Burkina Faso
Poverty Reduction Strategy Paper Annual Progress Report
Author: International Monetary Fund
Publication Date:
16 Oct 2006
eISBN:
9781451803884
Language:
English
Keywords:
ISCR; CR; financial support; private sector; development plan; steering committee; civil society; job creation; economic growth; tertiary sector; judicial system; public expenditure
Download PDF (4.2 MB)

The Poverty Reduction Strategy Paper (PRSP) prepared by the Burkinabè government forms the principal benchmark for all development actors, and reaffirms the urgency of attacking poverty from a structural perspective. It is the primary tool for coordination of all interventions and of public aid to development. The partnership existing between the government and the various actors under the PRSP makes the latter a powerful tool for resource mobilization. Further more, the PRSP will help in a stable macroeconomic framework by strengthening budget management and public investments.

Abstract

The Poverty Reduction Strategy Paper (PRSP) prepared by the Burkinabè government forms the principal benchmark for all development actors, and reaffirms the urgency of attacking poverty from a structural perspective. It is the primary tool for coordination of all interventions and of public aid to development. The partnership existing between the government and the various actors under the PRSP makes the latter a powerful tool for resource mobilization. Further more, the PRSP will help in a stable macroeconomic framework by strengthening budget management and public investments.

I. Summary of Development Outlook and National Priorities

8. Through the PRSP, the Burkinabè government reaffirms the urgency of working to promote human security by attacking poverty from a structural perspective. The underlying philosophy of this perception, which determines the outlook and national priorities, is rooted in three key principles: the Burkinabè people must continue to rely on their cultural potential and values; adherence to the requirements of good governance as a critical element of public policy implementation; and respect for the principle of gender equity in the planning and appropriation of government resources.

1.1. Strategic goals

9. The principal development goals as defined by the government are to: (i) strengthen actions aimed at reducing the state of poverty and vulnerability of populations, as well as the various disparities; (ii) implement sound macroeconomic policies in order to achieve strong, sustainable, and better distributed growth; (iii) accelerate and strengthen the decentralization process and efforts to modernize government; and (iv) successfully engage the country in the process of regional integration and globalization.

1.2. Major quantitative objectives

10. The major quantitative objectives pursued by the government over the coming years are to: (i) increase per capita gross domestic product by at least 4 percent per year starting in 2004; (ii) reduce the current incidence of poverty to under 35 percent by 2015; and (iii) increase life expectancy to at least 60 years by 2015. These objectives are fully in line with efforts to achieve the Millennium Development Goals (MDGs) and the goals of the New Partnership for Africa’s Development (NEPAD). To meet these goals and objectives efficiently and appropriately, the government has identified nine priority sectors, i.e. nine sectors that have a major impact on poverty reduction.

1.3. National priorities

11. To meet the objectives set forth above, the PRSP, in its revised version, has identified nine priority areas, as follows:

1.3.1. Education

12. The government’s principal option in this sector is to accelerate the expansion of basic education and literacy programs, while paying close attention to their quality as well. More specifically, the plan is to:

  • - increase, at a reasonable cost, the primary school gross enrollment ratio so as to reach a threshold of 70 percent in 2010, particularly for children and girls in rural areas, and improve the quality and efficiency of the system;

  • - develop and diversify literacy programs and approaches so as to raise the literacy rate to 40 percent in 2010 (with special attention to women and inhabitants of underprivileged areas);

  • - improve preschool instruction and enrollment as a framework of early learning and preparation for primary education;

  • - improve the quality of teaching and learning in order to reduce the wastefulness associated with high numbers of repeaters and drop-outs;

  • - improve the management capacities of schools, inspectorates, and regions, as well as the steering capacities of MEBA, consistent with the very strong growth in the volume of activities that will be generated by the country’s program and policy of decentralization and deconcentration;

  • - expand the steering capacities of the Ministry of Basic Education (MEBA), as well as the management capacities of schools, inspectorates, and regional directorates to bring them more in line with the requirements of accelerated expansion and the needs of the decentralization process.

13. Within the perspective of expanding the concept of basic education and balanced development of the educational system, the government will still make every effort to develop and implement a coherent program for the development of other types of education. Special emphasis will be placed on learning the trades, on science and technology, and on technical and vocational training.

1.3.2. Health

14. In 2000, the government adopted a national health policy paper setting forth the country’s main health goals. Improvements in the health status of populations should result from implementation of this paper, rendered operational through a national health development plan covering the period 2001-2010. This plan garnered the support of donors at the sectoral round table organized in Ouagadougou in 2003. It has the following intermediate objectives:

  • increase national health coverage;

  • improve the quality and use of health services;

  • step up efforts to fight transmittable and non-transmittable diseases;

  • develop human resources in the health field;

  • improve the financial accessibility of health services;

  • increase health sector financing;

  • build the institutional capacities of the Ministry of Health.

1.3.3. HIV/AIDS prevention and control

15. The spread of HIV/AIDS represents one of the greatest threats to the development process in Burkina Faso. As a result, in May 2001 the government adopted a strategic AIDS prevention and control framework for the period 2001-2005, the broad lines of which are to: (i) strengthen efforts to prevent the transmission of sexually transmitted infections and HIV; (ii) monitor the epidemic more closely; (iii) improve the quality of overall assistance for infected and affected persons; and (iv) expand the response to the epidemic and promote a national and international partnership and multisectoral coordination.

1.3.4. Drinking water

16. With respect to drinking water, an action plan for integrated water resources management was adopted in 2003. It defines new approaches to the issue of drinking water supply, and distinguishes among urban centers, semi-urban areas, and rural areas. The table below shows the objectives of the plan as set forth in the PRSP.

article image
Source: DGEAP

1.3.5. Rural development

17. Drawing a lesson from implementation of the agricultural and livestock sectors’ sustainable growth strategy and from developments in the regional and international context, and adhering to the principles of the decentralized rural development letter of policy, the Burkinabè government adopted a new national rural development strategy in 2003 for the period through 2015.

18. The vision set forth in this strategy is the emergence of a rural world that is not so poor and that enjoys sustainable food security due to:

  • increased output from agricultural, pastoral, fishery, forest, and wildlife activities, based on improved productivity;

  • increased income as a result of greater integration of the market economy and a diversification of economic activities in rural areas;

  • modernization of the family farm;

  • regional product diversification and specialization;

  • sustainable management of natural resources and ecosystems.

19. The overall objective in the area of rural development is to ensure sustained growth of the rural sector so as to contribute to poverty reduction, greater food security, and the promotion of sustainable development. Specifically, the plan for the coming years is to:

  • increase the output of agricultural-tree farming-pastoral activities, wildlife-related activities, and forestry activities over the coming years;

  • contribute to growth in the income of farmers and pastoralists so as to improve their standard of living and reduce the incidence of poverty in rural areas through the diversification of activities;

  • strengthen the link between output and market;

  • create conditions favorable to the availability and accessibility of an adequate and balanced diet, cover the normal caloric requirements (2,500 calories per day), and increase the consumption of animal protein (from 9.3 kg per person per year currently to 21 kg per person per year);

  • bring into widespread use and improve the sustainable management of natural resources by rural communities;

  • improve the economic circumstances and the status of women and youth in rural areas;

  • promote accountability on the part of rural populations and build their capacity to function as development actors.

1.3.6. Environmental and living conditions

20. In specific terms, over the period 2004-2006, the government will focus on the following priority actions:

  • intensification of efforts to fight desertification, including the development and implementation of local development programs, thus benefiting from the results of trials run and studies conducted;

  • improvement of the living conditions of urban and rural populations through the development of an action plan on sanitation and land development. Special attention will be given to the management of agricultural pollution and pollution resulting from mining and industrial activities. It remains true that efforts to improve living conditions should go hand in hand with efforts to strengthen rural electrification programs.

1.3.7. Efforts to fight a lack of security

21. The action plan adopted by the government covers the period 2005-2009. Its purpose is to enable security forces to respond effectively to the security needs of populations, thus creating secure conditions that will guarantee better participation in the tasks of development. The action plan has three major objectives:

  • increase the national coverage of security forces by lowering the number of inhabitants per security agent from 2,000 to 1,000;

  • improve the operational capacities of the security forces;

  • organize the participation of populations in managing their own security.

1.3.8. SME/SMIs and small-scale mining

22. With respect to small and medium enterprises (SMEs) and small and medium industries (SMIs) and in view of the critical role played by these small production units in the national poverty reduction strategy, the government will attempt to develop a specific national program of support for the development of small and medium enterprises/small and medium industries. Special attention will be given to: (i) financing for SME/SMIs through the creation of an SME/SMI support fund; (ii) equipment; and (iii) training and supervision of operators.

23. As regards small-scale mining, it should be noted that, despite the adverse effects of small-scale mining on the environment and on the health of populations, this activity remains a source of income and contributes to poverty reduction. Accordingly, the government intends to give a boost to this sector through measures aimed at: (i) organizing small-scale mining more effectively; (ii) improving the security of gold washing sites; (iii) improving the supervision of gold washers; (iv) providing appropriate logistical and technical support to improve productivity at the different sites; and (v) restoring the environment.

1.3.9. Capacity building and promotion of NICTs

24. With respect to capacity building, the government’s approach is to: (i) determine the areas in which the capacities of government departments are of critical importance for the poverty reduction strategy; (ii) develop a critical mass of national professional staff for economic management; and (iii) develop a national capacity building action plan.

25. The new information and communication technologies (NICTs) are powerful tools for streamlining the management of development. In this area, the government has started to develop a strategy for making the national information and communication infrastructure development plan operational. The main objectives of this plan are to:

  • open up the country;

  • strengthen administrative governance;

  • ensure the sustainable development of human resources;

  • create new resources and new jobs;

  • expand the country’s influence.

1.4. Strategic themes

26. To achieve the major quantitative objectives, four strategic themes were identified:

  • Theme 1: Accelerate growth on an equitable basis;

  • Theme 2: Guarantee access of the poor to basic social services and social welfare;

  • Theme 3: Expand job and other income-generating opportunities for the poor on an equitable basis;

  • Theme 4: Promote good governance.

1.4.1. Growth and equity

27. To reduce poverty significantly, solid and robust growth, supported by a large and diversified economic base, is indispensable. Thus, for the period 2004-2006, the Burkinabè economy should grow in real terms at an average rate of 7 percent per year, corresponding to a 4 percent increase in per capita GDP, in a less inflationist context. The planned reforms should accelerate change in all sectors of the economy and permit the emergence of new sources of growth. To that end, the government intends to shore up the foundations of macroeconomic and financial stability, improve competition in growth sectors (agro-pastoral and industrial production, social infrastructure), and accelerate and complete the privatization program. The mining, industrial, and energy sectors will be rehabilitated and restructured for greater openness to the private sector and will receive the help needed to reduce factor costs and improve their competitiveness.

28. The private sector remains the principal engine of growth. The government will address the critical issues that paralyze any expansion of the economy, such as limited access to infrastructure services at affordable prices, the many bottlenecks in the environment faced by enterprises, and the weakness of the domestic private sector. The government will continue its divestiture of productive activities so as to allow the private sector to make the necessary investments for consolidating existing activities and developing new activities. The government thus intends to intensify its reform policies concerning the privatization program and market liberalization. Growth based on equity will be determined by: (i) maintenance of a stable macroeconomic framework; (ii) improved competitiveness and reduced factor costs; (iii) accelerated development of rural areas; and (iv) support for productive sectors.

1.4.2. Access of the poor to basic social services and social welfare

29. The efforts undertaken by the government and its partners in the different social sectors have produced substantial results, yet remain insufficient considering the scope of the social deficit. Bringing this deficit down and building human capacities are both necessary conditions in order to accelerate growth based on equity and improve the quality of life. Achieving these conditions requires vigorous action in sensitive areas such as: (i) education; (ii) health; (iii) nutrition; (iv) HIV/AIDS; (v) drinking water, sanitation, and pollution; (vi) living conditions (housing); and (vii) social welfare.

1.4.3. Equitable expansion of job and other income-generating opportunities for the poor

30. Job and other income-generating opportunities will depend on the vitality and performance of the various economic sectors. Agriculture is the leading sector in Burkina Faso in terms of providing jobs, and any expansion of opportunities for the poor will first of all require that the necessary conditions for accelerated growth in this sector are in place. This assumes that the reforms now under way in the agricultural sector will result in a better division of roles among actors. From this perspective, the government will concentrate on policy development and the creation of public goods and services to stimulate the productive activities and marketing of agricultural products carried out by other actors (private sector).

31. The programs to be implemented will be structured around seven strategic themes: (i) reduce the vulnerability of agricultural activities; (ii) intensify and modernize agricultural activities; (iii) increase and diversify the income of rural inhabitants; (iv) open up rural areas to the outside; (v) support producer organizations and social infrastructure; (vi) improve the living and working conditions of rural women; and (vii) promote employment and vocational training.

1.4.4. Promotion of good governance

32. Good governance serves, firstly, to create favorable conditions for the broad participation of all actors in the development process and, secondly, to produce a highly attractive environment for investment, the creation of wealth, and improvements in the competitiveness of the national economy from the perspective of poverty reduction. In this area, the actions planned by the government will be structured mainly around the four poles of governance: (i) political governance, including public security and the promotion of human rights; (ii) administrative governance; (iii) economic governance; and (iv) local governance.

II. Prsp Implementation Status

2.1. PRSP overview and financing

2.1.1. Summary of projected financial framework

33. During the period 2004-2006, it is projected that revenues and grants will show average growth of 10.9 percent as a result of internal efforts to raise tax revenues and support from external partners in the form of grants.

