Burkina Faso, literally the “Country of honest people”, has experienced dynamic and regular economic growth since the slowdown recorded in 2015. Economic growth accelerated in 2016 thanks to the political normalization, favorable rainfall and the return of investor confidence. The growth rate of the country of men of integrity rose from 5.9% in 2016 to 6.3% in 2017 before reaching 6.8% in 2018. In 2019, the GDP growth rate was 5.7%. In 2020, Burkina Faso’s economic growth rate is expected to slow down, as is the case for sub-Saharan African economies, due to the COVID-19 pandemic.
The tertiary sector, main contributor to Gross domestic product (GDP)
Between 2015 and 2019, Burkina’s nominal GDP rose from 6,162.5 to 8,487.8 billion of CFAF. According to estimates of the ministry in charge of the economy in April 2020, the impact of COVID-19 on economic activity will be reflected in a slowdown in economic growth, with an expected GDP growth rate of 2.0% in 2020 after 5.7% in 2019. The economic performance recorded by Burkina Faso in recent years can be explained by the dynamics of all sectors of activity.
The tertiary sector, the main source of wealth in Burkina, recorded an increase of 6.9% in 2019 compared to 6.7% in 2018. Over the period 2015-2019, the value added of the tertiary sector rose from CFAF 2 491.9 billion to CFAF 3 851.3 billion. This sector has a significant contribution to GDP, with a contribution to the formation of the GDP ranging from 40.4% to 45.1%. The evolution of the tertiary sector is driven on the one hand by the performance of the non-market sector with a value added of CFAF 2,184.8 billion in 2019 against CFAF 1,271.1 billion in 2015, and on the other hand, by the good performance of activities such as trade with a value added of CFAF 875.7 billion in 2019 against CFAF 690.6 billion in 2015 and telecommunication services with a value added of CFAF 208.0 billion in 2019 against CFAF 189.8 billion in 2015.
Thanks to its performance, the tertiary sector maintains its role as a growth engine in 2019 with a contribution to GDP growth of 3.3 percentage points.
The primary sector is the second largest source of wealth creation in Burkina, with a slight drop in its contribution to GDP to 27.4% in 2019 from 30.3% in 2015. Agriculture is the pillar of the sector with a value added of CFAF 1 235.9 billion in 2019, thanks in particular to cotton production.
The secondary sector, the third largest source of wealth creation in the country, had a value added of CFAF 1 618.0 billion in 2019, against CFAF 1 170.6 billion in 2015. The contribution of the secondary sector to GDP has been relatively stable since 2013 (18%). It stood at 18.9% in 2019. This sector is dominated by mining with CFAF 1 042.3 billion of wealth created in 2019 against CFAF 455.8 billion in 2015, followed by manufacturing, agribusiness and construction.
National Development Plan of Burkina Faso, for socio-economic and demographic well-being
Burkina Faso has adopted a national development framework, the National Economic and Social Development Plan (PNDES), to guide the interventions of the State and its partners over the period 2016-2020. The overall objective of the program is to structurally transform the Burkinabe economy, for strong, sustainable, resilient and inclusive growth, creating decent jobs for all and improving social welfare.
The PNDES is divided into three strategic areas:
- reform of institutions and modernisation of the administration
- the development of human capital
- the revitalization of sectors that are promising for the economy and employment.
In the assessment of the implementation of the PNDES in 2017, approximately 183,635 formal jobs were created during the first two years of implementation.
In terms of institutional reforms and modernisation of the administration, the results relate to the increase in the operational capacities of the defense and security forces. This achievement would not have been possible without the adoption of the military programming law to strengthen the implementation of the Strategic Plan for the Reform of the National Armed Forces (PSR 2018-2022). In addition, public finance reforms have been pursued with the transition to a program budget and improved performance in the collection of own-source revenue.
In terms of medium-term prospects (2018-2020), the continuation of the actions undertaken since the entry into force of the PNDES should make it possible to establish a genuine development of the agricultural, animal and forestry production sector to serve the structural transformation of the economy.
The country has recovered from the difficult socio-political situation of 2014 and 2015. Since 2016, economic growth has remained stable, thanks in part to the return to constitutional order in 2016, favorable rainfall, and the return of investor confidence here.
Source : Burkina Information note – UMOA-Titres, 2020 edition