• BOAD releases CFA10 billion ($17.8 million) to support Boungou and Wahgnion gold mines.
• Burkina Faso acquired both mines in 2024 but has struggled to exploit them effectively.
• Authorities aim to boost state revenue by increasing control over gold assets.

The West African Development Bank (BOAD) has approved CFA10 billion in funding to support Burkina Faso’s Boungou and Wahgnion gold mines. The decision, announced on Wednesday, June 25, seeks to finance strategic investments that will enhance the operational capacity of the two mines, which were acquired by the Burkinabe government in 2024.

According to BOAD’s statement, the funds will help strengthen and increase the operational capacity of the Boungou and Wahgnion sites. However, the bank and government officials have yet to disclose details regarding the duration of the planned works or the expected level of gold production once the upgrades are completed.

The two mines were previously owned by Endeavour Mining, which sold them to Lilium Mining before Burkina Faso’s state acquisition. In 2022, Boungou produced 116,000 ounces of gold, while Wahgnion yielded 124,000 ounces, highlighting their strategic importance for the country’s mining sector.

Despite the potential, Prime Minister Jean Emmanuel Ouédraogo recently admitted that the government has “not yet truly reached cruising speed” in exploiting these assets. This delay underscores the challenges faced by Ouagadougou in ramping up production to secure higher revenues.

To manage these mines, the government relies on the Société de Participation Minière du Burkina (SOPAMIB), headed by economist Lamissa Barro. SOPAMIB was established to give the state a greater stake in gold revenues, aligning with Burkina Faso’s broader strategy to assert more control over its natural resources.

While BOAD’s financial support is a significant step toward revitalizing the mines, uncertainties remain over whether this one-off disbursement will cover the full scope of investment needs. The long-term success of the projects will depend on the government’s ability to secure sustainable funding streams to maintain and develop mining operations.

Additionally, Burkina Faso is obligated to pay $90 million to Endeavour Mining as part of the acquisition deal.

Emiliano Tossou