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Burkina Faso is a low-income country in the Sahel. Its economy, dominated by the extractive and agricultural sectors, remains vulnerable to security and climatic shocks and is linked to commodity prices. More than 40% of its population lives below the national poverty line. The 2025 Human Development Index (HDI) report of the UNDP ranks Burkina Faso186th out of 193 countries. 

Political situation  

After the coup d'état of 30 September 2022 that overthrew Lieutenant Colonel Paul-Henri Damiba, Captain Ibrahim Traoré was sworn in as the new transitional president on 21 October 2022. The Transition Charter was amended and adopted on 25 May 2024. According to the new text, the duration of the transition is extended by five years, starting on July 2, 2024.

Since 2015, Burkina Faso has been the target of terrorist attacks that cause population displacement. While there were fewer than 50,000 internally displaced persons (IDPs) in January 2019, the country had recorded 2.01 million as of March 30, 2023 (the latest census), according to the United Nations Office for the Coordination of Humanitarian Affairs.  According to the government, more than one million IDPs have been resettled in about 700 localities in the country.

The health and education sectors have been strongly impacted. On 16 September 2023, Burkina Faso, Mali and Niger created the Alliance of Sahel States (AES) to pool their efforts against terrorism. These countries have also decided to leave the Economic Community of West African States (ECOWAS) on January 28, 2024, citing a lack of solidarity in their fight against terrorism. In March 2025, the three countries announced their withdrawal from the International Organization of La Francophonie (OIF).

Economy

In the first quarter of 2025, real GDP growth stood at 3.8% year-on-year. For the year as a whole, it is expected to reach 4.7% (or 2.3% per capita). The services sector remains the main driver of growth, contributing 2.5 percentage points (pp), due to the good performance of public administration services.

The contribution of the agriculture sector is projected to decrease significantly from 1.9 pp in 2024 to 0.6 pp in 2025. This decrease is due to less favorable rainfall than the previous year and a decline in cotton production following the closure of SOCOMA, the country's second largest cotton company.

The secondary sector, after a negative contribution in 2024, is expected to rebound in 2025 and contribute 1.1 pp to growth. This recovery is based on an expected increase in gold production, facilitated by the reopening of closed mines and the gradual formalization of artisanal and semi-mechanized gold mining.

Inflation is expected to stand at 2.7% in 2025, up from 4.2% in 2024. This decline in inflation, combined with the favorable agricultural season, is expected to contribute to a decline in the extreme poverty rate, from 37.5% in 2024 to 34.2% in 2025.

The budget deficit is expected to narrow to 4.7% of GDP, thanks to a stabilization of revenues and the reduction of staff costs.

Medium-term outlook

Assuming continued improvement in security, favorable weather conditions, and a stable political environment, economic growth is expected to strengthen, reaching 5.1% in 2027. 

The Government remains committed to a fiscal consolidation policy. Public debt, as a percentage of GDP, is expected to decline gradually through 2027. By 2027, the total number of people living in extreme poverty is expected to be 7.9 million, up from 9.3 million in 2021.

Last Updated: Oct 09, 2025

Partnership Framework

ľ¹ÏÓ°Ôº Group's Country Partnership Framework (CPF) for 2018-2023 underwent a mid-term review in June 2022. This review took into account the country's context and the priorities of the ongoing political transition, making significant adjustments while focusing on resilience and conflict prevention, and continuing to improve the prospects for long-term progress in the following three areas of intervention: 

• Acceleration of sustainable private sector growth for job creation;  
• Investment in human capital and social protection systems;   
• Strengthening service delivery and state presence in fragile areas.

The next CPP for a period of five years is being finalized.

As of September 15, 2025, the World Bank's portfolio in Burkina Faso is composed of 26 operations, covering 14 sectors with total commitments of $3.94 billion for 18 national projects (or $2.91 billion) and 08 regional projects (or $1.03 billion).

IFC

In Burkina Faso, IFC is focusing on key sectors—agriculture, energy, infrastructure, and SME financing—that are key drivers of development. In particular, it works alongside SMEs to strengthen their capacities, improve their access to finance and increase their contribution to the country's socio-economic transformation.

In this dynamic, IFC has launched the Local Champions Initiative (LCI), a flagship program that identifies and supports local businesses with high potential. Through tailored technical support and strategic advice, the LCI aims to transform these promising players into economic leaders capable of competing in national and international markets, while generating inclusive, sustainable and job-creating growth.

IFC's engagement in Burkina Faso has grown significantly over the past decade, with cumulative commitments reaching $2.4 billion—including $750 million in long-term financing and $1.70 billion in short-term financing. The increase is particularly marked over the last five years: from $148.2 million in 2020 ($51.1 million long-term and $97.1 million short-term), commitments have almost tripled to $449.3 million in 2025 ($115.2 million long-term and $334.1 million short-term).

Last Updated: Oct 09, 2025

Through the Higher Education Support Project (PAES), 7,959 students enrolled in undergraduate programs ; 10 higher education and research institutions received competitive grants totaling CFAF 11.5 billion (over $19 million).

The initial financing of the Education Access and Quality Improvement Project (PAAQE) supported the construction of 327 classrooms across 45 middle and high schools, enabling approximately 20,595 students to access lower and upper secondary education. Provision of annual grants of CFAF 100,000 ($166) to 1,000 selected students ; Launch of a program to build science-focused high schools in the country’s 13 regions.

Since 2019, the Water Supply and Sanitation Program (PAEA-PforR) has provided access to safe drinking water for over 829,000 people; Enabled more than 406,800 people to access improved sanitation facilities.

The Regional Support Project for the Sahel Irrigation Initiative (PARIIS-BF) developed or rehabilitated 1,800 hectares of land, benefiting more than 21,062 people directly.

Through the Livestock Sector Development Support Project (PADEL-B), 392,850 livestock farmers gained access to agricultural goods and services;  1,653 small-scale livestock projects were financed.

The Electricity Sector Support Project (PASEL) has contributed to the construction of a 7.5 MW thermal power plant in Fada N’gourma, electrification of 40 communities and 90 villages, installation of 851 kilometers of low-voltage and 463 kilometers of medium-voltage power lines,  deployment of 25,000 solar lamps across 400 schools.

Through the Emergency Local Development and Resilience Project (PUDTR), over 900,000 people benefited from improved social services through the construction and rehabilitation of 248 educational and health facilities ; 995 kilometers roads were built or rehabilitated benefiting more than 500,000 people.

Last Updated: Oct 09, 2025