The Kuwait Fund for Arab Economic Development (KFAED) signed a loan agreement with the Republic of Burkina Faso on Tuesday, amounting to six million Kuwaiti dinars (approximately 19.4 million US dollars), to contribute to financing a project for the development of irrigated agriculture in the Sounou and Kouri regions of Burkina Faso.  

In a press statement, the Fund stated that the project aims to support economic and social development in the Sounou Valley by developing irrigated agriculture for a total area of 2,000 hectares in the Sounou and Kouri regions. This will diversify and intensify agricultural production, enhance product marketing, and promote livestock and fish farming.  

The Fund added that the project also aims to protect forests around the targeted areas and support beneficiaries, which will create new job opportunities, particularly for women and youth, reduce poverty rates, improve farmers' incomes, support the government’s food security strategy, and accelerate economic growth.  

The Fund expects the project to contribute to achieving several Sustainable Development Goals (SDGs), including Goal 1 (No Poverty), Goal 2 (Zero Hunger), Goal 5 (Gender Equality), Goal 6 (Clean Water and Sanitation), Goal 8 (Decent Work and Economic Growth), Goal 13 (Climate Action), and Goal 17 (Partnerships for the Goals).  

The Fund noted that the project includes civil and electromechanical works to develop the targeted agricultural lands through the establishment of irrigation systems. It also involves supporting land development, securing agricultural land tenure, social measures, 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 grace period of six years. Repayment will be made in 42 semi-annual installments, with the first installment due on the first date of interest or other charges payment following the grace period.  

The interest rate on the loan is 1.5% annually, with an additional 0.5% annual fee to cover administrative costs and loan agreement implementation services.  

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 Burkina Faso, Aboubakar Nacanabo.  

It is worth noting that the Kuwait Fund for Arab Economic Development has provided 18 loans to Burkina Faso in various sectors, totaling approximately 66.4 million Kuwaiti dinars (around 215.2 million US dollars). Additionally, the Fund has provided two grants and technical assistance amounting to approximately 3.8 million Kuwaiti dinars (around 12.3 million US dollars).  

The Kuwait Fund for Arab Economic Development is a developmental tool that relies entirely on its own resources to provide concessional loans and developmental assistance aimed at helping developing countries finance their development projects.