Burkina Faso WT/TPR/S/46
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I. THE ECONOMIC ENVIRONMENT
(1) MAJOR FEATURES OF THE ECONOMY
1. Burkina Faso is a land-locked country in West Africa covering an area of 274,200 km2.  In
1995, it had a total population of over 10 million, 81 per cent of whom were illiterate (Table I.1).
Ouagadougou (the capital) and Bobo-Dioulasso are the main urban centres with a population of over
1 million.  Around 2 million Burkina citizens emigrate either seasonally or permanently, mostly tocountries in the sub-region, 1 million of them to Côte d'Ivoire.
1
Table I.1
Basic social data, 1970-1995
Indicators 1970 1990 1995
Population (millions) 5.6 9.0 10.1
Urban population (percentage) 6 12.57 15
Rate of population growth (percentage) 3 2.68 2.5
Infant mortality rate (per '000 live births) 178 134 99
Life expectancy 40 47 52
Public spending on health (percentage of GDP) 2.3 2.41 1.9
Public spending on education (percentage of GDP) 0.9 3 3.4
Illiteracy (percentage of population) .. 82 81
       - Men .. 72 71
       - Women .. 91 91
Human development indicator (HDI ranking/total number of countries) 154/160 172/175
.. Not available.
Source: World Bank, various publications;  United Nations Development Programme, Human Development Report , several issues.
2. With a per capita gross national product of US$230 in 1995, Burkina Faso is a least-
developed country.2  Its economy essentially depends on agriculture (mainly cotton and livestock),
which accounts for almost 40 per cent of the real gross domestic product (GDP) and over half of
merchandise export earnings.  Consequently, the fluctuations in agricultural production, mainly due toclimatic difficulties (in this case, drought), have a strong impact on the development and sectoral
distribution of the GDP.  Burkina's resources includ e gold, ferrous and non-ferrous metals and energy,
and in particular manganese and zinc deposits;  gold provides around 10 per cent of export earnings.
Lack of infrastructure, particularly in the area of transport, is an obstacle to development of the
mining sector, although it has received greater attention in recent years.  Manufacturing industry israther undeveloped and consists of 61 units, mostly in Ouagadougou and Bobo-Dioulasso.  Its
principal products are agri-foodstuffs and textiles, mostly for the domestic market.  The services
sector, largely accounted for by commercial servic es, contributes over 40 per cent of real GDP.
3. The informal sector in Burkina Faso has a wide variety of actors and activities on the one
hand, and on the other considerable capacity for adapting to trends in the national economic situation.
It accounts for 25 per cent of GDP and 80 per cent of non-agricultural employment.  Between 1985
and 1995, jobs in manufacturing experienced the highest rate of growth (127 per cent);  their share of
total employment in the informal sector rose from 22.1 per cent to 29.6 per cent.  The informal sector
                                                     
1EIU (1997).
2World Bank (1997).WT/TPR/S/46 Trade Policies Review
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is responsible for more than half of the value added in the various branches of manufacturing:  69 per
cent of value added in the food industries (manufacture of millet beer), 65.9 per cent in textiles,
81.9 per cent in wood and metal carpentry, and 68.5 per cent in the mining industries (gold panning).
The crafts sector is a dynamic component of the informal sector and plays an important role in the
economy;  it allows jobs to be created at low cost, gives young people practical training and helps to
conserve the cultural heritage.  Furthermore, it responds particularly well to the needs of thepopulation.
4. Burkina Faso is heavily dependent on the external sector:  the balance of unrequited transfers
is much higher than export earnings, which are derived from a few goods whose production is subject
to climatic variations (particularly cotton and livestock), as well as price fluctuations and theinstability of international markets (for example, cotton and gold).  Nevertheless, despite a structural
trade deficit, Burkina is one of the countries that has sustained the international reserves of the West
African Monetary Union, and now those of the West African Economic and Monetary Union
(WAEMU), through its unrequited transfers and net inward flows of capital:  at present, Burkina's
international reserves represent around seven months of imports.  With an external debt of US$1.5billion (61.4 per cent of GDP) in 1996, Burkina Fa so is eligible for the International Monetary
Fund/World Bank initiative for debt relief of highly-indebted poor countries;  a large part of the debt
(85 per cent) is with the multilateral institutions.
