COUNTRY COMMERCIAL GUIDE\
BURKINA FASO\
Fiscal Year 2004\
\
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT\
OF STATE,2003. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.

COUNTRY COMMERCIAL GUIDES CAN BE ORDERED IN HARD COY OR ON DISKETTE FROM
THE NATIONAL TECHNICAL INFORMATION SERVICE (NTIS) AT 1-800-553-NTIS.
U.S. EXPORTERS SEEKING GENERAL EXPORT INFORMATION AND ASSISTANCE OR
COUNTRY-SPECIFIC COMMERCIAL INFORMATION SHOULD CONSULT WITH THEIR
NEAREST EXPORT ASSISTANCE CENTER OR THE U.S. DEPARMENT OF COMMERCE'S
TRADE INFORMATION CENTER AT (800) USA-TRADE, OR GO TO ONE OF THE
FOLLOWING WEB SITES:

[WWW.BUYUSA.COM](http://WWW.BUYUSA.COM/)

[WWW.EXPORT.GOV](http://WWW.EXPORT.GOV/)

[WWW.TRADEINFO.DOC.GOV](http://WWW.TRADEINFO.DOC.GOV/)

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
TABLE OF CONTENTS\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 1: EXECUTIVE SUMMARY\
CHAPTER 2: ECONOMIC TRENDS AND OUTLOOK\
CHAPTER 3: POLITICAL ENVIRONMENT\
CHAPTER 4: MARKETING U.S. PRODUCTS AND SERVICES\
CHAPTER 5: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT\
CHAPTER 6: TRADE REGULATIONS, CUSTOMS, AND STANDARDS\
CHAPTER 7: INVESTMENT CLIMATE\
CHAPTER 8: TRADE AND PROJECT FINANCING\
CHAPTER 9: BUSINESS TRAVEL\
CHAPTER :10 ECONOMIC AND TRADE STATISTICS

CHAPTER 11: U.S. AND COUNTRY CONTACTS

CHAPTER 12: MARKET RESEARCH

CHAPTER 13: TRADE EVENT SCHEDULE\
\
\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
**CHAPTER 1: EXECUTIVE SUMMARY**\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
\
\
2. OVERVIEW: BURKINA FASO IS A SMALL MARKET WITH A LOW PER CAPITA INCOME
AND\
A RELIANCE ON SUBSISTENCE-STYLE AGRICULTURE. NEVERTHELESS, THE PROSPECTS
FOR\
U.S. TRADE AND INVESTMENT OPPORTUNITIES ARE GOOD. BURKINA HAS PURSUED A
WORLD\
BANK/INTERNATIONAL MONETARY FUND STRUCTURAL ADJUSTMENT PROGRAM (SAP)
SINCE\
1991. THE PUBLIC SECTOR IS BEING STREAMLINED, PRIVATIZATION IS
CONTINUING,\
MOST TRADE BARRIERS HAVE BEEN LIFTED, AND PRICES LIBERALIZED.\
\
3. COMMERCIAL ENVIRONMENT: BURKINA FASO\'S LIMITED MARKET IS OFFSET BY A
STABLE\
COMMERCIAL ENVIRONMENT AND THE POTENTIAL TO EXPLOIT THE LARGER WEST
AFRICAN\
FRANCOPHONE MARKET. BURKINA IS A MEMBER OF THE WEST AFRICAN MONETARY
AND\
ECONOMIC UNION (UEMOA), AND ITS CURRENCY IS THE COMMUNITY OF FRANCOPHONE
AFRICA\
FRANC (CFAF). THE CFAF IS BACKED BY THE FRENCH TREASURY, TRADES AT A
FIXED\
RATE WITH THE FRENCH FRANC, AND IS FULLY CONVERTIBLE. IN JANUARY, 1994,
THE\
CFAF WAS DEVALUED BY 50 PERCENT, MAKING U.S. EXPORTS\
MORE COMPETITIVE WITH THEIR FRENCH COUNTERPARTS WHICH TRADITIONALLY
DOMINATE\
THE MARKET.

BECAUSE BURKINA FASO IS A LANDLOCKED COUNTRY, IT IS GREATLY AFFECTED BY
THE POLITICS OF ITS NEIGHBORS. THE\
COUNTRY IS CONNECTED BY RAIL TO ABIDJAN, A MODERN PORT CITY AND CAPITAL
OF THE\
REGION\'S ECONOMIC \"ELEPHANT\" - COTE D\'IVOIRE. THE RAILWAY HAS BEEN
CLOSED, HOWEVER, SINCE THE BEGINNING OF THE MILITARY REBELLION IN CÔTE
D'IVOIRE IN SEPTEMBER 2002. THE CRISIS IN CÔTE D'IVOIRE HAS HAD A SEVERE
IMPACT ON THE BURKINA ECONOMY DUE TO THE CLOSURE OF THE RAILWAY AS WELL
AS THE DELAY IN PAYMENT OF REMITTANCES FROM THE ESTIMATED 4 MILLION
BURKINABE THAT LIVE AND WORK IN THE BURKINA NEIGHBOR. THE BORDER BETWEEN
THE TWO COUNTRIES HAS BEEN CLOSED BY THE BURKINA GOVERNMENT SINCE THE
OUTBREAK OF HOSTILITIES AND THE GOVERNMENT REMAINS RELUCTANT TO REOPEN
THE BORDER. THE GOVERNMENT HAS SET A DATE OF AUGUST 12, 2003 TO REOPEN
THE BORDER, BUT THEY HAVE MOVED THE DATE BACK NUMEROUS TIMES.

THE PRESIDENT OF BURKINA FASO\
HAS BEEN IN POWER SINCE 1987 AND HAS MOVED THE COUNTRY THROUGH SEVERAL
STEPS OF\
A DEMOCRATIZATION PROCESS. OFFICIAL RELATIONS BETWEEN THE U.S. AND
BURKINA ARE\
VERY GOOD.\
\
4. BUSINESS OPPORTUNITIES: FOREIGN INVESTMENT IS WELCOME IN BURKINA
FASO.\
INVESTMENT AND MINING CODES PERMIT FULL REPATRIATION OF PROFITS, 100
PERCENT\
OWNERSHIP OF COMPANIES, AND MANY TAX EXEMPTIONS. INVESTORS HAVE SHOWN
MOST\
INTEREST IN THE MINING INDUSTRY (PARTICULARLY THE GOLD SECTOR) SINCE
BURKINA\
LIES BETWEEN THE GOLD-RICH COUNTRIES OF MALI AND GHANA.\
\
COMPETITIVELY-PRICED NECESSITIES SUCH AS GENERIC PHARMACEUTICALS,
MEDICAL\
SUPPLIES AND DAIRY PRODUCTS, ALONG WITH FERTILIZERS AND CHEMICAL
PRODUCTS ARE\
BEST POISED TO ENTER THE POST DEVALUATION MARKET. TELECOMMUNICATIONS,
COMPUTER\
EQUIPMENT, NEW AND USED CLOTHING ARE U.S. EXPORTS WHICH ALREADY CAPTURE
A\
SIGNIFICANT MARKET SHARE.\
\
\
\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
**CHAPTER 2: ECONOMIC TRENDS AND OUTLOOK\
**\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
**MAJOR TRENDS AND OUTLOOK**\
\
BURKINA FASO IS AMONG THE POOREST COUNTRIES IN THE WORLD. IT IS A
SMALL,\
LANDLOCKED COUNTRY, AND APPROXIMATELY 83 PERCENT OF ITS 12 MILLION
PEOPLE\
LIVE IN RURAL AREAS. THE AVERAGE PER CAPITA INCOME IN 2003 WAS USD 239.
MORE THAN 90 PERCENT OF ITS WORKERS EARN A LIVING\
FROM SUBSISTENCE AGRICULTURE.

REAL GDP GROWTH WAS 7.6 PERCENT IN 2001 WHICH WAS SOMEWHAT HIGHER THAN
PREVIOUSLY PROJECTED. THE RECORD COTTON PRODUCTION RESULTED IN THE
PRIMARY SECTORS GROWING BY 7.1 PERCENT, WITH MORE MODEST GROWTH IN THE
SECONDARY AND TERIARY SECTORS, OR 3.3 PERCENT AND 4.6 PERCENT,
RESPECTIVELY. INFLATION REMAINED SUBDUED, WITH THE YEAR-ON-YEAR CONSUMER
PRICE INDEX INCREASING BY 1.7 PERCENT IN JULY 2002. THE REAL EFFECTIVE
EXCHANGE RATE HAS APPRECIATED CONSIDERABLE, MAINLY DUE TO THE WEAKENING
OF THE U.S. DOLLAR AGAINST THE EURO, TO WHICH THE CFA FRANC IS PEGGED.\
\
\
\
SOME NEW INVESTMENT HAS BEGUN TO GRAVITATE TOWARD BURKINA\'S\
MINING SECTOR (GOLD, MANGANESE, ZINC). OTHER SECTORS HAVE YET TO SEE
NOTABLE\
GROWTH AS INVESTORS WAIT FOR MORE DEFINITE SIGNS OF SUCCESS IN THE
ADJUSTMENT\
PROCESS.\
\
**PRINCIPAL GROWTH SECTORS**\
\
BURKINA\'S ECONOMY IS DOMINATED BY THE PRIMARY SECTOR (AGRICULTURE,
LIVESTOCK,\
POULTRY, AND PISCICULTURE), ACCOUNTING FOR 32% OF GDP. ECONOMIC REFORMS
HAVE BOOSTED EXPORT VALUES.\
BURKINA\'S SECONDARY SECTOR INCLUDES MINING AND INDUSTRY. AND REPRESENTS
APPROXIMATELY 19 PERCENT OF GDP. SIGNIFICANT POTENTIAL FOR PROFIT IN
MINERAL EXPLOITATION EXISTS\
WITH GOLD EXPORTS INCREASING ANNUALLY 30 PERCENT; U.S., CANADIAN,
AUSTRALIAN\
AND AFRICAN COMPANIES ARE PRESENT IN THIS EXPANDING MARKET.\
\
FINALLY, THE TERTIARY SECTOR, COMPRISING 49% OF GDP\
, IS POISED FOR GROWTH. THIS SECTOR IS DOMINATED BY THE SO-CALLED\
\"INFORMAL SECTOR\" (70 PERCENT) WHICH CONSISTS MAINLY OF FABRIC,
STATIONARY,\
HOUSEHOLD GOODS, HARDWARE AND CONSUMABLE VENDORS. STRUCTURAL ADJUSTMENT\
PROGRAMS HAVE TARGETED THE TYPICALLY SMALL, MEDIUM, AND MICRO-SIZE
ENTERPRISES\
OF THIS SECTOR CALLING FOR THE EASING OF REGISTRATION REGULATIONS AND
CREDIT\
DIRECTED PROGRAMS.\
\
**GOVERNMENT ROLE IN THE ECONOMY**\
\
THE BURKINABE GOVERNMENT IS ENCOURAGING PRIVATE SECTOR GROWTH. THE
CABINET\
CONTAINS SEVERAL KEY MINISTERS, INCLUDING THE PRIME MINISTER, WITH
BACKGROUNDS\
IN FINANCE AND COMMERCE.\
\
BURKINA\'S SAP AND ENHANCED STRUCTURAL ADJUSTMENT FACILITY (ESAF) ARE\
EFFECTIVELY LIBERALIZING THE PREVIOUSLY STATE-CONTROLLED ECONOMY. PRICES
HAVE\
BEEN FREED UP, AND THE PUBLIC SECTOR HAS BEEN RESTRUCTURED. MANY\
STATE ENTERPRISES HAVE BEEN PRIVATIZED PRIVATIZED, AMONG THEM, CIMAT,
BURKINA\'S CEMENT FACTORY\
SOLD TO A SWISS/SPANISH INTEREST INITIALLY AND NOW OWNED BY AN INDIAN
FIRM , SONAR, THE NATIONAL INSURANCE AGENCY SOLD\
TO A BURKINABE. MANY OTHER FORMER STATE ENTERPRISES REMAIN AS PARASTATAL
COMPANIES THAT ARE ON THE ROAD TO PRIVATIZATION. AMONG THESE IS ONATEL,
THE TELECOMMUNICATIONS PARASTATAL WHOSE FINALIZED PRIVATIZATION
OWNERSHIP BREAKDOWN WILL BE:

