WB extends $90 mn as poverty reduction support

06 Jul '07

2 min read

The Executive Board of the World Bank approved a Poverty Reduction Support Credit (PRSC-7) in the amount of US$90 million to Burkina Faso. The credit will have a significant positive impact on poverty reduction and accelerate economic growth.

The PRSC-7 begins a third series of budget support operations that help finance Burkina Faso's Poverty Reduction Strategy (PRS), which was adopted in 2000 and updated in 2004, with regular progress reports. This new budget support operations aim to help accelerate growth and lower poverty levels by:

• improving the investment climate and promoting exports;
• improving access to basic social services through continued decentralization and strengthened institutional capacity; and
• promoting efficiency, transparency and accountability in the use of public resources through enhanced public financial management.

“The strengthening of public financial management will enhance efficiency, transparency and accountability in public resource use,” said Siaka Coulibaly, World Bank task team leader for this project.

“The reforms in public service provision through decentralization and institutional strengthening will improve access of the poor to health, education, water and sanitation services, support their greater participation in the growth process and sustain progress towards the Millennium Development Goals.”

Burkina Faso has been able to achieve relatively robust growth and poverty reduction over the last decade. Real GDP growth rates have averaged 6.0% annually since 1995, among the highest growth rates in sub-Saharan Africa.

Real per capita annual income has increased by 20% since 1994 and stood at US$430 in 2005. Poverty has been substantially reduced, from an estimated 54% in 1998 to 46% in 2003 and an expected 41% in 2006.

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