34. Tax revenues should rise from CFAF 270.1 billion in 2003 to CFAF 321.0 billion in 2004, i.e. an increase of 18.8 percent corresponding to an improvement in the tax/GDP ratio from 10.9 percent to 11.4 percent respectively. Projected tax revenues for 2005 (11.7 percent of GDP) and 2006 (12.0 percent of GDP) come to CFAF 366.8 billion and CFAF 415.0 billion respectively. On average, external resources will total CFAF 269.7 billion per year. In addition, investments from the government’s own resources will also benefit from reallocation of HIPC resources. These resources are estimated at roughly CFAF 22.7 billion in 2004, CFAF 34.1 billion in 2005, and CFAF 27.5 billion in 2006.

Table 1.

Evolution of government flow of funds

(CFAF billion)

article image
Source: DGEP/MEDEV, IAP, July 2004

35. During the period under review, the efforts to streamline and control public spending should continue. The ratio of expenditures and net loans to GDP should average 21.6 percent despite the additional expenditures to be made in connection with poverty reduction. The emphasis will primarily be placed on controlling current expenditures. The ratio of current expenditures as a percentage of GDP should average 11 percent over the period. The budget deficit excluding grants should average 8.9 percent of current GDP over the period.

36. The capital expenditure projections are based on an average annual increase of 16.4 percent in expenditures financed from the government’s own resources over the period due to an increase in budgetary aid, and stagnation in terms of project loans (CFAF 90 billion per year) between 2004 and 2006, on the one hand, and on a policy of redirecting public investment spending toward productive sectors and sectors that support production, on the other. Capital expenditures will increase by 9.7 percent on average over the period 2004-2006. This increase will be due largely to the government’s steadily growing participation (through tax revenues) in the financing of public investments, totaling 38.0 percent, 44.5 percent, and 47.0 percent of GDP respectively in 2004, 2005, and 2006.

2.1.2. Status of resource mobilization

37. During the year 2004, management of government finance continued to focus on improvements in the collection of revenues and the control of government spending. In this regard, the government instituted major reforms through an action plan to strengthen budget management (PRGB), while placing special emphasis on the mobilization of internal revenues, one of the weak points of government finance.

2.1.2.1. Evolution of government resources

38. The year 2004 was characterized by the good performance of tax revenues. Internal resources raised that year came to CFAF 344.8 billion, versus CFAF 300.9 billion in 2003, for an increase of 14.6 percent. Despite falling slightly short of the initial PRSP projections, this good performance is explained by implementation of the action plan to improve the collection of revenues, which involved, among other things, creation of the Large Enterprise Division (DGE), computerization of the tax divisions, training of auditors, and operational availability of SYDONIA++ software in the main customs offices.

39. This result stemmed from the good performance of tax revenues in general and particularly of door taxes, which showed strong growth (30.9 percent) compared to 2003. Indirect taxes and direct taxes remain the dominant sources and grew respectively by 20.0 percent and 12.0 percent. Other tax revenues and non-tax revenues declined respectively by 58.8 percent and 14.4 percent.

Table 2:

Evolution of internal resources between 2002 and 2004

(CFAF billion)

article image
Source: 2003 PRSP implementation report and 2004 TOFE

40. However, despite the performance achieved in terms of tax revenues, the recovery levels of the Directorate-General of Customs (DGD) and the Directorate-General of Taxes (DGI) fell respectively to 98 percent and 108 percent in 2004, versus 104 percent and 120 percent respectively in 2003. This situation could be due to the late start of the new imports verification program at DGD, but could also reflect better mastery of revenue projections at these two directorates. The Directorate-General of the Treasury and Public Accounts (DGTCP), on the other hand, showed an improvement in its rate, which rose from 103 percent to 105 percent.

2.1.2.2. Specific status of HIPC resources and budgetary support

41. Mobilization of HIPC resources: Under the HIPC Initiative, the resources mobilized during the year 2004 came to CFAF 25.08 billion, an increase of 1.5 percent compared to 2003 and 9.2 percent compared to the initial PRSP projections (CFAF 22.7 billion). At the end of December 2004, the balance of the account at BCEAO was CFAF 16.11 billion. Total stock should have come to CFAF 22.14 billion if the mobilization of HIPC resources proceeded normally.

42. Mobilization of budgetary support: During the year 2004, CFAF 89.9 billion was mobilized in the form of budgetary support, versus CFAF 83.6 billion in 2003, i.e. a growth rate of 7.5 percent. This figure amounts to roughly 59.7 percent of all external financing. The decision by partners to favor this approach, consistent with the government’s wishes, in order to facilitate PRSP implementation became clear at the end of 2004 when a general framework to organize budgetary support (CGAB) was developed.

2.1.3. Status of public expenditure

2.1.3.1. Evolution of public expenditure

43. Public expenditures (including HIPC resources) in 2004 totaled CFAF 559.6 billion excluding interest and debt retirement, compared to CFAF 493.7 billion in 2003, i.e. an increase of 13.3 percent.

44. In 2004, current expenditures (including HIPC resources) came to CFAF 294.3 billion versus a projected CFAF 295.4 billion in the amended budget law, corresponding to a rate of execution of 99.6 percent.

45. Operating expenses increased by 15.3 percent over 2003, totaling CFAF 275.2 billion. Wages remained the largest item in this category (at 44.9 percent) and grew by approximately 11.4 percent compared to 2003. This increase is mainly due to the major efforts carried out to make basic social services operational, especially in the education and health sectors, and to the expansion of Title 2 to incorporate a new type of expenditure (in-kind benefits). Spending on current transfers and on goods and services increased respectively by 21.1 percent and 15.5 percent. The increase in the latter category of expenditure came after certain expenditures were included that had been classified previously as capital expenditures (purchase of four-door sedans and two-wheel vehicles, office equipment and furniture, and housing).

Table 3:

Evolution of public expenditure

(based on commitments, excluding interest and depreciation, CFAF billion)

article image
Source: 2003 PRSP implementation report and 2004 TOFE

46. Capital expenditures increased by 11.5 percent despite a 6.9 percent drop in external financing, which was offset by strong growth in the government’s own resources (43.5 percent) incorporating budgetary support.

47. In 2004, in view of the critical role of their efforts in relation to poverty reduction, twelve ministries received HIPC resources. In terms of appropriations, the basic social services (basic education and health) received a fairly generous proportion of the HIPC package (20.7 percent and 29.37 percent respectively), while the ministries in charge of the rural development sector maintained a prime position (11.3 percent, 5.4 percent, and 10.9 percent for MAHRH, MRA, and MITH/rural roads respectively).

2.1.3.2. Specific status of HIPC resource execution in 2004

48. Since 2001, the Burkinabè government has mobilized an average of CFAF 24.3 billion under the HIPC Initiative. The difficulties in mastering the procedures for collecting these resources limited their immediate use during the first years. The capacity for absorbing these resources is gradually improving. In 2004, spending from HIPC resources (based on commitments) reached CFAF 43.5 billion, versus a projected CFAF 57.6 billion, i.e. a rate of execution of roughly 75 percent. This spending was one and a half times the total for 2003. Performance, in terms of execution, could be due to the fact that in 2004, the Directors of Administrative and Financial Affairs (DAAFs) of the various ministries receiving HIPC resources became the administrators of these resources. The Directorate-General of the Budget (DGB) was the administrator of HIPC resources during the previous years.

Table 4:

Use of HIPC resources

(CFAF billion)

article image
Source: 2003 PRSP implementation report, SP-PPF

49. The share of spending by the health, rural development, and drinking water sectors came respectively to 35.2 percent, 12.6 percent, and 9.8 percent of total spending from HIPC resources in 2004, versus 31.9 percent, 8.7 percent, and 3.02 percent respectively in 2003. As for basic education, the share of spending fell from 35.2 percent in 2003 to 24.6 percent in 2004, i.e. a drop of 10.6 points, which may be explained by the problems in this sector with respect to the absorption of resources. However, in absolute terms, there was a slight improvement in spending from HIPC resources compared to 2003 (CFAF 10.7 billion in 2004 versus CFAF 10.5 billion in 2003) in this sector. In absolute terms, the other priority sectors (efforts to fight a lack of security, SME/SMIs and small-scale mining, capacity building and promotion of NICTs, etc.) went from CFAF 5.8 billion in terms of execution in 2003 to CFAF 7.2 billion in 2004, i.e. an increase of 24.5 percent. In any event, a better grasp of HIPC appropriations and spending in priority areas, as defined in the revised version of the PRSP, remains a major concern.

2.1.3.3. Sector appropriations

50. To achieve the objectives of poverty reduction, the government’s budget should reflect the PRSP priorities. An analysis of spending appropriations by sector (ministry) is one way to measure progressively the degree to which this requirement is satisfied. However, spending by ministry does not always take into account interest and debt retirement, social subsidies for hydrocarbons, and exemptions granted in connection with investment project execution.

51. As shown in the table below, three ministries absorb, just by themselves, some 40 percent of government spending: 10.2 percent for the Ministry of Health, 13.6 percent for the Ministry of Basic Education and Literacy Training, and 15.3 percent for the Ministry of Agriculture, Water Resources, and Fisheries.

Table 5:

Principal appropriation spending ministries

(including HIPC and investments financed from external resources, based on commitments, CFAF billion)

article image
Source: 2003 PRSP implementation report, 2004 TOFE, and 2004 budget law

52. The trends for the first group of ministries are highly varied. The Ministry of Agriculture is relatively consistent in terms of the absolute amount, but its share of total spending has dwindled from year to year, falling from roughly 17.2 percent in 2002 to approximately 13.6 percent in 2004. In contrast, the Ministries of Health and Basic Education have seen their appropriations grow from one year to the next, by 21.6 percent and 35.0 percent respectively in comparison to 2003. However, the Ministry of Health’s share of total spending has remained at 10.4 percent, whereas the Ministry of Basic Education’s share grew to 15.4 percent in 2004, versus 13 percent the preceding year.

53. Despite some observable growth, the two other groups are characterized by the consistency of their respective shares of total spending, with the anomaly that spending by the Ministry of Environmental and Living Conditions does not even account for 1 percent of total public expenditure.

2.2. Analysis of results by strategic theme

2.2.1. Overview of PAP implementation

2.2.1.1. Focal points of the PAP

54. The Priority Action Program (PAP) encompasses more than thirty subprograms organized around the four strategic themes. Based on a breakdown guided by a number of different criteria, 40 percent of capital expenditure should be aimed at providing populations with better access to basic social services; indeed, the weakness of the country’s indicators in this area is partly to blame for the country’s low level of human development. The will to support economic growth on the order of 7 percent per year on average, requiring a commitment to ongoing reform and major support for productive sectors, will result in an investment volume the cost of which amounts to 37 percent of total capital expenditure. Actions more specifically targeted at the poor, offering them more job and other income-generating opportunities, account for 18 percent of capital expenditure. Finally, there are a number of factors that are indispensable for creating the conditions of better governance, for example judicial system reform, efforts to promote human rights and establish public security, consolidation of the decentralization process, government capacity building, and the national strategy to fight corruption The costs associated with these actions account for 5 percent of capital expenditure. Overall, the Priority Action Program will mobilize some CFAF 1,395 billion, of which 67 percent has been acquired.

2.2.1.2. PAP implementation status

55. For its 2004 package, the Priority Action Program for PRSP implementation called for a Public Investment Program in the total amount of CFAF 411.1 billion, well above the amount of the PIP adopted by the 2004 budget law, which was CFAF 289.9 billion. However, only 70.3 percent of the PAP financing was theoretically acquired, i.e. CFAF 289 billion, corresponding to the budget law appropriation, leaving 29.7 percent to be found, i.e. CFAF 122.1 billion. Programming of the PAP investments was patterned on the four themes of the PRSP as follows:

  • Theme 1: CFAF 130 billion;

  • Theme 2: CFAF 184.4 billion;

  • Theme 3: CFAF 75.1 billion;

  • Theme 4: CFAF 21.6 billion.

56. The overall record of PAP execution for 2004 incorporates the projects listed under Title V of the budget law and projects that are not listed there. Furthermore, the PIP record prepared by the ministries is partial and the correspondence with PAP estimates is sometimes difficult. Adjustments were necessary to avoid double entries of items.

57. The overall results, based on the information provided by the sectoral ministries, are shown in the table below:

Table 1:

Implementation results for the PIP of the 2004 PAP

(CFAF billion)

article image
Source: DPSSI/MEDEV, May 2005

58. The Priority Action Program was adjusted in 2004 to CFAF 342.2 billion, i.e. a restriction of some 17 percent compared to the initial package of CFAF 411.1 billion. By the end of 2004, CFAF 285.1 billion had been mobilized out of CFAF 289.9 billion listed in the 2004 budget law, for a 98.3 percent level of mobilization. But only CFAF 197.92 billion was actually disbursed, yielding a PAP financial execution rate of 69.4 percent. This result, which is consistent with the trend of execution of public investments over the last five years (averaging 70 percent per year), reflects the level of performance achieved for the various strategic themes of the PRSP.

59. Growth and equity: Of a total projected amount of CFAF 115.4 billion, some CFAF 96.3 billion was mobilized and CFAF 63.32 billion disbursed, for a financial execution rate of 65.8 percent, reflecting the progress made in the principal programs addressing this theme:

  • Develop hydro-agricultural schemes: expenditures totaling CFAF 25.5 billion and a financial execution rate of 65 percent;

  • Support rural advancement: expenditures totaling CFAF 17.1 billion and an execution rate of 66.8 percent;

  • Strengthen food security and manage the national food security stock: expenditures totaling CFAF 6.5 billion and an execution rate of 92.8 percent;

  • Raise the income level of farmers: expenditures totaling CFAF 2.6 billion and an execution rate of 84.1 percent;

  • Increase rainfall: expenditures totaling CFAF 460 million and an execution rate of 100 percent.

