IMF OKs Burkina Faso Credit Review, New Resilience Deal

Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the fourth review under the 48-month Extended Credit Facility (ECF) arrangement that was approved on September 21, 2023 . The completion of the review enables the immediate disbursement of SDR 24.08 million (about US$33.2 million), bringing total IMF financial support under the ECF arrangement to date to SDR 120.4 million (about US$165.8 million).

The Executive Board also approved an arrangement under the Resilience and Sustainability Facility (RSF), running until September 20, 2027, for an amount of SDR 90.3 million (about US$124.3 million), with disbursements to begin when the first review of this arrangement is completed. The RSF reforms aim to strengthen fiscal resilience to shocks, integrate climate considerations into public financial management, enhance the performance of state-owned enterprises in climate‑sensitive sectors, and catalyze green financing.

Real GDP growth is estimated to have accelerated to 5.0 percent in 2025, after reaching 4.8 percent in 2024. The supply response of artisanal mining to higher gold prices and mining sector reforms are estimated to have outweighed a slowdown in services. Real GDP growth is expected to remain within the 4.5–5.0 percent range over the medium term, contingent on the expected improvement in security. Average inflation slowed in 2025 to -0.5 percent due to a drop in food prices and is expected to converge to 2.0 percent over the medium term.

The external sector has strengthened, driven by higher net exports and improved terms of trade. Supported by high gold prices, the external current account is projected to move from a deficit of 3.4 percent of GDP in 2024 to surpluses of 1.1 percent in 2025 and 0.8 percent in 2026. The drive to increase gold production is expected to entail a rise in equipment imports, while energy imports will likely remain contained amid a stable oil price outlook.

Fiscal consolidation is on track. Due to strong revenue performance and spending discipline, the fiscal deficit in 2025 is estimated to have remained well within the program objective of 4.0 percent of GDP. This implies a tightening of 2.3 ppts of GDP since 2024, reflecting mostly higher revenues from gold mining, wage bill control, and restraint in capital expenditure.

Progress under the ECF arrangement has been satisfactory. The authorities met all end-June 2025 quantitative performance criteria (QPCs), all continuous QPCs, and all but one indicative target (IT) which was missed by less than 0.1 percent of GDP. They met all end-September ITs, except for the ceiling on VAT‑refund arrears that was exceeded by 0.02 percent of GDP.

The Burkinabè authorities advanced their structural reform agenda. They met eight out of ten structural benchmarks (SBs). The missed end-June SB on energy sector reform was subsequently implemented. The authorities also implemented three prior actions to mitigate the effects of missing the end-June SB on the publication of the Governance Diagnostic Assessment (GDA). They demonstrated strong commitment to further improving governance and have already implemented six out of the eleven GDA priority recommendations, with the remaining five to be implemented within the duration of the current IMF-supported program.

At the conclusion of the Executive Board's discussion, Mr. Kenji Okamura, Deputy Managing Director, and Acting Chair, issued the following statement:

"Burkina Faso's economy has proven resilient amid security and humanitarian challenges. Despite these adversities, program implementation has been satisfactory. 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.

"The IMF-supported program in Burkina Faso continues to maintain focus on broad-based medium-term growth that raises living standards. To this end, the authorities are stepping up their reform implementation and press on with strategic capital outlays. In this context, fostering an enabling environment for the private sector and shielding the economy from external shocks by managing the heightened exposure to commodity price fluctuations will be key. Steadfast implementation of reforms aimed at enhancing the efficiency of public investment will also be instrumental in the achievement of the Burkinabè authorities' ambitious development goals. Equally important will be the implementation of the authorities' action plan informed by the Governance Diagnostic Assessment's findings. While continued fiscal consolidation will be critical for maintaining macroeconomic stability, spending on health, education, and social protection should be safeguarded and prioritized in the multiyear spending plans.

"The Burkinabè authorities continue to pursue their ambitious reform agenda to improve fiscal governance guided by a strategy that covers a broad set of reforms. Within this framework, priority steps include the development of audit plans for all ministries related to their risks and the implementation of measures to strengthen integrity in mining licenses processes.

"The Burkinabè authorities have also put resilience on the forefront of their reform agenda. As subsistence agriculture provides food for eighty percent of the population, making agriculture resilient to the harsh local climate is a priority. While bolstering resilience, the authorities' program under the Resilience and Sustainability Facility (RSF) arrangement will also reduce balance-of-payments risks, most notably by lowering the periodic needs for emergency food imports."