Burkina Faso Compact II - Constraints Analysis

MCC’s evidence-based approach to its investments begins with a mutual understanding of a country’s main growth challenges. During the first phase of the compact or threshold program development process, MCC and the selected partner country, jointly conduct a constraints-to-growth analysis (CA). This analysis identifies the constraints to private investment and entrepreneurship that are most binding to economic growth in the country. The results of this analysis enable the country, together with MCC, to select activities most likely to contribute to sustainable, poverty-reducing growth.

The Constraints Analysis Report for the second Burkina Faso Compact highlights the following binding constraints to economic growth: 

1. High Cost, Low Quality, and Low Access to Electricity: Burkina Faso has a high cost of electricity and low quality of service, hampering firms’ ability to operate in electricity-dependent sectors. Burkina Faso also has very low rates of access to electricity;
2. Lack of a Skilled Workforce: Burkina Faso has low rates of school enrollment and low educational attainment, despite returns to schooling that appear to be increasing over time. This, combined with some specific skills deficits, poses a major obstacle to private investment and entrepreneurship.