Burkina Faso: Request for a Four-Year Arrangement Under the Extended Credit Facility — Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso

IMF Staff Country Reports, October 3, 2023

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Burkina Faso: Request for a Four-Year Arrangement Under the Extended Credit Facility — Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso

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Bibliographic details

• Published: October 3, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400255878.002

Overview and macroeconomic context

• Burkina Faso faces protracted balance of payments problems driven by:
  • large development needs;
  • shocks including the coronavirus disease 2019 pandemic, adverse weather conditions, deteriorating domestic security, the food insecurity crisis, and spillovers from Russia’s war in Ukraine.
• These shocks have:
  • disrupted economic activity;
  • affected livelihoods;
  • exacerbated macroeconomic imbalances.
• The requested Four-Year Arrangement under the Extended Credit Facility (ECF) aims to address these macroeconomic and balance of payments challenges.

Objectives of the ECF

• Create fiscal space for priority spending.
• Strengthen resilience to shocks while reducing poverty.
• Bolster fiscal discipline, transparency, and governance.
• Help close financing gaps reflecting:
  • tight financial conditions;
  • large fiscal deficits;
  • debt vulnerabilities;
  • food insecurity;
  • fragile security conditions.

Key policy priorities and recommended reforms

• Sustain structural reforms to:
  • foster economic growth and diversification;
  • reduce poverty.
• Improve the business environment to support private sector-led growth.
• Reinforce governance and anticorruption efforts to strengthen public sector performance and trust.
• Address the security crisis to restore stability necessary for economic recovery and development.
• Strengthen public financial management and revenue administration to reduce fiscal deficits and manage public debt.

Implications for financing and debt

• The ECF is intended to help close immediate financing gaps and provide support given constrained external conditions.
• Addressing debt vulnerabilities is an integral component of the program’s objectives through improved fiscal discipline and transparency.

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