A few days ago, Burkina Faso made history by unveiling its first 100 percent made Indigenous electric car brand which it named ITAQUA. Observers took note given the fact that Burkina Faso is a relatively poor country whose economy is primarily driven by subsistence agriculture and mining thus it came as a surprise when the country which has a relatively low industrial base unveiled the production of an indigenous electric car. Inspired by this feat, this article seeks to examine how the economic policies of Burkina Faso’s young leader, Captain Ibrahim Traore as been impacting the economy of the West African state.
Since seizing power in a military coup in September 2022, Captain Ibrahim Traoré has been working to revamp the economy of Burkina Faso. The landlocked West African nation has been plagued by poverty, corruption, and terrorist attacks, which have crippled its economy and left many of its citizens struggling to survive.
Traoré’s efforts to revive the economy have been multifaceted. One of his first moves was to appoint a new government, which included several technocrats with expertise in finance and economics. This move was seen as a positive step towards stabilizing the economy and attracting foreign investment.
Within two years of President Ibrahim Traoré leadership, Burkina Faso’s GDP grew from approximately $18.8 billion to $22.1 billion despite the fact that he rejected loans from the International Monetary Fund (IMF) and the World Bank while stating that “Africa doesn’t need the World Bank, IMF, Europe, or America.” He also reduced the salaries of ministers and parliamentarians by 30% and increased the salaries of civil servants by 50% while paying off Burkina Faso’s local debts in the process.
In the agro-allied industry, he established two tomato processing plants, the first-ever in Burkina Faso, and also built Burkina Faso’s second cotton processing plant. Previously, the country had only one. He then went on to establish the first-ever National Support Center for Artisanal Cotton Processing to assist local cotton farmers. He further demonstrated his prioritization of agriculture by distributing over 400 tractors, 239 tillers, 710 motor pumps, and 714 motorcycles to boost production and support rural stakeholders.
He also provided access to improved seeds and other farm inputs to maximize agricultural output. As a result of this, tomato production in Burkina Faso increased from 315,000 metric tonnes in 2022 to 360,000 metric tonnes in 2024 while millet production rose from 907,000 metric tonnes in 2022 to 1.1 million metric tonnes in 2024 and rice production increased from 280,000 metric tonnes in 2022 to 326,000 metric tonnes in 2024.
Another key area of focus for Traoré has been the mining sector, which is a significant contributor to Burkina Faso’s economy. The country is rich in gold, zinc, and other minerals, but the sector has been plagued by corruption and mismanagement. Traoré has promised to crack down on corruption and ensure that the mining sector is managed transparently and responsibly. In 2023, he inaugurated a state-of-the-art gold mine to enhance local processing capabilities and stopped the export of unrefined Burkina Faso gold to Europe thereby creating more value for Burkina Faso through job creation and increased revenue from its resources.
In the area of infrastructure, his government is constructing new roads, widening existing ones, and upgrading gravel roads to paved surfaces. He is also building a new airport, the Ouagadougou-Donsin Airport, which is expected to be completed in 2025 with a capacity to handle 1 million passengers annually.
In addition to these efforts, Traoré has also been working to improve the business climate in Burkina Faso. This includes simplifying the process of starting a business, reducing bureaucracy, and improving access to credit for entrepreneurs. These reforms are aimed at encouraging private sector growth and job creation, which are critical for reducing poverty and improving living standards.
While Traoré’s efforts to revamp the economy are promising, there are still many challenges ahead. The country faces significant security threats from terrorist groups, which have disrupted economic activity and made it difficult to attract foreign investment. Additionally, the economy is still heavily reliant on external aid, which can be unpredictable and subject to conditionality.
Despite these challenges, many Burkinabés are optimistic about Traoré’s efforts to revive the economy. “We have been suffering for a long time, but we believe that Captain Traoré can make a difference,” said one resident of Ouagadougou, the capital city. “He seems to be committed to making things better, and we are willing to give him a chance.”
Only time will tell if Traoré’s efforts to revamp the economy will be successful. However, for now, many Burkinabés are hopeful that their country is on the path to a brighter economic future.
Oshobi, a management consultant, development economist, and author writes from Lagos, Nigeria.