G/STR/N/19/BFA  
 
26 June 2023 
(23-4376) Page: 1/10 
Working Party on State Trading Enterprises  Original: French  
 
  
STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE GATT 1994 AND 
PARAGRAPH 1 OF THE UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XVII  
BURKINA FASO 
The following communication, dated and received on 13 June 2023, is being circulated at the request 
of the delegation of Burkina Faso.  
 
_______________  
 
 
I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Société Nationale de l'Aménagement des Terres et de l'Équipement Rural , 
SONATER  (National Land Development and Rural Equipment  Company ) 
The National Land Development and Rural Equipment  Company (SONATER) was established 
pursuant to Decree No. 0 2014 -059/PRES/PM/MICA/MASA/MEF of 7 February 2014. It is registered 
in the Trade and Personal Property Credit Register (RCCM) under No. BF OUA 2016 B 4976 and with 
the tax authorities under No.  000077690F.  
 
B. Descript ion of products affected  
The products marketed by SONATER are essentially manual and motorized agricultural equipment.  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing SONATER  
The company's purpose is to implement, as a delegated project leader , projects and programmes 
covering  the following key areas on behalf of the State and its subdivisions, local authorities, 
associations and any other legal or administrative body:  
− manual and motorized agricultural equipment;  
− rural construction;  
− agricultural land development, soil protection and replenishment, and all other agricultural 
and food security activities falling within the delegated project leader's field of expertise;  
− and, more generally, all commercial , industrial, movable and immovable property , finan cial 
and civil operations  directly or indirectly related to the corporate mission or any similar 
purpose.  
 
B. Summary of legal basis for granting the relevant exclusive or special rights or 
privileges  
Pursuant to Article 307 of the Tax Code, agricultural equipment marketed by SONATER is exempt 
from value added tax (VAT). SONATER also receives, exceptionally and upon request, exemptions 
from customs duties, other than community duties.  G/STR/N/19/BFA  
 
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  In addition, and w ith a view to supporting agricultural producers , the State grants subsidies ranging 
from 45% to 60% of the sales price of agricultural equipment.  
III. DESCRIPTION OF THE FUNCTIONING OF SONATER  
A. Summary statement providing overview of SONATER operations  
SONATER acquires the agricultural equipment concerned through competitive bidding and in 
accordance with existing  regulations on government procurement.  
The sales prices of the  equipment are set an d then disseminated through various channels of 
communication. The purchaser attaches to their duly stamped application, an agricultural producer 
certificate validated by the head of the technical support area (ZAT) and expresses their desire to 
purchase the equipment. The client then visits one of SONATER's partner banks (CBI, BABF, BADF), 
fills in a payment slip and collects their proof of payment notice for the equipment. The client 
compiles their dossier and submits it to SONATER with a view to receivin g training and collecting 
their equipment.  
B. Specification of exclusive or special rights or privileges enjoyed by SONATER  
SONATER enjoys the following rights and privileges:  
− subsidization of 45% to 60% of the sales price of agricultural equipment;  
− exemption  from customs duties upon tacit request to MINEFID;  
− automatic exemption from VAT, in accordance with Article 307 of the Tax Code.  
C. Type of entities other than SONATER that are allowed to engage in 
importation/exportation and conditions for participation  
Nothing to report (NTR)  
D. How import/export levels are established by SONATER  
NTR 
E. How export prices are determined  
NTR 
F. How sales prices are determined  
NTR 
G. Negotiation of long -term contracts  
Within the context of agricultural equipment sales activities, a memorandum of understanding was 
signed by the State of Burkina Faso, TROPIC AGRO INDUSTRIE and SONATER for the delivery of 
1,500 fully equipped agricultural tractors over a three -year period.  
H. Description of market structure  
SONATER is require d to deal with a multitude of actors (traders, equipment sales organizations, 
state organizations and structures) involved in the agricultural equipment sales market that are 
likely to influence the company's sales and services.  
According to the studies ca rried out, motorized agricultural equipment needs are valued at over 
6,000. As a result, since 2017, SONATER has acquired, inter alia , 900 tractors, 100 pedestrian -
controlled tractors and 750 motor pumps, and will provide 1,500 fully equipped agricultural tractors  
over the next three years . This dynamic is consistent with the Government's agricultural 
mechanization policy.  G/STR/N/19/BFA  
 
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  IV. STATISTICAL INFORMATION  
See attached tables.  
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
This option is not included in  SONATER's strategic development plan.  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)  
None.    
  G/STR/N/19/BFA  
 