60. Basic social services and social welfare: The total projected amount in 2004 is CFAF 124.3 billion. Of this total, CFAF 109.47 billion was mobilized and CFAF 71.76 billion disbursed, i.e. a financial execution rate of 65.6 percent.

  • HIV-AIDS prevention and control and access of the poor to health/nutrition services: a financial execution rate of 78.4 percent, corresponding to CFAF 19.3 billion in capital expenditures;

  • Improve the living conditions of the poor: an execution rate of 94.1 percent, corresponding to CFAF 13.7 billion in capital expenditures;

  • Reduce the transmission of AIDS: an execution rate of 72.6 percent, corresponding to CFAF 7.9 billion in capital expenditures;

  • Social welfare: an execution rate of 88 percent, corresponding to CFAF 3.6 billion in capital expenditures;

  • Socioeconomic integration of underprivileged groups: an execution rate of 92.9 percent, corresponding to CFAF 1.5 billion in capital expenditures;

  • Socioeconomic advancement of families: an execution rate of 81.4 percent, corresponding to CFAF 1.4 billion in capital expenditures;

  • Improve the income and working conditions of women: an execution rate of 88.9 percent, corresponding to CFAF 1.2 billion in capital expenditures.

61. Job and other income-generating opportunities: This theme shows the highest execution rate of the four PAP intervention themes. CFAF 56.71 billion was mobilized and CFAF 46.46 billion was disbursed, for a financial execution rate of 81.9 percent. The breakdown by subprogram is as follows:

  • Road system maintenance: CFAF 28.1 billion mobilized and a financial execution rate of 77.8 percent;

  • Road construction: CFAF 12.3 billion mobilized and a financial execution rate of 94.3 percent;

  • Energy sector support project: CFAF 4.9 billion mobilized and a financial execution rate of 100 percent;

  • Development of cattle raising: CFAF 2.7 billion mobilized and a financial execution rate of 74.5 percent;

  • Development of rural roads: CFAF 1.3 billion mobilized and a financial execution rate of 100 percent;

  • Expansion of the operational capacities of entities that finance small and medium enterprises: CFAF 655 million mobilized and a financial execution rate of 100 percent;

  • Expansion of the size of managed natural forests: CFAF 1 billion mobilized and a financial execution rate of 86.9 percent.

62. Good governance: Out of a total projected amount of CFAF 23.8 billion, CFAF 22.6 billion was mobilized and CFAF 16.4 billion disbursed, i.e. a financial execution rate of 72.4 percent. The breakdown by subprogram is as follows:

  • National policy of communication for development (political governance): CFAF 5 billion mobilized and a financial execution rate of 93.6 percent;

  • Improvement of the operational capacities of security services (political governance): CFAF 2.5 billion mobilized and a financial execution rate of 97.5 percent;

  • Local governance (construction of governorships and further decentralization): CFAF 6 billion mobilized and a financial execution rate of 70.7 percent.

63. Good governance is a determining factor of poverty reduction and requires sustained attention. The decisions made by the government to develop a national policy of good governance will serve to clarify future actions and thereby strengthen implementation of this theme.

64. After one year of implementation of the PAP, the main lessons are as follows: i) The design of the tables of PIP results to be inserted in the PAP in coming years should be improved. The PIP programming completed within the PAP framework bases its estimates on broad categories; achieving the objectives under these categories should help reduce poverty in terms of the themes set forth in the PRSP. At the same time, the record of PIP results transmitted by the ministries is prepared by project, yet the breakdown of project components does not always line up with the PAP estimates. There is thus an urgent need to find, in collaboration with the sectoral ministries, a practical formula for re-establishing coherence and consistency; ii) Consistency must also be established between the PIP as voted in the budget law and the PIP inserted into the PAP. Since the PIP appearing in the PAP and the budget law are essentially the same, the estimates should be reviewed and brought into line with the budget guidelines exercise, particularly the Medium-Term Expenditure Framework (MTEF). Thus, in the PAP projections, it should be determined what the MTEF permits reaching as an objective, before placing any extra amount in a broader framework of additional resources to be sought according to precise and foreseeable sources.

2.2.2. Analysis of results by theme

2.2.2.1. Growth and equity
2.2.2.1.1. Stability of the macroeconomic framework

65. Economic growth: Despite the difficult subregional political context and an international environment marked by the decline of cotton prices and the dollar and a dramatic increase in the price of a barrel of oil, in 2004 the Burkinabè economy continued the pattern of growth that began early in the last decade. Indeed, after the Gross Domestic Product (GDP) increased in real terms by 4.6 percent in 2002 and 8 percent in 2003, economic growth in 2004 came to 4.6 percent versus an objective of 6.2 percent, which corresponds to a 2.2 percent increase in per capita GDP. The slower growth in 2004 is due to the poor performance of the primary sector, which showed a growth rate of -3.3 percent versus 10.7 percent in 2003. The secondary sector showed a one-point gain in growth in 2004 compared to 2003. Growth of added value in this sector came to 10.2 percent versus 9.4 percent the preceding year. Finally, growth in the tertiary sector came to 8.1 percent, i.e. an improvement of 2.2 points compared to 2003.

Table 6:

Evolution of sector growth during the period 2001-2004

article image
Source: DGEP/MEDEV, IAP, December 2004

66. The poor performance of the primary sector is mainly due to the difficult circumstances of the 2004-2005 crop year, marked by a shortage of rainfall and a locust invasion in the northern part of the country. Grain output fell in fact by 19.4 percent as a result of the poor performance of the main grain crops such as millet (-20.8 percent), sorghum (-13.1 percent), and maize (-31.1 percent). The output of off-season crops fell from 64,000 tons in 2003 to 27,000 tons in 2004, i.e. a decline of approximately 37 percent.

67. Cotton, the leading cash crop, showed an increase in output of 33.4 percent, reaching a total of 641,000 tons versus 480,000 tons in 2003.

68. Growth in the secondary sector came to 10.2 percent versus 9.5 percent in 2003. The evolution of this sector has been influenced by manufacturing, the performance of which is closely tied to cotton production. The added value of manufacturing industries grew by 10.6 percent. This component accounted for 71 percent of the sector’s total added value, versus 23 percent in the case of public buildings and works and 5.4 percent in the case of energy (electricity, gas, water). Despite having shown strong growth in 2004 (46.4 percent), the mining industries’ contribution to this sector remained very low (0.5 percent).

69. The market tertiary sector registered growth of 8.1 percent in 2004, an increase over the result in 2003, which was 6.0 percent. This activity was supported by 18.7 percent growth of services in the areas of telecommunications, transportation, and services and 10.1 percent growth in commerce.

70. Over the period 1995-2004, in comparison with other WAEMU countries, Burkina Faso, with an average GDP growth rate of 6.1 percent at constant prices, registered a macroeconomic performance exceeding the average for the Union as a whole (3.1 percent).

71. The figure below clearly depicts the macroeconomic efforts made by Burkina Faso.

Figure 1:
Figure 1:

Evolution of the GDP growth rate at constant prices from 1997 to 2004 for Burkina Faso and WAEMU (UEMOA) as a whole

Citation: IMF Staff Country Reports 2006, 357; 10.5089/9781451803884.002.A001

Source: DGEP/MEDEV

72. The sectoral contribution to GDP growth in 2004 was greater for the tertiary sector (3.2 percent), contrary to 2003 when the largest sectoral contribution was that of the primary sector (4.03 percent versus 2.41 percent for the secondary sector and 1.62 percent for the tertiary sector, yielding a GDP growth rate of 8 percent). In 2004, the contributions of the secondary and primary sectors were 1.8 percent and -1.3 percent respectively.

73. Growth, disparity, and poverty reduction: A look at the results of the surveys of household living conditions conducted in 1998 and 2003 shows that the Gini index remained identical between the two periods (0.46), reflecting the relative stability of disparities at the national level. In this context, the cumulative positive effects of the economic growth witnessed in 2003 (8 percent) and 2004 (4.8 percent) likely contributed to a reduction in the incidence of poverty.

Table 7:

Evolution of poverty indicators

article image
Source: PAMS extracts, DGEP/MEDEV, March 2005

74. The total incidence of poverty fell from 46.4 percent in 2003 to 46.1 percent in 2004, i.e. a 0.3-point reduction of poverty. This drop is due to a decline in the incidence of poverty in urban areas, from 21.5 percent in 2003 to 18.2 percent in 2004 (i.e. a 3.3-point reduction), since the incidence of poverty in rural areas showed a slight increase (50.4 percent in 2003 versus 50.7 percent in 2004).

75. Consumer prices: Inflation was held at a low level during 2004. In fact, expressed as an annual average, inflation came to -0.4 percent, versus 2.0 percent in 2003 and 2.3 percent in 2002. This rate remains below the maximum level of 3 percent set by the WAEMU convergence criteria. The drop in consumer prices in 2004 can be explained by the favorable 2003 crop year, which resulted in a 1.4 percent decline in the average price of grains.

76. Government finance: Current revenues grew by 14.6 percent in 2004 despite a business climate disrupted by the sociopolitical crisis in Côte d’lvoire, an increase in oil prices, a weak dollar, and low cotton prices on the international market, a rainfall shortage, and a locust invasion.

77. Tax revenues totaled CFAF 317.9 billion (an increase of 17.7 percent), corresponding to 11.9 percent of current GDP, i.e. 1.4 points below the PRSP objective (13.3 percent of GDP). However, the collection efforts of the tax and customs departments led to a slight improvement in the tax/GDP ratio (10.6 percent and 10.9 percent respectively in 2002 and 2003). To meet the community standard (17 percent), Burkina Faso will need to make its tax policies more effective, especially as regards the informal sector which accounts for close to 30 percent of nominal GDP.

78. Current expenditures were less successfully controlled than during the two preceding years. In fact, they showed an increase of 13.6 percent versus 2.1 percent in 2003 and 12.5 percent in 2002. This situation is due to the combined effect of increases in spending on goods and services (15.5 percent) and transfers (21.1 percent). Spending on wages rose by 11.4 percent versus 7.7 percent in 2003. However, the ratio of wage bill to tax revenues fell slightly, from 41.1 percent in 2003 to 38.9 percent in 2004, compared to the community-wide objective of no more than 35 percent.

79. Overall, the ratio of current expenditures to nominal GDP was 11.0 percent, which reflects a degree of control considering the objective of no more than 12.2 percent set forth in connection with implementation of the Poverty Reduction Strategy Paper (PRSP).

80. Fiscal savings thus amounted to CFAF 49.9 billion in 2004, an increase of CFAF 8 billion over 2003 (CFAF 41.9 billion). This increase in fiscal savings served to strengthen the government’s capacity to finance investments from its own resources.

81. The fiscal balance, based on commitments and grants, came to -CFAF 113.5 billion, versus -CFAF 72.9 billion in 2003, i.e. a decline of 55.7 percent. This deficit was equivalent to 4.2 percent of nominal GDP in 2004. The overall deficit based on cash and grants came to CFAF 108.2 billion and was financed to the tune of CFAF 116.6 billion by external resources and -CFAF 6.9 billion by internal financing.

82. External trade: As regards foreign accounts, FOB exports for 2004 reportedly came to CFAF 234.1 billion, while imports totaled CFAF 424.0 billion. The deficit in the trade balance thus came to CFAF 189.9 billion in 2004, versus CFAF 212.0 billion in 2003. This improvement may be explained by a larger increase in exports (25.7 percent) than in imports (6.5 percent).

83. The strong increase in exports is principally the result of a 36.2 percent increase for cotton in 2004 (+CFAF 43.4 billion). Livestock products, for their part, reportedly increased by just CFAF 2.6 billion. The rise in imports is attributable to the 18.0 percent increase for petroleum products (+CFAF 14.0 billion).

84. Current transfers without compensation came to CFAF 122.5 billion in 2003 and CFAF 104.3 billion in 2004, i.e. a decrease of CFAF 14.9 billion.

85. Thus, the current account showed a decline of 0.2 percent in 2004. The balances for 2003 and 2004 were -CFAF 213.4 billion and -CFAF 213.7 billion respectively. The overall balance came to -CFAF 2.4 billion in 2004 (versus CFAF 20.4 billion in 2003).

86. Outstanding debt: The provisional outstanding public debt at the end of December 2004 totaled CFAF 1,130.1 billion, of which 87.54 percent was in the form of external debt (CFAF 989.3 billion) and 12.45 percent consisted of internal debt (CFAF 140.81 billion). The composition of the external debt portfolio shows a preponderance of the multilateral debt component, which totaled CFAF 858.9 billion at the end of December 2004, versus CFAF 130.39 billion for bilateral external debt. Internal debt consisted of CFAF 61.22 billion in bank debt, CFAF 38.09 billion in nonbank debt, and CFAF 41.5 billion in Treasury notes and bonds, i.e. 43.47 percent, 27.05 percent, and 29.47 percent respectively of the total internal debt portfolio.

87. At the end of December 2004, the ratio of outstanding debt to Gross Domestic Product came to 41.43 percent, i.e. a debt ratio substantially the same as in 2003 and some 29 points below the ratio required by the convergence criteria of WAEMU, which is 70 percent. The ratio of external debt service to exports of goods and services stood at 21.03 percent at the end of 2004, versus 19.8 percent in 2003.

