Burkina Faso’s Gold Mining Revenue Surge Under Ibrahim Traore
Burkina Faso, a landlocked country in West Africa, has recently made headlines for its remarkable financial growth attributed to its gold mining sector. Since Ibrahim Traore assumed office, the country reportedly generated an astounding $18 billion from its gold mines, a significant increase compared to the previous arrangement where foreign companies paid only about $1 billion annually. This dramatic shift in revenue raises important questions about the impact of local governance on resource management and economic development.
The Shift in Gold Mining Revenue
Historically, Burkina Faso has been rich in natural resources, particularly gold, which has been a vital part of its economy. However, the bulk of the benefits from gold mining had previously flowed to foreign entities. The switch to a more localized management approach under Traore’s leadership appears to have revitalized the sector, allowing the country to capture a larger share of the profits.
Burkina Faso is set to increase industrial gold production by 4% in 2025, driven by the revival of two major mining projects amid tightening state control and ongoing security challenges.
According to Aristide Belemsobgo from the Ministry of Energy, Mines and Quarries, output from large-scale operations is projected to reach 55.7 metric tons this year. The increase comes as Soleil Resources International Ltd. ramps up production at the Youga mine and Australia’s West African Resources Ltd. prepares to launch output at its Kiaka mine in the third quarter.
Gold remains Burkina Faso’s top export and a key source of revenue for the junta government, which seized power in a 2022 coup. However, years of instability and insurgent attacks have forced several mines to shut down. The recent rebound in production is seen as a vital financial lifeline for the military-led government, which has severed many ties with Western allies and pivoted toward Russia for security and economic cooperation.
The junta revised the country’s mining code in 2023 to capture higher royalties during gold booms and reduce foreign dominance in the sector.
Canadian and European firms have exited in recent years, citing rising operational risks, while Russia’s Nordgold recently secured a new license. With global gold prices at record highs, Burkina Faso hopes the mining resurgence will help stabilize its fragile economy and fund its fight against Islamist insurgents.
With these significant increase Burkina might be on its way to the top list of African countries especially after exiting Ecowas!.
