The European Union strengthens its support for Burkina Faso with € 800 million

The National Economic and Social Development Plan lays the foundations for implementing the objectives of the new government by 2020. The European Commission intends to provide substantial support, worth € 800 million, for the plan.

Commissioner Mimica made the following statement: ‘We have come together today to discuss the National Economic and Social Development Plan presented by the Burkina Faso Government to the international community. This is an ambitious plan, which should lead to the consolidation of democracy and sustainable development in the country. The European Union will provide support worth € 800 million for the efforts undertaken, to ensure that the population of Burkina Faso will rapidly see the effects of renewed stability and benefit from peace dividends'.

During the conference, Commissioner Mimica will sign three financing agreements, two of which will be for budgetary support worth € 205 million.

The first financing agreement, for € 136 million, is a Good Governance and Development Contract to consolidate the rule of law and governance and increase the government's budgetary capacity between 2017 and 2020. This assistance will make it possible to support the implementation of the National Economic and Social Development plan and to strengthen dialogue with the government on the macroeconomic framework and public finances. The priority areas for this dialogue are demographics, social protection, civil registration, the independence and operation of the justice system, the fight against corruption, mobilisation of internal resources and the efficiency of public spending.

The second financing agreement, for € 54 million, is aimed at improving the population's access to drinking water and the treatment of waste water.

The third financing agreement, for € 15 million, is to promote sound management of public finances, supporting convergence with regional standards and strengthening the national statistics system and macroeconomic forecasting.

Background

This conference organised by Burkina Faso is an opportunity to present the new plan to the community of international donors and to financial institutions and the private sector. Burkina Faso plans to finance a large part of the National Economic and Social Development Plan from its own resources and from borrowing. However, additional funds will be needed. Exchanges during this conference should make it possible to put together support for Burkina Faso, to establish priorities, and to identify the best solutions for funding the National Plan.

The macroeconomic situation in Burkina Faso is stable, with an average economic growth rate of 5.5% in 2011-15. However, chronic poverty and social inequality persist. The population of Burkina Faso has more than tripled since the 1960s, which poses a real challenge in terms of job creation, sustainable development and food security.

Burkina Faso will receive € 623 million from the 11th European Development Fund covering the period 2014-2020. The three priority areas are good governance (€ 325 million), health (€ 80 million) and food security, sustainable agriculture and water (€ 190 million). Support for civil society will receive € 21 million and € 7 million will go to accompanying measures.

In addition to benefitting from the regional programming for West Africa within the framework of the 11th European Development Fund, Burkina Faso will receive aid from the Emergency Trust Fund for Africa. Three projects, amounting to € 55 million, have already been approved and others are currently being prepared.

For more information

Website of Commissioner Neven Mimica:

http://ec.europa.eu/commission/2014-2019/mimica_en

IP/16/4287