L’opening of the Annual Meetings of the Islamic Development Bank (IDB) took place on May 11, 2023, in Jeddah, Saudi Arabia. Burkina Faso was there. Represented by its Minister of Economy, Dr Aboubakar Nacanabo, its Director of the Public Treasury, Bruno Raymond Bamouni, as well as the National Coordinator of the Public-Private Partnership Unit, Sié Philippe Aimé Palenfo.
Between two meetings, L’Economiste du Faso came back with the Minister on the particular advantages that Burkina Faso derives from other partners since joining the IDB.
L’Economiste du Faso: What is the importance of the Annual Meetings of the IDB? What can we remember?
Dr Aboubakar Nacanabo, Minister of Economy, Finance and Prospective: Every year, the Annual Meetings bring together the member countries of the IDB in one of the member countries, in order to assess the governance of the institution in which they are shareholders. On this occasion, the countries examine and adopt the various annual activity and management reports of the Group, in particular, the financial statements of all the institutions that make up the IDB Group. These Annual Meetings provide an opportunity for the various Governors of the Bank who are the ministers in charge of the economy and finance to decide on certain topical issues related to the functioning of the institution and to discuss the prospects. for its development. Also, they constitute an opportunity for exchanges and bilateral sharing between the highest authorities of the IDB and the Governors of the States, to decline the priorities of their countries and the prospects for cooperation and support for the financing of project operations. and development programs from which they can benefit.
During this 48e Annual meeting, the delegation of Burkina Faso set out the current priorities of the transitional government in connection with the action plan for stabilization and development which were the subject of discussions.
These exchanges have opened up good prospects for Burkina Faso, and the authorities of the IDB have made a number of commitments to strengthen support for the financing of projects for our country. As such, moreover, three agreements have been signed {note: see box}.
What are the particular advantages that Burkina Faso derives compared to other partners since joining the IDB?
The IDB is one of the first three strategic partners of Burkina Faso and the first Arab partner that accompanies our country in its process of economic and social development both in terms of technical support and in terms of the volume of resources provided for the project financing. As such, it intervenes in the country’s main development sectors such as agriculture, livestock, village water supply, education and health, road and transport infrastructure, energy, water and sanitation, as well as the financial sector.
Since joining the IDB in 1979, Burkina Faso has benefited from several financings for the realization of major projects such as the construction of the Ziga dam, the drinking water supply of the city of Ouagadougou from Ziga in its phase 2 , the construction of Donsin airport as the first contributor, the construction and development of the Samandéni dam, the construction and asphalting of several national and urban road infrastructures, the construction of infrastructures for the development of basic education and health, the construction of university residences in Bobo-Dioulasso and Ouagadougou, the provision of lines of credit with certain banks for the financing of SMEs/SMIs, to name but a few.
In addition, through the window of the Group’s institutions such as the International Islamic Trade Finance Company (ITFC), for example, Burkina Faso has benefited from 2008 to the end of 2022, financing of more than 1070 billion CFA francs. for the benefit of several sectors and companies, in particular, SOFITEX (cotton sector), for the financing of cotton campaigns, SONABHY (hydrocarbons sector), for the purchase of petroleum products, the Kanis International Company (purchase of rice) , as well as the establishment of lines of credit within certain local banks for the financing of SMEs/SMIs. This contribution from ITFC has made Burkina Faso the first beneficiary country in sub-Saharan Africa of financing from the International Islamic Trade Finance Corporation and the “most important partner in terms of development impact” of all the partners of the Company.
What comments can be made on the decision of the Board of Directors of the IDB to grant two project financings in the field of electricity and road infrastructure in the East of the country?
Cooperation with the Islamic Development Bank is improving year after year and materializes through the financing of major projects. For a good planning of this cooperation, Burkina Faso develops, in collaboration with the IDB, a three-year work program which defines the priorities of the government of Burkina Faso and in which projects will be financed. It is within this framework that the Project for the Electrification and Development of Electricity Connections in Burkina Faso (PEDECEL) and the project for the construction and paving of the Guiba-Garango road were programmed and the financing of which was approved by the Board of Directors, which made it possible to sign the agreements on site in Jeddah, during these Annual Meetings. Moreover, the financing of these two projects follows a request from the Government of Burkina Faso, with a view to contributing to access to electricity service in the peri-urban areas of Ouagadougou and Bobo-Dioulasso and to the facilitation of the mobility of goods and people, as well as the opening up of the regions of Burkina Faso.
Interview conducted by Abdoulaye TAO
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33 billion FCFA for financing of 3 development projects
Lhe Minister of Economy, Finance and Prospective, Dr. Aboubakar Nacanabo, and the President of the IDB, Muhammed Sulaiman Al-Jasser, proceeded, on May 10, 2023, to the signing of 4 agreements for the financing of a total amount of 33.25 billion FCFA. These financing agreements are intended for 3 development projects and consist of loans and sales agreements:
– a loan agreement in the amount of 5 million euros and an installment sale agreement of 26.23 billion FCFA for the financing of the Electrification Project and the development of electricity connections in Burkina Faso (PEDECEL);
– a loan agreement in the amount of approximately CFAF 5.5 billion to finance the accelerated learning project for out-of-school children and adolescents in Burkina Faso (PAAENS/BFA);
– an installment sale agreement in the amount of 1.52 billion FCFA for the additional financing of the construction and asphalting project of the Guiba-Garango road.o
Source: Ministry of the Economy