88. Analysis of the significant ratios of viability of the external debt at the end of 2004 shows that the sustainability of the external debt is far from certain, despite a high level of mobilization of the relief provided under the HIPC Initiative (approximately 90.74 percent). Indeed, the simulations performed on the basis of the debt relief agreements actually signed with creditors participating in the HIPC Initiative point to a VAN/EBS ratio of 225.9 percent, i.e. 76 points above the recommended norm (150 percent). The high level of the ratio is explained by the reliance on new borrowings (despite their high degree of concessionality) to finance poverty reduction projects and by weak exports, which show little diversification and are subject to outside shocks.

89. Efforts were made in 2004 to improve the quality of debt management. For example, the TORs relating to the audit of internal debt were finalized and a consulting firm was recruited. The study is expected to get under way in January 2005. In addition, after SYGADE became operational in December 2003, UNCTAD provided technical support through two assistance missions, one in February 2004 to update the data base and one in September 2004 to train users for installation of the latest version of the software. Furthermore, the data base was updated at the end of December 2004 and debt statistics are now produced by software.

90. Monetary position: The monetary position at the end of December 2004 was characterized by a 1.5 percent reduction of net foreign assets, a 4.4 percent rise in domestic credit, and a 0.3 percent expansion of money stock.

91. The net foreign assets of monetary institutions totaled CFAF 163.8 billion at the end of December 2004, versus CFAF 166.2 billion at the end of December 2003, i.e. a decline of CFAF 2.4 billion, attributable to the drop in net foreign assets of the Central Bank, as the net foreign assets of deposit banks instead grew over the same period.

92. The net foreign assets of the Issuing Institution fell from CFAF 128.3 billion in December 2003 to CFAF 121.5 billion in December 2004, i.e. a decline of 5.4 percent (-CFAF 6.8 billion), due to a greater drop in foreign available funds than in foreign commitments. As for deposit banks, the position of their net foreign assets improved by CFAF 4.5 billion (+11.8 percent), mainly as a result of an increase in their holdings of foreign notes (+CFAF 2.0 billion) and other WAMU securities (+CFAF 5.5 billion).

93. Domestic credit totaled CFAF 385.3 billion in December 2004, an increase of 4.4 percent (+CFAF 16.1 billion) compared to the end of December 2003, when it stood at CFAF 369.2 billion. This growth is due to a 12.0 percent increase in credit to the economy, mitigated by an 88.0 percent improvement of the PNG.

94. The volume of outstanding credit to the economy increased by CFAF 41.0 billion, totaling CFAF 381.9 billion in December 2004 versus CFAF 340.9 billion in December 2003. This growth stems from the expansion of both seasonal credit and ordinary credit.

95. The PNG fell from CFAF 28.3 billion in December 2003 to CFAF 3.4 billion in December 2004, i.e. an improvement of CFAF 24.9 billion. This improvement is mainly due to the increase in government deposits to account on the books of the Central Bank, along with the substantial mobilization of external resources that occurred during six months of 2004.

96. The money stock totaled CFAF 509.4 billion at the end of December 2004, versus CFAF 507.9 billion at the end of December 2003, i.e. an increase of CFAF 1.5 billion. This growth is the result of a CFAF 32.3 billion increase in deposits, combined with a CFAF 30.8 billion decrease in fiduciary circulation.

2.2.2.1.2. Status of convergence

97. The Burkinabè government continues to make serious efforts in connection with implementation of the WAEMU convergence program. As in 2003, three of the four Level I criteria were met, as well as one of the four Level II criteria, as shown in Table 8 below.

Table 8:

Position of WAEMU convergence criteria

article image
Source: DGEP IAP scenario of January 2005

98. With respect to the Level I criteria, Burkina Faso has had good results regarding inflation (-0.4 percent versus the objective of a 3 percent maximum) and the debt ratio (41.4 percent versus the objective of a 70 percent maximum). No external payment arrears were posted at the end of 2004.

99. There is clearly a need to continue efforts to meet the Level II objectives. Indeed, the sole criterion met in 2004 is the ratio of public investments from own funds to tax revenues, which is about 31.4 percent, versus the objective of a 20 percent minimum. The ratio of wage bill to tax revenues showed a clear improvement in 2004 (38.9 percent) over 2003 (41.5 percent), but still fails to meet the community objective of 35 percent. Efforts should also be made to improve the ratio of current balance deficit excluding grants to nominal GDP (11.7 percent of GDP in 2004, versus the community objective of a 5 percent maximum). As for the tax/GDP ratio, the major efforts made to improve the collection of tax revenues led to an increase of more than one point in 2004 over 2003, although the estimated ratio for 2004 (11.9 percent) remains below the community objective of a 17 percent minimum.

100. Overall, Burkina Faso satisfied four convergence criteria, compared to one in the case of Guinea-Bissau, two in the case of Niger and Togo, and three in the case of Côte d’Ivoire. Benin, Mali, and Senegal satisfied four, five, and seven criteria respectively.

101. All the countries of the Union had inflation rates below 3 percent. The criterion relating to the ratio of investments from own resources to tax revenues was satisfied by five countries. The most difficult criteria for the countries of the Union to meet are those that relate to the tax/GDP ratio and the ratio of current external deficit excluding grants to nominal GDP; only Senegal met the first ratio, and only Côte d’Ivoire met the second (cf. Other annexes 2).

2.2.2.1.3. Competitiveness of the economy

102. Public enterprise reform and state divestiture: As of the end of 2004, under the program to privatize 59 enterprises, 27 have been transferred to the private sector (Hôtel Indépendance was taken back by Société Malienne de Promotion Hôtelière (SMPH)), six enterprises have been liquidated, 13 are in the process of being liquidated, ten are in the process of being privatized (ONATEL, SONABEL, SONABHY, S.E.H.S., CBMP, CENATRIN, International Airports of Ouagadougou and Bobo-Dioulasso, BUMIGEB, and CCVA), and three have been withdrawn from the program. As for the assignment of stock reserved for the public, the situation has not changed since 2003 as a result of the unfavorable net asset and financial position of these enterprises.

103. To measure the impact of the privatizations in Burkina Faso, a study is planned to follow up on the 1991 study on the record of privatizations. To that end, competitive bidding for the recruitment of a consultant has been announced.

104. Trade liberalization: As part of the cooperation between the European Union and the ACP countries, the non-reciprocal preferential system of trade that prevailed under the Lome agreements is going to be reorganized. The tariff preferences will be maintained through December 31, 2007. Then, beginning in 2008, they will be replaced by economic partnership agreements (EPAs).

105. The economic partnership agreements (EPAs) are intended to be a more comprehensive approach, designed not only to improve access to the community market but also to build the production, supply, and trade capacities of the ACP countries, as well as their ability to attract investors. The EPAs are based on four fundamental principles: i) a partnership involving economic rights and obligations; ii) economic integration as an effective way to join the world economy; iii) development in the sense that the EPAs should be integrated into the country’s development policy and the support strategies of the European Union; and iv) the link with WTO, while simultaneously instituting, under WTO rules, more specific and more operational bilateral trade relations intended to reduce the impediments to trade between the ACP countries and the EU and establish greater integration between their economies.

106. All the ACP countries have the possibility of signing EPAs individually or as a group. However, it was decided that the negotiations will be conducted by region. The ECOWAS countries and Mauritania, following the example of the countries of Central and Southern Africa, decided to join together in signing the EPA. ECOWAS will be assisted in this process by WAEMU, but will remain the European Union’s main partner in the negotiations. To measure the impact of the EPA on the national economies, all the ECOWAS countries have initiated a series of studies at the national and subregional levels.

107. In Burkina Faso, this impact study was conducted by the DCI international consulting firm and a workshop to release the study’s results was held on October 14-15, 2004 in Ouagadougou with the financial and technical support of the EU. The final report of the study of the EPAs’ impact on the economy of Burkina Faso is not yet available.

108. In August 2004, a road map was adopted for EPA negotiations between West Africa and the European Union, calling for a comprehensive approach to development: (i) deepen the regional integration process in West Africa, with a priority placed on the effectiveness of the free trade zone within ECOWAS and the establishment of the customs union in December 2007 (decision to expand the WAEMU common external tariff to all of ECOWAS); (ii) improve competitiveness: build capacities up to standard, with the objective of maximizing the dynamic benefits generated by the EPA and helping the countries of West Africa adjust their economies to the liberalization process. In particular, attention will be given to looking at ways to develop the capacities of offers; and (iii) prepare and conduct negotiations: thematic groups are now being formed at the ECOWAS level.

109. In addition, with respect to the Multilateral Trading System (MTS), in 2004 Burkina Faso successfully submitted its trade policy to the WTO trade policy review mechanism. This review had two objectives: strengthen transparency toward all members of WTO, and verify adherence to this organization’s agreements.

110. In connection with building the capacities for an effective contribution to the Multilateral Trading System stemming from the WTO agreements, Burkina Faso will again benefit, starting in 2004, from a second phase (JITAP II) for a two-year period. Implementation of this program has served to: (i) strengthen the national unit charged with monitoring and coordinating implementation of the WTO agreements (CNSC/OMC); (ii) perform studies on sectoral export strategies, concerning products such as sesame, shea butter, cashew nuts, and peanuts; other studies are under way on the development of livestock products, leathers and hides, and by-products such as horns and hooves; (iii) create reference centers (DGC, ONAC, and very shortly in 2005 the University of Ouagadougou); (iv) equip the National Information Points: Fasonorm for standards, MEBF in 2005 for service, and the Directorate-General of Plant Protection and Processing for health and phytosanitary measures; and (v) create and equip a network of trainers.

111. Hydrocarbons: In 2004, the market continued to be dominated, as in 2003, by SHELL (34.48 percent), which did however record a slight decline in comparison to 2003. The market share of TOTAL went from 31.16 percent in 2003 to 31.92 percent in 2004. Among marketers, ECODIS continued to assert itself in 2004 with a market share of 4.64 percent, followed by PETROFA with a 2.82 percent market share.

112. Sales exceeded CFAF 110 billion in 2004, representing a 3.6 percent increase in volume and a 12 percent increase in value. In view of the evolution of petroleum product prices on the international market, several price structures were once again adopted countrywide in 2004, except for gas, the price of which remained constant at CFAF 320/kg during the entire period. In the cities of Ouagadougou and Bobo-Dioulasso, the frequency of price revisions was as follows:

Table 9:

Frequency of price revisions for petroleum products in 2004

article image
Source: SONABHY

113. Cotton industry liberalization: Liberalization of the cotton sector has taken effect with the creation of FASO Coton company to manage the central region and the Gourma cotton company (SOCOMA) to manage the eastern region. In September 2004 in Bobo-Dioulasso, a memorandum of understanding was signed by the government, the cotton companies (SOFITEX, FASO Coton, and SOCOMA), and the National Union of Burkinabè Cotton Producers (UNPCB). The two new cotton companies have gone into operation in their respective regions (SOCOMA in the eastern region and FASO Coton in the central region) and each has had to negotiate with SOFITEX the specific conditions governing oversight and management of these regions.

114. The memorandum of understanding concerns management of the industry by private operators, essentially UNPCB and the three cotton companies, and monitoring of industry management by a government body, namely the permanent secretariat charged with monitoring the liberalized cotton industry, on behalf of the cotton sector reform monitoring committee. This body will have the task of ensuring compliance with the provisions of the memorandum of understanding. Starting with the 2004-2005 crop year, the cotton companies each possess, within their respective regions, exclusive operating rights for eight years, renewable for a period, and under conditions, to be set by the Burkinabè government.

115. In support of the cotton industry, a European Union-Africa Forum was held in Paris on July 5-6, 2004 for the purpose of establishing a partnership between the European Union and Africa concerning cotton. A strategic framework for development of the cotton industry in Burkina Faso, prepared and approved by technical and financial partners from member countries of the European Union, was presented at the end of this forum, followed by the adoption of an action plan that will serve as a reference for implementation of the new partnership between the European Union and Africa concerning cotton.

116. On November 5, 2004, a workshop to release the results of this forum was held in Ouagadougou. This workshop reviewed the commitments related to implementation of the actions identified in the strategic framework for development of the cotton industry in Burkina Faso. At the end of this workshop, a committee was set up to monitor the strategic framework and the action plan. It has 15 members representing the government, cotton industry trade organizations, and technical and financial partners. The composition of this tripartite monitoring committee will be finalized with the appointment of members from each group of actors.

117. In connection with implementation of this strategy, a joint mission (European Commission, France, Germany, Netherlands, and World Bank) visited Bobo-Dioulasso and Fada N’Gourma on December 6-10, 2004 with a dual purpose: first, to have an exchange on the conditions for preparing an operational sector program, and second, to study the potential value of carrying out operations to build awareness and provide training on the use of market instruments for intra-annual management of price-related risks. In this regard, it should again be underscored that the massive subsidies given to cotton growers in the northern countries are at the root of the collapse of world prices and contrary to the spirit of the WTO agreements. The cotton sector initiative undertaken by certain African cotton producing countries is a triggering element of the protest movement that continues to intensify (see Box 1).

Poverty reduction: a cotton sector initiative

Cotton growing is a minor activity in the industrialized countries, but an essential activity in West and Central Africa and particularly in Burkina Faso, where cotton has advanced much more quickly than in the rest of the world. This expansion of cotton growing has served to reduce poverty in the Sahelian zone, where the opportunities to replace cotton with other crops are very limited. But the progress and the efforts made in recent decades are obliterated by the drop in world prices, aggravated by the subsidies that industrialized countries give to their cotton growers. In 2001-2002, these subsidies accounted for 80 percent of the value of world exports of cotton.