(2)
ECONOMIC DEVELOPMENTS
(i) From independence to the end of the 1980s
5. In the late 1960s, Burkina Faso embarked upon an interventionist economic policy which,
following the adoption of a new Investment Code, increased national control over the economy and
after 1975 also strengthened the State's role throug h its shareholdings in companies active in priority
or essential sectors.  The budgetary stringency adopted as part of this policy led to an improvement in
public sector finance.  In 1980, however, as a result of public pressure, the State agreed to large wage
increases whose impact, combined with the long drought and the second oil crisis, caused enormousfinancial problems.
6. The measures taken in 1983 to overcome the crisis without turning to the international
agencies consisted of bringing down Government sp ending by cuts in the Government wage bill,
eliminating subsidies to State companies and reorganizing current expenditure.  In order to increaserevenue, the Government established inter alia  a new tax on developed property, a revolutionary
solidarity fund and new road taxes;  a court of auditors independent of the Executive was set up in
order to monitor financial practices better.  The measures protecting the industrial sector were revised:
in 1983, the preferences for products originating in the franc zone were abolished and import quotas
were put in place for certain products also manufactured in Burkina (batteries, tyres, foam, tiles);  aPrior Import Authorization (API) was established for essential goods and a Special Import
Authorization (ASI) for medicines and hazardous products.
7. The results of this policy were varied.  The civil service was overhauled, and food production
doubled between 1983 and 1988, whereas after independence it had stagnated.  State revenue rose to
represent 15.2 per cent of the GDP, which is very close to the average government levy in low-income
African countries in the franc zone.
3  Education and health policies yielded tangible results.
                                                     
3In 1988, the average government levy in low-income African countries in the franc zone was 15 per
cent (average for eight countries).Burkina Faso WT/TPR/S/46
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Government finance remained unstable, however, and payment arrears built up.  At the end of the
1980s, the economy's growth rate was low and irregular (Chart I.1).
-4.0-2.00.02.04.06.08.010.012.0
1971 73 75 77 79 81 83 85 87 89 91 93 95 1997Chart I.1
Gross domestic product of Burkina Faso, 1971-1997
Percentage of annual growth in real terms
Source : WTO Secretariat estimates based on statistics supplied by the Burkina authorities.
(ii) Economic situation in the 1990s
8. Negotiations with the International Monetary Fund commenced in 1989, but the first
structural adjustment programme with Fund suppor t only began in 1991.  It comprised adjustment
plans for the transport, agriculture and livestock sectors (Chapter IV(2)(i) and (ii)).  The financialsector and the social sector, including health and primary education, were also reformed.  The
structural adjustment programme simplified the customs tariff and eliminated specific import duties
and reference prices.  In 1992, a preshipment inspection company was contracted in order to assure
customs revenue, which represents over 50 per cent of budgetary income.  A value added tax was
introduced in 1993 and an informal sector contribution was created so as to include informal activitiesin the fiscal effort.  Both prior and special import and export authorizations, together with quotas,
licences, the obligation to hold an importer's licence, price controls and certain monopolies, were
abolished for the majority of products;  Prior Import Declarations (DPI) were introduced.  On
12 January 1994, the CFA franc, which is the common currency of African countries in the franc zone
(including Burkina Faso), was devalued, the parity moving from CFAF 50 to CFAF 100 to the Frenchfranc (Annex I.1).  Since 1991, part of the external debt has been rescheduled on three occasions with
the Paris Club, and this has led to a reduction of CFAF 90 billion in the outstanding debt.
