World Bank Launches Economic Update and Country Economic Memorandum for Burkina Faso

Today, the World Bank unveiled two significant reports: the Burkina Faso Economic Update and the Country Economic Memorandum (CEM), both offering deep insights into the country's economic landscape and future prospects.

The Burkina Faso Economic Update provides a comprehensive analysis of recent economic trends, highlighting a modest growth of 3.2% in 2023 driven largely by the services sector. However, challenges persist, notably in the mining sector due to ongoing security crises. The report underscores the impact of social assistance spending, equivalent to about 2.6% of GDP, in poverty reduction efforts but identifies inefficiencies within the system, particularly its fragmentation. Recommendations emphasize accelerating reforms such as the Single Social Registry and the Support Program for the Empowerment of Poor and Vulnerable Households (PAMPV) to enhance the effectiveness of social assistance initiatives.

The Country Economic Memorandum (CEM), a cornerstone of World Bank analytical documents, assesses Burkina Faso's economic trajectory over recent decades. It critiques the country's growth performance for failing to catalyze robust structural transformation or significantly alleviate extreme poverty. The CEM proposes policy options aimed at boosting agricultural productivity, enhancing technological capabilities of firms, optimizing resource allocation through improved transport networks, and advancing gender equality. These strategies aim to propel Burkina Faso towards sustainable, inclusive growth and to break the cycle of fragility, paving the way for attainment of lower-middle-income status.

Daniel Pajank, World Bank Lead Economist for Burkina Faso and co-author of the CEM, highlighted the collaborative process enriching the report, including engagements with Burkinabe and international researchers during a symposium at Thomas Sankara University of Ouagadougou in March 2023. The CEM synthesizes a broad array of policy options crucial for Burkina Faso's transition to a more resilient growth model.

Additionally, the Sahel Country Climate and Development Report (CCDR), also presented alongside the aforementioned reports, examines the implications of climate change on long-term development in Burkina Faso and the wider Sahel region. It outlines key policies and measures to bolster resilience and mitigate emissions, aligning with Burkina Faso's national development priorities and its commitments under the Nationally Determined Contribution (NDC) climate action plan.

Hamoud Abdel Wedoud Kamil, World Bank Country Manager for Burkina Faso, emphasized the role of these reports as decision-making tools that go beyond financial assistance, aiming to catalyze innovation and enhance the impact of public policies, particularly for vulnerable populations.

These reports collectively aim to inform strategic interventions and policy reforms that will steer Burkina Faso towards sustainable economic growth, resilience against climate challenges, and greater prosperity for its people.