- 4 - TABLE I  
STATE TRADING: NAME OF STATE TRADING ENTERPRISE  
STATISTICAL INFORMATION, IMPORTS  
Description of 
product(s) (including 
HS number(s))  Total quantity 
imported1 Quantity imported by 
state trading 
enterprise  Average import price  Average 
representative 
domestic sales price  Mark -up2 National production  
1 2 3 4 5 6 7 
 
 
 
1 In cases where no imports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire . 
2 Members may report either under columns 4 and 5 or under column 6.    
  G/STR/N/19/BFA  
 
- 5 - TABLE II  
STATE TRADING : NAME OF STATE TRADING ENTERPRISE  
STATISTICAL INFORMATION, EXPORTS  
Description of 
product(s) (including 
HS number(s))  Total quantity 
exported1 Quantity exported by 
state trading 
enterprise  Average procurement 
price2  Average 
representative 
domestic sales price  Average export price  National production  
1 2 3 4 5 6 7 
 
 
1 In cases where no exports have taken place under columns 2 or 3, provide an explanation under Section V of this questionnaire.  
2 In cases where the initial procurement price is augmented by other payments, additional payments should also be reported.    
  G/STR/N/19/BFA  
 
- 6 - TABLE III  
STATE TRADING: NAME OF STATE TRADING ENTERPRISE  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of product(s) 
(including HS number(s))  Domestic purchases by state 
trading enterprise  National production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
Agricultural equipment  5,823,550,728  0 6,137,166,395  6,137,166,395  
 
 
 G/STR/N/19/BFA  
 
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  I. ENUMERATION OF STATE TRADING ENTERPRISES  
A. Société d'Exploitation des Phosphates du Burkina , SEPB (Burkina Phosphate 
Mining  Company)  
B. Description of products affected  
(Burkina phosphate (BP)) tariff heading(s): none  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing the SEPB  
The Burkina Phosphate Mining Company ( SEPB) was established on 3 April 2012. Its purpose is to 
provide  a strategic public service of general interest in the following areas:  
• the supply of crude phosphates to correct Burkina Faso's soil deficiencies;  
• the quality control of fertilizers imported into Burkina Faso;  
• the technical execution of phosphate -related experiments and demonstrations on the 
ground.  
Support for the implementati on of the sustainable soil fertility management policy.  
The corporate purpose of the SEPB is as follows:  
• the mining and crushing of crude phosphates from deposits in the villages of Kotchari, Alou -
Djouana and Arly and all other areas of Burkina Faso, with a view to their use in agriculture 
in combination with organic supplies;  
• the development, using crude phosphates, of fertilizers containing nitrogen and potassium 
(NPK and urea) to help reduce the supply of fertilizer in Burkina Faso;  
• the mining  of other o res discovered during regular deposit mining  operations;  and 
• more generally, the carrying out of all work  and all commercial , industrial, movable and 
immovable property , financial and civil operations  directly or indirectly related to the 
corporate purpose or any similar related purpose that may favour the development of the 
company.  
B. Summary of legal basis for granting the relevant exclusive or special rights or 
privileges  
The SEPB is a State -owned com pany with a board of directors comprising nine (9) members. It rose 
from the ashes of the former Burkina Phosphates Project (PBP) on 3 April 2012 by means of Decree 
No. 0 2012 -284/PRES/PM/MAH/MICA/MEF/MCE. The SEPB is subrogated to the rights and obligatio ns 
of the former PBP. It has been placed under the supervision of three Ministries: the Ministry 
responsible for agriculture (technical supervision), the Ministry responsible for finance (financial 
supervision) and the Ministry responsible for enterprises (management supervision).  
III. DESCRIPTION OF THE FUNCTIONING OF THE SEPB  
A. Summary statement providing overview of SEPB operations  
The SEPB is involved in the production, dissemination and sale of Burkina phosphate (BP).  
B. Specification of exclusive or special rig hts or privileges enjoyed by the SEPB  
The SEPB benefits from state subsidies.  
C. Type of entities other than the SEPB that are allowed to engage in 
importation/exportation and conditions for participation  
NTR (Burkina phosphate is sold exclusively at the na tional level and the SEPB has no competitor s). G/STR/ N/19/BFA  
 