34%\--STRATEGIC PRIVATE SECTOR PARTNER

10 %\--ONATEL EMPLOYEES

16%\--BURKINABE AND REGIONAL PRIVATE INVESTORS

40%\--THE GOVERNMENT OF BURKINA FASO

EVEN AFTER PRIVATIZATION, ONATEL WILL REMAIN LARGELY OWNED BY THE
BURKINA FASO GOVERNMENT. THE SAME IS TRUE FOR THE BURKINABE COTTON
PARASTATAL MONOPOLY SOFITEX WHICH IS DUE FOR A "PARTIAL PRIVATIZATION"
BY THE END OF 2003.\
\
**BALANCE OF PAYMENTS SITUATION**\
\
BURKINA FASO SUFFERS FROM A CHRONIC TRADE IMBALANCE BECAUSE IT IMPORTS
MOST OF\
ITS CONSUMER AND MANUFACTURED GOODS AND EQUIPMENT.BURKINA\'S MOST
IMPORTANT\
TRADING PARTNER IS FRANCE, BUT IT ALSO IMPORTS GOODS FROM COTE
D\'IVOIRE,\
NIGERIA, THE UNITED STATES, JAPAN, GERMANY, THE NETHERLANDS, AND TAIWAN.
SINCE THE BEGINNING OF THE CRISIS IN COTE D'IVOIRE, BURKINA FASO HAS
BEGUN IMPORTING MORE FOOD AND MANUFACTURED GOODS FROM GHANA. THE
QUESTION IS WHETHER OR NOT THE TRADE WITH GHANA WILL REMAIN AT ITS
CRISIS LEVEL AFTER THE BORDER WITH COTE D'IVOIRE REOPENS.BURKINA FASO\'S
PRINCIPAL EXPORTS ARE COTTON, GOLD, AND LIVESTOCK.\
\
DESPITE ITS TRADE IMBALANCES, ADJUSTMENT PROGRAMS HAVE HELPED CUT THE
BALANCE\
OF PAYMENTS. WHILE THE INFLOW OF UNILATERAL TRANSFERS HAS HELPED SETTLE\
INTERNAL AND EXTERNAL ARREARS.\
\
**INFRASTRUCTURE SITUATION**\
\
BURKINA FASO OFFERS A LIMITED BUT GOOD INFRASTRUCTURE, INCLUDING ABOUT
375\
MILES OF RAILWAY AND 7,800 MILES OF ROAD, 14 PERCENT OF WHICH ARE PAVED.
THE\
TRAIN SYSTEM IS IMPROVING SERVICE AFTER YEARS OF NEGLECT. OUAGADOUGOU IS
LINKED\
BY PAVED ROAD AND RAIL TO BOBO-DIOULASSO (BURKINA FASO\'S SECOND LARGEST
CITY\
AND A KEY COMMERCIAL CENTER) AND ABIDJAN (COTE D\'IVOIRE). ABIDJAN AND
LOME\
(TOGO) ARE THE TWO MAJOR PORTS USED FOR BULK IMPORTS AND EXPORTS.\
\
INTERNATIONAL FREIGHT FORWARDERS AND EXPRESS MAILING AGENCIES ARE ALSO\
AVAILABLE. INTERNATIONAL AIR SERVICE IS PROVIDED BY, AIR FRANCE (\
WHICH MAINTAINS A CODE SHARE ARRANGEMENT WITH A VARIETY OF U.S.
AIRLINES). AIR IVOIRE, AIR BURKINA, FASO AIRWAYS, CAMEROON AIRLINES, AND
GHANA AIRWAYS PROVIDE OTHER SERVICE, PRIMARILY TO THE CAPITALS OF MOST
OF BURKINA\'S\
NEIGHBORS.\
\
BURKINA FASO OFFERS EXPENSIVE BUT RELIABLE DIRECT-DIAL SATELLITE\
TELECOMMUNICATIONS TO EUROPE AND AMERICA. ELECTRICITY IS ALSO EXPENSIVE
AND\
OCCASIONAL SHORTAGES OCCUR AT PEAK HOURS, ESPECIALLY BETWEEN MARCH AND
JUNE.\
IN 1997, A USD 4.6 MILLION CELLULAR PHONE SYSTEM WAS INSTALLED IN
OUAGADOUGOU\
BY A U.S. FIRM.\
\
TRADE AND BUSINESS ASSOCIATIONS AND UNIONS PROVIDE LOGISTICAL SUPPORT
TO\
BUSINESSES. BURKINA FASO HAS A FIRST-CLASS HOTEL CALLED THE SILMANDE,
AND\
SEVERAL SMALLER HOTELS WITH FACILITIES AND ACCOMMODATIONS FOR BUSINESS\
ACTIVITIES. CONFERENCE ROOMS, SMALL MEETING ROOMS AND RECEPTION ROOMS.
SPACE\
FOR COMMERCIAL EXHIBITIONS, SECRETARIAL SUPPORT, AND CAR RENTAL SERVICES
ARE\
AVAILABLE. THE CHAMBER OF COMMERCE ALSO OFFERS FACILITIES FOR BUSINESS\
MEETINGS.\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 3: POLITICAL ENVIRONMENT\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
**NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES**\
\
RELATIONS BETWEEN BURKINA FASO AND THE UNITED STATES ARE GENERALLY GOOD,
HAVING\
STEADILY IMPROVED AFTER THE LEFTIST REVOLUTIONARY PERIOD OF 1983-87. THE
GOVERNMENT OF BURKINA FASO HAS SHOWN SOLID PROGRESS TOWARD DEMOCRATIC\
REFORM AND INDIVIDUAL LIBERTIES. LEGISLATIVE ELECTIONS WERE HELD IN
BURKINA FASO ON MAY 5, 2002. FOR THE FIRST TIME, ALL OPPOSITION PARTIES
PARTICIPATED IN THE ELECTIONS, WHICH WERE JUDGED TO BE FAIR BY
INTERNATIONAL OBSERVERS. THE RULING PARTY, THE CONGRESS FOR DEMOCRACY
AND PROGRESS (CDP), WON 57 SEATS OUT OF THE 111 SEATS IN PARLIAMENT. THE
REMAINING SEATS WENT TO REPRESENTATIVES OF 13 DIFFERENT PARTIES. THE
MOST RECENT PRESIDENTIAL ELECTION WAS HELD IN 1998 WITH PRESIDENT BLAISE
COMPAORE WINNING A SEVEN YEAR TERM. THE CONSTITUTION WAS AMENDED IN 2000
TO LIMIT THE PRESIDENTIAL TERM TO FIVE YEARS WITH THE NEXT PRESIDENTIAL
ELECTION TO OCCUR IN 2005. MOST OBSERVERS BELIEVE THAT THE 2005
PRESIDENTIAL ELECTION WILL BE THE TRUE TEST OF BURKINA FASO'S COMMITMENT
TO DEMOCRACY. QUESTIONS ABOUND ABOUT PRESIDENT COMPAORE'S PLANS IF HE
WINS THE 2005 ELECTION BUT CANNOT RUN FOR ANOTHER TERM, AS STIPULATED IN
THE CONSTITUTION. BURKINA\'S GOVERNMENT HAS PLAYED A MORE\
CONSTRUCTIVE ROLE IN RESOLVING REGIONAL CONFLICTS, SUPPLYING
PEACEKEEPERS IN\
LIBERIA AND BROKERING AGREEMENTS INCLUDING AN END TO THE REGION\'S
TUAREG CRISIS.\
\
\
THE U.S. PROVIDES HUMANITARIAN ASSISTANCE TO BURKINA WITH FOOD AND
MODEST\
LEVELS OF REGIONAL AND BILATERAL DEVELOPMENT ASSISTANCE. IN 1995, THE
USAID\
IN-COUNTRY MISSION CLOSED, AND PEACE CORPS VOLUNTEERS RETURNED AFTER AN\
EIGHT-YEAR ABSENCE.PEACE CORPS VOLUNTEERS WORK IN HEALTH AND\
SANITARY SECTORS AS WELL AS EDUCATION PROGRAMS.\
\
**MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE**\
\
BURKINA FASO CONTINUES TO UNDERGO DEMOCRATIZATION AND DECENTRALIZATION
UNDER THE\
LEADERSHIP OF PRESIDENT BLAISE COMPAORE, WHO HAS BEEN IN POWER SINCE
1987.\
\
THE RULING PARTY, THE CDP, CLAIMS POPULIST IDEALS BUT\
CALLS FOR FREE ENTERPRISE ON THE ECONOMIC FRONT. THE OPPOSITION TO THE
CDP HAS BEEN GROWING IN STRENGTH BUT REMAINS FRAGMENTED AS WITNESSED BY
THE 2002 PARLIAMENTARY ELECTIONS. RECENTLY THE MAJOR OPPOSITION PARTY
SPLIT LEAVING QUESTIONS ABOUT THE VIABILITY OF A UNIFIED AND UNCOOPTED
OPPOSITION FOR THE 2005 PRESIDENTIAL ELECTION.\
BURKINA\'S COMMERCIAL VIABILITY IS LINKED TO THE STABILITY OF ITS
NEIGHBORS.\
THE PORTS OF ABIDJAN (COTE D\'IVOIRE) AND LOME (TOGO) SERVE AS KEY
SHIPPING\
POINTS FOR BURKINA\'S IMPORTS/EXPORTS, WITH LOME GROWING IN IMPORTANCE
SINCE THE BEGINNING OF THE CRISIS IN COTE D'IVOIRE. TOGO\'S\
PRESIDENT IS BACKED BY THE MILITARY AND DOMINATES POWER. BURKINA\'S
CHAMBER OF\
COMMERCE HAS RECENTLY SOUGHT TO DIVERSIFY ITS PORT ACCESS BY OPENING
BRANCHES\
IN THE PORT CITIES OF COTONOU (BENIN) AND TEMA (GHANA).\
\
SINCE THE COUP D\'ETAT WHICH BROUGHT COMPAORE TO POWER, THE COUNTRY HAS
ENJOYED\
POLITICAL STABILITY, WITH THE ADOPTION OF A CONSTITUTION AND REGULAR
ELECTIONS SINCE 1991\
\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 4: MARKETING U.S. PRODUCTS AND SERVICES\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
**DISTRIBUTION AND SALES CHANNELS**\
\
DISTRIBUTION AND SALES CHANNELS ARE CONCENTRATED IN BURKINA\'S TWO
LARGEST\
CITIES - OUAGADOUGOU (ALMOST A MILLION INHABITANTS) AND BOBO-DIOULASSO\
(450,000). SECONDARY URBAN AREAS COULD BE CONSIDERED FOR DISTRIBUTION
OF\
CONSUMABLES SUCH AS DAIRY PRODUCTS, EDIBLE OIL, AND BATTERIES, ALTHOUGH
THEY\
ARE ALREADY WELL SERVED BY THE COUNTRY\'S TWO LARGEST CITIES. MAIN
COMMERCIAL\
BANKS AND INSURANCE SERVICES HAVE BRANCHES IN SECONDARY URBAN AREAS
WHICH ARE\
LINKED TO OUAGADOUGOU AND BOBO-DIOULASSO BY PAVED ROADS OR PARTIALLY
PAVED\
ROADS. DISTRIBUTION AND SALES ENTITIES OPERATE UNDER VARIOUS FORMS,
RANGING\
FROM MODERN MINI-MARKETS, SHOPS, AND WAREHOUSES TO INFORMAL SECTOR
MARKET\
STANDS.\
\
**USE OF AGENTS AND DISTRIBUTORS/FINDING A PARTNER**\
\
THERE IS NO LAW IN BURKINA FASO REQUIRING RETENTION OF AN
AGENT/DISTRIBUTOR,\
BUT THIS IS ADVISABLE. SELECTING A CAPABLE LOCAL AGENT COULD BE CRITICAL
TO\
THE SUCCESSFUL INTRODUCTION OF U.S. PRODUCTS INTO A MARKET DOMINATED BY
FRENCH\
GOODS.\
\
THERE ARE A LIMITED NUMBER OF BUSINESSMEN IN BURKINA WITH THE PRACTICAL\
EXPERIENCE AND FINANCIAL CAPACITY NECESSARY TO FORM A PARTNERSHIP WITH A
U.S.\
FIRM. MOST ARE ACTIVE IN IMPORT-SUBSTITUTION INDUSTRY OR COMMERCE.\
\
**FRANCHISING**\
\
FRANCHISING IS NOT YET AN ASSIMILATED DISTRIBUTION TECHNIQUE. LOCAL\
BUSINESSMEN USUALLY ASK FOR AN EXCLUSIVE AGENT DISTRIBUTOR CONTRACT.\
\
**DIRECT MARKETING**\
\
DIRECT MARKETING IS A POSSIBLE TOOL, ESPECIALLY FOR SELLING TO
WHOLESALERS\
(E.G. PHARMACEUTICAL), BUT IT IS USED INFREQUENTLY IN BURKINA. IN THE
CASE OF\
FOREIGN PARTY BIDS, A COMPETING U.S. FIRM SHOULD HIRE A LOCAL CONTACT
FOR\
DIRECT FOLLOW UP.\
\
**JOINT VENTURES/LICENSING**\
\
THERE ARE SEVERAL BURKINABE JOINT VENTURES IN THE MINING SECTOR
INVOLVING\
PARTLY-OWNED U.S. COMPANIES. MOREOVER, THE BURKINABE BUSINESS COMMUNITY
IS\
OPEN TO JOINT VENTURES IN THE FOOD PROCESSING, CONSTRUCTION, TOURISM,
BEAUTY\
SUPPLIES AND COSMETICS INDUSTRIES.\
\
**ADVERTISING AND TRADE PROMOTION**\
\
ADVERTISEMENTS CAN BE PLACED DIRECTLY THROUGH LOCAL NEWSPAPERS OR
THROUGH\
ADVERTISING AGENCIES. OUAGADOUGOU\'S DAILY PAPERS ARE LISTED BELOW. FOR
A MORE\
COMPLETE LIST, PLEASE CONTACT THE AMERICAN EMBASSY IN OUAGADOUGOU.\
\
**DAILY NEWSPAPERS:**\
\
L\'OBSERVATEUR PAALGA\
01 B.P. 584 OUAGADOUGOU 01\
BURKINA FASO\
TEL:(226) 33 27 05, FAX: (226) 31 45 79

