Burkina Faso has strengthened its fiscal position after repaying nearly $2.1 billion (CFA1.2 trillion) in domestic debt between January and late November 2025, supported by improved revenue mobilisation.
The update was delivered by Minister of Economy and Finance Aboubacar Nacanabo during a cabinet briefing last week.
According to the minister, state revenue reached $4.4 billion (CFA2.5 trillion) by 30 September 2025 — equivalent to 105% of the full-year target and $689.2 million (CFA388 billion) higher than collections recorded over the same period in 2024. These revenues include taxes, duties and income generated by public administrations.
Officials say the improvement reflects more efficient collection efforts and has eased short-term cash pressures, enabling the government to settle part of the arrears owed to local companies, suppliers, banks and financial institutions.
Gold market rally fuels fiscal momentum
Much of the revenue boost coincided with a significant rally in global gold prices. The precious metal surpassed $4,000 per ounce for the first time on record in early October, as global investors sought safe-haven assets amid rising geopolitical tensions.
Gold remains Burkina Faso’s largest export and a primary contributor to government revenue. The International Monetary Fund (IMF) says the rally has helped the country strengthen its fiscal buffers and revitalise economic activity.
As of the end of March, domestic debt stood at $8.5 billion (CFA4.86 trillion), up from $8.3 billion (CFA4.78 trillion) in December 2024 — a modest 1.7% rise driven largely by public security issuances on the regional market.
According to the Treasury’s 2025 Public Debt Statistical Bulletin No. 2, 77.9% of domestic debt was made up of treasury bills and bonds.
Minister Nacanabo noted that domestic debt remains a structural policy tool, explaining that even after major repayments, obligations rise again as new spending needs emerge, particularly for infrastructure and social investment.
IMF pressure accelerates fiscal discipline
The milestone comes as Burkina Faso implements reforms under its $302 million IMF credit facility approved in 2023. The programme requires fiscal consolidation, stronger revenue mobilisation and improved public-sector governance.
The IMF concluded its fourth review in November, praising the country’s adherence to performance criteria during the first half of 2025.
“As a result, the 2025 fiscal deficit target of 4% of GDP is well within reach,” said Jaroslaw Wieczorek, IMF Mission Chief for Burkina Faso in a recent statement. “Strong revenue mobilisation facilitated arrears clearance and good execution of spending on education, health and social protection,” he added.
The Fund also highlighted progress in regulatory reforms, which helped the country exit the Financial Action Task Force (FATF) grey list in October — a development expected to enhance investor confidence and cross-border financial flows.
Growth outlook strengthens
With reforms gaining traction and gold earnings rising, the IMF projects Burkina Faso’s GDP growth to reach 5% in 2025, remaining robust through 2026. Inflation is forecast to average –0.5% this year, driven by lower food and energy prices, before turning mildly positive in 2026 but remaining below the West African Central Bank’s 2% midpoint target.
Stronger gold exports are expected to support a modest current-account surplus in 2025, underlining a cautiously optimistic outlook for one of West Africa’s most resource-dependent economies.
NB: Local figures were converted to US dollars using CFA563/$1 as of December 8, 2025
