ADF Supports Burkina Faso’s Priority Action Programme
Tunis,15 December, 2005 – The African Development Fund approved a new loan aimed at intensifying the reforms initiated in 2001 by Burkina Faso with a view to promoting strong and sustainable economic growth.
The Third Poverty Reduction Strategy Support Programme (PRSSP III), approved today by the ADF Board of Directors in favor of Burkina in the tune of 30 million Units of Account* (US$ 43 million or CFA 23.8 billion), will contribute, together with support from the other technical and financial partners, to the financing of the Government’s Priority Action Programme 2005-2007.
The PRSSP III will support this strategy through the following components: improvement of the competitiveness of the productive sectors and private sector development; continued efforts for access by the poor to basic social services; strengthening of the fiduciary framework; and putting in place of a monitoring and evaluation system for the strategy.
Resources of the loan will be used to redress macroeconomic imbalances, stimulate the competitiveness of productive sectors and increase poverty reduction spending. Indeed, despite progress made in poverty reduction between 1998 and 2003, recent socioeconomic surveys indicate persistent disparities against rural areas, particularly East-Central and Northern regions where the incidence of poverty ranges between 50% and 60% compared to an estimated national average of 46.3% in 2003.
The PRSSP III constitutes the fourth budgetary support provided by the Bank to Burkina Faso since 2001. Previous Bank operations contributed to stabilizing the macroeconomic framework, increasing resources for social development and laying the groundwork for sustained economic growth during the 2000-2004 period.
The African Development Bank Group operations in Burkina Faso started in 1970. To date, the Bank Group cumulative commitments in the country stand at CFA 442 billion in 64 operations.
* UA 1 = US$ 1.42414 = CFA 793.754 as at 01/12/2005