E-MAIL : <lobs@fasonet.bf>

WEBSITE : [http://www.lobservateur.bf](http://www.lobservateur.bf/)

LE PAYS\
01 BP 4577 OUAGADOUGOU 01\
BURKINA FASO\
TEL: (226) 31 35 --46, FAX: (226) 31 45 --50

E-MAIL : <ed.lepays@cenatrin.bf>

WEBSITE : [http://www.lepays.bf](http://www.lepays.bf/)

SIDWAYA

01 BP: 507 OUAGADOUGOU 01

BURKINA FASO

TEL: (226) 30 63 06/07, FAX: (226) 31 03 62

E-MAIL: <sidwaya@mcc.gov.bf>

WEBSITE : [http://www.sidwaya.bf](http://www.sidwaya.bf/)

THERE IS A SMALL BUT DYNAMIC AND EXPERIENCED STAFF AT BURKINA\'S CHAMBER
OF\
COMMERCE. THEY CONDUCT FEASIBILITY STUDIES AND TRAINING, DEVELOP
BUSINESS\
LINKS, AND ORGANIZE PARTICIPATION IN TRADE SHOWS. THE OFFICE ALSO ACTS
AS A\
BRIDGE BETWEEN GOVERNMENT AUTHORITIES AND BUSINESS ASSOCIATIONS.
MATTERS\
REGARDING INVESTMENTS, IMPORT-EXPORT REGULATIONS, AND PROCEDURES ARE
HANDLED BY\
AN OFFICE IN THE MINISTRY OF COMMERCE, INDUSTRY AND CRAFTS. QUESTIONS
MAY BE\
ADDRESSED TO:\
\
DIRECTION GENERALE DE LA PROMOTION ECONOMIQUE\
01 B.P. 258 OUAGADOUGOU 01\
BURKINA FASO\
TEL:(226) 30.73.42/07 FAX: (226) 30.73.05\
\
THE NATIONAL OFFICE OF EXTERNAL TRADE (ONAC) PROMOTES BURKINABE EXPORT
PRODUCTS\
AND THE COUNTRY\'S PARTICIPATION IN TRADE FAIRS, INCLUDING ITS OWN WELL
ATTENDED\
INTERNATIONAL ARTISANAL SALON OF OUAGADOUGOU (SIAO) WHICH IS HELDIN
OCTOBER OFEVEN-NUMBERED YEARS. INTERESTED BUSINESSES ARE ENCOURAGED TO
CONTACT:\
\
MR. HAMANDÉ OUÉDRAOGO\
DIRECTOR GENERAL\
CHAMBRE DE COMMERCE, D\'INDUSTRIE ET D\'ARTISANAT\
01 B.P. 502 OUAGADOUGOU 01\
BURKINA FASO\
TEL: (226) 31.12.66/67, FAX: (226) 30.61.16,\
TELEX: 5268 BF\
\
\
**PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT**\
\
BURKINA FASO BELONGS TO THE AFRICAN INTELLECTUAL PROPERTY ORGANIZATION
(OAPI)\
AND THE WORLD INTELLECTUAL PROPERTY ORGANIZATION WHICH OFFICIALLY
PROTECT\
MEMBERS\' TRADEMARKS, PATENTS, AND INDUSTRIAL DESIGNS.\
\
INVENTION PATENTS ARE VALID IN MEMBER COUNTRIES FOR 20 YEARS WITH
LICENSING\
POSSIBLE THREE YEARS AFTER ISSUANCE OF THE PATENT. TRADEMARK RIGHTS ARE
VALID\
FOR 20 YEARS AND ARE RENEWABLE.\
\
**NEED FOR A LOCAL ATTORNEY**\
\
A LOCAL ATTORNEY AND/OR NOTARY MAY BE REQUIRED TO SECURE OR CLOSE A
CONTRACT.\
THERE ARE ABOUT 30 PRACTICING LAW FIRMS AND EIGHT NOTARIES PUBLIC
REGISTERED IN\
BURKINA FASO. THE EMBASSY CONSULAR SECTION MAINTAINS A LIST OF
REGISTERED\
LAWYERS WHO HAVE INDICATED THEY WILL WORK WITH AMERICAN CLIENTS.\
\
MOST LAWYERS DO NOT SPEAK ENGLISH BUT TRANSLATION SERVICES ARE
AVAILABLE. UPON\
REQUEST, THE EMBASSY CAN PROVIDE THE NAMES AND ADDRESSES OF THE MOST\
EXPERIENCED BOOKKEEPERS, NOTARIES PUBLIC, ENGINEERING CONSULTING
OFFICES, AND\
TRANSLATION SERVICES. SUCH INQUIRIES SHOULD BE ADDRESSED TO THE
COMMERCIAL\
ASSISTANT.\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 5: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
THE MODEST BUT INCREASING SHARE OF THE BURKINABE IMPORT MARKET CAPTURED
BY U.S.\
FIRMS IS PROOF OF THE COUNTRY\'S RECEPTIVE ATTITUDE TOWARD U.S.
PRODUCTS. THE BURKINABE ARE MORE AND MORE INTRIGUED BY U.S. PRODUCTS. IN
ADDITION, MERCHANTS ARE BECOMING MORE INTERESTED IN DIVERSIFYING THEIR
PRODUCT SOURCES WHICH COULD OPEN UP OPPORTUNITIES FOR U.S. SUPPLIERS.\
NEW OPPORTUNITIES FOR U.S. AND OTHER\
FOREIGN FIRMS EXIST AS SOME PRODUCT PRICES HAVE BECOME COMPETITIVE WITH
FRENCH\
PRODUCTS THAT DOMINATE THE BURKINABE MARKET. THESE INCLUDE ESSENTIAL
GENERIC\
PHARMACEUTICAL, HEAVY WORKS CONTRACTS, AND CONSULTANT SERVICES. THE\
TELECOMMUNICATIONS, NEW AND USEDCLOTHING, AND COMPUTER MARKET HAVE
OFFERED\
OPPORTUNITIES AND CONTINUE TO OFFER THESE TO U.S. VENDORS.\
\
**BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES**\
\
THE BEST PROSPECTS FOR NONAGRICULTURAL GOODS AND SERVICES INCLUDE:\
\
- TELECOMMUNICATIONS EQUIPMENT: THE TELECOMMUNICATIONS FIELD REMAINS
PERHAPS\
THE BEST TRADE PROSPECT FOR U.S. FIRMS. SINCE THE LATE 1980S, U.S. FIRMS
HAVE\
SUPPLIED BURKINA FASO\'S NATIONAL TELEPHONE COMPANY (ONATEL) WITH\
TELECOMMUNICATIONS EQUIPMENT. BURKINA\'S NATIONAL OFFICE OF
TELECOMMUNICATIONS\
MANAGES PROJECTS AIMED AT INCREASING BURKINA\'S TELEPHONE NETWORK. THE
U.S.\
RANKED AS BURKINA\'S FIRST TELECOMMUNICATIONS EQUIPMENT SUPPLIER IN 1996
WITH\
SALES OF OVER USD 2 MILLION, CLOSELY FOLLOWED BY THE FRENCH AT USD 1.5
MILLION.\
IN 1997, A USD 4.6 MILLION CELLULAR TELEPHONE SYSTEM WAS INSTALLED IN\
OUAGADOUGOU BY AN AMERICAN COMPANY.\
\
FRANCE MAINTAINS STRONG ECONOMIC AND HISTORICAL TIES TO BURKINA FASO
ALONG WITH\
PROVIDING FLEXIBILITY AND DIVERSITY IN THEIR FINANCING SOURCES, NOTABLY
THEIR\
CONCESSIONARY CREDITS TO ONATEL THROUGH THE BURKINABE GOVERNMENT.\
\
DESPITE THE FLEXIBILITY OF FRENCH FIRMS FINANCIAL RESOURCES, THERE IS A
RENEWED\
AND DEMONSTRATED INTEREST BY THE BURKINABE FOR U.S. MANUFACTURED\
TELECOMMUNICATIONS EQUIPMENT. U.S. FIRMS THAT ARE INTERESTED IN ENTERING
THIS\
MARKET SHOULD CONSIDER POSSIBLE CREDIT FINANCING ARRANGEMENTS AND
APPOINT A\
LOCAL PARTNER/REPRESENTATIVE.\
\
- GENERIC PHARMACEUTICAL: THERE IS A MARKET FOR COMPETITIVELY PRICED
GENERIC\
PHARMACEUTICALS IN BURKINA FASO. FRANCE TRADITIONALLY SUPPLIED
BRAND-NAME\
PHARMACEUTICALS, BUT THE 1994 DEVALUATION SENT THE PRICE OF IMPORTED
DRUGS\
SOARING. BURKINA REACTED BY SUBSTITUTING IMPORTED DRUGS WITH LOCAL,\
TRADITIONAL MEDICINES. PHARMACIES ARE ALLOWED TO SUBSTITUTE BRAND-NAME
GOODS\
WITH GENERIC PRODUCTS, AS LONG AS THE PRODUCT IS CHEAPER AND OF
COMPARABLE\
QUALITY.\
\
BURKINA\'S IMPORTS OF PHARMACEUTICALS AMOUNTED TO 10BILLION CFAF IN 1993
(ABOUT\
USD 35.4 MILLION ) AND 12 MILLION CFAF IN 1994 (USD 21.6 MILLION ). THE
SHARE\
OF GENERICS INCREASED BY 5 PERCENT FROM 1990 TO 1993, 8 PERCENT IN 1994,
12\
PERCENT IN 1995 AND IS EXPECTED TO INCREASE THROUGH 1997.\
\
AS OF 1996, THE U.S. WAS BURKINA\'S FOURTH-RANKING SUPPLIER OF
PHARMACEUTICAL,\
FOLLOWING FRANCE (90 PERCENT OF THE MARKET IN 1996), GERMANY AND
BELGIUM. U.S.\
FIRMS HOPING TO ENTER THIS MARKET SHOULD SATISFY THE FOLLOWING
CONDITIONS:\
REGISTER THEIR PRODUCTS IN THE OFFICIAL NOMENCLATURE, ASSURE\
FRENCH-LABELS/PACKAGING, MAINTAIN OR DEVELOP SALES CHANNELS IN BURKINA
FASO.\
\
- PERSONAL COMPUTERS, ACCESSORIES AND SUPPLIES: DUE TO PRICE ADVANTAGES,
GOOD\
OPPORTUNITIES EXIST FOR U.S. SUPPLIERS OF COMPUTER HARDWARE AND SOFTWARE
AND\
FOR SUPPLIERS OF RELATED PRODUCTS AND ACCESSORIES. THE MARKET REMAINS
SMALL,\
BUT IT IS BEGINNING TO SHOW SIGNS OF EXPANSION. FOR SUPPLIERS WHO CAN
SELL IN\
SMALL QUANTITIES, IT IS DEFINITELY A GOOD PROSPECT.\
\
FRANCE WAS THE LARGEST EXPORTER, IN 1996, WITH 35 PERCENT OF THE
MARKET,\
ALTHOUGH 50 PERCENT OF THAT AMOUNT CONSISTED OF RE-EXPORTED U.S.MADE\
EQUIPMENT. THUS, DIRECT SALES OF U.S. EQUIPMENT BY U.S. FIRMS TO BURKINA
FASO\
ARE ENCOURAGED SINCE FRENCH FIRMS GENERALLY MARK UP THE PRICE OF
RE-EXPORTED\
U.S. EQUIPMENT, MAKING THE GOODS MORE EXPENSIVE FOR THE BURKINABE.\
\
- FERTILIZERS AND CHEMICALS: THERE IS HIGH DEMAND AND STRONG SALES IN
THIS\
MARKET. IN 1996 SALES TO BURKINA FROM COTE D\'IVOIRE WERE (USD 14.2
MILLION),\
FRANCE (USD 3.3 MILLION) AND GERMANY (USD 2.5 MILLION). U.S. COMPANIES
SHOULD\
EXPLORE THIS LUCRATIVE MARKET.\
- HEAVY WORKS CONTRACTS (ROADS, DAM CONSTRUCTION, ELECTRICITY PROJECTS):
THE\
VALUE OF THE HEAVY WORKS CONTRACTS MARKET IS ESTIMATED AT 5 BILLION CFAF
PER\
YEAR (ABOUT USD 9.7 MILLION). GENERALLY LOCAL COMPANIES CONTRACT
ASSISTANCE\
FROM FOREIGN COMPANIES. CONTRACTS ARE MADE THROUGH GOVERNMENT TENDERS.\
\
- USED CLOTHING, FABRIC MATERIAL, AND TEXTILE REMNANTS:\