Given the scope of the disaster looming over them, four LDCs (Benin, Burkina Faso, Chad, and Mali) submitted a request in May 2003 entitled “Poverty reduction: a cotton sector initiative.” The message was clear and can be summarized as follows: “Eliminate the cotton subsidies in the United States and the European Union. This will reduce the poverty of ten million Africans living on less than a dollar per person per day, and it will cost you nothing because the losses of your producers will be more than offset by the gains for your taxpayers.” This message has been broadly disseminated, and the cotton sector initiative was the subject of a special plenary session on the first day of the Cancun conference in September 2003.

Two years after the request was submitted, it must be said that, despite the strategic choice in favor of dialogue with the industrialized countries responsible for massive subsidies for their cotton industries, and despite the flexibility of the cosponsoring countries and their allies who have agreed to conduct the negotiations within the broader framework of agriculture, nothing has changed for African cotton growers. They find themselves today in a situation even more critical than what they faced in 2001-2002, because the price of cotton expressed in CFAF is 13 percent lower in 2004-2005 than it was then. Thus, from $250 million in 2001-2002, the losses of these countries have risen to $400 million in 2004-2005. Such losses far exceed the capacities of West and Central African countries.

Cotton subsidies cost the European Union close to one billion dollars in 2001-2002 and they may cost one billion euros in 2004-2005 for cotton that the EU could have imported for less. Furthermore, subsidizing cotton production and then exporting the bulk of it at a loss might be in the interest of the 150 thousand people who live on cotton growing, but perhaps not in the interest of the 150 million American taxpayers who finance these subsidies. Cotton subsidies are in the interest of neither the European Union nor the United States, whereas their reduction, or better yet their elimination, would lift world prices and thereby increase the income of African growers, thus effectively helping to reduce poverty.

The Ouagadougou statement on the cotton issue in March 2005 reaffirmed a stong determination to reach a sustainable solution for the African cotton industry, taking into account: (i) the urgency of finding a solution to the crisis facing the African cotton industry; (ii) the need to set a time frame for reducing and totally eliminating the subsidies; (iii) urgent establishment of a rescue fund for cotton growers in order to avoid the disappearance of the cotton sector, which would lead to a human castastrophe of unprecedented scope for the millions of people who draw their subsistence from this sector; and (iv) ambitious, rapid, and specific treatment of the cotton issue.

Source: Ministry of Commerce, Enterprise Development, and Handicrafts

118. Improving the business environment: This is a central concern of the private sector development policy letter adopted by the government in November 2002. The letter will be made operational through an action plan, the development of which began in 2004. However, in terms of improving the business environment, two important actions taken in 2004 bear mention: i) strengthening of the dialogue between the government and the private sector; ii) strengthening of instruments to promote the private sector.

119. Government/private sector meeting: Since its inception in 2001, this meeting has been held on a regular basis. In July 2004, it again provided the opportunity for the government and private sector operators to have an exchange on the many problems facing the business community and potential solutions. On this occasion, trade and private enterprise organizations formulated, among other proposals, recommendations on:

  • i) amending social security statutes to reflect the rise in the retirement age for private sector employees;

  • ii) transferring the employers’ apprenticeship tax (TPA) into a fund with tripartite management earmarked for vocational training;

  • iii) instituting a receivership fund and setting damages related to labor disputes at reasonable levels;

  • iv) reducing debit interest rates and diversifying enterprise financing mechanisms (housing bank, SME bank, risk capital, etc.);

  • v) transferring the one-stop center to MEBF and changing it into a center that handles business formalities;

  • vi) taking vigorous measures to fight fraud and corruption, and establishing a fund earmarked for this fight;

  • vii) reducing factor costs and the tax/GDP ratio;

  • viii) granting tax amnesty on adjustments made between 1999 and 2003;

  • ix) deducting gifts granted by enterprises;

  • x) enforcing the statutes pertaining to compulsory insurance and bringing the tax treatment of life insurance in line with the system followed in other member countries of WAEMU and the rest of the world;

  • xi) fighting the official red tape as regards road transportation and creating a watchdog agency to detect unfair practices that affect the free movement of persons and goods.

120. Some of these recommendations have already begun to be implemented in 2004, reflecting the government’s determination to establish an environment conducive to business prosperity. With respect to labor disputes and particularly the establishment of receivership funds, major advances have been made, leading to the adoption of Decree 04-426 PRES promulgating Law 031-2004/AN of September 10, 2004 establishing a receivership fund. The matter of the employers’ apprenticeship tax (TPA) has been addressed since the 2002 budget law. In addition, the government budget now calls for a budget appropriation to promote in-service vocational training and apprenticeship programs. With respect to the issue of tax amnesty, the files of enterprises that were identified for tax adjustments have been reviewed case by case, with close to a 75 percent withdrawal of penalties for some. But such measures cannot be applied indiscriminately because they might constitute an incentive for tax fraud. All things considered, it is difficult at present to reach a tax amnesty in view of the behavior of certain enterprises. As for official red tape and police harassment, appropriate measures are now being taken, including, for example, the radio system and the introduction of side-by-side checkpoints.

121. One important result of these annual meetings of consultation has been the government’s availability to assist the Chamber of Commerce, Industry, and Handicrafts in bringing to fruition its plan to construct the International Bus Station of Bobo-Dioulasso, the cornerstone of which was laid by the head of the government in July 2004.

122. In addition, two noteworthy promotional activities were carried out in 2004 on behalf of the private sector, which involved organizing EMA-invest in Geneva in May 2004 and the Burkina Faso economic seminar in Canada in October 2004. These meetings enabled Burkinabè economic operators to form contracts with foreign investors.

123. Strengthening instruments to promote the private sector: Burkinabè economic operators possess four valuable capacity building and promotional tools: i) the one-stop center; ii) the Enterprise Center of Burkina Faso; ii) the Trade Point; and iv) Fasonorm.

124. One-stop center: In 2004, the time required to accomplish specific formalities related to starting an enterprise or engaging in business activities remained the same as in 2003, as indicated in the table below.

Table 10:

Time needed to accomplish formalities

(MCPEA)

article image
Source: One-stop center / MCPEA

125. Setting up the one-stop center has ultimately brought significant improvements by facilitating business matters. The workshop organized in early 2005 by the Ministry of Commerce, Enterprise Development, and Handicrafts, with the financial and technical support of the World Bank, revealed that the procedures for starting an enterprise in Burkina Faso remain encumbered with a number of flaws that make the impact of the actions of the one-stop center hard to perceive. These flaws involve at various levels the chain of inadequacy of human resources, the lack of material resources, the defective condition of available equipment, failure to delegate the power of signature to certain employees by their home agencies, and the reluctance of agencies to eliminate certain formalities. All these factors lead to administrative red tape, prolong the procedures and the time taken to complete them, and amount to business constraints (see Box 2). In any event, the annual meeting of the government and the private sector in July 2004 recommended that the one-stop center be transformed and transferred to the Enterprise Center of Burkina Faso.

Starting an enterprise

article image
Source: Doing business in 2005: stakes and baseline situation -Workshop on the business climate -Ouagadougou, January 31 -February 2, 2005

The workshop revised this figure downward.

126. The advent of the Enterprise Office of Burkina Faso (MEBF) in September 2002 is a reflection of the government’s determination to make available to private operators an instrument that builds their intervention capacity. Ever since MEBF’s activities officially got under way in January 2004, it has gradually positioned itself within the institutional environment, while simultaneously creating the desired synergy with other support structures for the purpose of expanding the influence of the Burkinabè private sector. Thus, the Documentation Center of the Chamber of Commerce, Industry, and Handicrafts of Burkina Faso has moved to MEBF to provide the assistance needed by operators in search of documentary information. In addition, the process of establishing the Enterprise Formalities Center (CEFORE) is already under way and should result in simplified procedures that will provide a framework conducive to business development in the country.

127. As of December 31, 2004, the Enterprise Office of Burkina Faso (MEBF) had 276 members, including 68 trade groups and associations and 208 private enterprises. The technical team was set in place in January 2004. Effective support from the World Bank, starting in late March 2004, enabled the Enterprise Center to become operational in July 2004. Since implementation of the shared-cost support fund (FSCP) and the program of support and advice, the following results have been achieved: 1,012 operators and developers have been met countrywide, 271 developers have been received and advised, 53 requests for financing have been approved for training and consulting activities, for a total amount of CFAF 398,241,172 with a contribution of CFAF 237,318,503. The FSCP contribution amounts to 60 percent of the total cost of the projects submitted. In addition, the support of the French Cooperation agency, provided through the Institutional Environment and Private Sector Development Support Project (EIDEV), led to development of the Burkinabè private sector portal, which was launched on November 19, 2004. UNDP intervention, through its Program of Support in the Use of NICTs for Development, resulted in training in the use of Internet tools for 18 individuals from member enterprises and organizations of the Enterprise Office.

128. Trade Point: The year 2004 was used to promote the Trade Point of Burkina Faso. A media campaign was developed and implemented with the support of the Danish foreign aid agency in order to familiarize economic operators with the Trade Point. Informational campaigns on the Trade Point were organized in certain cities of Burkina Faso, enabling it to become better known in the regions and to collect useful information for its website, http://www.tradepoint.bf. This site is linked to the network of the World Trade Point Federation, of which Burkina Faso has been a member of the Steering Committee since 2003, and it provides access to the common data base of all members of the federation. Since December 2003, the Trade Point of Burkina Faso has become a member of the Steering Committee of the World Trade Point Federation and technical director of the Bureau of the World Trade Point Federation. As such, the Trade Point of Burkina Faso has become a reference point in the trade point program.

129. The success of this instrument has reverberated throughout the subregion. Thus, for example, a Beninese team has visited to draw inspiration from the Burkina Faso experience. In addition, the Trade Point of Burkina Faso has been asked by the World Trade Point Federation to train the team of the Asmara Trade Point in Eritrea. The dissemination of business opportunities is a leading activity of Trade Point management inasmuch as its aim is to facilitate business relations. The DANIDA financing was used to spread such opportunities in the columns of the daily paper SIDWAYA and it thus allowed economic operators in different regions to learn about and capitalize on these opportunities.

130. In 2004, the Trade Point disseminated 628 business opportunities, versus 346 in 2003, i.e. an increase of 81.5 percent, and the number of websites created and accommodated grew from 2 in 2003 to 8 in 2004. In 2004, 257 requests for information involving trade statistics were processed, versus 126 in 2003. With respect to visits to the economic and trade documentation center of the Trade Point, 216 visitors were received in 2004, versus 152 in 2003. In 2003, the number of visitors to the website was 11,821, versus 9,718 in 2004. This drop was caused by technical problems attributable to ONATEL. The Trade Point’s webspace received an average of 180 visitors per week in 2004, versus 180 in 2003.

131. Fasonorm: In 2004, charged with helping ensure compliance with standards, Fasonorm carried out the following activities: (i) organized a workshop to identify the need for standards in the meat and livestock industry and set up the technical subcommittee for meat and livestock standardization; (ii) developed roughly one hundred draft standards for fruits and vegetables (45), fishery products (30), and building materials (30); (iii) validated roughly one hundred draft standards for the same sectors through the technical subcommittees set in place; (iv) participated in the general meeting of the African Regional Organization for Standardization (ARSO), based in Kenya; and (v) in July 2004, organized a national workshop to validate draft statutes on standardization (bill and implementing statutes). These draft statutes are now in the administrative pipeline pending adoption.

132. The main activities carried out in order to promote quality consisted of organizing training sessions on the 2000 version of the ISO 9001 system of reference and on good practices in the areas of hygiene and manufacturing (BPH/BPF); providing support and advice to two enterprises to set up a quality management system in line with ISO 9000; celebrating World Standards Day; celebrating World Quality Day and helping organize National Quality Days; and organizing a national workshop on quality management and packaging issues for promoting oilseed exports from Burkina Faso.

133. Reducing factor costs: In 2004, the plans for the energy sector were to complete the financing for the interconnecting line between Bobo-Dioulasso and Ouagadougou, finalize the study on special electric power rates for industrial facilities, carry out the study on setting up an energy sector regulatory body, and adopt sector regulations.

134. Financing for the interconnecting line between Bobo-Dioulasso and Ouagadougou was indeed completed in 2004, in the amount of roughly CFAF 50 billion. In addition, bidding documents were renewed once the work was allotted, and the process of signing agreements with donors to finance the project got under way. The government also adopted the restructuring of the electric power subsector in preparation for the privatization of SONABEL.

135. Study on special electric power rates: The study on special electric power rates for industrial facilities is still in progress because the consultants have encountered difficulties in obtaining information from manufacturers. The average increase of 10 percent in the price of electric power, starting with the billing for the month of October 2004, did not affect manufacturers or corporate subscribers (consumption of less than 50 kWh/month).

136. With respect to setting up a body to regulate the energy sector, a workshop to release the study was organized on November 29, 2004, followed by working sessions with the relevant Burkinabè actors. The statutes are now being reviewed by the Burkinabè side.

137. In 2004, the number of new towns slated for electrification was ten, and this goal was met. The number of subscribers increased from 226,025 in 2003 to 248,628 in 2004, i.e. an increase of 10 percent. Over the same period, the rate of electrification rose from 13 to 14 percent. In 2004, the number of expansions totaled 7,629. The number of new connections to SONABEL increased from 10,834 in 2003 to 26,837 in 2004. The number of electrified cities rose from 49 in 2003 to 59 in 2004.

