But analysts warn that the scale of the plan may be unrealistic given the country’s current economic and political context.
The plan focuses on four pillars, including boosting local processing of raw materials, expanding mining’s contribution to national revenue and developing infrastructure to support industrialisation. Authorities say the initiative marks a significant step toward economic diversification and reducing vulnerability to external shocks.
Speaking to Channel Africa on Tuesday, Former Senior United Nations Economist Bernard Ouandji said the plan’s financial envelope should be approached with caution. “The magnitude should be slashed by half. In the previous plan from 2021 to 2025, the delivery rate was very low. I do not see that the country has the absorptive capacity to manage a $60 billion investment,” he said.
Ouandji acknowledged improvements under the current authorities, including greater transparency in the gold sector. Official gold production is now estimated at about 100 tonnes a year, up significantly from levels recorded five years ago. “Most of the resources to finance the plan will come from the mining sector. Gold is playing a very important role,” he said.
However, he warned that diversification efforts remain limited. “There is very little vision for manufacturing. Few projects focus on transforming local materials. The plan is heavily dependent on mining and infrastructure, and with the security situation, it is unclear whether they can extend the road network as planned.”
Burkina Faso has strengthened its fiscal position, recently repaying $130 million in debt. But Ouandji cautioned that domestic resource mobilisation remains a major risk. “The plan relies on 68% internal resources and 30% external funding. External financing may be secured, especially after agreements with the International Monetary Fund and the United States. But the government has been running chronic deficits of around 3% of gross domestic product. This raises serious concerns about the capacity to raise domestic funds.”
He said the biggest risk is overestimating internal financing capacity. “If 68% is expected from the domestic market, that is where the plan is most vulnerable.”
Ouandji nevertheless commended the new leadership. “They are proactive and have a good image among African youth,” he said.
–ChannelAfrica–
