UNCDF in Burkina Faso

UNCDF in Burkina Faso

The Challenge

A poor country even by West African standards (with 44.8 percent of its population living on less than US$1.00 per day), landlocked Burkina Faso has suffered from recurring droughts. Although economic activity has risen sharply over the past ten years, the country’s economic growth is hindered by four factors: a poorly diversified agricultural sector, an inadequate road network, limited energy resources, and lack of access to ports. The Government provides subsistence to more than 80 percent of the population. Although traditionally politically stable, in recent years the country has faced troubling governance issues. Burkina Faso's 2013 Human Development Index gave the country a rank of 183 out of 187 countries.

How We Are Helping?

UNCDF supports Burkina Faso to meet its development objectives through several projects focusing on inclusive finance as well as on local development.
Working jointly with UNDP to support the rural and agricultural finance sector, the Programme d’Appui au Financement de la Production Agricole (PAFPA) aims to improve access to financial services adapted to the needs of small producers or actors of value chain of rice, tomatoes and cowpea. By facilitating access to financial services adapted to the needs of stakeholders in the three streams, the program will help improve food security, the auto/employability of young people and the securing of income in rural areas, especially for women.
UNCDF is also present in Burkina Faso with its Youthstart global programme, aimed at increasing access to financial services for low-income youth in sub-Saharan Africa.
Through its Appui aux Communes Rurales et aux Initiatives Intercommunautaires (ACRIC) project, UNCDF, in partnership with UNDP, is also supporting the Government’s efforts to release poverty through a progressive decentralization process aimed at strengthening local service and promoting economic development. Overall the initiative aims to put municipalities at the core of the Government’s response to poverty reduction, while also significantly improving access to basic social services and local income generation.
In addition, the Local Cross-Border Initiative (LOBI) programme, which, by nature, covers several countries in the region, aims at strengthening cross-border governance in the West Africa region through the definition of regional and national strategies and the promotion of pilot cross-border local development processes.

In Detail

Project

Programme d'Appui au Financement de la Production Agricole (PAFPA)

Goal To improve access to financial services adapted to the needs of small producers.
How
  • Providing technical assistance to microfinance institutions to offer financial services adapted to the needs (production, storage, processing and marketing) of rice, tomatoes and cowpea;
  • Strengthening the capacities of Local Technical Services Providers to support Value Chain developing of rice, tomatoes and cowpea;
  • Strengthening the capacity of populations on technical services for agricultural production and on financial literacy;
  • Establishing a national roadmap around financial inclusion to support agricultural value chain development.

PAFPA aims to reach 20,000 small producers or actors of value chain of rice, tomatoes and cowpea, especially women and youth by 2018.

Period

2014-2018

Partners UNCDF, UNDP, FinMark Trust, Cenfri (Center for Financial Regulation and Inclusion)
Total project cost and UNCDF contribution USD 3,737,143 6,372,226
USD 526,258
Progress
Budget
Results (including scaling and policy impact)
Project

Appui aux communes rurales et aux initiatives intercommunautaires (ACRIC)

Goal To promote good governance practices in local public affairs, increase civic participation and expand access to basic services.
How
  • Implementing a local development fund at community level;
  • Offering planning tools and equipment to local partners;
  • Developing intercommunal solidarity in the area of intervention.
Period

2008-2014

Partners UNCDF, UNDP, DED, Government, Boucle de Mouhon District.
Total project cost and UNCDF contribution USD 3,943,400
USD 2,000,000
Progress
Budget
Results (including scaling and policy impact)
Project

YouthStart

Goal To increase access to youth financial services and spur innovation and delivery of microfinance for youth.
How
  • Supporting the Féderation de Caisses Populaires de Burkina Faso (FCPB) to offer multiple financial services to help youth save their money, access loans and start their own business. As of September 2013, FCPB had provided demand driven and responsible financial services to close to 10,000 youth and had trained almost 12,000 in financial literacy and entrepreneurship;
  • Organizing national consultations around the need for: i) a regulatory environment that enables youth (aged 15-17) to open and independently manage a savings account; ii) developing and enforcing legislation protecting youth that is consistent with the Smart Campaign and the Child and Youth Finance International Banking principles; and iii) facilitating the development of innovative, cost-effective delivery channels to increase low-cost access to youth by passing the necessary legislation for financial institutions to bank through agents, mobile phones, schools etc.
Period 2010-2014
Partners UNCDF, The MasterCard Foundation.
Total project cost and UNCDF contribution YouthStart Total USD 12,000,000 YouthStart Burkina Faso USD 675,339
USD 200,000
Progress
Budget
Results (including scaling and policy impact)
Project

Local Cross-Border Initiative

Goal To strengthen cross-border governance in the West African region through the definition of regional and national strategies and the promotion of pilot cross-border local development processes.
How
  • Supporting the promotion of the cross-border governance, including the definition of a Regional Strategy about cross-border issues;
  • Piloting a cross-border local development fund (LDF) to increase investments and support innovations in local economic development, gender and food security; as well as to contribute to the provision of basic services to cross-border communities;
  • Piloting the local development process for cross border areas: setting up a cross border planning and budgeting process (Local Development Plan, LDP), including clear procurement procedures and performance-based grant system for local governments.
Period 2012-2017
Partners UNCDF, Government of Luxembourg, UEMOA, ECOWAS
Total project cost and UNCDF contribution USD 11,770,000
USD 2,000,000
Progress
Budget
Results (including scaling and policy impact)

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