9. The reforms stabilized the trend in real GDP , whose rate of growth has risen since 1994
(Chart I.1), and have helped to improve the econom y's competitiveness.  The devaluation of the CFA
franc, resulting in a sharp drop in the real effective exchange rate (in 1995 it was almost 28 per cent
below its 1993 level, which in turn was 36 per cent below the 1980 level
4), boosted competitiveness,
particularly in the livestock and mining sectors;  cattle exports to other countries in the sub-region (in
                                                     
4Overall, in 1995 the real effective exchange rate was 53 per cent below its 1970 level.WT/TPR/S/46 Trade Policies Review
Page 4
practice those in the franc zone) rose significantly.5 Cotton exports also increased as a result of better
world prices and an increase in the producer price (in CFA francs) following devaluation.  Enterprises
using a high percentage of imported inputs and producing mainly for the domestic market faced cash
problems caused by higher prices for imported inputs - their price in CFA francs having risen sharply.
10. Economic performance and the privatization programme boosted investment, particularly in
the mining sector:  since 1990, gross fixed capital formation has reached an annual rate of at
least 20 per cent.  The traditionally restrictive monetary policy pursued by the Central Bank of the
West African States (BCEAO) on behalf of member  countries of the West African Monetary Union
(reorganization of the supply of credit, since 1995 combined with a significant reduction in the
discount rate) has made it possible to curb inflation, whose annual rate, measured by the consumerprice index, has been reasonably low, even after devaluation.  However, results in terms of
government finance and the current-account balance have been less successful (Table I.2).
(3)
TRADE PERFORMANCE
11. Burkina Faso's current balance shows a structural deficit.  This is the result of the deficits in
the balance of trade and trade in services, which net transfers, both official and private - the earnings
of Burkina workers abroad represent the major part of private transfers - are not usually able to
overcome, even though they are considerable.6 The trend in the trade balance has not been noticeably
affected by the devaluation;  until now, Burkina's exports have only covered around 50 per cent of
imports of goods.
(i) Trade in goods
12. From 1990 to 1997, exports of goods have represented between 7.6 and 11.1 per cent of
annual nominal GDP.  Cotton is Burkina Faso's main product and accounted for between 30 and
51 per cent of total merchandise export earnings over this period;  cotton's share of exports hasexceeded 40 per cent since 1995.  Although the volume of cotton exported has risen greatly in recent
years, earnings from cotton exports have fluctuated  a great deal owing to changes in global prices.
Earnings from exports of livestock products (particularly live animals) rose considerably as a result of
devaluation.  Table I.3 shows the performance of other agricultural goods whose production was
boosted by a combination of more favourable world prices and the new exchange rate for the CFAfranc.
                                                     
5The increase in cattle exports to other countries in the sub-region members of the franc zone is due to
the refocusing of demand caused by devaluation in favour of products from the zone (substitution effect).  Theincrease in exports outside the zone could be the result of  increased competitiveness.  The increase in exports of
cattle products was also related to "mad cow disease" which affected herds in some exporting countries.
