The International Monetary Fund (IMF) will disburse a sum of 80.7 million dollars, under the « food shocks » window of the rapid credit facility (RCF), to help Burkina Faso meet the urgent needs of the balance payments linked to the world food crisis, informs the institution in a press release.
This funding was approved on Thursday, March 30, by the Fund’s Board of Directors. According to the Deputy Director General and Acting Chairman of the Council, Kenji Okamura, “Burkina Faso has been hit by several shocks, including the deterioration of security conditions, adverse climatic events and Russia’s war in Ukraine, which has led to a rising prices of energy and agricultural inputs and reducing access to food for poor households”.
The combination of all these shocks has damaged economic activity in this West African country, where GDP growth has slowed from 6.9% of GDP in 2021 to 2.5% in 2022, and where macroeconomic imbalances have worsened.
Financial assistance would help meet urgent balance of payments financing needs and mitigate the impact of the food crisis on the most vulnerable groups.
About 16% of the population in Burkina is in a situation of acute food insecurity. The deterioration of the security situation has led to the displacement of approximately 2 million people.
“The authorities recognize that stronger engagement with the IMF would support their efforts to achieve macroeconomic stability, secure additional external support and lay the foundations for long-term development. Their longer-term focus on creating fiscal space to support higher growth and poverty reduction and sustainable improvement in food security is appropriate,” said Kenji Okamura.
By OMA Newsletter N° 1113 of 03/31/2023
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
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The promotion and consolidation of Africa’s development, and
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