina Faso, a democratic, united and cohesive nation, transforming the structure of its economy to achieve a strong and inclusive growth, through sustainable consumption and production".
- Core principles for implementation: national leadership; equity; subsidiarity and partnership; results-based management (RBM); proactivity.
- Overall objective: structurally transform the Burkinabe economy to achieve a strong, sustainable, resilient, inclusive growth generating decent employment for all and improved social welfare.
- Expected impacts and numeric targets:
  - Improved effectiveness of political, administrative, economic, local and environmental governance.
  - Achievement of an average annual growth rate of 7.7% creating at least 50 000 jobs every year.
  - Decline in the poverty rate from 40.1% in 2014 to 35% in 2020.
  - Drop in the demographic growth rate from 3.1% in 2015 to 2.7% in 2020.
  - Acceleration of human capital development and adoption of production and consumption methods guided by sustainable development.
  - Growth trajectory: increase from 5.7% in 2016 to 7.7% per annum during the 2016-2020 period.
- Two main levers for transformation:
  - Create environment favourable to industrial development by strengthening output support sectors.
  - Revive competitive and sustainable industrial development through developmental investments of up to 8 408.2 billion francs CFA.

### PNDES impact indicators — values and targets
- Values 2015:
  - Incidence of poverty: 40,1%
  - Incidence of poverty in the rural areas: 47,5%
  - Depth of poverty: 3,3%
  - Economic growth rate: 4,0%
  - Share of manufacturing industry in GDP: 6,6%
  - Share of manufactured goods in the exports of goods: 10,6% (2014)
  - Labour productivity (in thousands of cfaf): 818,6
  - Average number of decent employments created per annum: 22 700
  - Demographic growth rate: 3,1% (2006)
- Targets 2018:
  - Incidence of poverty: 38%
  - Incidence of poverty in the rural areas: 44%
  - Depth of poverty: 2,7%
  - Economic growth rate: 8,2%
  - Share of manufacturing industry in GDP: 8%
  - Share of manufactured goods in exports: 15%
  - Labour productivity (in thousands of cfaf): 950
  - Average number of decent employments created per annum: ≥ 50 000
  - Demographic growth rate: 2,8%
- Targets 2020:
  - Incidence of poverty: < 35%
  - Incidence of poverty in the rural areas: < 38%
  - Depth of poverty: 1,6%
  - Economic growth rate: 8,0%
  - Share of manufacturing industry in GDP: 12%
  - Share of manufactured goods in exports: 20%
  - Labour productivity (in thousands of cfaf): 1 050
  - Average number of decent employments created per annum: ≥ 50 000
  - Demographic growth rate: 2,7%

### Strategic axes and objectives
- Axis 1: Reform the institutions and modernize the administration
  - Strategic objectives:
    - Promote good political and administrative governance.
    - Promote good economic governance.
    - Strengthen decentralisation and promote good local governance.
  - Expected impacts include reinforced democracy, human rights, justice and peace; reinforced security and civil protection; effective and efficient public administration; improved business environment; reactivated local economies and reduced regional disparities via effective regional planning.
- Axis 2: Develop human capital
  - Strategic objectives:
    - Promote population health and accelerate demographic transition.
    - Increase the offer and improve the quality of education, higher education and training to match the needs of the economy.
    - Promote research and innovation serving structural transformation.
    - Promote decent employment and social protection for all, including young people and women.
    - Improve living environment, access to water, sanitation and good quality energy services.
  - Expected impacts include guaranteed access to quality health services; improved nutritional state of population; launched demographic transition acceleration; improved access to quality education and higher education adapted to transformation needs; focused research and innovation; guaranteed decent employment and social protection; reduced social and gender inequalities; guaranteed access to water, sanitation and quality energy; planned urban growth and access to decent housing and public buildings.
- Axis 3: Stimulate sectors with growth potential for the economy and employment
  - Strategic objectives:
    - Sustainably develop a market-oriented and sustainable agro-sylvo-pastoral, wildlife and fisheries sector.
    - Develop a competitive industrial and artisanal sector with high added value generating decent employment.
    - Promote trade and expansion of high value-added service industries generating decent employment.
    - Develop quality and resilient infrastructure to promote structural transformation.
    - Reverse environmental degradation and sustainably ensure natural resource management.
  - Expected impacts include enhanced contribution of primary sector to food security and productive employment; reinforced resilience of agro-sylvo-pastoral households; more dynamic industrial and artisanal sector in wealth creation, employment and export; improved contribution of cultural, tourist and sporting industries; greater mining sector spillovers; formalized and dynamic tertiary sector generating decent employment; reinforced marketing of local products; improved capacities to mobilize and manage water resources; improved quality, reliability and accessibility of infrastructure; improved contribution of competitiveness and growth poles; sustainable management of environment and natural resources; strengthened capacities to mitigate and adapt to climate change for a transition towards the green economy.

