The International Monetary Fund and Burkina Faso reached a staff-level agreement on policies supporting the sixth review of the Extended Credit Facility arrangement, following discussions in Ouagadougou from Oct. 26 to Nov. 4. The agreement unlocks SDR 48.16 million in financing, though the IMF projects the 2026 deficit will exceed the government’s 2.7% target while remaining below the 4% ceiling.
The IMF projects Burkina Faso’s 2026 fiscal deficit will exceed the government’s 2.7% target, though it is expected to remain below the 4% ceiling agreed upon during the fifth ECF review in June 2026, according to the fund. Preliminary discussions on the 2027 budget have produced an understanding around a deficit of approximately 3.3% of GDP, aligning with the programme’s medium-term objective of converging toward the West African Economic and Monetary Union’s fiscal deficit criterion of 3% of GDP, the IMF said.
Surging gold exports pushed the current account into a surplus approaching 10% of GDP in 2025, according to the fund.
The IMF expects that surplus to narrow to 6.8% of GDP in 2026. Gold has become a powerful contributor to the country’s economic outlook, supported by elevated international prices, robust production and reforms within the mining industry, the fund reported. Measures to formalize artisanal mining are also contributing to economic activity, according to the IMF.
Discussions between IMF staff and Burkinabè authorities focused on public financial management, transparency and governance, including operating arrangements for the newly established sovereign mining fund, according to the fund. Managing temporary advantages from mineral exports without creating lasting budget pressures remains an important challenge, the IMF said. The longer-term test will be the country’s capacity to manage its gold-supported revenues, contain budget pressures and maintain essential public investment and social protection, according to the fund.
The IMF projects real GDP growth of 4.4% in 2026, accelerating to 4.8% in 2027. Consumer price inflation is projected to reach the midpoint of the regional central bank’s 1–3% target range in 2026, partly reflecting higher global energy costs and food prices, according to the fund. Inflation is expected to increase further in 2027 while remaining within the target range. Commodity-price pressures associated with the Middle East conflict introduce additional uncertainty, the IMF said.
The staff-level agreement, announced following discussions in Ouagadougou from Oct. 26 to Nov. 4, unlocks SDR 48.16 million in financing, according to the fund. Completion of the sixth ECF review would bring cumulative disbursements under the arrangement to SDR 228.76 million. The ECF, initially approved in September 2023, was expanded in June 2026 to provide total access of SDR 288.96 million. A separate review under the Resilience and Sustainability Facility could authorize another SDR 16.42 million, taking cumulative RSF disbursements to SDR 32.84 million. Both decisions remain conditional on IMF Executive Board approval, tentatively scheduled for mid-January 2027.
The IMF reported that Burkina Faso met all quantitative programme objectives for the sixth ECF review and completed the required reform milestones. Progress under the RSF has also been assessed positively, although further implementation and formal approval remain necessary.
Authorities and IMF staff discussed measures to manage energy costs, strengthen food security and protect vulnerable households, according to the fund. Improved fertilizer access, expanded irrigation, dam rehabilitation and additional boreholes have helped cushion production against unfavorable rainfall compounded by El Niño, the IMF said. The investments demonstrate the importance of strengthening domestic production systems alongside export-oriented economic activity, according to the fund.
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