Burkina Faso WT/TPR/S/46
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IV. TRADE POLICIES BY SECTOR
(1) INTRODUCTION
1. The economic reforms undertaken by Burkina Faso in 1991 as part of the structural
adjustment programmes affected all sectors of activity.  The devaluation of the CFA franc in 1994
speeded up the reform process.  With the exception of  the cotton, sugar and rice sectors, the State has
withdrawn from the majority of agricultural ac tivities, including the production and marketing of
crops and animal products. Raw sheep and goat hides and skins may not be exported, however,
because they are processed locally.  The reform in the mining sector has been underpinned by the
adoption of a more liberal Mining Code that is more attractive to private investment, including that
from abroad.  The marketing of mining products has been liberalized.
2. Reforms have also taken place in the manufacturing sector, where the number of products
subject to technical trade barriers (in the form of standards) has decreased.  The lack of
competitiveness in this sector, despite the devaluati on of the CFA franc in 1994, is attributable to the
high cost of certain factors (Table IV.1), due not only to Burkina Faso's land-locked situation but also
to the continued State monopoly over their supply.  The remnants of the import substitution strategy,
backed up by massive State intervention, can still be seen in certain sectors as Burkina embarked onthe structural adjustment programmes later than in other countries in the subregion. The
manufacturing sector enjoys the highest rate of tari ff protection, followed by agriculture.  In the
manufacturing sector, semi-finished products are the most heavily protected.  Moreover, the negative
escalation in import duties does not encourage the development of the manufacturing sector,
particularly domestic production of finished goods.  The application of the WAEMU Common
External Tariff will modify the tariff protection structure by sector.
Table IV.1
Cost of utilities, energy and transport in comparison with other countries in the WAEMU
Electricityb
industryDiesel
fuelb
CFAF/lWater b
CFAF/m3Telephonea
CFAF/mnTransportb
road t/km.Transportb rail
t/km.Transportb
airc
KW/H France USA CFAF CFAF CFAF/kg.
Burkina Faso 51 312 1,026 2,262 1,482 42.5 52.5 3,000
Benin 41 135 293 1,760 1,705 47 28.3 2,900
Côte d’Ivoire 37 270 424 1,390 870 37.2 31.4 2,900
Mali 55 275 218 3,060 1,360 43.6 26.3 3,000
Niger 55 265 319 1,800 1,285 50.1 31.4 2,800
Senegal 56 300 614 1,330 800 33.6 26.3 2,200
Togo 53 195 257 1,500 857 36.7 42.1 2,800
a 1996
b 1995
cT o  P a r i s .
Source: CEFTE (1997), Regional Support Programme for the Integration of WAEMU Countries.
3. There has been little liberalization in the services sector because of the delays in carrying out
the privatization programme;  a large number of enterprises classified as strategic are active in this
sector.  The branches unilaterally liberalized under structural adjustment programmes have not been
the subject of commitments at the multilateral level;  Burkina's commitments under the General
Agreement on Trade in Services remain confined to certain aspects of the supply of hotel andrestaurant services, travel agencies and tour operators.  Consequently, a reversal of the situation is still
possible, even in the branches unilaterally liberalized.WT/TPR/S/46 Trade Policies Review
Page 46
(2) AGRICULTURE AND RELATED ACTIVITIES
(i) General
4. Around one third of the land in Burkina is suitable for crop-growing and some areas have a
high population density (140 inhabitants/km.2 in Kouritenga and over 100 inhabitants/km.2 on the
Mossi plateau).  This high population density is a factor in the degradation of the natural environment.
Farms are often very small:  in 1990-1991, three quarters of them occupied less than five hectares.Agricultural machinery is not very common and the consumption of inputs (fertilizers and
phytosanitary products) is both low and mostly concentrated in the cotton production sector.
Extensive (low yield) agriculture based on rudime ntary crop-growing techniques is still the practice.
Moreover, households with more than three hectares, of which they only utilize less than 50 per cent,
consume three quarters of the fertilizer and phytosanitary products.
5. The potential area of irrigable land is estimated at 160,000 hectares, but only 17,500 hectares
are in fact irrigated, and used mainly to grow rice (10,400 hectares), sugar cane (3,900 hectares) and
market garden crops (1,000 hectares).  Recurring costs in areas where there is large-scale irrigation,
installed with State financing and administered by the State, are increasingly being borne by
producers organized in cooperatives.  The initial cost, however, of installing irrigation is high(CFAF 6.8 to 8 million per hectare in 1995 for total control over the water used);  if there is private
financing, the costs are lower.  Small-scale irrigation (for a perimeter of less than 100 hectares) is
managed by village communities, which are very active in Burkina.