6Since 1990, the current balance, including unrequited transfers, only showed a surplus in 1994.Burkina Faso WT/TPR/S/46
Page 5
Table I.2
Basic economic indicators, 1990-1997
1990 1991 1992 1993 1994 1995 1996 1997a
Nominal GDP (US$ million)
Nominal GDP per capita (US$)
of which:  fixed investmentper capita
Consumer prices (percentage change)
Exchange rate (CFAF/US$)Real effective exchange rate (base 100 in 1990)
b
Money supply (M2;  percentage change)Discount rate at the end of the period
(percentage)
Total external debt (percentage of current GDP)Gross international reserves (in US$ million)
Gross international reserves (in months of
imports)
Sectoral distribution of real GDP
Agriculture
Mining and industry
Other
Use of GDP (percentage of GDP)C:
Private consumption
Government consumptionGross fixed capital formation
Net exports of goods and non-factor services
Public accounts (percentage of GDP):
Total earnings (excluding grants)
of which:  import duties
Public spending
Balanced
Primary balancee
Balance-of-payments (percentage of GDP):
Trade balance
Current operations balance (excluding
Government grants)2,853
318
66
-0.8
274.5
100
-0.4
11.0
29.6
305
5
36.5
14.6
48.9
84
1221
-17
11.8
4.4
16.9
-5.1
-4.1
-9.2
-10.92,873
313
66
2.5
282.3
98.5
5.0
11.0
38.1
350
5
40.2
13.5
46.3
85
1221
-18
13.0
4.6
20.9
-7.9
-6.6
-7.7
-10.73,087
327
66
-1.9
264.6
94.6
6.3
12.5
38.7
345
4
39.5
13.6
46.9
80
1020
-10
11.4
3.6
20.2
-8.8
-7.5
-7.2
-8.42,988
310
63
0.5
283.2
92.4
8.1
10.5
43.3
387
5
40.3
13.4
46.3
80
1120
-11
11.9
4.2
21.5
-9.6
-8.2
-8.1
-9.81,716
174
36
21.3
555.2
64.4
29.6
10.0
78.1
230
6
39.8
13.5
46.7
80
1221
-13
12.0
5.5
23.9
-11.9
-10.3
-9.4
-9.42,182
216
50
7.4
499.2
66.8
25.9
7.5
63.8
342
7
38.2
14
47.8
81
1123
-15
12.7
5.7
21.1
-8.4
-6.8
-11.1
-11.92,351
227
58
6.2
511.6
..
3.8
6.5
61.4
347
6
..
..
..
82
1126
-19
13.3
5.4
   21.7
-8.4
-7.4
-14-4
-15.92,307
217
55
1.4
528
..
5.6
..
65.6
360
7
..
..
..
81
1025
-16
13.7
5.6
23.1
-9.4
-8.3
-11.8
-13.1
.. Not available
a  Estimate
b  A drop in the real effective exchange rate corresponds to depreciation.
c  Nil changes in stock.
d  Balance = total revenue (excluding grants) - total spending.
e  Primary balance  = total revenue (excluding grants) - total spending (excluding debt interest).
Source:  Burkina authorities.WT/TPR/S/46 Trade Policies Review
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Table I.3
Exports by product category,  1990-1997
(US$ million)
1990 1991 1992 1993 1994 1995 1996 1997
Total exports  (f.o.b.) 277.4 269.8 237.8 227.1 183.6 242.2 220.9 276.5
 1 Cotton 84.9 104.2 94.6 78.8 59.3 102.2 89.7 141.0
 2 Other vegetable products 6.1 3.8 10.2 9.5 14.9 20.1 23.6 18.2
            Groundnuts 0.3 0.3 2.4 2.0 3.3 3.9 3.8 3.9
            Shea nuts 2.2 0.8 2.4 2.0  2.4 2.9 3.3 3.6
            Sesame 0.3 0.8 2.4 2.0 2.4 2.9  3.3 3.6
            Other including vegetables 2.8 2.4 3.8 3.6 3.7 6.1 7.7 5.8
 3 Livestock products 34.4 29.1 33.0 36.6 59.8 67.6 68.1 64.4
             Live animals 21.1 16.7 18.5 22.0 40.6 40.7 41.1 36.8
            Hides and skins 13.3 10.0 11.4 11.4 16.9 20.6 20.8 21.6
 4 Non-monetary gold 58.0 39.1 31.9 27.0 22.0 29.3 18.6 20.7
 5 Manufactures 93.2 93.1 68.2 72.7 26.8 23.3 21.0 32.3
            Modern sector .. .. 26.9 33.6 14.5 14.0 14.4 14.7
            Traditional sector .. .. 41.4 39.1 12.3 9.2 6.8 17.7
Total exports  (percentage GDP) 9.8 9.4 7.7 7.6 10.7 11.1 9.4 11.1
.. Not available
Source:  Calculations based on information provided by the Burkina authorities.