THE U.S. IS WELL PLACED TO MAINTAIN ITS COMPETITIVE EDGE IN THIS MARKET.
IN\
1996, BELGIUM (USD 1.2 MILLION) AND THE U.S. (USD 1.1 MILLION) WERE THE
MARKET\
LEADERS.\
\
- CONSULTANT SERVICES: THE DEMAND FOR CONSULTANT SERVICES CAN BE
EXPECTED TO\
RISE AS THE STRUCTURAL ADJUSTMENT OF BURKINA\'S ECONOMY WELCOMES
FOREIGN\
INVESTMENT AND MULTILATERAL AID AGENCIES SUCH AS THE WORLD BANK BECOME
MORE\
DISPOSED TO PROJECTS IN BURKINA. (SEE CHAPTER VII - TRADE AND PROJECT
FINANCING\
BELOW) THESE SERVICES INVOLVE PROJECTS RANGING FROM NATURAL RESOURCE\
DEVELOPMENT STUDIES, TO RURAL DEVELOPMENT ISSUES AND MINING SECTOR
STRATEGIES.\
\
FRENCH, DUTCH, AND CANADIAN CONSULTING FIRMS ARE OPERATING IN THIS
MARKET\
THROUGH DIRECT LOCAL BRANCHES AND LOCAL AFFILIATED CONSULTANT
FIRM/INDIVIDUAL\
CONSULTANTS.\
\
\
\
**BEST PROSPECTS FOR AGRICULTURAL PRODUCTS**\
\
EXCELLENT OPPORTUNITIES EXIST FOR U.S. FIRMS TO EXPAND THEIR MARKET
SHARE IN\
THE FOLLOWING COMMODITIES: WHEAT AND WHEAT FLOUR, YELLOW CORN SEMOLINA,
AND\
RICE.\
\
- RICE: EACH YEAR, THE BURKINABE CONSUME MORE THAN 120,000 TONS OF RICE,
OF WHICH 30,000\
TONS ARE LOCALLY CULTIVATED AND 90,000 TONS (VALUED AT ABOUT USD 24
MILLION)\
ARE IMPORTED, MOSTLY FROM THAILAND, PAKISTAN, AND TAIWAN. U.S. FIRMS
WHICH CAN\
SUPPLY RICE FOR POPULAR CONSUMPTION AT COMPETITIVE PRICES MAY SEEK TO
TAP THIS\
MARKET. BURKINA\'S STATE MONOPOLY ON RICE IMPORTS WAS LIBERALIZED IN
OCTOBER\
1996.\
\
LOCAL CULTIVATION OF RICE IS BEING ENCOURAGED BY THE BURKINABE
AUTHORITIES, BUT\
EVEN SO IT WILL REMAIN NECESSARY FOR BURKINA TO IMPORT 50 TO 70,000 TONS
OF\
RICE PER YEAR.\
\
- WHEAT AND WHEAT FLOUR: BURKINA FASO IMPORTS A LARGE QUANTITY OF U.S.
WHEAT\
FLOUR FROM EUROPEAN WHOLESALERS, SO THE DIRECT SALE OF WHEAT BY U.S.
SUPPLIERS\
REPRESENTS ANOTHER OPTION TO BE PURSUED. THE IMPORTATION OF UNPROCESSED
WHEAT\
HAS BEEN LIBERALIZED WITH AN 11-PERCENT TARIFF, BUT A PROHIBITIVE
56-PERCENT\
TARIFF ON PROCESSED WHEAT FLOUR REMAINS. BAKERS BUY MUCH OF THEIR WHEAT
FLOUR\
FROM THE NATIONAL MILLING COMPANY THE \"GRANDS MOULINS DU BURKINA.\"
THIS COMPANY\
IS THE LARGEST IMPORTER OF WHEAT IN BURKINA, BRINGING IN 35,000 TONS PER
YEAR,\
INCLUDING 6000 TONS FROM THE U.S., AND THE REMAINDER FROM EUROPE
(FRANCE). THE\
GRANDS MOULINS DU BURKINA HAS SAID IT IS WILLING TO IMPORT FLOUR FROM
THE U.S.,\
IF IT IS COMPETITIVELY PRICED.\
\
- OTHER CEREALS: CATHOLIC RELIEF SERVICES DISTRIBUTES U.S.-DONATED (P.L.
480\
TITLE II) YELLOW CORN SEMOLINA AS PART OF A NATIONWIDE SCHOOL LUNCH
PROGRAM.\
THIS PRODUCT IS POPULAR IN BURKINA FASO, SUGGESTING ROOM FOR
ESTABLISHING A\
PRIVATE MARKET.\
\
- DAIRY PRODUCTS (MILK, BUTTER, AND CHEESE): THE NETHERLANDS AND FRANCE\
DOMINATE THE MARKET CONTROLLING 41.6 PERCENT AND 25 PERCENT
RESPECTIVELY.\
HOWEVER, RELATIVELY FEW BRANDS OF BUTTER OR MILK PRODUCTS ARE MARKETED.
U.S.\
BRANDS MAY BE ABLE TO GAIN MARKET SHARE BY INCREASING THE VARIETY OF
PRODUCTS\
AVAILABLE TO CONSUMERS. MARKET PENETRATION BY U.S. FIRMS DEPENDS ON
WHETHER\
THEY CAN IDENTIFY AND CONFORM TO LOCAL CONSUMER PREFERENCES. IN 1995,
U.S.\
DAIRY PRODUCTS SALES WERE USD 1.1 MILLION.\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 6: TRADE REGULATIONS, CUSTOMS, AND STANDARDS\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
\
BURKINA FASO HAS REMOVED MOST IMPORT/EXPORT RESTRICTIONS AND
STREAMLINED\
TAXATION AND OTHER ADMINISTRATIVE PROCEDURES. QUANTITATIVE RESTRICTIONS
ON\
IMPORTS HAVE BEEN LIFTED, AND TARIFFS REDUCED FROM A MAXIMUM OF 200
PERCENT TO\
A MAXIMUM OF 66 PERCENT, EXCEPT FOR PETROLEUM PRODUCTS WHICH MAINTAIN A
150\
PERCENT TARIFF.\
\
BURKINA FASO IS STILL NEGOTIATING WITH WTO SERVICES TO CONSOLIDATE ITS
RATES;\
IT APPEARS THAT THE RATES WILL BE WITHIN THE WTO RANGE. THE ONLY
PREFERENCES\
PRACTICED ARE BEING ENFORCED BY THE UEMOA LAWS AND REGULATIONS AGAINST
UEMOA\
PRODUCTS. THERE IS NO TARIFF AND NON-TARIFF BARRIERS ACCESS AGAINST
U.S.\
PRODUCTS. ONCE UEMOA HAS ADOPTED THE EXTERNAL COMMON TARIFF (TARIF
EXTERIEUR\
COMMUN), EACH MEMBER STATE WILL HAVE THE POSSIBILITY TO NEGOTIATE THE\
ADJUSTMENT OF THIS TARIFF TO ITS SPECIFIC MARKET CONDITION IN THE
LIMITS\
AUTHORIZED BY THE WTO.\
\
THE IMPORTATION OF SEVERAL PRODUCTS (PHARMACEUTICALS,
ARMS/AMMUNITION/UNIFORMS,\
PRODUCTS CLASSIFIED AS TOXIC) STILL REQUIRE A SPECIAL AUTHORIZATION. A\
CERTIFICATE OF CONFORMITY, REQUIRING FEE PAYMENT, IS ALSO REQUIRED FOR
THE\
IMPORTATIONS OF SOME PRODUCTS (RICE AND BATTERIES). THE FACT THAT THE
FEE IS\
BASED ON THE QUANTITY MAKES THIS REQUIREMENT COMPARABLE TO A PROTECTIVE\
MEASURE. THE PRE-SHIPMENT INSPECTION OF IMPORTS OVER CFAF 1,500,000
(ABOUT USD\
2,900) BY THE SOCIETE GENERALE DE SURVEILLANCE (SGS), AN INTERNATIONAL\
VERIFICATION AND CONTROL SERVICE, IS STILL REQUIRED. THE EXPORT OF
IVORY\
REMAINS STRICTLY FORBIDDEN.\
\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 7: INVESTMENT CLIMATE STATEMENT\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
OPENNESS TO FOREIGN INVESTMENT\
\
THE GOVERNMENT IS SEEKING DIRECT FOREIGN INVESTMENT AND PRIVATE SECTOR\
DEVELOPMENT. THE GOVERNMENT WELCOMES U.S. MINING FIRMS WISHING TO
DEVELOP AND\
EXTRACT BURKINABE MINERAL RESOURCES. A 1992 INVESTMENT CODE AIMS TO
MOBILIZE\
NATIONAL SAVINGS AND EXTERNAL CAPITAL. THE INVESTMENT CODE IS INTENDED
AS A\
WELCOME MAT TO FOREIGN INVESTORS, AND THE GOVERNMENT SEEMS OPEN TO
POTENTIAL\
FOREIGN INVESTORS\' CONCERNS/PRIORITIES.\
\
THE INVESTMENT CODE\
\
THE INVESTMENT CODE GUARANTEES EQUAL TREATMENT OF FOREIGN AND DOMESTIC\
INVESTORS. THE MINISTRY OF INDUSTRY, COMMERCE, AND MINES APPROVES NEW
FOREIGN\
AND DOMESTIC INVESTMENTS, BASED ON THE RECOMMENDATIONS OF THE NATIONAL\
INVESTMENT COMMISSION. THE COMMISSION\'S PRINCIPAL CRITERION IS THE\
INVESTMENT\'S DIRECT VALUE ADDED. ITS MINIMUM ACCEPTABLE LEVEL IS 35
PERCENT.\
OTHER CRITERIA INCLUDE THE INVESTMENT\'S CONTRIBUTION TO BURKINA\'S
ECONOMY, ITS\
EFFECT ON BURKINA FASO\'S COMMERCIAL BALANCE, AND ITS ENVIRONMENTAL
IMPACT.\
REVIEW MECHANISMS ARE DESIGNED TO BE ROUTING AND NON-DISCRIMINATORY.\
\
THE 1992 INVESTMENT CODE ESTABLISHED THREE INCENTIVE SCHEDULES. SCHEDULE
\"A\"\
IS FOR INVESTMENTS OF LESS THAN 200 MILLION CFAF (ROUGHLY USD 390,000)
AND\
PROVIDES A COMPANY WITH AN EXEMPTION FROM MOST TAXES FOR THE FIRST FIVE
YEARS\
OF ITS EXISTENCE. A 50-PERCENT TAX CREDIT IS GRANTED FOR THE ENSUING
FIVE-YEAR\
PERIOD. FURTHERMORE, COMPANIES IN SCHEDULE \"A\" ARE PERMITTED TO
STAGGER\
PAYMENT OF BURKINA FASO\'S REGISTRATION TAX OVER A FOUR-YEAR PERIOD.
THE\
REGISTRATION TAX IS EQUAL TO 3 PERCENT OF THE TOTAL CAPITAL INVESTED.\
\
SCHEDULE \"B\" IS FOR INVESTMENTS OVER CFAF 200 MILLION AND PROVIDES A
COMPANY\
WITH AN EIGHT-YEAR TAX EXEMPTION FROM MOST BURKINABE TAXES. IT ALSO
ENABLES A\
COMPANY TO SPREAD THE PAYMENT OF THE REGISTRATION TAX OVER A FIVE-YEAR
PERIOD.\
IN ADDITION, ALL SCHEDULE \"A\" AND \"B\" INVESTMENTS OUTSIDE THE
COUNTRY\'S TWO\
MAJOR CITIES - OUAGADOUGOU AND BOBO-DIOULASSO - RECEIVE THE ABOVE
BENEFITS FOR\
FIVE EXTRA YEARS.\
\
SCHEDULE \"C\" ONLY APPLIES TO EXPORT COMPANIES AND PROVIDES A
PERMANENT\
EXEMPTION FROM ALL BURKINABE TAXES.\
\
THE WEST AFRICAN MONETARY AND ECONOMIC PROGRAM IMPLEMENTATION,
COMMUNITY\
INVESTMENT CODE IS IN PREPARATION AND IS PLANNED TO BE ADAPTED BY THE
END OF\
1997. THE UEMOA CODE WILL REPLACE ITS MEMBER COUNTRIES CODES.\
\
THE MINING CODE\
\
THE 1993 MINING INVESTMENT CODE REGULATES FOREIGN MINING OPERATIONS IN
BURKINA\