6. The contribution of agriculture and related activ ities to the GDP is growing, over 40 per cent
during the period 1995-1997 (Table IV.2) as a result of the decrease in manufacturing.  For the past
ten years or so, crop-growing has accounted for over half this sector's performance.  The main crops
are:  oilseeds (also exported), including cottonseeds, shea nuts and groundnuts;  cereals, includingmillet, sorghum, maize, rice and fonio;  as well as cowpea, bambara groundnuts, yams, cassava, fruit
and vegetables (Table IV.3).  Livestock production is developed while fishing is at an early stage.
Table IV.2
Breakdown of agricultural GDP, 1985-1997
(percentage)
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Crop-growing 65.3 57.9 56.2 58.4 58.4 59.1 61.2 58.0 57.8 51.1 50.6 56.0 56.6
Livestock
production20.5 25.7 27.0 25.0 24.9 24.9 23.6 25.1 23.6 29.4 32.4 28.2 27.3
Forestry, fishing,
hunting14.3 16.4 16.8 16.5 16.8 15.9 15.2 16.9 18.6 19.5 17.0 15.8 16.0
Agricultural GDP/
Global GDP35.7 31.1 29.7 30.5 29.6 33.1 35.3 33.9 32.8 38.4 41.4 43.3 42.1
Source: Burkina authorities.
7. At the end of 1995, a Sectoral Policy Letter of Intent, updating and providing more details on
the Agricultural Development Policy Letter, focused on the liberalization of prices and trade, the need
to increase crop and livestock production, devel op cotton production further and promote exports of
agricultural surpluses.Burkina Faso WT/TPR/S/46
Page 47
Table IV.3
Agricultural production, 1990-1997
('000 tonnes unless otherwise indicated)
1990 1991 1992 1993 1994 1995 1996 1997
Export crops
     - Seed cotton 176.0 167.2 163.3 116.6 143.1 151.4 214.3 260.0
     - Shea nuts 74.9 76.5 70.4 64.7 59.6 64.3 17.0 34.0
     - Groundnuts 128.9 94.8 137.7 198.0 194.9 173.3 211.6 222.2
Food crops
     - Millet 404.1 763.7 705.2 809.3 748.3 660.3 730.3 663.1
     - Sorghum 675.5 114.5 1,162.9 1,179.4 1,109.2 1,139.5 1128.6 985.0
     - Maize 242.4 296.2 320.8 254.5 329.3 199.7 276.1 312.0
     - Paddy rice 45.4 36.7 44.4 51.1 58.0 79.8 84.0* 89.5 *
     - Fonio 11.4 13.0 12.2 20.3 14.8 10.4 9.8 11.3
Other crops
     - Cowpea and bambara groundnuts 30.2 40.8 44.5 79.3 114.2 217.7 276.6 276.6
     - Yams 33.4 32.9 11.6 37.5 32.8 57.6 44.3 44.3
     - Fruit and vegetables 295.2 306.8 319.1 331.9 345.2 360.7 376.9 388.2
Livestock production (1990 CFAF
billion)64.7 66.0 67.6 69.2 71.0 72.8 74.8 76.6
Recapitulation in 1990 CFAF billion
    Total agricultural production 261.7 318.0 322.8 334.5 338.7 340.0 364.4 384.4
       - of which plant production 155.4 205.2 206.5 214.6 215.3 213.5 233.2 248.9
Source:  Burkina authorities .
8. The National Environment Plan (PANE), adopted in 1991 and updated at a round table in
January 1994, defines the general framework for environmental policy including the National Land
Management Programme (PNGT), whose objective is to enable the rural population to manage its
natural resources.  The National Environmental Management Council (CONAGES), which manages
and coordinates environmental policy, was set up to replace the PANE, which was abolished.  Despite
the enactment of agrarian and land reform (RAF), th e oral traditional land law still predominates and
constitutes a factor of insecurity and an obstacle to improving crop yields.  In addition, the lack of any
clear boundary between pasture land and crop growing ar eas it is the source of many disputes between
crop and livestock farmers.
9. In 1992, a plan for the reorganization of agricultural services was set up under the structural
adjustment programme for the agricultural sector (PASA), and should inter alia  help to liberalize this
sector.  The plan's main objectives are the elimination of the regional agricultural production centres
(CRPA), which was decided on 6 February 1997, and redeployment of the personnel of the former
Ministry of Agriculture and Animal Resources (M ARA) in order to make good the lack of human
resources outside the large towns. The PASA also pr ovides for the adoption of a legal status for cattle
trails in order to prevent the frequent disputes between crop and livestock farmers on this question.