13. Earnings from gold exports fluctuated even though the quantities exported remained flat.
After the devaluation, the level of exports of manufactures was lower than that for the years
1990-1993, probably because the parity change had not succeeded in making Burkina's industry
competitive at the international level, especially  with respect to subregional competitors (those
belonging to the WAEMU in particular).
14. Overall, 1994 saw a significant change in the structure of exports (Chart I.2):  the share of
exports of agricultural and livestock products forged ahead while exports of gold and manufactures
shrank.
15. Agri-food products, including cereals, play an important role and represent over 20 per cent
of total imports;  their average share over the period 1994-1996 was less than during the period 1990-
1993, probably because devaluation led to substitution by domestic products in this sector (Chart I.2).Imports of other categories of goods in general showed little change.  Imports of petroleum products
represented around 12 per cent of the total (Table I.4).  The increase shown under the heading "other"
is to a large extent due to an increase in demand for agricultural inputs (insecticides and fertilizers in
particular) needed to increase agricultural production.Burkina Faso WT/TPR/S/46
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0%20%40%60%80%100%
1990-93 1994-97
0%20%40%60%80%100%
1990-93 1994-96Chart I.2
Breakdown of trade by product category, 1990-1993 and 1994-1997
(a) Exports
ManufacturesCotton
Non-monetary goldAnimals Hides and skins
Other
(b) Imports
Cereals Other food products Dairy produce and eggs
Petroleum products Cements
Iron and steel Machinery Transport OtherTextiles
Source :  Burkina authorities.WT/TPR/S/46 Trade Policies Review
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Table I.4
Imports by product category, 1990-1996
(US$ million)
1990 1991 1992 1993 1994 1995 1996
Total imports (c.i.f.) 531.3 496.8 499.9 430.4 348.9 455.1 590.6
Dairy produce and eggs 17.8 19.0 14.7 16.6 8.3 13.3 11.6
Cola nuts 12.4 16.1 16.0 10.4 7.9 7.0 8.8
Coffee, tea, cocoa 3.7 3.5 4.8 4.6 2.4 1.7 3.3
Cereals 41.6 49.1 55.9 43.3 31.5 34.4 58.1
Vegetable oils and fats 4.7 8.0 5.2 4.9 5.8 8.2 4.8
Various food preparations 5.4 6.7 6.0 8.0 6.4 8.4 9.5
Tobacco 9.4 10.5 11.4 7.1 7.7 8.1 7.2
Hydraulic cement 27.2 23.2 26.4 22.6 15.5 20.3 21.0
Petroleum products 58.6 60.8 58.1 61.7 44.6 51.4 71.3
Textiles and clothing 17.2 15.3 15.2 11.8 9.0 14.9 14.1
Iron and steel 26.6 18.8 17.7 14.6 17.0 23.1 22.8
Non-electrical machinery 45.2 43.5 34.2 26.8 22.3 29.2 42.1
Electrical machinery and appliances 40.3 34.7 37.6 29.5 31.1 33.5 48.4
Transport equipment 45.6  35.8 39.2 33.7 28.0 40.9 57.0
Source:  Burkina authorities.
16. Burkina Faso's main supplier of imports is France (over one quarter of imports), followed by
Côte d'Ivoire (22 per cent).  With the exception of the People's Republic of China and the
Netherlands, major suppliers have nearly all retained their individual shares of imports.  At present,
imports from the People's Republic of China, whic h were considerable (6 per cent in 1993), are
relatively insignificant, probably due to the political and economic changes that have taken place in
Burkina Faso.  Germany and India, whose shares of the Burkina market were negligible up until 1993,each had 4 per cent of the market in 1996 (Chart I.3).
17. The destination of Burkina's exports has diversified (Chart I.3).  Exports to countries such as
Côte d'Ivoire, France, Italy and Thailand have fallen, whereas exports going to countries such as
Indonesia, Switzerland and Chinese Taipei have increased;  Mauritius and Malaysia, which previouslyonly took a fairly small share of exports, accounted for 4 per cent and 6 per cent respectively of
Burkina's exports.  Cotton is mainly exported to Switzerland, Mauritius and Indonesia, gold to France,
hides and skins to Spain and Italy, and live animals to countries in the West African subregion,
namely Côte d'Ivoire and Ghana.  Heavy equipment is imported from developed countries (mainly
France).  Petroleum products are mostly imported from Nigeria and Côte d'Ivoire.