138. The financial cost per kWh rose from CFAF 111.88 in 2003 to approximately CFAF 114.88 in 2004, i.e. an increase of 3 percent. The economic cost per kWh sold rose from CFAF 140.07 in 2003 to approximately CFAF 142.96 in 2004, i.e. an increase of 2 percent. This increase is due to the interruption in the supply of electricity on the northern grid of the interconnection with Côte d’Ivoire, resulting in surplus thermal production and thus extra consumption of fuel and oil. Over the same period, the average sale price per kWh rose from CFAF 109.79 in 2003 to approximately CFAF 113.73 in 2004, i.e. an increase of 4 percent, due to the average increase of 10 percent in the sale price per kWh implemented in October 2004.

Table 11:

Cost per kWh

(CFAF)

article image
Source: DEPE/DPE SONABEL

139. Telecommunications and postal service sector: The Telecommunications Regulatory Board (ARTEL) approved ONATEL’s 2004 price list. The price lists for CELTEL Burkina and TELECEL Faso have been sent for approval. During 2004, the following activities were carried out in the telecommunications sector: (i) completion of the audit of termination costs on mobile networks, undertaken in March 2004 by Telecom Paris, and the audit of termination costs on the fixed network with Telecom Paris in July 2004; these studies provided ARTEL with the necessary elements for setting new interconnection rates and instituting controls on fixed telephone service rates; (ii) completion of two studies on leased lines, performed by a consulting firm and an independent consultant. These results will be used to control leased line rates and, if necessary, set new interconnection rates for ISPs. For ARTEL, the monitoring of obligations stemming from operators’ terms and conditions has mainly involved oversight of obligations of territorial coverage by the operators’ respective networks. In addition, in December 2004 ARTEL witnessed the start of implementation of the strategy of universal service.

140. ONATEL has continued to expand its fixed network by deploying a wireless local loop. In addition, the cost of a fixed local communication, which stood at CFAF 20 per minute in 2003, rose to CFAF 25 per minute in 2004, i.e. a 25 percent increase. The cost of a long-distance communication fell from CFAF 150 in 2003 to CFAF 100 in 2004, i.e. a 33 percent decline. For international communications, the cost also went down. The resulting expansion in the supply of services generated a total of some 80,000 subscribers as of December 31, 2004, thus making it possible to improve the fixed telecommunications density, which rose from 5.5 lines per 1,000 inhabitants in 2003 to 6.6 lines in 2004. ONATEL directly employed a workforce of 1,522 as of December 31, 2004, and 222 cities and towns had fixed telephone service.

141. Based on implementation of the network coverage and deployment component in accordance with the terms and conditions, during the course of 2004 TELMOB expanded its coverage to 28 towns. As of December 31, 2004, it had roughly 151,000 subscribers. Compared to the projection of 61 cities and 13 corridors to be covered, to date 43 cities and 13 corridors are actually covered by TELMOB. TELMOB tax-free mobile network rates were lower in 2004 than in 2003 for different types of communications: by 15 percent for intra-network communications, 20 percent for inter-network, 33 percent to fixed service locally, and 20 percent to fixed service internationally.

142. CELTEL Burkina also continued to expand its network in 2004 by adding coverage of 24 towns. Its total number of subscribers on December 31, 2004 was approximately 180,000. Of the 61 cities and 13 corridors to be covered, 53 cities and all 13 corridors were covered by this date. As a result of these efforts, only the rate for intra-network communications went down (by 14 percent), while the rates for other types of communications remained stable. In terms of direct employment, CELTEL had a workforce of 148 at the end of 2004.

143. Territorial coverage by the TELECEL Faso network, on the other hand, has run into major delays, with only partial execution of the obligations set forth in the terms and conditions, despite a recent expansion of the network to certain cities. As of December 31, 2004, the stated number of subscribers was 68,941. Of the 50 cities and 12 corridors to be covered, 31 cities are actually covered and one corridor is partially covered. In 2004, the rates for different types of communications went down on the TELECEL Faso network: by 16 percent for intra-network calls, by 12 percent for calls to fixed service locally, and by 21 percent for calls to fixed service internationally. There was no change in the rate for intra-network calls compared to 2003. In terms of direct employment, TELECEL Faso had a workforce of 83 as of December 31, 2004.

144. With respect to mobile telephone service as a whole, the efforts made by each of the three private operators (TELMOB, CELTEL Burkina, TELECEL Faso) have resulted in a substantial drop in the overall cost of such communications: by 6 percent for intra-network calls, by 7 percent for inter-network calls and calls to fixed service locally, and by 14 percent for long-distance fixed service calls (see Table 12). The number of mobile telephones grew from 243,595 in 2003 to 399,981 in 2004, i.e. an increase of 64 percent. This growth has led to improved density of mobile telephone service, which has climbed to 3.3 mobile telephones per 100 inhabitants. As a result of mobile telephone service, the penetration rate of telecommunications services has undergone considerable improvement, increasing from 35,000 mobile subscribers in 2000 to 399,981 on December 31, 2004, i.e. 11.4 times as many customers. On December 31, 2004, CELTEL Burkina had the most subscribers, followed in order by TELMOB and TELECEL Faso.

Table 12:

Evolution of rates for different communication services in the mobile telephone industry

(CFAF)

article image
Source: ARTEL

145. With respect to Internet access, the bandwidth of the international link increased from 22 Mbits/s in 2003 to 34 Mbits/s in 2004, i.e. an improvement of 54.54 percent. The number of cybercafes grew to 1,000 over the same period, and the number of Internet subscribers climbed to 15,000 in 2004.

146. SONAPOST, for its part, encompasses a network of 73 post offices, two of which were opened in 2004. The activities of these offices include the collection and distribution of sums of money, and they thus contribute in a major way to poverty reduction. An investment effort is needed to provide all provincial seats with at least one post office.

147. In the transportation sector, despite the persistence of the crisis in Côte d’Ivoire and the instability of oil prices on the world market, the actions undertaken by the Ministry of Infrastructure, Transportation, and Housing to reduce input costs have produced satisfactory results, even though certain costs have gone up, when all is said and done, in reasonable proportions.

148. Road transport rates did not fluctuate significantly in 2004. The extra costs that arose when economic operators turned to new sources of supply because of the crisis in Côte d’Ivoire persisted through 2004 (CFAF 250,000 for containers, CFAF 7,000 per metric ton for food products, and CFAF 7,750 per metric ton of rebar or tile).

149. Rail traffic activities continue to hinge on the sociopolitical situation in Côte d’Ivoire. The crisis that broke out in Côte d’Ivoire in September 2002 forced the company that operates the sole railroad running between Burkina Faso and Côte d’Ivoire to suspend its activities until May 2003. International traffic, which did not resume until late September 2003 after the land borders with Côte d’Ivoire were reopened, continued in 2004, but statistical data are only available for the first half of the 2004 fiscal year.

150. Rail passenger service: With respect to passenger service, during 2003 the rail company developed transportation services for passengers in accordance with a special transportation plan adapted to the end-of-crisis situation in Côte d’Ivoire. During the first half of 2004, the company continued to operate on the basis of this transportation resumption plan. The statistical data on passenger traffic during this six-month period are presented in the table below:

Table 13:

Passenger traffic statistics from 2001 to the first six months of 2004

article image
Source: DEP MITH. * The amount of change is calculated by dividing the 2001 figures by two and then comparing them to the statistics for the first six months of 2004.

151. Although the statistics for the first six months of 2004 cannot be readily compared to those for the preceding years, they do seem to indicate that passengers are slowly returning to rail transportation. This situation could be due to the efforts to place in service international passenger trains, which are used quite frequently by migrant workers of the subregion and their families.

152. Overall, based on six months of operations, passenger traffic fell by 41.64 percent compared to the same period in 2001, which can serve as a benchmark.

153. Rail freight service: International freight traffic headed to Burkina Faso began on September 18, 2003, i.e. one week after the land borders with Côte d’Ivoire were reopened on September 10, 2003. There is no comparison between the statistics on freight traffic for the first six months of 2004 and the statistics for the preceding years, as shown in the table below:

Table 14:

Freight traffic statistics for the first six months of 2004

article image
Source: DEP MITH. * The amount of change is calculated by dividing the 2001 figures by two and then comparing them to the statistics for the first six months of 2004.

154. All freight traffic during the first six months of 2004, with the exception of hydrocarbons headed to Burkina Faso, cement, cotton, live animals, and miscellaneous freight, shows a negative change in relation to the same period of 2001, taken as a benchmark. Overall, based on six months of operations, freight traffic - which is the rail company’s preferred type of traffic - fell by 42.17 percent in comparison to its best showing, which was in 2001. The figures seem to indicate an improvement in the level of activity in 2004 compared to 2003, following a return of confidence on the part of the rail company’s clients regarding rail transport after operations were interrupted by the crisis in Côte d’Ivoire; however, the events that occurred in the meantime in early November 2004 could affect this trend.

155. Air transportation in 2004 saw a decline in aircraft movements but an increase in both passengers and freight at the international airports of Ouagadougou and Bobo-Dioulasso. Aircraft movements in Ouagadougou fell from 10,487 in 2003 to 9,786 in 2004, i.e. a drop of 6.7 percent, and in Bobo-Dioulasso from 2,760 in 2003 to 2,244 in 2004, i.e. a drop of 18.7 percent. The number of passengers (Arrivals+Departures) at Ouagadougou Airport grew from 218,049 in 2003 to 243,750 in 2004, i.e. an increase of 11.8 percent, versus 14 percent growth in world traffic. In Bobo-Dioulasso, the number of passengers was 19,512 in 2003 and 18,933 in 2004, i.e. a drop of 3 percent. Lastly, there was a substantial increase in freight, from 4,604 tons in 2003 to 6,511 tons in 2004, i.e. 41.4 percent growth at Ouagadougou Airport. The same trend was observed at Bobo-Dioulasso Airport, where total freight rose from 60 tons in 2003 to 79 tons in 2004, i.e. an increase of 31.7 percent.

156. Most of the companies operating in the airport zones of Burkina Faso raised passenger fares substantially for certain destinations (cf. Table 15).

Table 15:

Africa/Europe air fares net of taxes in 2004

(CFAF)

article image
Source: DGACM/MITH

157. For long-haul charter flights between Burkina Faso and France, fares ranged between CFAF 304,000 and CFAF 344,000 and thus bore little resemblance to fares for regular flights, which went from CFAF 583,300 all the way up to CFAF 1,422,100.

158. To address the transportation sector situation as described above, the Ministry of Infrastructure, Transportation, and Housing undertook a number of actions in 2004:

159. With respect to the road transportation industry, under the Second Transportation Sector Program (PST-2), government capacities were strengthened by acquiring means of transportation and training staff in road safety. In addition to government officials, several private actors in the subsector received training in business management. In order to organize these actors and improve their competitiveness, a framework law for the transportation sector is now being developed. And lastly, studies on establishing a data base, on impediments to traffic flow, and on the development of a road safety policy are now at the preparation stage and will be carried out in 2005.

160. In the areas of air transportation and meteorology, the Ministry of Transportation carried out the following actions: i) as part of PST-2 implementation, government capacities were strengthened by acquiring and placing in service a self-contained generator, and efforts were deployed to monitor the studies conducted in relation to privatization of the Ouagadougou and Bobo-Dioulasso airports; ii) with respect to improving the safety of Burkina Faso airports, training was provided to some one thousand Ouagadougou and Bobo-Dioulasso airport stakeholders, government officials, airline company employees, and freight operators; and iii) in terms of providing support for production, on the one hand, and continuing to equip and bring up to standard the national network of meteorology, in support of the SAAGA operation, on the other hand, efforts were deployed to monitor fruit and vegetable export campaigns involving air transportation.

161. Finally, to improve service to Burkina Faso, negotiations have been initiated over bilateral agreements on air transportation with the Central African Republic, the Kingdom of Morocco, and China.

162. In the area of rail transportation, the Ministry’s activities have experienced a slowdown or even a freeze due to the persistence of the crisis in Côte d’Ivoire, although SITARAIL operations have picked up slightly. Officials from Côte d’Ivoire and Burkina Faso and SITARAIL representatives have engaged in discussions, which led to the signing of Amendment 3 to the concession with the goal of easing the negative effects of the crisis on the financial situation of the concession-holder and ensuring the viability of the concession.

2.2.2.1.4. Support for productive sectors

163. Taking into account the new configuration of the revised version of the PRSP, this section is especially relevant to Theme 3 concerning job and other income-generating opportunities.

164. Small-scale mining: In 2004, efforts to promote small-scale mining produced major results by the end of the PRECAGEME project. To improve small-scale mining operations, five project components were planned: (i) strengthen the entities responsible for promoting small-scale mining, evaluate the intervention capacity and human and material resources of certain support structures, propose guidelines for organizing internal procedures, and develop and institute programs and conduct inspections at small-scale mining sites; (ii) conduct a baseline socioeconomic, geological, and environmental assessment at selected small-scale mining sites; (iii) conduct an awareness-raising and educational campaign on health, environmental, and security issues; (iv) strengthen the financing mechanisms for small-scale mining operations; and (v) conduct studies and trials and promote the use of locally manufactured equipment.

165. Strengthen responsible entities: Entities such as the Directorate of Small-Scale Mining Operations (DEMPEC), the Burkinabè Precious Metals Board (CBMP), the Bureau of Mines and Geology of Burkina Faso (BUMIGEB), and the Inspectorate-General of Mining and Energy Activities (IGAME) were assessed. In addition, a plan was proposed for the decentralization of DEMPEC in four regions of Burkina Faso (West, Sahel, North, and East). Field trips were carried out and training on inspections was provided at ten small-scale mining sites for 17 agents from various entities.

