The Kuwait Fund for Arab Economic Development (KFAED) has signed a loan agreement with the Republic of Burkina Faso, valued at six million Kuwaiti dinars (approximately 19.4 million US dollars), to finance the development of irrigated agriculture in the Sonou and Kouri regions of Burkina Faso.
The initiative, according to KFAED, aims to stimulate economic and social development in the Sonou Valley by expanding irrigated agricultural activities across 2,000 hectares. The project is designed to diversify and intensify agricultural production, improve marketing efforts, and promote livestock and fish farming.
In addition to its agricultural focus, the project aims to protect the forests surrounding the targeted lands, offer support to local beneficiaries, and generate new job opportunities, with particular emphasis on empowering women and youth. The initiative also seeks to reduce poverty, enhance the income of farmers, contribute to the government’s food security strategy, and drive overall economic growth.
KFAED highlighted that the project aligns with several Sustainable Development Goals (SDGs), including eradicating poverty and hunger, ensuring gender equality, improving access to clean water and sanitation, promoting decent work and economic growth, addressing climate change, and fostering partnerships for sustainable development.
The project involves both civil and electromechanical works to develop irrigation systems for the agricultural lands, as well as land development support, securing agricultural land tenure, implementing social measures, and ensuring effective coordination and evaluation. The project is expected to be completed by September 2026.
The loan comes with a 27-year term, including a six-year grace period, and will be repaid in 42 semi-annual installments, starting after the grace period. The loan carries an annual interest rate of 1.5%, with an additional 0.5% annual fee to cover management and service costs.
The loan agreement was signed by Waleed Al-Bahar, Acting Director General of KFAED, and Abubakar Nkanabo, the Minister of Finance of Burkina Faso.
To date, KFAED has extended 18 loans to Burkina Faso across various sectors, totaling around 66.4 million Kuwaiti dinars (approximately 215.2 million US dollars), along with two grants and technical assistance amounting to about 3.8 million Kuwaiti dinars (around 12.3 million US dollars).
As a self-sustaining development institution, KFAED continues to provide concessional loans and aid to support vital development projects in developing nations.
