Kuwait grants Burkina Faso $19.4 million loan to boost agriculture, create jobs
The Kuwait Fund for Arab Economic Development (KFAED) signed a loan agreement today, Tuesday, with the Republic of Burkina Faso, valued at six million Kuwaiti dinars (approximately 19.4 million US dollars), to support the financing of the irrigated agriculture development project in the Sonou and Kouri regions of Burkina Faso.
In a press release KFAED stated that the project aims to promote economic and social development in the Sonou Valley by expanding irrigated agriculture across 2,000 hectares in the Sonou and Kouri regions. The initiative seeks to diversify and intensify agricultural production, enhance product marketing, and encourage both livestock and fish farming.
Moreover, the project also aims to protect forests surrounding the targeted lands and provide support to beneficiaries, ultimately creating new job opportunities, particularly for women and youth. Additionally, the initiative seeks to reduce poverty, improve farmers’ incomes, support the government’s food security strategy, and accelerate economic growth.
Furthermore, KFAED expects that the project will contribute to achieving the Sustainable Development Goals that include: Eradicating Poverty, Eradicating Hunger, Gender Equality, Clean Water, Sanitation & Hygiene, Decent Work & Economic Growth, Climate Action, and Partnership for Sustainable Development Goals.
The project includes civil and electromechanical works to develop the targeted agricultural lands by establishing irrigation systems. Additionally, it involves land development support, securing agricultural land tenure, implementing social measures, and ensuring proper coordination and administrative evaluation. The project is expected to be completed by the end of September 2026.
The loan has a term of 27 years, including a six-year grace period, and will be repaid in 42 semi-annual installments. The first installment is due on the first date when interest or other costs become payable after the grace period.
Additionally, the loan carries an annual interest rate of 1.5%, in addition to a 0.5% annual fee to cover management and service costs for implementing the loan agreement.
The agreement was signed by the Acting Director General of the Kuwait Fund for Arab Economic Development, Waleed Al-Bahar, and the Minister of Finance of the Republic of Burkina Faso, Abubakar Nkanabo.
Notably, the Kuwait Fund for Arab Economic Development has provided Burkina Faso with 18 loans across various sectors, totaling approximately 66.4 million Kuwaiti dinars (about 215.2 million US dollars). Additionally, it has extended two grants and technical assistance amounting to approximately 3.8 million dinars (about 12.3 million dollars).
The Kuwait Fund for Arab Economic Development operates as a self-sustaining development institution, providing concessional loans and aid to support development projects in developing countries.
Source: Al Jarida
