The International Monetary Fund (IMF) has completed the fourth review of Burkina Faso’s Extended Credit Facility (ECF) arrangement, unlocking an immediate disbursement of about US$33.2 million, and approved a new Resilience and Sustainability Facility (RSF) arrangement totaling roughly US$124.3 million through September 2027. The RSF aims to strengthen fiscal resilience, integrate climate considerations, and support sustainable development in the West African nation.
Despite ongoing security challenges, widespread poverty, and climate shocks, Burkina Faso’s 2026–28 economic outlook remains positive. Real GDP growth accelerated to an estimated 5.0 percent in 2025, up from 4.8 percent in 2024, driven by artisanal mining responding to higher gold prices and mining sector reforms. Inflation averaged -0.5 percent in 2025 due to falling food prices and is expected to converge toward 2 percent over the medium term.
The external sector has strengthened, with net exports and improved terms of trade supporting a shift from a 3.4 percent of GDP current account deficit in 2024 to projected surpluses of 1.1% in 2025 and 0.8% in 2026. Fiscal consolidation is on track, with the 2025 fiscal deficit estimated well within the program objective of 4% of GDP, reflecting stronger revenue performance from gold mining, wage bill control, and restrained capital spending.
Program performance under the ECF has been largely satisfactory. Burkina Faso met all quantitative performance criteria for end-June 2025, all continuous criteria, and nearly all indicative targets. Of ten structural benchmarks, eight were achieved, and the remaining energy-sector benchmark was subsequently implemented. Authorities also advanced governance reforms, implementing six of eleven priority recommendations from the Governance Diagnostic Assessment, with the remaining five scheduled for completion under the ongoing IMF-supported program.
The newly approved RSF arrangement will provide Burkina Faso with additional financial support to address vulnerabilities to external shocks, improve the performance of state-owned enterprises in climate-sensitive sectors, and catalyze green financing. Disbursements under the RSF will begin following the first review of the arrangement.
IMF Deputy Managing Director and Acting Chair Kenji Okamura highlighted Burkina Faso’s resilience amid significant challenges. “Sound economic policies to improve governance and domestic revenue mobilization have contributed to creating fiscal space and supporting recovery, while keeping inflation under control and public debt on a sustainable path,” he said.
The IMF emphasized the importance of continued reforms to enhance public investment efficiency, bolster agriculture for food security, and protect spending on health, education, and social protection. The authorities are also prioritizing governance measures, including audit plans across ministries and stronger integrity in mining license processes.
The Executive Board’s actions reaffirm the IMF’s commitment to supporting Burkina Faso’s medium-term growth objectives while strengthening macroeconomic stability, climate resilience, and social protection for its population.
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Burkina Faso, a landlocked West African country, faces persistent economic challenges including widespread poverty, security threats linked to armed groups, and vulnerability to climate shocks such as droughts and erratic rainfall. The economy relies heavily on agriculture, which employs roughly 80 percent of the population, and artisanal gold mining, which is a key driver of exports and government revenue.
The International Monetary Fund (IMF) provides financial support to Burkina Faso through concessional lending arrangements such as the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF). These facilities are designed to help low-income countries address balance-of-payments needs, implement structural reforms, and strengthen fiscal and climate resilience.
The ECF offers medium-term financial support with low-interest rates, long maturities, and grace periods, enabling countries to stabilize their economies while pursuing growth-oriented reforms. The RSF, introduced as part of the IMF’s framework for low-income countries, integrates climate and sustainability considerations, promotes resilience to shocks, and supports strategic investments in social protection, public infrastructure, and state-owned enterprise reform.
Burkina Faso’s engagement with the IMF is guided by performance criteria and structural benchmarks, including fiscal consolidation, governance improvements, and public financial management reforms. These measures aim to maintain macroeconomic stability, improve revenue mobilization, and enhance the efficiency of public investment.
The IMF also monitors inflation, external balances, and debt sustainability to ensure that concessional financing does not exacerbate fiscal vulnerability. Through these arrangements, Burkina Faso receives resources to support critical development priorities while building resilience against economic, social, and environmental risks.
Overall, IMF support plays a crucial role in helping Burkina Faso navigate economic and security challenges, maintain fiscal stability, and pursue medium-term growth while addressing social and climate vulnerabilities.