### Implementation, monitoring and evaluation — arrangements and instruments
- Implementation instruments and actors:
  - Instruments: sectoral policies; local development plans (regional and communal development plans); growth poles and competitiveness; strategic reforms; developmental investments; communication on the PNDES.
  - Actors: the State; local authorities; the private sector; civil society organisations; technical and financial partners; the Burkinabe population including the Diaspora.
- Monitoring and evaluation mechanisms and tools:
  - Components: technical monitoring component and technical evaluation component formalized and set up by the Steering Committee/PNDES.
  - Tools to be developed by the Permanent Secretariat/PNDES, CSD and CRD: overall performance measurement framework; sectoral and regional logical frameworks; Ministerial Annual Work Plan (AWP); framework for monitoring strategic reforms and structuring investments; a web tool to instantly visualize indicator trends; quarterly, half-yearly and annual global, sectoral and regional reports.
  - Indicators: output, outcome and impact indicators.
- Organisational framework:
  - Organs: National Steering Committee of the PNDES (CNP/PNDES); Permanent Secretariat of the PNDES (PS/PNDES); Sectoral Frameworks for Dialogue (CSD); Regional Frameworks for Dialogue (CRD).
  - Bodies: annual review; sectoral reviews; regional reviews.

### Financing plan and funding pattern (figures in billions of CFAF)
- Overall cost of the plan: 15 395.4 billion CFA francs (average annual cost: 3 079.1 billion CFA francs).
- Proportion devoted to capital expenditure (including capital transfers): 54.6% corresponding to 8 408.2 billion francs CFA for the period.
- Funding pattern:
  - State of Burkina Faso funding: up to9 825.2 billion CFA francs (63.8%).
  - Required financing: 5 570.2 billion CFA francs (36.2%).
- Annual cost and financing breakdown (2016–2020):
  - 2016:
    - Cost of plan: 1 998,4
    - Current expenditure: 1 049,3
    - Debt amortization: 145,7
    - Capital expenditure: 803,4
    - Own resources: 1 286,9
    - Financing requirements: 711,4
  - 2017:
    - Cost of plan: 2 952,0
    - Current expenditure: 1 146,5
    - Debt amortization: 145,7
    - Capital expenditure: 1 659,9
    - Own resources: 1 769,6
    - Financing requirements: 1 182,4
  - 2018:
    - Cost of plan: 3 199,8
    - Current expenditure: 1 248,5
    - Debt amortization: 145,7
    - Capital expenditure: 1 805,7
    - Own resources: 1 999,5
    - Financing requirements: 1 200,3
  - 2019:
    - Cost of plan: 3 484,7
    - Current expenditure: 1 347,9
    - Debt amortization: 145,7
    - Capital expenditure: 1 991,1
    - Own resources: 2 242,9
    - Financing requirements: 1 241,8
  - 2020:
    - Cost of plan: 3 760,6
    - Current expenditure: 1 466,7
    - Debt amortization: 145,7
    - Capital expenditure: 2 148,2
    - Own resources: 2 526,3
    - Financing requirements: 1 234,3
  - Total (2016-2020):
    - Cost of plan: 15 395,4
    - Current expenditure: 6 258,9
    - Debt amortization: 728,3
    - Capital expenditure: 8 408,2
    - Own resources: 9 825,2
    - Financing requirements: 5 570,2
  - In % of overall cost:
    - 100
    - 40,7
    - 4,7
    - 54,6
    - 63,8
    - 36,2
- Innovative funding options mentioned:
  - National tax systems; issuance of government bonds; voluntary contributions and lotteries; fund raising by Burkinabe abroad; bonds backed by donor countries and sold on financial markets; allocations from funds generated by sale of emission quotas; public-private partnerships (PPP); subsidized loans; crowdfunding; mass shareholding.

### Risk analysis — main risks identified
- Six main risks that could undermine PNDES results:
  - Security risk.
  - Risk of sociopolitical unrest.
  - Financial risk.
  - Risk related to climate hazards.
  - Risk related to international and regional conditions.
  - Risk related to stakeholders’ lack of commitment.

_Italic: Source: MINEFID (2016), Burkina Faso (content extracted from the PNDES diagnostic and strategy sections)._

---


_Source: https://www.imf.org/-/media/files/publications/cr/2018/cr1885.pdf_