10. The National Agricultural Credit Fund (CNCA) is the main financing body for agriculture:  it
finances agri-industrial enterprises such as the Fibre and Textiles Company (SOFITEX) and the
Comoé Sugar Company (SOSUCO) and increasingly finances small farmers, mainly through their
many active groups.  Cotton producers are still the major beneficiaries of CNCA credits (85 per centWT/TPR/S/46 Trade Policies Review
Page 48
in 1992–1993).  The growing role of decentralized savings and loan financing systems should also be
underlined.
11. Despite the problems encountered, the relatively privileged situation of cotton producers, who
are guaranteed stable prices and outlets and easier access to credit, and for a long time were able to
obtain subsidized inputs, has certainly been prejudicial to the development of other production
sectors.  Cereals and groundnuts, which did not benefit from similar advantages, and whose entirecycle from production to marketing has been much less stable, probably also suffered from the
guarantees available to farmers producing cotton.
(ii) Policy by product category
(a) Cotton
12. Cotton is a rain-fed crop produced by a large number of farmers, mainly in the west and
south-west of Burkina Faso. A few producers have relatively large farms, while smaller producers
have formed in cooperatives.  These cooperatives have taken the place of the "Groupements villages",
village groupings whose malfunctioning, particularly as regards finance, tended to discourage
producers
1 and also to worsen the financial situation of the agencies working in this branch
(SOFITEX, CNCA and Regional Agriculture Departments).
13. Producers receive support from the Ministry of Agriculture's services and from SOFITEX,
whose capital is mainly held by the State (65 per cent) and by the French Textiles Development Fund
(CFDT), which owns 35 per cent.  SOFITEX supplies  producers with inputs (fertilizer, phytosanitary
treatments) and has a monopoly for marketing and the first processing stage of cotton, including
ginning.  It also makes CNCA loans available to farmers, particularly to finance inputs;  these loans
are backed by a joint-guarantee scheme in producers' cooperatives, while SOFITEX, on behalf of the
CNCA, sees to the repayment of the loan when the cotton is marketed.  Cotton-seed oil is extracted byprivate companies, which market it as well as cotton-seed oilcake.  A small percentage of cotton
production (2 per cent) is processed by the only existing textile plant, Faso Fani, which is a State
enterprise under provisional management that is in the process of being privatized.
14. After the impressive boom during the period 1960-1991, cotton production remained at a
ceiling until 1994 and then entered a serious crisis following the plunge in international prices and theimposition of adjustment measures (elimination of subsidized inputs, lower producer prices,
inter alia ).  The decrease in cotton production also had domestic causes:  malfunctioning of the
village groupings with accumulated arrears owed to the support or financing agencies and also to
producers; and the shortcomings of the support agencies.  These consisted of the following:  the late
fixing of producer prices and the classifying of seed cotton quality in order to lower the buying-inprice;  late supply of inputs;  lack of information and participation by producers in marketing;
extension of the time-limits for removing stoc ks and making payments following the cash flow
difficulties experienced by SOFITEX during the 1992-1993 season;  and lengthy delays in taking
away the harvest.
15. The industry's inefficiency has frequently led to a lowering of the producer price.  Setting low
prices for producers tends to create a high margin for the marketing and processing units, thereby
tending to encourage inflation of overheads.  Taxation in this industry, basically through a profits tax,
has the same effect.  This is why reforms have been undertaken or are being considered in order to
                                                     
1At the village level, the amounts left unpaid by the village groupings were often covered by the collectively
managed market committees, thereby reducing their ability to finance collective investment of economic or social interest;
financing of arrears sometimes meant lower prices for producers.Burkina Faso WT/TPR/S/46
Page 49
enhance the efficiency of the cotton industry, while preserving its status as a sector of crucial
importance to the economy.  For example, private cotton-ginning plants have started up and farmers
can obtain supplies of inputs from private suppliers.  Through their cooperatives, producers can have a
share in the capital and hence participate in the management of SOFITEX.  Under the PASA, the
three-year contract-plan agreed in January 1992 between the State and SOFITEX has led to an
improvement in the financial situation, lower costs, higher levels of production and an improvementin the quality of the cotton produced.  In 1996, in view of the defects of the former system for fixing
producer prices, a new price and regulation system was adopted (Box IV.1).
