2024-04-22 07:36:42
• The Minister of Finance explains the project to the ALT
• Objective, to make financial inclusion a reality
• Total cost of the budget: 44 billion FCFA
25 million USD, or approximately 15 billion FCFA, is the amount obtained by the transitional government with the Arab Bank for Economic Development in Africa (BADEA). This credit line was signed by the Minister of Economy, Finance and Foresight, Dr Aboubakar Nacanabo, and the Director General of the Arab Bank for Economic Development in Africa (BADEA), Dr Sidi Ould Tah, on the sidelines of the 2023 Annual Meetings of the World Bank Group and the International Monetary Fund (WB), which took place from October 9 to 15, 2023 in Marrakech, Morocco.
7 months following the signing of the agreement between the two parties, the deputies, in their role of monitoring the actions of the government, wanted to better understand the ins and outs of this loan agreement between the two parties. As such, the Finance and Budget Committee (COMFIB) of the Transitional Legislative Assembly (ALT) heard the Minister of Economy, Finance and Foresight on the bill authorizing the ratification of a loan agreement between Burkina Faso and BADEA, to finance the Project to Promote Inclusive Finance for Access to Financial Services for Low-Income Populations in Burkina (PPFIB). According to the government financier, this BADEA loan agreement amounts to 25 million USD, or approximately 15 billion FCFA. Accompanied by the Minister Delegate in charge of the Budget, Fatoumata Bako/Traore, and a technical team from her department, Dr Aboubakar Nacanabo presented the characteristics of the financing of the project and provided clarifications to the COMFIB deputies. The 15 billion FCFA obtained are, of course, a breath of fresh air but only represent a quarter of the total budget for the implementation of the PPFIB.
With a total cost estimated at more than 44 billion FCFA, this project aims, in particular, to strengthen the social protection and resilience of vulnerable households and to include them in the economic circuit; to develop local, adapted, inclusive and accessible financial services to support the local economy; and to put in place relevant, professional and support mechanisms favorable to beneficiaries, as well as for the sustainability of decentralized financing institutions.
Lift a million Burkinabè people out of poverty
The government’s expectations, according to Minister Aboubakar Nacanabo, are that the 10-year project will ultimately allow 1,032. 000 people to benefit from appropriate funding for the development of income-generating activities, including 60% women; to train 500,000 beneficiaries in financial education; to create 7,500 micro and very small enterprises (MPTE) and improve the banking rate in Burkina Faso by 8 points. The PPFIB is placed under the technical and financial supervision of the Ministry of the Economy, Finance and Foresight. Its overall objective is to contribute to the improvement of the socio-economic conditions of grassroots populations and the access of low-income populations to financial services in Burkina Faso. As a reminder, financial inclusion is the set of mechanisms allowing everyone to access and effectively use a range of financial products and services at affordable costs offered by healthy institutions. The financial inclusion rate in Burkina Faso is still low. In order to improve this rate, the Burkinabe government is resolutely committed to allowing a large majority of the population to have access to digital payments. Financial inclusion which involves access to financing for vulnerable household structures and including them in the economic circuit. To accelerate financial inclusion, the government of transition obtained a loan of 15 billion FCFA with BADEA, to finance the PPFIB.
Ambéternifa Crépin SOMDA
Boxed
The PPFIB is already seeing results
L15 billion FCFA, this is the amount of this agreement which should allow the National Fund for Inclusive Finance (FONAFI) to continue financing the PPFIB. The PPFIB is an integrated program which aims to integrate low-income populations into the economic circuit, through the establishment of a specific mechanism for financing income-generating activities of young people and women, micro and very small companies (MTPE) in the 13 regions of Burkina Faso. With a total cost of 44,372,000,000 FCFA, this project has already benefited from support from the West African Development Bank (BOAD) to the tune of 10,000,000,000 FCFA and from Swiss Cooperation for an amount of approximately one billion two hundred million FCFA, in the form of a grant. The signing of this agreement once once more demonstrates BADEA’s commitment to supporting Burkina Faso in its development efforts, by contributing to improving the quality of life of the populations. As a reminder, FONAFI benefited from support from the government as part of the implementation of the Economic Recovery Fund. He obtained an allocation of 5 billion FCFA to support 46 microfinance institutions. 30% is given to partner microfinance institutions as a subsidy to recover following the pandemic. The 70% was granted to 46 decentralized financial services (DFS) in the form of credit at subsidized rates of around 3.5% for all of their clients heavily impacted by the Coronavirus.
Also read:
RAF
1713792696
#Inclusive #finance #MPs #footsteps #BADEAs #billion #FCFA