FASO. THE CODE PROVIDES SPECIAL CUSTOMS AND FISCAL PRIVILEGES FOR
MINING\
COMPANIES DURING THE EXPLORATION AND PRODUCTION STAGES. THERE ARE THREE\
LICENSES REQUIRED TO OPERATE IN THE MINING SECTOR: EXPLORATION LICENSE
GRANTS,\
SHORT-TERM PRODUCTION LICENSES, AND LONG-TERM PRODUCTION CONCESSIONS.\
\
\-- AN EXPLORATION LICENSE IS NEEDED FOR THE DEVELOPMENTAL PHASE. IT
GRANTS AN\
EXCLUSIVE RIGHT TO EXPLORE FOR THE SPECIFIC MINERAL SUBSTANCES
REQUESTED,\
COVERS A MAXIMUM AREA OF 2500 SQUARE KILOMETERS, AND IS VALID FOR FOUR
YEARS.\
THE LICENSE MAY BE RENEWED TWICE, FOR PERIODS OF TWO YEARS, PROVIDED
THAT THE\
LICENSE HOLDER CAN PROVE THAT AT LEAST TWO-THIRDS OF THE SCHEDULED WORK
HAS\
BEEN COMPLETED. THE LICENSE MAY BE TRANSFERRED WITH THE AUTHORIZATION OF
THE\
MINISTER RESPONSIBLE FOR MINES.\
\
AN EXPLORATION LICENSE GRANTS CERTAIN BENEFITS TO THE HOLDER:\
\
- EXEMPTION FROM CUSTOMS FEES ON PROFESSIONAL EQUIPMENT IMPORTED TO AID
IN THE\
EXPLORATION PROCESS, PETROLEUM PRODUCTS, SPARE PARTS, AND OTHER
PRODUCTS\
IMPORTED DURING THIS STAGE.\
\
- EXEMPTION FROM THE FORFEIT TAX (IMFPIC), THE LICENSING TAX, AND THE\
APPRENTICESHIP TAX.\
\
IF THE EXISTENCE OF EXTRACTABLE MINERAL DEPOSITS IS PROVEN, THE HOLDER
OF THE\
EXPLORATION LICENSE MAY THEN OBTAIN A MINING LICENSE OR A MINING
CONCESSION.\
\
\-- A MINING LICENSE IS NECESSARY FOR SHORT-TERM PRODUCTION. IT GRANTS
THE\
HOLDER THE RIGHT TO ESTABLISH AND OPERATE A MINE ACCORDING TO THE
PRECEPTS OF\
THE MINING CODE. AN INDUSTRIAL MINING LICENSE IS GRANTED WHEN MINING\
OPERATIONS ARE TO BE CARRIED OUT OVER A SHORT PERIOD (FOUR YEARS,
RENEWABLE).\
\
THE HOLDER OF A MINING LICENSE IS ACCORDED THE FOLLOWING CUSTOMS
ABATEMENTS\
DURING THE START-UP PERIOD:\
\
- TOTAL EXEMPTION FROM CUSTOMS FEES ON RAW MATERIALS, COMPONENTS, AND
EQUIPMENT\
FOR PRODUCTION AS WELL AS THE FIRST SET OF SPARE PARTS FOR NECESSARY\
MACHINERY. HOWEVER, THIS EXEMPTION DOES NOT INCLUDE PERSONAL VEHICLES
OR\
OFFICE FURNITURE.\
\
- TOTAL EXEMPTION FROM CUSTOMS FEES ON IMPORTED RAW MATERIALS FOR THREE
YEARS\
AFTER THE OFFICIALLY RECOGNIZED DATE OF PRODUCTION.\
\
- TOTAL EXEMPTION FROM CUSTOMS FEES ON MOST PRODUCTS AND EQUIPMENT TO
BUILD\
HOUSES. PAINT, HYDRAULIC MIXERS, AND AIR CONDITIONERS ARE NOT EXEMPT.\
\
- TOTAL EXEMPTION FROM CUSTOMS FEES ON PETROLEUM PRODUCTS AND LUBRICANTS
TO\
OPERATE THE MINE.\
\
-TOTAL EXEMPTION FROM CUSTOMS FEES ON EQUIPMENT PURCHASED FOR EXPANSION\
PURPOSES OR REPLACEMENT EQUIPMENT ORDERED DUE TO TECHNICAL\
MALFUNCTIONS/ACCIDENTS.\
\
THE HOLDER OF A MINING LICENSE IS GRANTED THE FOLLOWING TAX BENEFITS:\
\
- SEVEN-YEAR EXEMPTION FROM THE FORFEIT TAX (IMFPIC), THE LICENSING TAX\
(\"PATENTE\"), THE APPRENTICESHIP TAX (TPA), AND THE TRANSFER TAX (TBM).
THE TBM\
IS APPLIED TO THE RENTAL VALUE OF THE BUILDINGS.\
\
- FIVE-YEAR TAX EXEMPTION ON COMMERCIAL AND INDUSTRIAL PROFITS (BIC), A\
FIVE-YEAR, 50-PERCENT REDUCTION OF THE INVESTMENT INCOME TAX (IRVM), AND
A\
25-PERCENT PERMANENT REDUCTION OF THE SAME TAX FOR THE FOLLOWING YEARS.\
\
- A MINING CONCESSION IS GRANTED FOR LONG TERM INVESTMENT PROJECTS. IT
IS\
GRANTED BY THE GOVERNMENT AND IS VALID FOR 25 YEARS AND RENEWABLE FOR
10-YEAR\
PERIODS. THE HOLDER OF A MINING CONCESSION IS GRANTED THE TAX BENEFITS
AND\
CUSTOMS ABATEMENTS DURING THE INSTALLATION PERIOD IDENTICAL TO THOSE OF
THE\
MINING LICENSE. IN ADDITION, THE MINING CONCESSION ISSUES THE FOLLOWING
TAX\
BENEFITS:\
\
- THIRTEEN-YEAR EXEMPTION FROM THE FORFEIT TAX, THE LICENSING TAX, THE\
APPRENTICESHIP TAX, AND THE TRANSFER TAX.\
\
- TWELVE-YEAR, 50-PERCENT EXEMPTION FROM THE INVESTMENT INCOME TAX.\
\
THE HOLDER OF A MINING CONCESSION IS ALSO PERMITTED TO STAGGER THE
PAYMENT OF\
THE REGISTRATION TAX OF A NEWLY FORMED COMPANY AND IS EXEMPT FROM THIS
TAX IN\
THE CASE OF FURTHER INVESTMENT (I.E., INCREASING THE CAPITAL STOCK).
THE\
HOLDER CAN ALSO BENEFIT FROM AN ACCELERATED INVESTMENT AMORTIZATION
SCHEDULE AS\
IT IS DEFINED IN THE BURKINABE TAX CODE.\
\
THE OVERALL INVESTMENT IN THE MINING SECTOR IN 1996 AMOUNTED TO USD 38
BILLION,\
WITH 140 COMPANIES MAINTAINING EXPLORATION LICENSES.\
\
CONVERSION AND TRANSFER POLICIES\
\
BURKINA FASO IS A MEMBER OF THE 14-MEMBER WEST AFRICAN MONETARY AND
ECONOMIC\
UNION (UEMOA) AND USES THE CFAF. THE CFAF IS FREELY CONVERTIBLE INTO
FRENCH\
FRANCS (FF) AT A FIXED RATE OF 100 CFAF TO 1 FF.\
INVESTORS SHOULD CONSIDER THE ADVANTAGES OFFERED BY THE UEMOA WHICH
INCLUDES\
SENEGAL, TOGO, COTE D\'IVOIRE AND MALI. THE CFAF MAY BE FREELY USED
BETWEEN\
MEMBER COUNTRIES.\
\
BURKINA FASO\'S INVESTMENT CODE GUARANTEES FOREIGN INVESTORS THE RIGHT
TO\
TRANSFER ABROAD ANY FUNDS ASSOCIATED WITH AN INVESTMENT, INCLUDING
DIVIDENDS,\
RECEIPTS FROM LIQUIDATION, ASSETS, AND SALARIES. SUCH TRANSFERS ARE
AUTHORIZED\
IN THE ORIGINAL CURRENCY OF THE INVESTMENT. TRANSFER IS MADE DIRECTLY
BY\
BURKINABE BANKS ONCE THE INTERESTED PARTY PRESENTS ALL RELEVANT
DOCUMENTS TO\
THE BANK. TRANSFERS AND REPATRIATION OF FUNDS ARE NOT LIMITED AND THERE
IS NO\
WAITING PERIOD. WIRE TRANSFERS TO AN AMERICAN CORRESPONDENT BANK TAKE
THREE\
DAYS (UP TO A WEEK TO A NON-CORRESPONDENT BANK).\
BURKINABE POLICIES FACILITATE THE FREE FLOW OF FINANCIAL RESOURCES AND
SUPPORT\
THE FLOW OF RESOURCES IN THE PRODUCT AND FACTOR MARKETS. CREDIT, WHEN\
AVAILABLE, IS ALLOCATED ON MARKET TERMS. LEGAL, REGULATORY AND
ACCOUNTING\
SYSTEMS ARE CONSISTENT WITH INTERNATIONAL NORMS. THE GOVERNMENT USES A
FRENCH\
SYSTEM OF ACCOUNTING KNOWN BY THE ACRONYM \"OCAM,\" AND HAS AT LEAST
THREE\
COMMERCIAL ACCOUNTING SYSTEMS WHICH MATCH WORLD NORMS. BURKINA FASO DOES
NOT\
HAVE A STOCK EXCHANGE, BUT IT DOES HAVE REGULATIONS WHICH GUARANTEE AND\
FACILITATE PORTFOLIO INVESTMENT.\
\
\
EXPROPRIATION AND COMPENSATION\
\
THE BURKINABE CONSTITUTION GUARANTEES BASIC PROPERTY RIGHTS. SUCH
RIGHTS\
CANNOT BE INFRINGED UPON EXCEPT IN THE CASE OF PUBLIC NECESSITY, AS
DEFINED BY\
THE GOVERNMENT. JUST COMPENSATION MUST BE PAID IN CASES WHERE PROPERTY
IS\
EXPROPRIATED. SUCH COMPENSATION MUST BE PAID IN ADVANCE OF THE
EXPROPRIATION,\
EXCEPT IN THE EVENT OF EMERGENCY. SINCE 1960, THREE INSTANCES OF
EXPROPRIATION\
HAVE OCCURRED. IN 1968, THE ELECTRIC COMPANY (THEN CALLED SAFELEC) WAS\
NATIONALIZED BY THE GOVERNMENT IN CONFORMITY WITH BURKINABE LAW. IN
1970,\
COMACICO-BENIN AND SECM, FILM MAKING AND DISTRIBUTION COMPANIES, WERE\
NATIONALIZED. IN 1980, A MANUFACTURER OF AMMUNITION, CARVOLT, WAS
NATIONALIZED\
FOR REASONS OF NATIONAL DEFENSE.\
\
DISPUTE SETTLEMENT\
\
IF AN AMICABLE SETTLEMENT OF A DISPUTE BETWEEN THE GOVERNMENT AND AN
INVESTOR\
PROVES IMPOSSIBLE, THE INVESTMENT CODE REQUIRES THAT ARBITRATION
PROCEDURES BE\
SUBMITTED TO INTERNATIONAL ARBITRATION UNDER THE RULES OUTLINED BY THE
MARCH\
1965 CONVENTION OF THE IBRD. IN CASES WHERE THE ENTERPRISE OF A NATIONAL
DOES\
NOT MEET THE NATIONALITY CONDITIONS STIPULATED BY ARTICLE 25 OF THE
CONVENTION,\
THE CODE SPECIFIES THAT THE DISPUTE BE RESOLVED IN ACCORDANCE WITH THE\
DISPOSITIONS OF THE SUPPLEMENTARY MECHANISMS APPROVED ON SEPTEMBER 27,
1978 BY\
THE INTERNATIONAL COURT FOR SETTLEMENT OF INVESTMENT DISPUTES.\
\
PERFORMANCE REQUIREMENTS/INCENTIVES\
\
THERE ARE NO SPECIFIC PERFORMANCE INCENTIVES, OTHER THAN A GENERAL
EXHORTATION\
THAT COMPANIES FOSTER THE RECRUITMENT OF NATIONAL EMPLOYEES. THERE ARE
NO\
REQUIREMENTS THAT INVESTORS PURCHASE FROM LOCAL SOURCES. CERTAIN
INCENTIVES\
ENCOURAGE THE ESTABLISHMENT OF EXPORT INDUSTRIES (REGIME \"C\" DESCRIBED
ABOVE)\
