2024-11-04 08:36:00
• Private sector and energy on the menu of discussions with the IFC
• Support the plan development of the BADF
• The subjects at the heart of discussions with Minister Nacanabo
Lhe Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group took place from October 21 to 26, 2024, in Washington.
The program of these assemblies, which bring together political and economic decision-makers and representatives of the private sector, includes meetings on a range of questions relating to the weight of inflation and debt, the challenges of economic integration, and the impact of climate change and technological transformations. Other topics that will be discussed concern global financial markets, food security, and sustainable development.
This conclave was also an opportunity for the Burkina Faso delegation, headed by the Minister of Economy and Finance, Dr Aboubakar Nacanabo, to interact with the country administrators of these two institutions. According to the press release, published by the Ministry’s Communications Directorate, the latter have, moreover, “reiterated their availability and their support”.
Thus, on the sidelines of these statutory bodies, the Minister of Economy and Finance, Governor of the IMF and the World Bank for Burkina Faso, spoke with the vice-president of the International Finance Corporation (IFC), Sergio Pimenta , the World Bank Administrator for Burkina Faso, Abdoul Salam Bello, and the IMF Administrator for Burkina Faso, Régis Sondo.
Energy and the private sector discussed with the IFC
With the vice-president of the IFC, Sergio Pimenta, discussions focused on the actions undertaken by the IFC to support the private sector and key reforms in the field of energy, digitalization and public markets, through the development of a digital platform for a one-stop shop for public procurement. The IFC, a member of the World Bank Group, is the leading private sector-focused development institution in emerging countries.
It has operations in more than 100 countries, devoting its capital, skills and influence to creating markets and opportunities in developing countries. In fiscal 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing capital private to create a world without poverty on a livable planet.
During these discussions, Minister Nacanabo pleaded for more increased, targeted and high-impact interventions for the benefit of companies operating in various segments of the economy and in areas with a high influx of internally displaced people, in order to relieve host communities and public finances already under heavy strain, through the National Solidarity Fund, social safety nets and the financing of basic infrastructure.
The minister’s plea to the IFC also concerned support for the Banque Agricole du Faso (BADF) in its development plan. Vice-President Pimenta expressed the availability of his institution to always support the private sector in all its segments of action and marked his commitment and that of his institution to diligently examine all requests expressed. The Administrator of Burkina Faso at the World Bank, Abdoul Salam Bello, at the end of his mandate, received congratulations from Minister Aboubakar Nacanabo for the success of his mission and his commitment to Burkina Faso. Abdoul Salam Bello also thanked the Governor for the support during his mandate and presented the major themes on which the office is discussing with the World Bank and which will be pursued by the new Administrator, Harold Tavares.
These are the possibility of granting more concessional resources to the countries in its constituency, the revision of the financing model of the World Bank and the continued support of the agenda of reforms and initiatives, with a view to enabling the World Bank to take into account the challenges of countries in key development sectors.
Discussions with the Administrator, Regis Sondo, focused on the implementation of the reform program with the IMF, which aims to restore macroeconomic stability, preserve debt sustainability while protecting the most vulnerable populations, and to lay the foundations for strong growth, while freeing up budgetary space for priority spending.
The two personalities also discussed rapid access to resources from the “Resilience and Sustainability Trust Fund” (RST) which, according to Administrator Sondo, are very concessional resources.
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How the World Bank works
The World Bank is like a cooperative in which the shareholders are its 189 member countries. These shareholders are represented by a Board of Governors, which is the supreme decision-making body of the World Bank. Governors are, generally, the Ministers of Finance or Development of member countries. They meet once a year, on the occasion of the Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund (IMF).
The Governors delegate certain aspects of their mandate to 25 Directors, who are stationed at the Bank’s headquarters. The five main shareholders each appoint a Director, and the other member countries are represented by elected Directors.
The President of the World Bank Group chairs meetings of the Board of Executive Directors and is responsible for the general management of the Bank. He is selected by the Board of Directors for a renewable five-year term.
All of the Directors constitute the Board of Directors of the World Bank. As a general rule, they meet at least twice a week to supervise the activities of the Bank, including approving loan or guarantee operations, new policies, the administrative budget, country assistance strategies and decisions relating to borrowing and finances of the institution.
The functioning of the World Bank is ensured under the leadership and direction of the President, members of Management and the Vice-Presidents responsible for the various regional offices, sectors and networks.
Source: World Bank
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Burkina Faso Minister of finance punishment
**Interview with Dr. Aboubakar Nacanabo, Minister of Economy and Finance of Burkina Faso**
**Interviewer:** Thank you for joining us, Minister Nacanabo. Your recent discussions at the IMF and World Bank Annual Meetings covered vital topics such as energy, the private sector, and support for displaced communities. Can you elaborate on the importance of these topics for Burkina Faso?
**Minister Nacanabo:** Thank you for having me. As you mentioned, energy and the private sector are crucial for Burkina Faso’s development. Our country remains one of the poorest globally, with over 43 percent of our population living in poverty. By focusing on energy reforms and promoting private sector investment, we aim to create jobs and improve living conditions for our citizens, especially those in areas with high numbers of internally displaced people.
**Interviewer:** You mentioned interactions with the International Finance Corporation (IFC) regarding support for the private sector. What specific needs did you highlight during these discussions?
**Minister Nacanabo:** I emphasized the need for increased intervention that is both targeted and impactful, particularly for companies in sectors that are heavily tasked due to the influx of displaced individuals. We need support for the National Solidarity Fund, enhanced social safety nets, and financing for basic infrastructure to alleviate the burden on host communities.
**Interviewer:** The IFC committed a record amount to projects in developing countries this fiscal year. How do you see this benefiting Burkina Faso directly?
**Minister Nacanabo:** The IFC’s commitment of $56 billion is a significant opportunity for developing countries like ours. We hope to leverage their capital to foster sustainable business practices and create an environment where private enterprises can thrive. This will not only boost our economy but also help in reaching our development goals.
**Interviewer:** In your discussions with the IMF, you touched upon maintaining macroeconomic stability and protecting vulnerable populations. How do you plan to balance these goals?
**Minister Nacanabo:** It’s essential to find that balance. Our reform program with the IMF focuses on stabilizing our economy while ensuring that our most vulnerable citizens are supported. We are looking to free up budgetary space for key priority spending, particularly in social programs that protect low-income households.
**Interviewer:** What are your expectations moving forward with the new Administrator of the World Bank, Harold Tavares?
**Minister Nacanabo:** I foresee continued collaboration on essential development themes. It is crucial that the World Bank understands our unique challenges and adapts its financing models accordingly, particularly in terms of concessional resources and support for critical reforms.
**Interviewer:** Thank you, Minister Nacanabo, for sharing your insights on these pressing issues. We wish you the best in your efforts to improve conditions in Burkina Faso.
**Minister Nacanabo:** Thank you for having me. We are hopeful for the future and committed to making a difference.