166. Socioeconomic and geological assessment: Ten sites were assessed and a report was prepared on environmental, socioeconomic, health, hygiene, and security conditions at these ten sites. In addition, improvements were proposed.

167. Awareness-raising and educational campaign: More than 45,000 gold washers were reached by the awareness-raising campaign, compared to a projected total of 7,000. In particular, they were made aware of the value of wearing masks to protect against dust, as well as the issue of condom use as confirmed by increased condom sales by traders. In addition, a decline in the use of amphetamines was observed.

168. Strengthen financing mechanisms: This involved awareness-raising at several organizations that bring in a portion of national savings; training of more than 150 persons, versus a projected 60 or so; submission of 30 projects to the Economic Development Commission (CDE); and CDE financing of eight projects for further studies.

169. Promote the use of locally manufactured equipment: The actions undertaken in this area helped boost the gold recovery rate to more than 80 percent, versus 35 percent with traditional methods; increase more than seven-fold the quantity of ore processed each day; reduce production costs from CFAF 105 to CFAF 33 per kilogram; and improve water management and treatment in a humid environment with no chemical products. This component generated the following results: growing demand at facilities in Burkina Faso and abroad; women’s involvement at certain sites in taking responsibility for managing day-care centers; higher income for gold washers; a reduction in channels of fraud; a reduction in water requirements; protection of the environment from dust, acids, and used batteries; an increase in the number of small-scale mining authorizations granted; an increase in the business volume of equipment manufacturers; and a reduction in childhood respiratory diseases.

170. By the end of the project, despite some difficulties, many positive results were achieved in terms of improvements to small-scale mining. These include: a new awareness on the part of gold washers at targeted sites concerning their health, hygiene, and safety conditions and environmental protection; the construction and testing of equipment prototypes; drinking water at seven sites and public latrines at six sites, along with day-care centers; and an awareness-raising campaign on the dangers of mercury at 11 sites. Gold output fell from 247 kg in 2003 to 230 kg in 2004, i.e. a 6.8 percent drop in production. From 2002 to 2004, the total output of gold was 667 kg, i.e. an average output of 222.33 kg of gold per year. In 2004, the number of jobs created came to 130,000, versus 110,000 in 2003. From 2002 to 2004, the total number of jobs was reportedly 340,000. The number of authorizations fell from 33 in 2002 to 16 in 2004, i.e. a decline of 51.51 percent, and over this period the revenues generated by traditional and semi-mechanized small-scale mining operations fell from CFAF 260 million to CFAF 237 million, i.e. also a decline of 8.84 percent. From 2002 to 2004, the total volume of revenues generated reportedly came to CFAF 697 million, i.e. an annual average of CFAF 232.33 million.

Table 16:

Traditional and semi-mechanized small-scale mining operations

article image
Source: DEP of the Ministry of Mining, Quarries, and Energy

171. Tourism: To promote the tourism industry as a true engine of economic growth, the government made the strategic decision to focus on the development of ecotourism and agrotourism.

172. To strengthen the synergy between culture and tourism, there was true collaboration in 2004 among the different entities charged with managing the country’s cultural and touristic heritage. This collaboration resulted in the compilation of a joint inventory of this heritage by the Touristic Heritage Directorate.

173. In addition, as part of the effort to promote cooperation among all public and private actors, a national forum on tourism was held on March 15-17, 2004, at which a critical analysis of obstacles to sector development was performed. In addition, audio-visual equipment was installed during 2004, the first international tourism and hotel industry trade fair was organized, and tourist guides to the regions of Burkina Faso were developed.

174. With respect to the development of cultural and tourist infrastructure, camps were constructed at Koro, Sindou, and Pobe Mengao at a cost of CFAF 20.9 million, 27 million, and 18.5 million respectively, by tapping a tourism development fund. Other cultural infrastructure was also built, including the entrance hall of the national museum at a cost of CFAF 84 million and the FESPACO office complex at a cost of CFAF 154.916 million.

175. To improve air service by seeking out new charter airline companies and to promote “Sea-to-Sahel” packages, cooperation is necessary between the department responsible for transportation policy and the department in charge of tourism.

176. To highlight the country’s ecological heritage through the management of protected areas, the construction of tourist camps, and the creation of specialized tours, substantial infrastructure was either built or improved: 3,203 km of roads in protected wildlife areas, 15 aprons, 11 ponds, 4 dikes, 142 salinas, 2 watchtowers, and 4 observation posts. In addition, 27 wildlife and hunting areas were monitored during 2004.

177. To support and organize the sector’s economic operators, four training topics were developed for 58 hunting area concession-holders. Eleven concession management plans were reviewed, and technical aids were produced to assist concession-holders. Some concession-holders were able to attend, along with government officials, the international tourism trade fair Vison Country Show of France.

2.2.2.2. Basic social services and social protection
2.2.2.2.1. Education

178. The policy in the basic education sector is built around the Ten-Year Basic Education Development Plan (PDDEB) and the education policy letter adopted in 1999 and 2001, respectively. The main objectives sought by the Government in these two documents are to: (i) increase the supply of basic education and promote literacy; (ii) improve the quality, relevance, and effectiveness of basic education; and (iii) develop the capacities for guiding, managing, and assessing the structures of the MEBA. In quantitative terms, the aim is to achieve an enrollment ratio of 70 percent and a literacy rate of 40 percent by the end of the PDDEB implementation period.

179. In 2004, the intermediate objectives for education were to increase access (gross enrollment ratio of 56 percent and acceptance rate of 72 percent), improve quality (completion rate of 28.84 percent), and strengthen the management capacities of the system.

2.2.2.2.1.1.. Basic education supply and the promotion of literacy

180. Increase in the supply of basic education: The aim for 2004 was to accelerate implementation of the program for constructing school infrastructures. This desire was to be reflected in: (i) the construction and outfitting of approximately 3,252 new classrooms, 25 percent of which are intended to supplement the infrastructure of existing schools (about 795 classrooms); (ii) replacement or refurbishing and outfitting of about 350 classrooms in poor condition; and (iii) carrying out small-scale works through community-level subprojects. Taking the supplementary initiatives brings the total of new classrooms to 3,252, as shown in the table which follows.

Table 17:

Projected infrastructures by financing source

article image
Note: A complex includes three (3) classrooms, teacher housing, latrine, etc.

181. The implementation status of this program varies widely depending on the principal stakeholder. For the state, 73 complexes, representing 219 classrooms and 339 housing units, were called for under the 2003-2004 action plan and were completed in 2004; 105 complexes, corresponding to 315 classrooms under the 2004-2005 action plan, as well as 292 housing units and 105 latrines, were started in 2004. Under the pooled effort, the 421 complexes are allocated between the 2003-2004 action plan (129 complexes) and the 2004-2005 action plan (292 complexes). At the end of the first quarter of 2005, 151 complexes had been completed, 198 were nearing completion, and 72 more had been just started. None of the school infrastructures under private management could be completed. Finally, as regards the community-level complexes, under the responsibility of the parents’ associations (APEs) in accordance with simplified procurement procedures, information is insufficient to permit a clear assessment.

182. Be that as it may, the cumulative effects of the current and previous programs are the availability of 2.15 times more facilities. Indeed, at the start of the 2004/2005 school year, there were 2,821 classrooms available for primary education as compared to 1,313 in 2003/2004. This increase is permitting the gradual replacement, area by area, of classrooms in thatch structures. The situation in respect of classrooms in thatch structures has improved, as their number fell from 639 classrooms in July 2003 to 407 in May 2004. These temporary structures were built to meet demand pending the construction of true classrooms using permanent materials.

183. The implementation of school construction in 2004 was subject to multiple constraints associated not only with the ongoing management of worksites, but also with procurement procedures and making available the various financing options (national budget, HIPC, and external), as well as the change in architectural plans made after many contracts had already been awarded. Furthermore, the thorny issue of the elimination of the BPE as of December 31, 2004 and the transfer of its functions to the DAF and the DEP did nothing to promote a good working environment among the components of the MEBA.

184. Alternative solutions have been envisaged in order to address these problems. They include in particular the involvement of military engineers in performing works at sites experiencing difficulties and located in isolated areas, and the involvement of the MITH as delegated construction supervisor. The latter possibility emerged from interministerial discussions held following the delays experienced in deliveries of classrooms. As regards the multiplicity of standard plans used since the implementation of the PDDEB and the impact of plan changes on building the complexes during the year, two alternative solutions have been envisaged. These are (i) to conduct a prior study that will take stock of the status of the various existing standard plans and formulate proposals on new standard plans, and (ii) to launch an architectural competition aimed at selecting a standard plan.

185. The education map: Preparation of the education map was completed in 2004 with the location of all educational infrastructures in the 45 provinces and 352 departments. Over 7,000 schools are adjacent to their villages, and monographs have been prepared. This map constitutes an extremely important tool in the educational infrastructure planning, programming, and monitoring process.

186. Results obtained: Analysis of the various results from the flash survey shows a clear expansion in access to primary education in 2004. New registrations increased from 271,920 in 2003 to 294,218 in 2004, of which 159,162 were boys and 135,056 girls. This brought the ratio of girls to boys to 0.85 overall, and even to unity in some regions. In addition, the gross admission rate rose from 65.95 percent in 2003 to 69.7 percent in 2004, at 74.2 percent for boys and 65.0 percent for girls. The gross enrollment ratio rose from 52.20 percent in 2003 to 57.2 percent in 2004. The results for boys and for girls are 62.7 percent and 51.5 percent, respectively.

187. It bears noting that these data are from the flash survey conducted by the DEP two months after the start of each new school year. This survey on enrollment, schools, and teachers, is reduced in scale, and covered only the 265 inspectorates. Hence, the figures obtained from this survey differ from those produced on the statistics day, in that the enrollments do not cover the entire country and are not yet stabilized, as the schools continue to accept registrations after the survey. Moreover, the figures do not allow for a more disaggregated and pinpoint analysis taking gender and the spatial dimension into account.

188. The successes recorded in these results are the outgrowth of the measures taken in recent years by the MEBA authorities. These include the assumption of tuition costs for girls by the state, the social mobilization effort in favor of education for girls, the free distribution of textbooks and school supplies, and the mandatory registration of all children who come to the schools (even if all spaces are filled). In addition, in some regions, the NGOs and parents’ associations, through their activities in the field (school canteens, provision of school supplies and textbooks, support for mothers’ participation in income-generating activities, etc.) contributed substantially to the achievement of these results.

189. Also worthy of note, among other measures, are the recruitment of 3,450 teachers in 2004 and implementation of the transfer of teacher recruitment and assignment to the Regional Directorate (DREBA) level, although recruitment to date has continued to be carried out centrally. However, this aspect should be effectively implemented with the decentralization.

190. Promotion of literacy and of nonformal basic education: Openings of CPAF centers increased by 20 percent in 2003/2004. There is a slowdown in the rate of growth, however, as there was an annual increase of 69 percent in 2002/2003.

191. These centers cover all training levels: AI, FCB, FTS, A3F, and CST. The number of facilitators and supervisors simply follows the number of CPAFs, with a ratio of one facilitator per center and one supervisor for every five centers.

Table 17:

Overview of achievements for the component on access to nonformal education

article image
Source: Quarterly report on PDDEB implementation (February 2005).

192. Special education for children who have dropped out of or not attended school: The number of students registered at the Centers for Nonformal Basic Education (CEBNFs), at all levels taken together, is 2,581 in 2003/2004 as compared to 2,051 in 2002/2003 and 2,062 in 2001/2002.

193. There were 52 CEBNFs operational in 2003/2004, while 67 centers were open in 2004/2005, of which 15 are new (14 under the TREAT project and 1 under the PPOKK).

194. A remediation plan has been prepared for the CEBNFs in order to address their operational shortcomings, in particular their use at less than capacity. The approach is currently undergoing revision.

195. Results: There was an increase in the number of participants in nonformal education in 2004. The results, including those from FONAENF, are 182,323 enrollees in Basic Literacy Training (AI) as compared to 154,481 in 2003, yielding an increase of 27,842 (growth rate of 18 percent). Despite this growth, however, the forecast level of 213,980 was not achieved. The same trends were noted as regards Supplementary Basic Education (FCB), with 65,929 enrollees in 2004 (against a forecast of 90,098), an increase from 49,529 enrollees in 2003, yielding an increase of 16,400 (growth rate of 33.11 percent). The growth of registration numbers for the 20 priority provinces is low, despite the targeted and exceptional measures taken in favor of these provinces. The various results are as follows: for AI, 88,136 enrollees in 2004 as against 77,110 in 2003; for FCB, 33,262 enrollees in 2004 as against 29,123 in 2003. This situation is attributable not only to the failure to cover the action plans of the so-called emerging operators (neither by the FONAENF nor by the community-level subprojects), but also to the high levels of educational wastage: 41.75 percent in 2003 and 37.18 percent in 2004 for AI; 31.75 percent in 2003 and 27.53 percent in 2004 for FCB. Participation by women is continuing to grow in terms of enrollment. The number of women registered in AI increased from 84,523 in 2003 to 99,273 in 2004. However, there is a slight drop in terms of the percentage of total enrollees (54.71 percent in 2003, dropping slightly to 54.45 percent in 2004), and a shortfall of 5.55 percentage points from the forecast level (60 percent of enrollees). In the 20 priority provinces, this shortfall is 7.67 percentage points despite the increase in the proportion of female enrollment observed (52.33 percent in 2004 as compared to 51.61 percent in 2003).

