Reducing Poverty Through Growth

Fact Sheet

July 14, 2008 www.mcc.gov

Burkina Faso and Millennium Challenge Corporation

Building a Partnership for Poverty Reduction through 

Economic Growth

The Millennium Challenge Corporation’s (MCC) Board of Directors has signed a five-year, $480.94 million compact with the Government of Burkina Faso aimed at reducing poverty and increasing economic growth. Specifically, the compact will increase investment in land and rural productivity through improved land tenure security 

and land management; increase the volume and value of agricultural production through investments in water 

management and irrigation, technical assistance to farmers, and rural credit; increase opportunities for farmers 

to sell agricultural goods and livestock by rehabilitating rural and primary roads; and, as an extension of Burkina 

Faso’s successful MCC threshold program, fund the construction of three classrooms each at 132 “girl-friendly” 

schools for grades 4 through 6.

Background

Burkina Faso is a landlocked country in Africa’s Sahel region with a population of over 15 million. It is one of the 

poorest countries in the world, ranking 176 out of 177 countries as surveyed by the United Nations Development 

Program’s 2007 Human Development Index. In an effort to address constraints to investment, Burkina Faso 

has undertaken several broad macroeconomic reforms since the mid-1990s, including market-oriented reforms, 

decentralization of power from the central government to local governments, adoption of a new labor code and 

business climate improvements. In light of these efforts, in 2007, the International Finance Corporation named 

Burkina Faso one of the top business climate reformers in Africa. Despite these reforms and recognitions, 

Burkina Faso continues to face severe constraints to growth and poverty reduction.

Rural Land Governance Project ($59.93 million)

The rural land governance project will increase investment in land and rural productivity through improved land 

tenure security and land management. Specifically, the project will assist the Government of Burkina Faso to 

achieve its goals of a new legal framework for land tenure, improved access to more efficient land institutions in 

rural areas and greater clarity and security of land rights. The project consists of the following three activities: 

•	 Legal and Procedural Change and Communication to support the Government of Burkina Faso’s efforts 

to develop and disseminate improved rural land legislation and procedural frameworks;

•	 Institutional Development and Capacity Building to improve institutional capacity to deliver land services in rural areas, including land registration, mapping, and land conflict mediation services
Millennium Challenge Corporation

Fact Sheet: Burkina Faso Compact Signing, July 14, 2008 2

•	 Site-Specific Land Tenure Interventions to support participatory land use management planning and to 

clarify and secure land rights in targeted municipalities and agricultural development zones, building on 

the new land legislation and strengthened land institutions.

Agriculture Development Project ($141.91 million)

The agriculture development project will expand the productive use of land and increase the volume and value 

of agricultural production. The project seeks to improve poor water resource availability and management, weak 

beneficiary capacity and access to markets, pricing information and credit. The project consists of the following 

three activities: 

•	 Water Management and Irrigation to ensure adequate water availability, water delivery, flood control and 

dam safety to support investments in the Sourou Valley and improve water resource management in the 

Comoé Basin; 

•	 Diversified Agriculture to build on the delivery of water by supporting on-farm production and related 

activities throughout the agricultural value chain; and

•	 Access to Rural Finance to increase medium- and long-term credit in the four western regions of SudOuest, Hauts Bassins, Cascades, and Boucle du Mouhoun.

Roads Project ($194.13 million)

The roads project will facilitate trade and communications with regional and international markets, improve local connectivity of farms to markets and improve access to social services in rural communities through strategic 

improvements to the road transportation network. The project will increase access to agricultural markets by 

upgrading primary and rural road segments serving the Sourou Valley and the Comoé Basin, reducing travel 

time to markets and vehicle operating costs. The project will also ensure the sustainability of the road network 

by strengthening road maintenance. The project consists of the following four activities:

•	 Development of Primary Roads to support the improvements of three primary road segments in western 

Burkina Faso;

•	 Development of Rural Roads to support the improvement of approximately 151 kilometers of road segments located in three rural areas in the Comoé Basin of southwestern Burkina Faso; 

•	 Capacity Building and Technical Assistance to reinforce the effectiveness of existing government agencies and private sector institutions involved in road maintenance planning and implementation; and

•	 Incentive Matching Fund for Periodic Road Maintenance to set the government on a path toward longterm, sustainable funding of maintenance on the full road network in Burkina Faso.
Millennium Challenge Corporation

Fact Sheet: Burkina Faso Compact Signing, July 14, 2008 3

BRIGHT 2 Schools Project ($28.83 million)

The BRIGHT 2 schools project extends Burkina Faso’s successful MCC threshold program which helped construct 132 schools consisting of three classrooms each (grades 1 through 3). The project includes the construction of up to fifty additional boreholes, an additional 132 classrooms each for grades 4 through 6 and 122 kindergartens, including playgrounds and equipment. The project will also provide daily meals during all nine months 

of the school year for an estimated 13,000 children. The project will also fund a social mobilization campaign 

and an adult literacy and management of micro-projects activity. The United States Agency for International 

Development will administer and manage the implementation of the BRIGHT 2 schools project.

Administration

The compact also includes approximately $48.26 million for administrative and oversight costs of the projects, 

including the cost of administration, management, auditing as well as fiscal and procurement agent services and 

environmental and social oversight. The cost of monitoring and evaluation of the compact is $7.88 million.

Expected Results

•	 Through the rural land governance project, up to 415,2000 households comprising of up to 2,490,000 

people from 47 of Burkina Faso’s rural municipalities will have access to improved regional and local 

land services, including land registration, boundary mapping, and land conflict mediation. Households 

and businesses nationally will also benefit from the new legal framework and from strengthened land 

institutions.

•	 Under the agricultural development project, up to 150,000 farmers, herders and other traders will 

benefit from improved agricultural and livestock production conditions, better water management and 

improved access to credit.

•	 A portion of the 2.4 million inhabitants of the nine provinces surrounding the primary roads and up to 

65,000 inhabitants of the 30 villages serviced by rural roads will benefit from the road project. 

•	 The BRIGHT 2 schools project is expected to benefit up to 19,800 children, including 9,900 girls.