7  B u r k i n a  a l s o
imports cement, fruit, food and chemical products, paperboard, salt and other products from
Côte d'Ivoire.
                                                     
7In 1995, some petroleum products were also imported from South Africa, Venezuela and the
Netherlands, and in 1996 from Italy and France.Burkina Faso WT/TPR/S/46
Page 9
Chart I.3
Exports and imports by trading partner, 1993 and 1996
1993 1996
(a)    ExportsPercentage
Côte d'Ivoire
31
Thailand
8France
16
Switzerland
3
Germany
4
Other 
European 
countries
15Other 
African 
countries
9France
28
Japan
4
India
4
Côte 
d'Ivoire
22
Total:  US$430.4 million Total:  US$590.6  millionTotal:   US$227.1 million Total:  US$220.9 million
(b)    ImportsOther 
African 
countries 
10
Italy
9
Chinese 
Taipei
6Indonesia
4Switzerland
16
Mauritius
4Côte d'Ivoire
9France
12Indonesia
13Other 
African 
countries
11
Other 
European 
countries
7Malaysia
6Italy
5Chinese 
Taipei
8
United States
5
Other 
African 
countries
12Other 
European 
countries
14P.R. of China
6France
27Other
6
Japan
4
Côte 
d'Ivoire
22
Burkina authorities (Forecasting, Market Conditions and Multilateral Monitoring Committee). Source :United 
States
4Other
10Other
9 Other
13
Netherlands
4WT/TPR/S/46 Trade Policies Review
Page 10
(ii) Trade in services
18. Burkina Faso is a net importer of services.  Freight and insurance are the major sources of the
deficit on the external services account;  they accounted for over one half of the deficits on this
account between 1993 and 1997.  The trend in the balances for freight and insurance services partly
reflects the CFAF value of imports (following devaluation), which the reduction in volume did notoffset.
8  Interest on the external debt is another important source of the deficit, and represents over
10 per cent.  As a whole, all the major headings in the services account were generally negative over
the period (Table I.5).
Table I.5
Balance-of-payments trend, 1993-1998(CFAF billion and percentage)
1993 1994 1995 1996
a1997b
(CFAF billion)
Trade balance -68.86 -89.6 -121.1 -172.7 -154.6
Net services -42.9 -53.3 -61.7 -74.3 -80.0
Freight and insurance -27.5 -30.6 -41.2 -48.7 -55.1
Travel and accommodation 0.6 -2.4 -1.9 -3.0 -3.1
Interest on the debt -8.3 -12.5 -10.6 -10.7 -10.1
Other services -7.7 -7.6 -8.0 -11.9 -11.7
Net private unrequited transfers 28.9 53.6 52.9 55.9 62.2
Current balance (excluding grants) -82.8 -89.3 -129.9 -191.1 -172.5
Official grants 62.7 109.8 117.5 140.2 116.3
Current balance (including grants) -20.10 20.50 -12.40 -50.90 -56.20
Net capital movement 19.6 2.2 18.3 43.6 59.1
Global balance 4.3 -0.2 39.3 -1.5 2.9
(Percentage of GDP)
Trade balance/GDP -8.1 -9.4 -11.1 -14.4 -11.8
Current balance (excluding grants)/GDP -9.8 -9.4 -11.9 -15.9 -13.1
G r a n t s / G D P 7 . 41 1 . 51 0 . 81 1 . 7 8 . 8
CFAF US$ exchange rate 283.2 555.2 499.2 511.6 570.0
a  Estimate.
b  Forecast.
Source:  Burkina Government.
