Africa-Press. The government of Burkina Faso has issued a decree to establish the Burkina Faso Sovereign Fund for Investment in Mining (FSMIB). The Minister of Economy and Finance, Aboubakar Nakanabo, who announced the creation of the fund, stated that the fund, named “Sinyan-Sigi,” aims to utilize a portion of the exceptional revenues generated from the historic rise in gold prices to finance infrastructure and industrial projects.
The minister explained that the government approved the establishment of the fund during a cabinet meeting following the sharp increase in global gold prices. Authorities noted that the price of the precious metal has recently surpassed the threshold of $4,000 per ounce, or approximately 78,000 West African francs per gram, leading to significant additional mining revenues for the country.
According to the minister, the government believes that the country previously lacked any specific mechanism to collect and sustainably manage these excess revenues or to create savings for future generations.
Minister Aboubakar Nakanabo was quoted as saying, “The adoption of this decree allows for the establishment of a sovereign fund for mining, funded by the additional resources generated from mining activities.” He clarified that the fund will be financed by additional revenues from mining exports that exceed a benchmark set by the country.
The proposed fund is intended to serve as a special purpose account to finance strategic investments, particularly in infrastructure and national industry, with the first projects expected to commence in 2027.
Authorities also stated that this mechanism aims to enhance the financial sovereignty of Burkina Faso and improve its sovereign credit rating by transforming mining revenues into a tool for sustainable development.