16. Since 1996, the production of seed cotton has again risen and should reach a record level of
260,000 tonnes in 1997.  This performance is due above all to better producer prices (Table IV.4),
resulting from the new exchange rate of the CFA franc and the increase in world cotton prices;however, the rise in real producer prices remains small, particularly taking into account the
elimination of subsidies for inputs.  The increase in yield can also be explained by the reforms in this
sector, including the reorganization of producer cooperatives and financial stabilization.  Cotton is the
principal export product and since 1995 has represented more than 40 per cent of export earnings
from goods.
17. The average import duty on cotton is 36.4 per cent, whereas the maximum level of 37 per cent
applies to other plant textile fibres (Table AIV.1).WT/TPR/S/46 Trade Policies Review
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Box IV.1:  Producer price for cotton
Under the PASA, the contract-plan between the State and the SOFITEX provides for a floor price for
buying-in as well as an additional payment.  In a season N, the additional payment is equal to 40 per cent of the
net margin of SOFITEX for the period N-1 divided by production for the current year; thus it is in inverse
proportion to production for the current season.  This formula makes it possible to take world prices into
account, through their impact on SOFI TEX's margin, and, to a certain ext ent it helps to stabilize producers'
incomes;  for a given level of net ma rgin, a decrease in  production incr eases the additional payments made per
unit produced and vice-versa.
The stabilization of cotton prices is carried out through an independent cotton-sector fund, which has
no other commercial objectives or equaliz ation responsibilities in  other sectors.  The prov isions in the contract-
plan are aimed at preventing inefficiency that would jeopardize SOFITEX's margin.
In 1994-1995, a Government subsidy of CFAF 2.3 milli on averted a sharp rise in the cost of inputs.
This subsidy, which could have been used to increa se the producer price by CFAF 15 francs/kg., made it
possible to supply inputs at the lowest  cost in the region, with the result that there was a large-scale outflow of
the subsidized inputs to neighbouring countries.  At the same time, the relatively lower price paid to cotton
producers encouraged illegal exports to neighbouring count ries.  This experience led to the introduction of a
"true" pricing policy while at the same ways were sought to lower the cost of inputs.
An interprofessional draft agreement for the cotton sector covering the cotton seasons 1997/1998 to
1999/2000 is being negotiated.  This agreement, which should be applied shortly, sets out the arrangements for
fixing and revising buying-in prices.
These arrangements comprise three basic mechanisms:
- The basic buying-in price for seed cotton for the 1998/1999 season is set at CFAF 160, 125
and 105 per kilo respectively for first, second and third grade seed cotton;  these correspond
to a "target" cost price of CFAF 650 for SOFITEX;
- A basic price (PB) support mechanism:  if the SOFITEX selling price is lower than
CFAF 650, the buying-in price in the following season will be reduced as follows:
dP = 0.422* (actual difference)* (output N)/Output (N+1).
in which 0.422 or 42.2 per cent is the fibre yield at the ginning stage; output N is production
for the season N;  and output (N+1) is estimated production for the following season (N+1).
In order to maintain the basic price paid to the producer at CFAF 160, 125 or 105
compensation is provided on a franc-for-franc basis from a support fund;
- A mechanism for fixing a supplementary buying-in price for seed cotton (PAC):  if the "cotton
result" of the preceding year shows a profit, pr oducers are given an additional payment, the
supplementary producer price (PAC), which is added to the basic buying-in price.  For a
given season N, the PAC is calculated as follows, per kg. of seed cotton:
PAC = (50 per cent of "cotton profit" for the season (N – 1) +/- ER)/Estimated seed cotton
production for season N, in which ER = the previ ous difference in additional payment owing
to actual output.
The supplementary producer price (PAC) should be announced in February and paid out
during the subsequent season when the seed cotton is bought in;  it is thus added to the basic
price for the current season.
The producers themselves decide whether a payment should be made into the fund to support
the basic price and how much it should be;  th is levy is deducted from the supplementary
price (PAC). Surpluses or excess amounts paid (ER) when allocating the PAC, are added to
or deducted from the PAC for the following  season.
Source:  Contract-plan between the State and SOFITEX.Burkina Faso WT/TPR/S/46
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Table IV.4
Trend of cotton production (seed cotton), 1984-1996
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Production (1000 t.) 88.1 115.5 169.2 152.8 145.8 152.3 176.0 167.2 163.3 116.6 143.1 151.4 214.3
Yield t./ha. 1,071 1,221 1,334 869 861 948 1,010 900 923 795 1,006 946 1,095
Area (1000 ha.) 82.3 94.6 126.8 170.4 169.5 150.0 166.3 185.7 176.9 152.1 184.0 160.0 195.7
Nominal producer price 90 100 100 95 95 95 95 95 110 115 140 140 160
Real price (base 100 in
1990)90 103 99 94 97 95 93 95 109 91 103 101 116
F.o.b. price producer price 38.9 69.8 50.4 49.8 43.5 46.8 48.3 68.4 74.0 39.1 30.6 35.1 36.9
Source:  Burkina authorities.