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  D. How import/export levels are established by the SEPB  
NTR (the SEPB does not use any imported products to produce Burkina phosphate. It is just rock 
that is crushed and then packed in 50kg bags).  
E. How export pr ices are determined  
NTR (the SEPB does not export Burkina phosphate).  
F. How sales prices are determined  
NTR (the SEPB does not import any products).  
G. Negotiation of long -term contracts  
NTR 
H. Description of market structure  
The SEPB sells Burkina phosphate nationally and is the only company supplying natural phosphate 
in Burkina Faso.  
IV. STATISTICAL INFORMATION  
NTR 
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
Burkina phosphate production does not require imported products, and the phos phate is not 
produced in sufficient quantities for export.  
V. ADDITIONAL INFORMATION (AS APPROPRIATE)  
The SEPB mobilizes funds to process Burkina phosphate, which is a phosphate fertilizer amendment.  
  G/STR/N/19/BFA  
 
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  I. ENUMERATION OF SONAGESS  
A. Société Nationale de Gestion de S tock de Sécurité , SONAGESS (National Security 
Stocks Management Company)  
The National Security Stocks Management Company (SONAGESS) is a State -owned company 
governed by Law No. 025/99 AN of 16 November 1999 establishing general regulations for State -
owned companies. It was established  pursuant to  Decree No. 94 -233/PRES/MICM of 13 June 1994 
with capital of CFAF 200,000,000.  
Its headquarters are in Ouagadougou at 896, Avenue du Docteur Kwamé N'krumah, 01 BP 354 
Ouaga 01, Tel.: (+226) 25 31 28 05 06, IFU: 00004996 J - RC: 16012 B -DGE. 
The company has been placed under the supervisi on of the Ministry responsible for agriculture  
(technical supervision ), the Ministry responsible for trade (management supervision ) and the 
Ministry responsible for finance  (financial supervisio n). 
B. Description of products affected  
The company  generally mar kets local products (rice, maize, sorghum, millet, cow peas ) and 
processed local products (maize flour and meal).  
II. REASON AND PURPOSE  
A. Reason or purpose for establishing SONAGESS  
NTR 
B. Summary of legal basis for granting the relevant exclusive or special righ ts or 
privileges  
SONAGESS does not enjoy  any exclusive or special rights or privileges.  
III. DESCRIPTION OF THE FUNCTIONING OF SONAGESS  
A. Summary statement providing overview of SONAGESS  operations  
− management of national food security stocks;  
− management of interv ention stocks;  
− management of commercial buffer stocks;  
− management of public food aid, particularly Japanese rice (KR) , on behalf of the State;  
− management of the Grain Market Information System (SIM);  
− support for grain banks in terms of advice and training;  
− provision of services to third parties, e.g. phytosanitary treatment -related services;  
− management and leasing of infrastructure and equipment;  
− sale of grains in areas where there are shortages;  
− studies for third parties;  
− intermediation and assist ance with regard to grain exports and grain purchases on behalf of 
third parties;  
− intermediation and assistance with regard to grain exports and grain purchases on behalf of 
third parties;  
− SONAGESS also seeks to conduct , in a general manner , all movable an d immovable 
property , civil, commercial, industrial and financial operations  that may directly or indirectly 
ensure food security.  
B. Specification of exclusive or special rights or privileges enjoyed by SONAGESS  
None.  G/STR/ N/19/BFA  
 
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  C. Type of entities other than SONAGESS that are allowed to engage in 
importation/exportation and conditions for participation  
All enterprises operating in the grains sector.  
D. How import/export levels are established by SONAGESS  
None.  
E. How export prices are de termined  
None.  
G. Negotiation of long -term contracts  
None.  
H. Description of market structure  
None.  
IV. STATISTICAL INFORMATION  
Table I: none  
Table II: none  
Table III  
Description of 
product (tonnes)  Domestic 
purchases by 
SONAGESS  National 
production  Domestic sales by 
SONAGESS  National 
consumption  
Rice 10,000  283,478  9,612,840  605,620  
Maize  15,000  4,302,035  14,275.1  3,633,243  
Millet  500  354.95   
Sorghum  500  100  
Maize flour and 
meal  100  83,905   
Cow peas  100  95,135   
V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE)  
SONAGESS is responsible for managing national security stocks and food aid, and information on 
agricultural markets. In addition, it helps to ensure the availability of agricultural products in areas 
where there are shortages, through sales at subsidized prices.  
It also ensures a commercial buffer stock with a view to regulating, where necessary, the grain 
market price and supporting the marketing of local grains.  
VI. ADDITIONAL INFORMATION (AS APPROPRIATE)  
None.  
 
__________