AND THE LOCATION OF PLANTS OUTSIDE OF OUAGADOUGOU AND BOBO-DIOULASSO.
GIVEN\
THE GOVERNMENT\'S STATED DESIRE TO INCREASE FOREIGN INVESTMENT, AN
INCREASE IN\
PERFORMANCE REQUIREMENTS IS NOT ANTICIPATED.\
\
RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT\
\
THE RIGHTS OF FOREIGN AND DOMESTIC PRIVATE ENTITIES TO ESTABLISH AND
OWN\
BUSINESS ENTERPRISES AND ENGAGE IN ALL FORMS OF RENUMERATIVE ACTIVITY
ARE\
GUARANTEED BY THE CONSTITUTION AND THE INVESTMENT CODE. BUSINESSES CAN
BE\
FREELY ESTABLISHED, SUBJECT TO THE SCREENING PROCESS DISCUSSED ABOVE,
AND\
SOLD. MOST PUBLIC ENTERPRISES HAVE ENJOYED A MONOPOLY IN THEIR MARKETS.
WITH\
THE IMPLEMENTATION OF THE REFORMS MOST OF THE MONOPOLIES ARE BEING
ELIMINATED.\
FOREIGNER INVESTOR ARE ENCOURAGED TO PARTICIPATE IN THE PRIVATIZATION OF
STATE\
RUN ENTERPRISES.\
\
PROTECTION OF PROPERTY RIGHTS\
\
BURKINA FASO HAS A LEGAL SYSTEM WHICH PROTECTS AND FACILITATES
ACQUISITION AND\
DISPOSITION OF ALL PROPERTY RIGHTS, INCLUDING INTELLECTUAL PROPERTY.
BURKINA\
IS A MEMBER OF THE WORLD INTELLECTUAL PROPERTY ORGANIZATION (WIPO). THE\
INVESTMENT CODE GUARANTEES FOREIGN INVESTORS THE SAME RIGHTS AND
PROTECTION AS\
BURKINABE ENTERPRISES REGARDING TRADEMARKS, PATENT RIGHTS, LABELS,
COPYRIGHTS,\
AND LICENSES. DIVULGING COMMERCIAL SECRETS IS A CRIMINAL OFFENSE IN
BURKINA\
FASO.\
\
FOR SPECIFIC QUESTIONS ABOUT INTELLECTUAL PROPERTY RIGHTS, CONTACT:\
\
THE MINISTRY OF COMMERCE,\
BUREAU DE LA PROPRIETE INTELLECTUELLE\
MINISTERE DU COMMERCE 01 BP365\
OUAGADOUGOU, BURKINA FASO\
TEL: 32.47.86/87/88\
\
REGULATORY SYSTEM: LAWS AND PROCEDURES PERTAINING TO INVESTMENTS\
\
THE GOVERNMENT IS IN THE PROCESS OF ADOPTING MORE REFINED AND
TRANSPARENT LAWS\
TO FOSTER COMPETITION. FOR EXAMPLE, PRICE CONTROLS HAVE BEEN LIFTED, AND
THE\
LABOR CODE REVISED. BURKINA FASO\'S REGULATIONS GOVERNING THE
ESTABLISHMENT OF\
BUSINESSES INCLUDE MOST FORMS OF COMPANIES ADMISSIBLE UNDER FRENCH
BUSINESS\
LAW. THESE INCLUDE: PUBLIC CORPORATIONS, LIMITED LIABILITY COMPANIES,
LIMITED\
SHARE PARTNERSHIPS, SUBSIDIARIES AND AFFILIATES OF FOREIGN ENTERPRISES,
AND\
SOLE PROPRIETORSHIPS.\
\
BURKINA\'S COMPLEX TAX SCHEDULE IS UNDER REVIEW. IN BURKINA FASO,
INFORMAL\
SECTOR BUSINESSES AND OTHER SMALL BUSINESSES WITH AN ANNUAL TURNOVER OF
CFAF 15\
MILLION OR LESS (THUS ROUGHLY LESS THAN USD 29,000) PAY A UNIQUE TAX
CALLED THE\
\"CONTRIBUTION DU SECTEUR INFORMEL\" OR CSI. THE MAXIMUM CSI TAX IS CFAF
100,000\
OR ROUGHLY USD 194 PER YEAR. BUSINESSES QUALIFYING FOR CSI TAX STATUS
ARE\
PROHIBITED FROM BIDDING ON STATE TENDERS.\
\
INDIVIDUAL ENTERPRISES AND COMPANIES IN BURKINA FASO WITH AN ANNUAL
TURNOVER\
EXCEEDING CFAF 15 MILLION (ABOUT USD 29,000) ARE SUBJECT TO A COMPLEX
SET OF\
TAXES. THESE INCLUDE AN ANNUAL TAX ON INDUSTRIAL, COMMERCIAL AND
AGRICULTURAL\
PROFITS (IBICA), SET AT 45 PERCENT, AND A FORFEIT TAX (IMFPIC), PAID IN
ADVANCE\
EACH YEAR. THERE IS ALSO A 25-PERCENT TAX ON INTEREST INCOME (THE IRC)
AND A\
25-PERCENT TAX ON INVESTMENT INCOME (THE IRVM). BUSINESSES MUST ALSO PAY
AN\
APPRENTICESHIP TAX (TPA) ON THE SALARIES OF ALL NATIONAL AND FOREIGN
EMPLOYEES\
(4 AND 6 PERCENT RESPECTIVELY), AND A LICENSING TAX WHICH HAS TWO
COMPONENTS (A\
FIXED AMOUNT BASED ON GROSS REVENUES AND AN 8-PERCENT TAX BASED ON THE
RENTAL\
VALUE OF COMPANY BUILDINGS AND THE VALUE OF THE PRODUCTION EQUIPMENT).
UPON\
INCORPORATING, COMPANIES MUST PAY A REGISTRATION TAX EQUAL TO 3 PERCENT
OF THE\
COMPANY\'S CAPITAL. SINCE 1993, BUSINESSES ARE REQUIRED TO APPLY A 15
PERCENT\
VALUE-ADDED TAX ON THE PRODUCT.\
\
NON-IBICA PROFITS ARE TAXED 5 TO 35 PERCENT. PRIVATE SECTOR EMPLOYEES
AND\
CIVIL SERVANTS PAY A TAX (IUTS) ON SALARIES AND TIPS, USUALLY BY
PAYROLL\
DEDUCTION.\
\
BILATERAL INVESTMENT AGREEMENTS\
\
BURKINA SIGNED A COOPERATION TREATY WITH FRANCE ON APRIL 24, 1961
ALLOWING\
FUNDS TO BE TRANSFERRED FREELY BETWEEN THE TWO COUNTRIES.\
\
A TRADE, INVESTMENT PROTECTION AND TECHNICAL COOPERATION AGREEMENT WAS
SIGNED\
BETWEEN BURKINA AND SWITZERLAND ON MAY 6, 1969. THIS AGREEMENT PROVIDES
FOR\
FREE TRANSFER OF CORPORATE EARNINGS, INTERESTS, DIVIDENDS, ETC., BETWEEN
THE\
TWO COUNTRIES.\
\
VARIOUS MULTILATERAL INVESTMENT AGREEMENTS HAVE BEEN SIGNED BY BURKINA
IN THE\
FRAMEWORK OF INTERNATIONAL OR REGIONAL ORGANIZATIONS, INCLUDING THE
LOME\
CONVENTION, THE WEST AFRICAN ECONOMIC COMMUNITY (CEAO), AND THE COUNCIL
OF THE\
ENTENTE (FEGECE CONVENTION). THESE TREATIES GUARANTEE THE FREE MOVEMENT
OF\
INVESTMENT CAPITAL AMONG MEMBER STATES.\
\
OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS\
\
BURKINA IS ELIGIBLE FOR OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC)
PROGRAMS\
BUT THERE HAS NOT YET BEEN OPIC INVOLVEMENT IN AN INVESTMENT PROJECT IN
BURKINA\
FASO. CONSIDERABLE POTENTIAL EXISTS, HOWEVER, FOR DIRECT LOANS AND LOAN\
GUARANTEES FOR DEVELOPING AGRICULTURAL PRODUCTION AND SMALL INDUSTRY.
BURKINA\
IS ALSO ELIGIBLE FOR ASSISTANCE FROM THE FOREIGN CREDIT INSURANCE AGENCY
(FCIA)\
THROUGH EXIMBANK PROGRAMS AND IS A MEMBER OF THE MULTILATERAL
INVESTMENT\
GUARANTEE AGENCY (MIGA).\
\
LABOR\
\
BURKINA HAS A REVISED LABOR CODE WHICH GUARANTEES MANY RIGHTS TO WORKERS
AND IS\
EFFECTIVELY ENFORCED BY A LABOR COURT. UNIONS ARE WELL ORGANIZED AND
DEFEND\
EMPLOYEE INTERESTS IN INDUSTRIAL DISPUTES. WORKERS KNOW THEIR RIGHTS AND
DO\
NOT HESITATE TO SEEK REDRESS OF GRIEVANCES.\
\
THE MODERN SECTOR REPRESENTS APPROXIMATELY 10 PERCENT OF THE WORK FORCE,
WITH\
NEARLY 40,000 CIVIL SERVANTS. LABOR UNIONS CLAIM THE ALLEGIANCE OF 60
PERCENT\
OF GOVERNMENT WORKERS AND HALF THE PRIVATE SECTOR EMPLOYEES IN URBAN
AREAS.\
TRADE UNIONS ARE LEGAL IN BURKINA FASO.\
\
THE COLLECTIVE AGREEMENT FOR THE COMMERCIAL SECTORS OF FEBRUARY 1, 1982
DIVIDES\
EMPLOYEES (LABORERS, CRAFTSMEN, SENIOR STAFF) INTO EIGHT CATEGORIES
WITH\
MINIMUM BASIC PAY RATES FROM 25,000 CFAF (ABOUT USD 50) PER MONTH.
CONDITIONS\
FOR THE EMPLOYMENT OF WORKERS BY ENTERPRISES ARE PROVIDED IN DECREE NO.
98 OF\
FEBRUARY 15, 1967. AN EMPLOYER SHOULD ASK JOB CANDIDATES FOR THEIR
JOB-SEEKER\
REGISTRATION CARD ISSUED BY THE OFFICE OF EMPLOYMENT AND PROMOTION WHICH
IS\
PART OF THE MINISTRY OF EMPLOYMENT, WORK AND SOCIAL SECURITY.\
\
IT IS BURKINABE POLICY TO INCREASE EMPLOYMENT OPPORTUNITIES FOR
NATIONAL\
WORKERS. THEREFORE, IN PROFESSIONS WHERE MANY UNEMPLOYED BURKINABE ARE\
REGISTERED, NO JOB-SEEKER CARD WILL BE ISSUED TO NON-NATIONALS. WHEN\
NON-NATIONALS ARE HIRED, THEIR EMPLOYMENT CONTRACT WILL BE AUTHORIZED BY
THE\
DIRECTOR OF LABOR. A STATEMENT MUST BE MADE TO THE REGIONAL INSPECTOR OF
WORK\
AND SOCIAL RULES BEFORE START UP OF ANY NEW ENTERPRISE ACCORDING TO A
DECREE OF\
FEBRUARY 15, 1967.\
\
IN THE EVENT OF A REDUCTION IN PERSONNEL, THE LABOR CODE REQUIRES THE
EMPLOYER\
FIRST TO DISMISS EMPLOYEES WITH THE LEAST TRAINING AND SENIORITY. THE
EMPLOYER\
MUST ADVISE EMPLOYEES OF TERMINATION AT LEAST 30 DAYS IN ADVANCE.
WORKERS\
TERMINATED IN A GENERAL REDUCTION HAVE RE-EMPLOYMENT PRIORITY OVER
OTHER\
APPLICANTS DURING A TWO-YEAR PERIOD. EMPLOYEES TERMINATED FOR REASONS
OTHER\
THAN THEFT OR FLAGRANT NEGLECT OF DUTY HAVE THE RIGHT TO TERMINATION
BENEFITS.\
THOUGH THERE IS A SCARCITY OF SKILLED WORKERS, MAINLY IN MANAGEMENT,\
ENGINEERING AND THE ELECTRICAL TRADES, BURKINABE WORKERS HAVE A
REPUTATION AS\
HARDWORKING AND DEDICATED EMPLOYEES.\
\
FOREIGN TRADE ZONES/FREE PORTS\
\
THERE ARE NO FOREIGN TRADE ZONES OR FREE PORTS IN BURKINA. FOREIGN-OWNED
FIRMS\
IN BURKINA HAVE THE SAME INVESTMENT OPPORTUNITIES AS HOST COUNTRY
