The International Monetary Fund (IMF) has approved additional financial support for Burkina Faso after the rising cost of fuel and fertilisers linked to the conflict in the Middle East threatened to weaken the country’s economic outlook despite strong growth last year.
The IMF Executive Board said it had completed the fifth review of Burkina Faso’s 48-month Extended Credit Facility (ECF) programme and approved an augmentation of the arrangement equivalent to 50 percent of the country’s quota, or SDR 60.20 million (about $82 million).
The decision allows for the immediate disbursement of the funds, bringing total access under the programme to SDR 288.96 million and cumulative disbursements to SDR 180.60 million.
The Board also completed the first review of Burkina Faso’s Resilience and Sustainability Facility (RSF), unlocking an additional SDR 16.42 million to support climate resilience reforms.
The IMF said Burkina Faso’s economy grew by 5.3 percent in 2025, driven by booming gold prices and increased mining activity. Inflation averaged minus 0.5 percent as food and energy prices eased, while strong gold exports helped shift the external balance from a deficit of 3.5 percent of gross domestic product (GDP) in 2024 to a surplus of 6.3 percent in 2025.
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Fiscal performance also exceeded expectations, with the overall budget deficit narrowing sharply from 5.8 percent of GDP in 2024 to 1.8 percent in 2025, well below the programme target of four percent.
However, the Fund warned that Burkina Faso remains vulnerable to external shocks because of its heavy dependence on imported petroleum products and fertilisers.
“The sharp increase in international prices of fertiliser and petroleum products in the wake of the conflict in the Middle East has weakened the near-term macroeconomic outlook while posing an immediate challenge to the balance of payments and food security,” the IMF said.
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It added that global supply disruptions, rising energy costs, reduced humanitarian funding and persistent insecurity continue to cloud the country’s economic prospects.
IMF Deputy Managing Director Kenji Okamura said Burkina Faso had demonstrated resilience despite ongoing security and humanitarian pressures.
“Prudent economic policies have helped create fiscal space, support growth, keep inflation contained, and maintain public debt sustainability,” he said.
He noted that reforms under the ECF programme had strengthened governance, domestic revenue mobilisation and social protection while promoting strategic investment.
“The augmentation of access under the ECF arrangement will help offset fertiliser and energy supply shocks linked to the war in the Middle East,” Okamura said.
The IMF urged the authorities to maintain fiscal consolidation over the medium term while allowing a temporary easing of the fiscal stance to cushion the impact of external shocks.
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Directors called for stronger domestic revenue collection, prudent borrowing focused on concessional financing, improved debt management and continued transparency in the use of crisis-related resources.
They also recommended that energy subsidies remain targeted and temporary so that sufficient fiscal space is preserved for health, education and other priority social spending.
The Board welcomed progress under the RSF programme, including the adoption of a National Disaster Risk Finance Strategy and the publication of climate hazard and risk maps, saying continued reforms would help reduce climate risks and attract investment.
Directors also encouraged Burkina Faso to strengthen banking supervision, improve financial inclusion and diversify its economy to reduce dependence on gold and exposure to commodity price volatility.
