Reform in the energy sector in Burkina Faso: a loan of 18 million euros from the African Development Bank.
-Doubling the rate of electrification in rural areas
-Ensure reliable access to electricity to 25% of the population
Abidjan, Côte d'Ivoire, 18 July 2018 – the Board of Directors of the African Development Bank Group approved, on 18 July 2018 in Abidjan, financing of EUR 18 million million from the African Development Fund (ADF) for Burkina Faso Faso.
This budget support will help finance the energy reform support programme (PARSE), whose main goal is to create the conditions for inclusive energy access in the country, through the establishment of a legal framework and institutional framework conducive to public and private investment in the sector.
Burkina Faso faces a structural energy deficit that generates frequent shedding. The State of access to electricity in the country remains one of the weakest in sub-Saharan Africa, which strongly affects the industrialization of Burkina Faso. To date, manufacturing industries contribute only 4% of its GDP.
Socially, the difficulties of access to energy force millions of Burkinabè, especially women, to resort to traditional biomass – resulting in a major health problem, with high levels of death resulting from pneumonia.
To compensate for its delay in energy, the Burkina Faso government has embarked on a new approach, in its sectoral policy on industrial and artisanal transformations, adopted in December 2017. Objective: to promote the energy mix, focusing on solar energy.
The programme, which will be disbursed in two tranches (12 million euros and 6 million), aims to accompany the Government's efforts to reduce the energy gap in Burkina Faso. Improving the institutional and regulatory framework should foster increased private investment in energy production and distribution.
At the end of the programme, in late 2019, the national electrification rate should have reached 25%, compared with 20.07% in 2016. And in rural areas, the rate is expected to almost double from 3.2% to 6%.
In 2016, the African Development Bank launched the new deal for energy in Africa, at the heart of its high 5.