The International Monetary Fund said Tuesday it had reached a staff-level agreement with Burkina Faso on the fifth review of its Extended Credit Facility programme and the first review under a climate-focused resilience facility, paving the way for additional financial support as the country grapples with fallout from the conflict in the Middle East.
The agreement includes a request to increase access under the Extended Credit Facility (ECF) by 50 percent of quota, equivalent to SDR 60.2 million, to help address urgent balance-of-payments pressures triggered by rising global commodity prices.
If approved by the IMF Executive Board in late June, the fifth review would unlock a disbursement of SDR 60.2 million, including SDR 36.12 million from the requested augmentation, bringing total IMF support disbursed under the programme to SDR 180.6 million.
Approval of the first review under the Resilience and Sustainability Facility (RSF) would also allow a further disbursement of SDR 16.42 million to support climate-related reforms.
The IMF said Burkina Faso’s economy performed strongly in 2025, supported by booming international gold prices and reforms in the mining sector.
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Real GDP growth was estimated at 5.3 percent, while average inflation fell to minus 0.5 percent due largely to lower local food and energy prices.
Strong gold exports also helped improve the country’s external position, which shifted from a deficit of 3.5 percent of GDP in 2024 to a surplus of 6.3 percent in 2025.
The Fund praised what it described as “commendable budget discipline,” noting that the overall fiscal deficit narrowed sharply from 5.8 percent of GDP in 2024 to 1.8 percent in 2025, far below the programme target of 4 percent.
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The stronger fiscal position created additional policy space at a time of heightened global volatility, the IMF said.
“Performance under the programme has been strong,” IMF mission chief Jaroslaw Wieczorek said at the end of discussions held in Ouagadougou and remotely through May 25.
He said all quantitative performance criteria through December 2025 had been met except for targets related to current spending and temporary VAT refund arrears.
The authorities also implemented all structural benchmarks and made progress on governance, public financial management reforms and climate-related commitments under the RSF programme, the IMF added.
Despite the positive economic momentum, the Fund warned that Burkina Faso faces mounting risks from surging international prices for fuel and fertilisers linked to the Middle East conflict.
The country relies heavily on imported petroleum products and fertilisers, leaving it vulnerable to supply disruptions and higher global prices.
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The IMF said the resulting commodity price shock had weakened the near-term outlook, especially for agriculture and food security, while creating immediate balance-of-payments needs.
“The commodity price shock triggered by the conflict in the Middle East poses a serious challenge to Burkina Faso,” Wieczorek said.
The Fund said the agreed policy measures were designed to help cushion the socio-economic impact of the shock while maintaining fiscal sustainability and preserving reform momentum.
It urged the authorities to continue strengthening domestic revenue mobilisation, improve public financial management and address fiscal risks linked to energy subsidies.
The IMF also encouraged Burkina Faso to improve the management of mining revenues, enhance the efficiency of social spending, deepen financial inclusion and ensure that state participation in the economy supports private sector investment and inclusive growth.
The IMF team met Finance Minister Aboubakar Nacanabo, central bank officials, senior government representatives, private sector stakeholders and development partners during the mission.
The ECF arrangement for Burkina Faso was approved in September 2023 for SDR 228.76 million, while the RSF programme was approved in February 2026 for SDR 90.3 million.
