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Burkina Faso: Economic Growth and Development

[Subheadline:] Country’s Low National Debt and Sustainable Budget Deficit Pave Way for Future Progress

Ouagadougou - Burkina Faso, a landlocked country in West Africa, has made significant strides in recent years to improve its economic outlook. With a low national debt and sustainable budget deficit, the country is poised for future growth and development.

A Strong Economic Foundation

According to figures released by the World Bank, Burkina Faso’s public debt has decreased rapidly since 2002, averaging 30% over the past decade - well below the West African Economic and Monetary Union (WAEMU) maximum limit of 70%. Despite fluctuations in gold and raw cotton prices, the country has maintained a steady budget deficit throughout the decade.

Agriculture Shapes the Economy

Burkina Faso is heavily reliant on agriculture, with the sector contributing 30% to its Gross Domestic Product (GDP). The majority of farmers make up the largest single economic group of economically active adults, accounting for around 80% of the labor force. With a high population density and rural areas making up 70% of the country’s population, agriculture is crucial to Burkina Faso’s economy.

Key Statistics

  • Agriculture contributes 30% to GDP
  • Farmers account for 80% of the labor force
  • Rural areas make up 70% of the population

Poverty Remains a Concern

Despite recent economic growth, poverty remains a significant challenge in Burkina Faso. The national poverty rate was estimated at 40.1% in 2014, with rural regions particularly affected. The country ranked 185 out of 188 countries on the United Nations Development Programme (UNDP) Human Development Index in 2015.

Poverty Statistics

  • National poverty rate: 40.1% in 2014
  • Rural regions are most affected

Youthful Population and Low Literacy

Burkina Faso has a youthful population, with 67% of its citizens under the age of 25. However, literacy rates are low, with only 22% of adults holding secondary education or higher. This presents a challenge for the country’s development, particularly in terms of human capital.

Education Statistics

  • Population: 67% under the age of 25
  • Literacy rate: 22% of adults hold secondary education or higher

Policy Context

The Burkinabe government has implemented several policy initiatives to address these challenges. The Plan National de Développement Economique et Social (National Economic and Social Development Plan) 2016-2020 aims to achieve sustainable, resilient, and inclusive growth by transforming the economy and improving access to finance.

Policy Initiatives

  • Plan National de Développement Economique et Social (National Economic and Social Development Plan)
  • Regional Financial Inclusion Strategy

Regional Integration

Burkina Faso is a member of several regional organizations, including ECOWAS and WAEMU. The country’s membership in these organizations has significant implications for macroeconomic policy and financial sector regulation.

Regional Organizations

  • ECOWAS (Economic Community of West African States)
  • WAEMU (West African Economic and Monetary Union)

Financial Sector Development

The Ministry of Economy, Finance and Development is responsible for developing the country’s financial sector. A Regional Financial Inclusion Strategy has been developed by the BCEAO in collaboration with UNCDF to promote financial inclusion.

Financial Sector Initiatives

  • Regional Financial Inclusion Strategy

Roadmap for Future Development

To achieve its development goals, the government has outlined an iterative process to:

  1. Improve access to finance
  2. Strengthen the performance of the agricultural sector
  3. Establish a guarantee fund and rural agriculture bank

By implementing these measures, Burkina Faso can continue to grow and develop, ultimately improving the lives of its citizens.

[Figure 2: Burkina Faso Map]