Burkina Faso Says It Has Earned 18b From Gold Since Traore Took Power
Since Captain Ibrahim Traoré seized power in a 2022 coup, Burkina Faso has seen a dramatic transformation in how it manages its gold industry. Under previous governments, the country typically earned just around $1 billion annually from gold produced by foreign mining firms. But now, Traoré’s administration says it has secured a staggering $18 billion in gold revenue since he took office.
What’s Behind the Boost?
Resource nationalism: Traoré has renegotiated mining contracts and nationalized key operations, dramatically reshaping the sector toward national control.
Higher government share: Under revised mining laws passed in mid-2024, the state’s royalty and profit shares have increased—moving away from deals structured under previous regimes.
Local processing: In late 2023, the government greenlit the construction of Burkina Faso’s first gold refinery, enabling the nation to process gold domestically instead of exporting it raw.
Artisanal reform: Small-scale miners are now more tightly regulated, helping combat smuggling and ensure revenues flow more directly to state coffers.
What Does $18 Billion Mean?
This revenue influx has empowered the government to:
- Ramp up public investment—building roads, hospitals, schools, and processing plants for agriculture and cotton .
- Clear external debt (estimated at around $4.7 billion).
- Bolster gold reserves and strengthen the CFA‑franc’s credibility.
Remaining Challenges
Security risks: Jihadist violence and instability have disrupted mining, lowering output from about 64 tonnes in 2021 to roughly 57 tonnes in 2023.
Investor reactions: Some Western firms have exited amid nationalization and security concerns, while Burkina Faso welcomes new partnerships—particularly with Russia’s Nordgold.
Sustainability concerns: Environmental impacts from expanded mining and the equitable use of revenues remain sensitive issues.
What Lies Ahead?
Burkina Faso is betting that this gold-driven strategy will fuel long‑term economic sovereignty and stability. If managed well—with fiscal transparency, security improvements, and environmental safeguards—the gains from this $18 billion windfall could translate into meaningful development and a model for resource-driven growth in West Africa.