(4) INVESTMENT
19. The investment-GDP ratio stabilized at around 20 per cent in the early 1990s. Investment
recovered following the devaluation of the CFA franc,  the reorganization of privatized enterprises and
the adoption of measures to promote investment in the mining sector;  since 1995, this ratio, and the
ratio between gross fixed capital formation and GDP have risen to at least 23 per cent (Table I.6).
During the first nine months of 1997, 26 projects for a total amount of CFAF 21.4 billion, which
should create around 1,000 jobs, were registered.  Nevertheless, delays in carrying out the
privatization programme explain in part why the share of the government sector in gross fixed capitalformation has remained at over 40 per cent since 1990.
20. The mining sector has attracted the most investment, particularly from abroad, following
devaluation, the conference on mining inve stment and the adoption of the Mining Code
(Chapter IV(3)(i)).  Burkina Faso does not have updated statistics on foreign direct investment.
                                                     
8See Degbelo (1994) for further details concerning this type of impact in developing countries.Burkina Faso WT/TPR/S/46
Page 11
Table I.6
Investment, 1990-1997(CFAF billion and percentage)
1990 1991 1992 1993 1994 1995 1996 1997
 (CFAF billion)
Investment (including changes in inventories) 167.1 150.5 168.6 171.9 192.1 255.6 325.1 336.7
Gross fixed capital formation 159.8 171.9 164.7 170.8 198.7 250.8 308.4 334.9
-  Government sector 71.7 80.5 74.0 73.0 84.5 110.7 143.2 168.2
-  Private sector 88.1 91.4 90.7 97.8 114.3 170.0 165.2 166.7
 (percentage of GDP)
Investment (including changes in inventories) 21.5 18.6 20.6 20.3 20.2 23.5 27.0 25.6
Gross fixed capital formation 20.6 21.2 20.2 20.2 20.9 23.0 25.7 25.5
-  Government sector 9.2 9.9 9.1 8.6 8.9 10.2 11.9 12.8
-  Private sector 11.3 11.3 11.1 11.6 12.0 15.6 13.7 12.7
Sources:  Burkina authorities.
(5) OUTLOOK
21. The Government's main target is to achieve annual real GDP growth of around 5.5 per cent
up to the year 2010.  This forecast is based inter alia  on a 13 per cent annual increase in the volume
of cotton exports until the year 2000, and then around 8 per cent beyond the year 2000 (subject tofavourable global cotton prices and weather conditions), and a 10 per cent annual increase in thequantity of gold exported.  Continued implementation of the privatization plans (in particular for thelarge State enterprises) is seen as one of the ways of attracting the private investment needed toachieve this target.  Increased investment should also lead to growth in imports of capital goods,which, together with the establishment of a free-trade zone and the application of the WAEMUCommon External Tariff (CET), could in the short term increase the trade deficit.
22. In the medium term, once large-scale investment has started to yield results and resources
have been reallocated efficiently in accordance with the new economic environment, externalbalances may improve.  The crystallization of international initiatives in favour of highly-indebtedcountries (including Burkina Faso) should help to alleviate the impact that might be felt byBurkina's economy during this transitional phase.  The Government has also decided to accelerateimplementation of measures to help to limit the loss of revenue that will result from the applicationof the CET, for example, by enhancing the efficiency of the tax and customs authorities andbroadening the tax base, Burkina Faso being one of the WAEMU members where customs dutiesare the highest (customs revenue represents over half of budgetary income).WT/TPR/S/46 Trade Policies Review
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ANNEX I.1 EXCHANGE REGULATIONS9
23. Within the franc zone, Burkina Faso belongs to the West African Economic and Monetary
Union (WAEMU) and the West African Monetary Union (WAMU), whose issuing authority is the
Central Bank of West African States (BCEAO).10  The currency used within the Union is the CFA
(African Financial Community) franc, which is pegged to the French franc.  This parity rose from
CFAF 50 to CFAF 100 per French franc in January 1994.  The BCEAO, like the Bank of Central
African States, which is the equivalent of the BCEAO in Central Africa, has an "operations account"
(with the French Treasury), into which at least 65 per cent of its foreign currency assets are paid;  this
account is used to make transfers outside the zone.11  The special feature of this account is that it may
become a debit account without any limits set a prio ri because of France's undertaking to provide an
unlimited guarantee of the convertibility of CFA francs.
