The Government of Burkina Faso on Thursday adopted a decree establishing the Burkina Faso Sovereign Mining Investment Fund (FSMIB).
The Minister of Economy and Finance, Aboubakar Nacanabo, who made the announcement, stated that the fund, named ‘Siniyan-Sigui’, is intended to capture a portion of the exceptional revenues generated by the historic rise in gold prices in order to finance infrastructure and industrial projects,
According to the minister, the government adopted the fund during the meeting of the Council of Ministers, following the sharp rise in global gold prices.
The authorities noted that the precious metal has in recent months exceeded the threshold of $4,000 per ounce, or approximately 78,000 CFA francs per gram, generating significant additional mining revenues for the country.
According to the minister, the government believes, however, that the country previously lacked any specific mechanism to capture and sustainably manage these surplus revenues or to build up savings for future generations.
“The adoption of this decree allows for the creation of a sovereign mining fund, financed by the additional resources generated from mining activity,” the Minister of Economy and Finance, Aboubakar Nacanabo, as quoted by the Communications Department of the Presidency of Burkina Faso as saying.
He explained that the fund will be financed from additional revenues from mining exports exceeding a benchmark set by the country.
Established as a special purpose account, the planned Fund is intended to finance investments deemed strategic, particularly in infrastructure and national industry, with the first projects expected to begin in 2027.
The Authorities also stated that this mechanism aims to strengthen Burkina Faso’s financial sovereignty and improve its sovereign credit rating by transforming mining revenues into a lever for sustainable development.
Ho/Sf/fss/gik/APA