The International Monetary Fund approved a three-year arrangement last week for a $41.6 million disbursement to Burkina Faso to continue to support the country’s efforts to improve financial stability and growth distribution.
“The Burkinabe authorities have continued their noteworthy strong performance in implementing their Fund-supported program, based on their ownership of a strong, coherent package of policies designed to safeguard macroeconomic stability and underpin growth,” Min Zhu, the deputy managing director and acting chair of the IMF’s executive board, said. “In spite of external shocks, Burkina Faso has maintained one of the highest growth rates in sub-Saharan Africa, with numerous reforms implemented to improve the country’s resilience, increase agricultural productivity, and manage natural resource revenues transparently.”
Zhu said growth is expected to be slightly lower than the original projection of 6.8 percent as a result of a higher-than-anticipated deficit, due in part to lower international gold prices. Food surpluses have kept inflation down, and budget deficits have remained low.
Additionally, Zhu said the agreement will help bolster structural reforms aimed at encouraging “diversified, inclusive growth.”
“Translating high growth into more inclusive growth will require sustained investment in infrastructure, and health and education, in order to create jobs and meet evolving labor needs, as well as efforts to strengthen social safety nets to protect the most vulnerable,” Zhu said.