OUAGADOUGOU, June 27, 2024 – The World Bank today launched (i) the Burkina Faso Economic Update and (ii) the Country Economic Memorandum (CEM).
The Economic Update highlights recent economic trends in the country and analyzes the short- and medium-term economic outlook. Focusing on scaling up social assistance, the April 2024 edition, “Sustaining the Momentum of Social Assistance Reform,” indicates that the economy grew modestly by 3.2% in 2023, mostly supported by the services sector, while the mining sector was hampered by the security crisis. Also, the impact of social assistance spending of about 2.6% of GDP in terms of poverty reduction is hampered by the inefficiency of the system, in particular its fragmentation. Accelerating the implementation of ongoing reforms such as the Single Social Registry and the Support Program for the Empowerment of Poor and Vulnerable Households (PAMPV) could lift the limitations of the current social assistance system.
The CEM, one of the World Bank's major analytical documents, analyzes the country's economic developments over the past decades and constructs long-term growth scenarios while formulating public policy recommendations to steer the economy toward more efficient, sustainable, and inclusive growth. The document launched today notes that Burkina Faso's economic growth in recent decades has not been sufficient to ensure a strong structural transformation of its economy, nor to significantly reduce the number of people living in extreme poverty. The report suggests policy options including raising agricultural productivity, increasing the technological sophistication of firms, improving resource allocation and productivity through better transport, and achieving gender equality. It also provides detailed recommendations that can help the country break out of the fragility cycle by accelerating growth and placing the economy on the path to lower-middle-income status.
"The CEM was greatly enriched by exchanges with Burkinabe and international researchers, during a symposium organized at the Thomas Sankara University of Ouagadougou in March 2023. The synthesis report includes many policy options that Burkina Faso can use to transition to a better growth model," suggests Daniel Pajank, World Bank Senior Economist for Burkina Faso and co-author of the report.
The Sahel Country Climate and Development Report (CCDR), which was presented along with the two aforementioned reports for its focus on Burkina Faso, analyzes the constraints imposed by climate change on the long-term development of the region and aims to identify key policies and measures to address them, in light of the national development and climate priorities of the Sahel countries. It is one of six core diagnostic studies undertaken by the World Bank in all countries in which it operates to inform its operations. It also supports the implementation of the Nationally Determined Contribution (NDC) – climate action plan – by prioritizing key policies and measures to increase resilience and reduce emissions in light of Burkina Faso's development and climate priorities.
According to Hamoud Abdel Wedoud Kamil, World Bank Country Manager for Burkina Faso, "The World Bank is also a knowledge bank in addition to the financing it provides. The reports launched today are decision-making tools and should help further drive innovation and beyond public policies for greater impact on populations, especially the most vulnerable."