24. The exchange rate of the CFA franc and other foreign currencies is fixed on the basis of the
relevant exchange rate of the French franc.  A commission of 0.25 per cent is charged by banks and
post offices on transfers outside the WAEMU and this sum is paid to the National Treasury.  There is
no tax on the selling or buying of foreign currency.  Forward exchange operations are subject toauthorization by the Ministry of Finance, which is responsible for exchange controls.  Payments (with
the exception of transactions in gold and the issuing, advertising and offer of financial instruments)
and the transfer of capital within the zone are not subject to controls.  In principle, all countries in the
zone have common foreign exchange regulations re lating to third countries.  Payments by WAEMU
countries with Gambia, Ghana, Liberia, Mauritania, Nigeria and Sierra Leone are normally made
through the West African Clearing House.  Like the other members of the WAEMU, Burkina Faso
signed Article VIII (Sections 2, 3 and 4) of the Articles of Agreement of the International MonetaryFund on 1 June 1996.
25. Imports and exports whose value exceeds CFAF 3 million must be domiciled with an
authorized bank.  Residents must, within one month following the date on which they become due,
collect the amounts payable to them abroad (including countries of the franc zone and the WAEMU
States) for goods exported and repatriate them to the bank of domiciliation;  payment for exports toforeign countries (including those of the franc zone) is due within 120 days following dispatch of the
goods.  Receipts from invisible transactions must be collected and passed on within two months
following the date on which they are due or encashed.
26. Payments for invisible transactions (with the exception of those within the franc zone),
transfers of capital abroad and investment abroad by residents are subject to prior approval of theMinister for Finance.  Foreign direct investment in Burkina Faso, borrowing abroad, and the issuance,
advertising or sale of foreign securities in Burkina Faso must be declared.
12  All payments made from
                                                     
9The exchange regulations within the franc zone are described in IMF (1997) and in WTO (1997).  The
following section is to a large extent based on these two sources.
10WAEMU member countries are Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger,
Senegal and Togo.  BCEAO headquarters are in Dakar and there is an agency in each of the member States.  In
addition to WAEMU member countries, the franc zone includes France and its overseas departments andterritories, Monaco, member countries of the Economic  and Monetary Community of Central African States
(CEMAC), namely Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea and Gabon, whosecentral bank is the Bank of Central African States (BEAC), and Comoros.
11Operations Account Convention, Dakar, 1973.  Each central bank also has a French Treasury
ordinary current account in places where it has its own establishments;  the operations account is debited or
credited with the amount of the transfers resulting from the levelling down or topping up of this account
(Article 3).
12In practice, authorized intermediary banks and pos t offices are empowered to transfer amounts up to
CFA 100,000.Burkina Faso WT/TPR/S/46
Page 13
abroad to Burkina Faso with a view to direct or any other investment must take place through an
authorized agent and must involve either a surren der of foreign exchange on the currency market or
the debiting of a foreign account in francs.
27. Foreigners working in Burkina Faso may transfer up to 50 per cent of their wages abroad if
they live with their family in Burkina and up to 80 per cent if their family lives abroad.  There is a
ceiling on the amounts which residents travelling outside the franc zone may take with them,amounting to CFAF 1 million per person for each trip for tourism and CFAF 1 million per day per
person for a business trip with a maximum limit of 1 month and a total of CFAF 6 million.  Travellers
may bring into Burkina Faso an unlimited number of franc zone bank notes or other forms of payment
made out in foreign currency.  Foreign banknotes brought in by residents must be sold to an
authorized intermediary bank within eight days  if their value in CFA francs exceeds CFAF 50,000.
Since August 1993, the BCEAO has suspended the automatic repurchase of its banknotes exported
outside the WAEMU.