The Millennium Challenge Corporation (MCC) has made a $450 million compact agreement with the Government of Burkina Faso which aims to address the country’s main binding constraint to economic growth: access to affordable and reliable electricity.
Burkina Faso faces significant development challenges, and 43.7 percent of its population is considered poor. However, Burkina Faso also has one of Africa’s fastest growing economies, with a 2019 GDP growth rate of six percent.
The compact focuses on three projects: The Strengthening Electricity Sector Effectiveness Project; the Cost-Effective and Reliable Electricity Supply Project; and the Grid Development and Access Project.
Additionally, this compact will also support Burkina Faso’s increased participation in regional power markets and the development of a potential MCC regional investment. MCC has increased flexibility to promote regional collaboration, trade, and economic growth through concurrent compacts designed to promote regional integration.