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Burkina-Faso - Support Project for establishing an Agribusiness Bank (PACBA) - Appraisal Report
The project goal is to help increase the growth rate of the agricultural sector and improve its productivity in order to reduce poverty and strengthen the resilience of Burkina Faso's rural environment. The specific objectives of the project are to: (i) improve access to agricultural financing by establishing an agribusiness bank known as Banque Agricole du Faso (Agricultural Bank of Burkina Faso) (BADF); (ii) support the country's economic transformation by creating an agro-industrial value chain that provides local employment; and (iii) help improve the attractiveness of the agricultural sector for bank financing by promoting the establishment of an ecosystem that mitigates risks in the agricultural sector, in particular agricultural insurance and warrantage. Given the importance of the agricultural sector, the structural transformation of Burkina Faso's economy will be based on the development of this sector with respect to production and processing, hence the need to address the high marginalisation of this sector as regards financing (only 3.5% of bank loans in 2017). Accordingly, in addition to establishing this bank, which receives support from the project, the authorities intend, in the medium term, to strengthen the agricultural financing mechanism through the Shared Risk Facility, following the example of countries such as Nigeria, Togo, Ghana, etc.