ENTITIES,\
UNDER THE PROVISIONS OF THE NEW INVESTMENT CODE THAT PROHIBITS
DISCRIMINATION\
BETWEEN FOREIGNERS AND NATIONALS. AMERICAN FIRMS NOT REGISTERED IN
BURKINA CAN\
COMPETE FOR CONTRACTS ON PROJECTS FINANCED BY INTERNATIONAL SOURCES SUCH
AS THE\
WORLD BANK, U.N. ORGANIZATIONS, OR THE AFRICAN DEVELOPMENT BANK.\
\
MAJOR FOREIGN INVESTORS\
\
THE FRENCH REPRESENT THE LARGEST SHARE OF BURKINA\'S FOREIGN INVESTORS.
THE\
ONLY WHOLLY U.S. OWNED FIRM WHICH A SIGNIFICANT PRESENCE IN BURKINA IS
MOBIL\
OIL, A GASOLINE DISTRIBUTION COMPANY WHICH RECENTLY LOCATED ITS
REGIONAL\
HEADQUARTERS IN THE CAPITAL. LEBANESE INVESTORS ALSO OCCUPY A PROMINENT
ROLE\
IN THE BURKINABE SCENE.\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 8: TRADE AND PROJECT FINANCING\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
DESCRIPTION OF THE BANKING AND CREDIT SYSTEM\
\
THE TRADITIONAL BANKING SECTOR IS COMPOSED OF SIX COMMERCIAL BANKS AND
THREE\
SPECIALIZED CREDIT INSTITUTIONS CALLED, \"ETABLISSEMENTS FINACIERES\":
LA BANQUE\
INTERNATIONALE POUR LE COMMERCE, INDUSTRIE ET L\'AGRICULTURE DU BURKINA
FASO\
(BICIA-B), LA BANQUE INTERNATIONALE DU BURKIN (BIB), LA BANQUE POUR LE\
FINANCEMENT DU COMMERCE ET DE L\'INDUSTRIE DU BURKINA (BFCI-B), LA
BANQUE\
COMMERCIALE DU BURKINA (ARABO-LIBYIAN, BCB), LA CAISSE NATIONALE DE
CREDIT\
AGRICOLE (CNCA) AND ECOBANK. AS OF JULY 1997, TWO OTHER BANKS HAVE
ASKED\
AUTHORIZATION FOR ESTABLISHMENT: THE BANK AFRICA-BURKINA (BOA-B) AND
CITIBANK.\
THOUGHT THE BURKINABE BANKS WERE OVER LIQUID SINCE THE DEVALUATION OF
THE CFAF,\
THEIR CREDIT FINANCING IS LIMITED TO SHORT TERM CREDIT WHICH HAS
CONSTITUTED\
ABOUT 60 PERCENT OF THEIR FINANCING PORTFOLIO FROM 1980 TO 1995. THIS, A
FEW\
MANUFACTURING AND TRADING COMPANIES BENEFIT FROM THE BANKS FINANCING,
WHICH\
IMPEDES LARGER ECONOMIC GROWTH. THE MAXIMUM INTEREST RATE HAS BEEN
LOWERED FROM\
17.5 TO 15.5 PERCENT AFTER DEVALUATION, BUT STILL REMAINS TOO HIGH FOR
MANY\
ENTREPRENEURS.\
\
THREE SPECIALIZED CREDIT INSTITUTIONS FIANCE THE MAJORITY OF HOME,
FURNITURE,\
CAR AND MOPED ACQUISITIONS: LA SOCIETE BURKINABE D\'EQUIPEMENT (S.B.E.),
LA\
SOCIETE BURKINABE DE CREDIT AUTOMOBILE (SOBCA) AND LA FINACIERE DU
BURKINA\
(FIB).\
\
BURKINA\'S MAIN COMMERCIAL BANKS ARE LINKED TO CITIBANK IN THE U.S.:\
\
CITIBANK N.A.\
111 WALL STREET, 28TH FLOOR, ZONE 4\
NEW YORK, N.Y. 10043\
\
MULTILATERAL FUNDING\
\
THE WORLD BANK (IBRD), THE EUROPEAN UNION (EU), THE AFRICAN DEVELOPMENT
BANK\
(AFDB), AND OTHER DONORS ARE ACTIVELY ENGAGED IN BURKINA FASO. TOTAL
AID,\
INCLUDING CONCESSIONARY LOANS, AMOUNTS TO APPROXIMATELY USD 200 MILLION
PER\
YEAR. THE U.S. FOREIGN COMMERCIAL SERVICE MAINTAINS A REGIONAL OFFICE AT
THE\
U.S. EMBASSY IN ABIDJAN, COTE D\'IVOIRE, WHICH TRACKS NEW OPPORTUNITIES
FOR U.S.\
BUSINESSES. U.S. FIRMS ARE ENCOURAGED TO SUBMIT COMPETITIVE BIDS IN THE\
FOLLOWING AREAS:\
\
- BURKINA FASO\'S TELECOMMUNICATION MARKET (SEE THE AFRICA
TELECOMMUNICATIONS\
MARKETING GUIDE SOON TO BE PUBLISHED BY THE OFFICE OF
TELECOMMUNICATIONS,\
DEPARTMENT OF COMMERCE, IN WASHINGTON).\
\
- CONSULTING SERVICES AND SUPPLY OF NECESSARY EQUIPMENT AND PRODUCTS FOR
AN\
URBAN WATER DEVELOPMENT PROJECT. THE BUDGET FOR THE INTERNATIONALLY
FUNDED\
PROJECT IS EXPECTED TO TOTAL CFAF 100 BILLION (ABOUT USD 166.6
MILLION).\
\
- A WASTE MANAGEMENT PROJECT PLANNED FOR OUAGADOUGOU, AND SIMILAR URBAN\
DEVELOPMENT PROJECTS YET TO BE DETERMINED.\
\
- CONSULTING SERVICES FOR NATURAL RESOURCE DEVELOPMENT AND
ENVIRONMENTAL\
PROJECTS IN THE AGRICULTURE SECTOR.\
\
- REGIONAL ELECTRICAL PROJECTS WITH GHANA AND COTE-D\'IVOIRE.\
\
U.S. FIRMS WILL FACE COMPETITION FROM LOCAL AND THIRD COUNTRY FIRMS.
SOME\
FOREIGN FIRMS, PRIMARILY CONSULTING AGENCIES AND BUILDING AND
ENGINEERING\
CONTRACTORS FROM THE E.U., HAVE ALREADY ESTABLISHED OFFICES IN BURKINA
FASO.\
SUCH A STEP IS NOT REQUIRED, HOWEVER, TO DO BUSINESS IN THE COUNTRY.\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 9: BUSINESS TRAVEL\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
BUSINESS CUSTOMS\
\
DOING BUSINESS IS QUITE FORMAL IN BURKINA FASO. GREETINGS AND TITLES ARE
PART\
OF THE FORMALITIES. NO VERBAL TRANSACTION BETWEEN TWO PEOPLE TAKES
PLACE\
UNLESS GREETINGS HAVE BEEN EXCHANGED, INCLUDING THE SHAKING OF HANDS. IT
IS\
POLITE TO GREET AN OFFICIAL OR SEND HIM/HER CORRESPONDENCE USING HIS/HER
TITLE\
RATHER THAN A PROPER NAME.\
\
THE TELEPHONE HAS MADE INROADS IN BURKINABE DAILY LIFE - ESPECIALLY
AMONG CIVIL\
SERVANTS IN THE CAPITAL, BUT MUCH BUSINESS IS CONDUCTED FACE TO FACE.
MEETINGS\
MAY INVOLVE MANY PEOPLE WHO SPEAK FORMALLY AND AT LENGTH ABOUT A
SUBJECT.\
MEETINGS BETWEEN A HANDFUL OF PEOPLE USUALLY CONCLUDE WITH THE FORMAL
EXCHANGE\
OF BUSINESS CARDS. ORGANIZATIONAL HIERARCHIES ARE WIDELY RESPECTED, AND\
ACCOMPLISHING A TASK OR GETTING INFORMATION QUICKLY REQUIRES APPROACHING
THE\
APPROPRIATE PERSON.\
\
TRAVEL ADVISORY AND VISAS\
\
THERE IS NO ADVISORY WARNING AGAINST TRAVEL IN BURKINA FASO. VISAS AND
YELLOW\
FEVER INOCULATIONS ARE REQUIRED FOR ENTRY.\
\
HOLIDAYS\
\
JAN. 1 - NEW YEAR\'S DAY\
\
MARCH 8 - INTERNATIONAL WOMEN\'S DAY\
MARCH/APRIL - EASTER\
MAY 1 - LABOR DAY\
MID MAY - ASCENSION DAY\
\
AUG. 5 - BURKINA FASO\'S INDEPENDENCE DAY\
MID AUGUST - ASSUMPTION DAY\
\
NOV. 1 - ALL SAINTS\' DAY\
DEC. 11 - PROCLAMATION OF INDEPENDENCE\
DEC. 25 - CHRISTMAS DAY\
\
NOTE: MUSLIM HOLIDAYS ARE OBSERVED IN BURKINA FASO IN ACCORDANCE WITH
THE\
LUNAR CALENDAR RATHER THAN A FIXED ANNUAL DATE. THESE HOLIDAYS INCLUDE\
RAMADAN, TABASKI AND THE PROPHET MOHAMMED\'S BIRTHDAY (MALOUD).\
\
BUSINESS INFRASTRUCTURE\
\
OUAGADOUGOU\'S INTERNATIONAL AIRPORT IS SERVED BY SEVERAL WEEKLY
DOMESTIC AND\
INTERNATIONAL FLIGHTS. PUBLIC TRANSPORTATION - EVEN IN THE CAPITAL - IS\
UNRELIABLE AS THE BUSES, TAXIS AND OFTEN THE ROADS ARE RUN DOWN. RENTAL
CARS\
AND ALL-TERRAIN VEHICLES ARE EXPENSIVE BUT AVAILABLE, USUALLY AT HOTELS
WHICH\
CATER TO BUSINESS PEOPLE AND TOURISTS. THREE PASSENGER TRAINS LEAVE\
OUAGADOUGOU EACH WEEK FOR COTE D\'IVOIRE, AND FREIGHT TRAINS LEAVE
DAILY.\
\
FRENCH IS BURKINA FASO\'S OFFICIAL LANGUAGE. THE LOCAL LANGUAGE, MORE,
IS\
WIDELY SPOKEN IN OUAGADOUGOU, WITH DIOULA BEING WIDELY SPOKEN IN\
BOBO-DIOULASSO.\
\
LOCAL MEDICAL SERVICES ARE LIMITED. UNWASHED FRUITS AND VEGETABLES AND\
UNDERCOOKED MEATS ARE NOT SAFE TO EAT. TAP WATER IS NOT POTABLE. BOTTLE\
MINERAL WATER IS AVAILABLE AT HOTELS AND RESTAURANTS.
CHLOROQUINE-RESISTANT\
MALARIA IS PREVALENT IN BURKINA FASO, AND MALARIA SUPPRESSANTS SHOULD
BE\
TAKEN. VACCINATIONS AND PRECAUTIONS AGAINST OTHER ILLNESSES ARE
RECOMMENDED\
FOR TRAVEL IN RURAL AREAS.\
\
THERE ARE SEVERAL LOCAL PAPERS PUBLISHED DAILY AND WEEKLY IN FRENCH IN\
OUAGADOUGOU. SEVERAL RADIO STATIONS BROADCAST NEWS AND MUSIC IN FRENCH
AND\
LOCAL LANGUAGES. THE NATIONAL TELEVISION CHANNEL CARRIES LOCAL NEWS,
AND\
HOTELS AND BARS OFTEN SUBSCRIBE TO THE FRENCH TELEVISION CHANNEL.\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 10: ECONOMIC AND TRADE STATISTICS\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
APPENDIX A: COUNTRY DATA\
\
POPULATION (2002): 12.6 MILLION\
POPULATION GROWTH RATE: 2.64 PERCENT\
RELIGIONS: TRADITIONAL AFRICAN (40 PERCENT), MUSLIM (50 PERCENT),
CHRISTIAN (10\
PERCENT)\
GOVERNMENT SYSTEM: PARLIAMENTARY\
LANGUAGES: FRENCH (OFFICIAL), LOCAL LANGUAGES INCLUDING MOORE, DIOULA,\
GOURMANTCHE, AND FULFULDE.\
WORK WEEK: 40 HOURS\
\
APPENDIX B: DOMESTIC ECONOMY

