Burkina Faso

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What are we funding?

 

GRANT AMOUNT

ENDORSEMENT DATE

ACTIVITIES

INSTRUMENTS SUPPORTED

WB PROJECT

US$12 million

February 16, 2021

Supported a fourth window for crisis response within a partial portfolio credit guarantee (PPCG) that had three other windows—for micro, small, and medium enterprises (MSMEs), women, and smallholder farmers.

Shock-responsive mechanism within a partial portfolio credit guarantee; serves as a backstop for the other three windows in the PPCG (for MSMEs, women entrepreneurs, and smallholder farmers)
 

Financial Inclusion Support in Burkina Faso (P164786) 

Additional Financing for Financial Inclusion Support Project to Support COVID-19 Crisis Recovery (P177087)

US$ 100 M (approved on June 30, 2021)

  • Burkina Faso’s economy is dominated by MSMEs, including more than 1.5 million informal enterprises and 65,000 formal ones. MSMEs increase the number of people who can participate in and contribute to the economy, but their limited access to financial resources makes it harder for them to grow and to withstand economic shocks. To facilitate access to finance, in 2020 the World Bank and Burkina Faso launched the US$100 million Financial Sector Inclusion Project (FSIP).
  • A US$12 million GSFF grant initially supported a fourth window for crisis response within a partial portfolio credit guarantee (PPCG) that had three other windows—for micro, small, and medium enterprises (MSMEs), women, and smallholder farmers.
  • The crisis response window opened in November 2021 in response to the COVID-19 pandemic and closed in February 2023, having covered more than US$3.5 million in restructured and working capital loans for 50 MSMEs.
  • In January 2024, the crisis response window was redesigned to be a shock-responsive mechanism that will backstop the existing three windows.
  • If any borrowers from these windows default on loans during a crisis, lending institutions will now be reimbursed for 70 percent of the amount instead of the usual 50 percent, and the coverage period will be extended to 15 months.
     

 

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