196. Growth was also registered for Targeted Technical Training (FTS), which increased from 134 centers for 2,307 learners in 2003 to 221 centers for 6,155 learners in 2004, or an additional 3,848 learners. The number of centers for basic French training increased from 11 in 2003 to 57 in 2004, with enrollment of 1,386 (including 512 women).

197. FONAENF made a significant contribution in 2004; from 91 operators in 2003, it increased its financing to cover 175 operators in 2004, working in 43 provinces. In respect of AI, this contribution made it possible to open 1,793 centers in 2004 as against 1,789 in 2003. Enrollment increased from 31,639 in 2003 to 55,280 in 2004, a growth rate of 74.72 percent. For FCB, there were 22,022 enrollees in 2004 as against just 7,863 in 2003.

198. In general, for both formal and nonformal education, there is a trend toward parity between girls and boys or between men and women. In formal education, the parity ratio rose in succession from 0.7315 in 2002 to 0.732 in 2003 and 0.8470 in 2004. In nonformal education, while the participation of women has ratcheted up and down, the parity ratio is always greater than 0.50. To illustrate, in 2002 there were 61,198 women enrollees out of a total of 106,640, for a parity ratio of 0.5739. In 2003, these figures were 84,523 women out of a total of 154,481, for a parity ratio of 0.5471. Finally, in 2004, there were 99,273 women enrollees out of a total of 162,323, yielding a parity ratio of 0.5445.

2.2.2.2.1.2 Improved quality and efficiency of basic education

199. Nonformal education: Analysis of the situation shown by the flash survey results yields the following provisional findings: (i) a rising promotion rate: 86.27 percent in 2004 as compared to 79.23 in 2003, significantly exceeding forecasts; (ii) a sharply higher CEP success rate, which rose from 70 percent in 2003 to 73.73 percent in 2004, although with disparities between the CEB, DPEBA, and DREBA; (iii) a grade repetition rate down by about 4 percentage points (12.26 percent in 2004 as against 16.25 percent in 2003); (iv) a significantly lower dropout rate than in the preceding year (5.2 percent in 2004 as against 14 percent in 2003); and (v) a sharply higher completion rate, which rose from 24.6 percent in 2003 to 31.34 percent in 2004.

200. Turning to pedagogical innovations, in particular in the satellite schools, performance in respect of the CEP success rate is also noteworthy. Accordingly, of the 1,031 candidates presented, 658 passed, a success rate of 63.82 percent. Of the 361 girls who were candidates, 206 passed this exam, a success rate of 57.06 percent.

201. The positive trend of the quality indicators is explained by the constant and sustained efforts of all stakeholders in basic education (the Government and its partners), in particular through the following activities:

  • ▪ Normal functioning of the Pedagogical Leadership Groups (GAPs), with financial support from the PDDEB;

  • ▪ The intensification and broad use of promising activities such as practice tests (examens blancs) which provide an incentive for students, individual improvement plans (PAIs), and collective improvement plans (PACs), have continued;

  • ▪ Incentive and peer emulation measures, such as: (i) the decoration of meritorious participants or educational structures which stand out for their high performance; and (ii) various awards for primary school excellence to honor meritorious teachers and students;

  • ▪ Greater commitment on the part of the education stakeholders (especially the APEs and AMEs) and the political, administrative, traditional, and religious authorities in favor of education;

  • ▪ Promising quality innovations, such as the bilingual schools which are gaining ground daily;

  • ▪ The ever greater emergence of dynamic solidarity within the educational community;

  • ▪ Free distribution of minimum school bags to all students at the CP1 level;

  • ▪ Payment of tuition for girls;

  • ▪ Timely distribution of instructional materials;

  • ▪ Providing schools with food supplies has enabled students from 1,888 schools to benefit under the CRS and 1,513 to benefit under the state subsidy for areas not covered by the CRS;

  • ▪ In the school health and nutrition area, the activities of certain NGOs, such as FDC, HKI, and CRS, have continued and contributed significantly to the improved outturns;

  • ▪ Setting a target for the CEP success rate in advance (at 73.80 percent) was an incentive factor;

  • ▪ Opening new CEBs contributed to improving hands-on supervision of teaching staff and to reducing the distances that examination candidates have to travel by adding new testing centers;

  • ▪ The effective startup of the social mobilization activities, which allowed more intensive involvement of the education partners in improving the living and working conditions of teachers and pupils.

202. Curriculum reform has a role to play in improving the quality of basic education. The review of curricula, initially scheduled for January 2004, did not ultimately begin until June 2004 with the arrival of the Canadian consultant, who worked from June 16 to July 2, 2004 with DRDP managers on preparing and planning curriculum renewal activities through end-December 2004. In addition, two studies, one on increasing learning time and the other on reorganizing the primary education cycle into subcycles, were carried out by a consultant from February to April 2004. These studies were reviewed at a workshop held May 4, 2004 which recommended further efforts along the same lines.

203. Nonformal education: The number of learners evaluated for the basic literacy program (AI) in 2004 was 153,667, as compared to 131,045 in 2003, a gain of 22,622 (rate of increase 17.26 percent). Women evaluated numbered 86,185 (56.09 percent of enrollees), as against 73,382 in 2003, a gain of 12,803 (rate of increase 17.45 percent). For Supplementary Basic Training (FCB), the number of learners evaluated was 56,328 in 2004 as against 41,222 in 2003, for an increase of 15,106 (rate of increase 36.65 percent).

204. Women evaluated in 2004 numbered 29,791(52.89 percent of enrollees), as against 21,302 in 2003, yielding an increase of 8,489 (rate of increase 39.85 percent). The number of learners assessed as literate increased from 33,802 in 2003 to 47,780 in 2004, an increase of 13,978 (rate of increase 41.5 percent). Women completing literacy training in 2004 numbered 24,504 (51.29 percent) as against 16,080 in 2003, an increase of 8,424 (rate of increase 52.39 percent).

Table 18:

Overview of achievements in respect of the quality component of nonformal education

article image
article image
Source: Quarterly report on PDDEB implementation (February 2005).

205. As regards the 20 priority provinces specifically: The number of learners evaluated for the basic literacy program (AI) in 2004 was 76,184, as compared to 66,492 in 2003, yielding an increase of 9,692 (rate of increase 14.58 percent). Women evaluated in the 20 priority provinces numbered 41,383 (54.32 percent of enrollees), as against 34,915 in 2003, a gain of 6,468 (rate of increase 18.52 percent). For the FCB, the number of learners evaluated was 28,514, as compared to 24,139 in 2003, yielding an increase of 4,375 (rate of increase 18.12 percent). Women evaluated numbered 14,062 (49.91 percent of enrollees), as against 12,048 in 2003, yielding an increase of 2,014 (rate of increase 16.72 percent). The number of learners assessed as literate increased from 19,810 in 2003 to 24,258 in 2004, up by 4,448 (rate of increase 22.45 percent). Women successfully completing literacy in 2004 training numbered 11,380 as against 9,441 in 2003, an increase of 1,939 (rate of increase 20.54 percent).

206. However, the wastage rates remain extremely high (37.18 percent for AI and 27.53 percent for FCB), for which reason consideration should be given to supporting/assisting so-called emerging operators in order to enhance their performance.

207. The participation of women in literacy training has been increasing steadily over the past two years. There are a number of cases in point: first, women outnumber men in both AI and FCB as regards registering and testing. As a consequence, more women than men fail to pass the AI and FCB tests. In point of fact, most of the wastage in terms of participation by women occurs between those assessed in AI (phase 2) and those admitted to AI (phase 3). Women also have a lower rate of transition from AI into FCB, although this latter observation tends not to show up for campaign year 2003/2004. These observations point to the fact that it is not enough to enroll women in massive numbers, as they must also be prepared better so that they can pass the examinations as well as men. The time demands of household chores and other small daily tasks which are carried out more by women than men may nonetheless constitute an explanatory factor for this higher failure rate among women.

Chart 2:
Chart 2:

Comparison of women’s participation in the six phases of literacy training

Citation: IMF Staff Country Reports 2006, 357; 10.5089/9781451803884.002.A001

Source: Quarterly report on PDDEB implementation (February 2005).

208. With respect to hours of training required, the effective number of learning hours in AI was increased from 300 to 350, and the total for FCB from 240 to 300, resulting in a total of 650 hours for the basic training cycle.

209. In 2004, the MEBA began the process of designing urban curricula, which has been programmed in 2 phases: an initial phase carried out in January examined the curricula for the first and second years. The second phase, focused on the third and fourth years, was finalized in July 2004. These new curricula, the AENF specifications, and the editorial policy were validated by the national forum on literacy training held in December 2004. In addition, the remediation plan was drawn up and will be validated shortly. A documentary database on the CEBNFs has been available since 2003. A skills inventory was also developed and will be made available to users with the next campaign year.

210. In addition, the second national forum on literacy training in December 2004 served as a forum for concertation in which all literacy training stakeholders were called upon to consider how best to provide operational responses to the questions posed as regards expanding literacy. Upon conclusion of the work of this second forum, one resolution and 16 recommendations were formulated. They reflect the major concerns of the literacy training and nonformal education sector.

211. Certain specific measures may explain the good performance in literacy training. These include in particular the reproduction and availability of printed certification forms for participants, the development of the communications strategy for promoting the AENF, the production of post-literacy training documents (brochure on shea cultivation), and the free distribution of foodstuffs at the literacy training center.

212. Nevertheless, a few problems did arise in the course of implementing literacy training activities. These included:

  • ▪ The lack of qualification of the staff in charge of AENF in the DPEBAs, DREBAs, and some CEBs (newly opened ones);

  • ▪ The absence of logistical resources for monitoring and evaluation of literacy training activities;

  • ▪ Chronic shortage of basic documentation and post-literacy training documents;

  • ▪ Operators’ use of unqualified facilitators owing to insufficient monitoring and rigor at the DPEBA level;

  • ▪ The lack of participation by DPEBA stakeholders in facilitator recruitment, awareness efforts, and negotiation;

  • ▪ Extremely precarious learning conditions (lack of lighting and adequate infrastructures).

2.2.2.2.1.3. 4.4.1 Strengthening of steering and financial management capacities

213. Strengthening of steering capacity: Although significant progress has been made in strengthening the institutional capacities of the system, much remains to be done in order for the MEBA to reach optimal productivity. The programmed changes such as those relating to decentralization and the mission letters have not been implemented, and the efforts to decentralize the MEBA need to be supported by those of the Administration as a whole.

214. In respect of steering, performance-based planning has been initiated at the MEBA with the implementation of the PDDEB. A table of performance-based PDDEB management indicators has been developed and planning tools made available to the provinces. The education map has been finalized and numerous data gathering tools are nearing completion. The flash survey yielded the first indications of trends in formal education during the 2004/2005 campaign year.

215. However, the unwieldiness of the administration, planning, and monitoring system affects the performance of the institutional system. The former splitting of financial management–DAF/BPE–makes the actual transfer of the BPE to the DAF less feasible in the short term. In addition, the DEP has not yet developed the basic capacities required to assume responsibility for the duties incumbent on it as regards PDDEB planning, in particular because of many overlaps between directorates and the institutional and organizational shortcomings affecting the system as a whole. The clear definition of the roles and accountability of each stakeholder for its performance continues to be an issue for which there is no real solution in the offing.

216. Financial management: Given the priority nature of the education sector, it is among those which mobilize sizable amounts of resources. In 2004, the budget forecasts for covering current and capital expenditure come to CFAF 119.69 billion. The state budget, including HIPC resources, contributes 48.61 percent of this amount. The bilateral and multilateral partners account for almost 14.2 percent. Pooled resources represent 25.8 percent. Others contribute 5.62 percent, and the financing to be sought represents only 5.8 percent.

Table 19:

Budget forecasts by financing source

(in billions of CFA francs)

article image
Source: Quarterly report on PDDEB implementation (February 2005).

including the carryover of the residual from the 2003 action plan: CFAF 9.42 billion.

IsDB, Japanese cooperation, AfDB.

“Other” brings together UNICEF, the NGOs, and the Associations involved in the basic education sector.

217. In general, program implementation was characterized by delays in the availability of financial resources from the state budget (March 2004), the HIPC, and from the pool, which hampered timely starting of the activities. In any event, more domestic resources were put to use than external resources.

218. In respect of the state budget, while the Action Plan for 2004 forecast was CFAF 49.34 billion, only CFAF 47.1 billion was mobilized. Expenditures effectively made came to CFAF 39.27 billion, yielding an implementation rate of 83.41 percent. The “Improving Management and Capacity Building” component, which accounts for about 82 percent of the forecasts, had an implementation rate of 84 percent.

219. Of the special resources from the HIPC Initiative, with 2004 allocations of CFAF 8.85 billion, CFAF 7.64 billion was utilized, yielding an implementation rate of 86.33 percent. It bears noting that almost 76 percent of these resources was devoted to school infrastructures under the auspices of the Faso Baara Agency, in an amount of CFAF 6.77 billion.

220. For the resources from the pool, the Action Plan for 2004 forecast a budget allocation of CFAF 21.4 billion. This amount should be increased by the CFAF 9.4 billion constituting the residual financing from the Action Plan for 2003. Total financing in 2004 thus amounted to CFAF 30.8 billion. The implementation rate for these resources was no higher than 22 percent. The implementation rate for the “Access” component was only 18 percent.

Table 20:

Pool implementation status

(in billions of CFA francs)

article image
article image
Source: Quarterly report on PDDEB implementation (February 2005).