  ------------------------------------------------ ------- ------- -------
                                                   2000    2001    2002

  GDP (USD MILLIONS)                               2,600   2,800   3,100

  GDP GROWTH (%)                                   6.9     7.6     10.7

  GDP PER CAPITA (USD)                             204     216     239

  GOVERNMENT SPENDING AS A % of GDP                27      26.4    22

  INFLATION (%)                                    -0.3    4.9     N/A

  UNEMPLOYMENT                                     N/A     N/A     N/A

  FOREIGN EXCHANGE RESERVES (USD MILLIONS)         244     260     283

  AVERAGE EXCHANGE RATE FOR USD                    710     732     694

  DEBT SERVICE RATION (%)                          24.5    26.5    26.4

  USG ECONOMIC ASSISTANCE (USD MILLIONS)           14.2    11.1    15.7
  ------------------------------------------------ ------- ------- -------

SOURCES: INTERNATIONAL MONETARY FUND, WORLD BANK GROUP, AFRICAN
DEVELOPMENT BANK GROUP, USAID\
\
APPENDIX C - TRADE

(Millions of USD)

  ------------------------------------------- --------- --------- --------
                                              1999      2000      2001

  TOTAL BURKINA FASO EXPORTS                  200       237       260

  TOTAL BURKINA FASO IMPORTS                  537       660       643

  U.S. EXPORTS TO BURKINA FASO                19.4      14.2      21.9

  U.S. IMPORTS FROM BURKINA FASO              0.162     0.704     1.1
  ------------------------------------------- --------- --------- --------

SOURCES: INTERNATIONAL MONETARY FUND, WORLD BANK

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 11: U.S. AND COUNTRY CONTACTS\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

OFFICE NATIONAL DU COMMERCE EXTÉRIEUR

01 BP 389 OUAGADOUGOU 01

TEL: (226) 31 13 00/01 ; FAX : (226) 31 14 69

E-MAIL : <info@tradepoint.bf>

CHAMBRE DE COMMERCE, D'INDUSTRIE ET D'ARTISANAT DU BURKINA

01 BP 502 OUAGADOUGOU 01

TEL : (226) 30 61 14/15 ; FAX : (226) 30 61 16

E-MAIL : <ccia-bf@cenatrin.bf>

CONSEIL BURKINABE DES CHARGEURS

01 BP 1771 OUAGADOUGOU 01

TEL : (226) 30 62 11 ; FAX : (226) 31 18 15

E-MAIL : <cbc@fasonet.bf>

CENTRE DES GUICHETS UNIQUES

01 BP 365 OUAGADOUGOU 01

TEL : (226) 30 73 07/ 30 73 42

COMMISSION DE PRIVATISATION

01 BP 6451 OUAGADOUGOU 01

TEL : (226) 33 58 93 / 31 41 23 ; FAX : (226) 30 77 41

E-MAIL : <privatization@fasonet.bf>

GOUPEMENT PROFESSIONAL DES INDUSTRIELS

01 BP 4420 OUAGADOUGOU 01

TEL : (226) 30 11 59

SYNDICAT DES COMMERCANTS IMPORTATEURS ET EXPORTATEURS (SCIMPEX)

01 BP 552 OUAGADOUGOU 01

TEL : (226) 31 18 70 ; FAX : (226) 31 30 36

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 12: MARKET RESEARCH\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
CHAPTER 13: TRADE EVENT SCHEDULE\
\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

THERE ARE TWO INTERNATIONAL EVENTS HELD ON A REGULAR BASIS IN
OUAGADOUGOU. THE\
INTERNATIONAL ARTISANAL SALON OF OUAGADOUGOU IS HELD AT THE END OF
OCTOBER OF\
EVEN NUMBERED YEARS, AND A WIDELY ATTENDED AFRICAN FILM FESTIVAL CALLED
FESPACO\
IS HELD AT THE END OF FEBRUARY OF ODD-NUMBERED YEARS.