- IMF staff and the Burkinabè authorities have completed discussions for the 2026 Article IV Consultation and reached a staff-level agreement on economic policies to conclude the fifth review under the Extended Credit Facility (ECF) arrangement, including a request for augmentation of access under the ECF by fifty percent of quota (SDR 60.2 million), and the first review under the Resilience and Sustainability Facility (RSF).
- • Economic growth reached 5.3 percent in 2025, buoyed by a rise in mining activity spurred by the gold price boom on the international market. Commendable budget discipline enabled a reduction of the overall fiscal deficit from 5.8 percent of GDP in 2024 to 1.8 percent in 2025 creating welcome policy space amid heightened global volatility.
- The sharp increase in the international prices of fertilizer and petroleum products in the wake of the conflict in the Middle East has weakened the near-term macroeconomic outlook while posing an immediate challenge to the balance of payments and food security, underscoring the need to protect the most vulnerable while preserving fiscal sustainability.
Washington, D.C.: An International Monetary Fund (IMF) team led by Jaroslaw Wieczorek, Mission Chief for Burkina Faso, visited Ouagadougou during May 4–May 13 to hold discussions for the 2026 Article IV consultation, the fifth review under Burkina Faso’s Extended Credit Facility (ECF) arrangement, approved by the IMF Executive Board on September 21, 2023 for a total amount of SDR 228.76 million, and the first review of the climate-focused program supported by the Resilience and Sustainability Facility (RSF), approved by the IMF Executive Board on February 18, 2026 for a total amount of SDR 90.3 million. Discussions continued remotely until May 25, 2026, in response to the Burkinabè authorities’ request for the augmentation of access under the ECF arrangement by fifty percent of quota (SDR 60.2 million) which, subject to the approval by the IMF Executive Board, will bring the total access under the ECF arrangement to SDR 288.96 million.
At the end of the mission, Mr. Wieczorek issued the following statement:
“The Burkinabè authorities and the IMF staff team completed discussions for the 2026 Article IV consultation and reached a staff-level agreement on the economic and financial policies to support the completion of the fifth review of the program supported by an ECF arrangement and the request for augmentation of access in response to the balance-of-payments shock caused by the war in the Middle East. The approval of the fifth review by the IMF Executive Board would enable the disbursement of SDR 60.20 million, of which SDR 36.12 million on account of the requested augmentation, bringing the total IMF financial support disbursed under the ECF arrangement to SDR 180.60 million. Discussions also focused on the implementation of reform measures to support the completion of the first review of the climate-focused program under the RSF arrangement whose approval by the IMF Executive Board would enable the disbursement of SDR 16.42 million. The meeting of the IMF Executive Board is expected in late June 2026.
“High gold prices, combined with reforms in the mining sector, energized economic activity in 2025. Real GDP growth is estimated to have reached 5.3 percent while average inflation receded to -0.5 percent, reflecting a drop in local prices of food and energy. Strong gold exports also supported the external position, which swung from a deficit of 3.5 percent of GDP in 2024 to a surplus of 6.3 percent in 2025.
“Performance under the program has been strong. All quantitative performance criteria through December 2025 were observed, except the indicative target on the ceiling for current spending and a temporary accumulation of VAT refund arrears. The authorities implemented all structural benchmarks and advanced their broader public financial management and governance agenda. They are also on track to implement RSF commitments for the first review. The reduction in the overall fiscal deficit from 5.8 percent of GDP in 2024 to 1.8 percent of GDP (compared with the program objective of 4.0 percent) provided budgetary space, which is particularly opportune given the current volatile global and regional environment.
“The commodity price shock triggered by the conflict in the Middle East poses a serious challenge to Burkina Faso, given the country’s dependence on imported petroleum products and fertilizers. Global supply disruptions and surging prices for oil, gas and fertilizer have weakened the near-term outlook, especially in agriculture, calling for a resolute policy response, including on food security grounds.
“These disruptions have also created an immediate balance-of-payments need, prompting the authorities to request an augmentation of ECF access. The agreed policy measures in support of the authorities’ request aim to ensure that the additional Fund resources serve to alleviate the socio-economic impact of the shock, while preserving the reform momentum to foster fiscal sustainability.
“To this effect, the mission encouraged the authorities to continue strengthening revenue mobilization and public financial management, including in the areas of governance and transparency. Policy priorities to align the 2026 budget implementation with the program featuring a deficit objective of 4 percent GDP (compared with 3.5 percent retained at the 4th program review, relaxed to facilitate shock mitigation) include identifying contingencies to enable a targeted reallocation of resources and managing fiscal risks emanating from energy subsidies.
“In the context of Article IV discussions, the mission recommended systematizing countercyclical management of mining revenues, enhancing the efficiency of social spending, fostering financial inclusion, and ensuring that the state’s involvement in the economy crowds in private investment and promotes inclusive growth.
“The IMF team met the Minister of Economy and Finance, M. Aboubakar Nacanabo; the BCEAO National Director, M. Armand Badiel; other senior government officials, representatives of the private sector, and development partners.
“The IMF staff wish to express its gratitude to the Burkinabè authorities for their commitment to the program, constructive and open discussions, responsiveness and traditionally warm hospitality.”
READ MORE: https://www.imf.org/en/news/articles/2026/05/26/pr26170-burkina-faso-staff-completes-article-iv-reaches-sla-fifth-review-ecf-first-review-rsf