(b) Oilseeds
18. Burkina Faso produces groundnuts, sesame seed and shea nuts, which are all primarily
consumed locally, exports remaining low (about 1.3 per cent of merchandise export earnings for each
crop).  As a crop, groundnuts are well suited to low rainfall areas, but yields per hectare (about
550 kg.) remain very low because little fertilizer is used.  However, since liberalization of prices and
marketing in 1991, as well as private sector mana gement of the industry and favourable producer
prices since 1994, output has risen from about 120,000 tonnes on average between 1985-1992 to200,000 tonnes in 1993 and 1994.  Output is essentially consumed locally after non-industrial
processing;  groundnut exports are negligible (1.4 per cent of total export earnings in 1997).
19. Burkina Faso is the fourth producer of sesame seed in Africa.  Output fluctuates between
7,000 and 12,000 tonnes per year, but plunged in 1994 as a result of low world prices for the variety
produced by Burkina Faso.  Yields are low at an average of 350 kg./ha.  The private sector isresponsible for marketing the crop, which is essentially aimed at the domestic market (three quarters
of output), the rest being exported primarily to Japan and Europe.
20. Burkina is part of the ecological area limited to 16 African countries that are suitable for
production of shea nuts.  This remains a gathering activity which it is difficult to transform into an
agricultural activity despite the efforts that have been made.  Owing to its nature, shea nut productionis particularly uneven;  it is currently stable at around 70,000 tonnes after having peaked at
120,000 tonnes in 1987.  It is above all consumed locally (about 90 per cent of output).  In the 1960s
and 1970s shea nuts were Burkina Faso's top export.  Major export outlets exist, in particular in the
cosmetics sector.  The Agricultural Price Stabil ization Fund (CSPPA) no longer plays a role in
marketing shea nuts, which has now been liberalized.
21. Edible vegetable oils are subject to standards (Chapter III(2)(vii)).  Shea nuts are subject to a
Special Export Authorization (Chapter III(3)(iii)).  The simple arithmetical average of import dutieson vegetable oils is 22.3 per cent, compared with 14 per cent for oilseeds.
(c) Cereals
22. In 1994-1995, the main cereals (millet, sorghum, maize, rice and fonio) occupied 85 per cent
of the cultivated area and about 10 per cent of Burkina's total area.  They are grown throughout the
country and destined above all for local consumption.  The area sown with cereals increased by about6 per cent on average every year between 1984 and 1994, but yields remain very uneven for rice and
maize and flat for millet, sorghum and fonio.  Until 1994 these products were managed by the
National Cereal Marketing Board (OFNACER), which bought directly from the producers or from
middlemen at official prices, built up stocks and sold them off during tiding-over periods in particular.
A private circuit existed in parallel, usually without complying with OFNACER prices.  OFNACERWT/TPR/S/46 Trade Policies Review
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was closed down in 1994 with the advent of liberalization;  management of the national food security
stockpile designed to avoid exaggerated price fluctuations as well as to ensure food aid is now the
responsibility of the National Food Security Stockpile Management Company (SONAGES).  Cereals
are marketed by farmers, farmers' organizations (cooperatives and cereal banks) and private traders.
23. Although yields remain low, output of tradit ional cereals has increased sharply since the
mid-1980s primarily because of the increase in the sown area:  sorghum production rose from 815,000tonnes in 1985 to 1,232,000 tonnes in 1995, and that of millet from 585,000 to 831,000 tonnes.  The
devaluation of the CFA franc had a demand-substitution effect which also boosted cereal production
(Chapter I(3)(i)).  Burkina Faso regularly has large cereal surpluses, although this does not rule out
shortfalls in low rainfall years (e.g. the 1995-1996 harvest).  The Burkina cereal market suffers from a
lack of fluidity, with sharp variations in price from region to region as well as between harvest periodsand tiding-over periods.
24. Traditionally, Burkina has only a small area sown with rice (10 per cent of the total for
cereals).  Currently about 60 per cent of output comes from irrigated crops.  Local rice production has
increased sharply (111,800 tonnes in 1996-1997 compared with 61,000 tonnes in 1994 and
36,700 tonnes in 1985).  This progression is partly attributable to the new method of evaluation thatincludes within production as traditionally estimated (standing agricultural survey) the harvest of the
"production brigades", that of the programmes to retain young people in their home areas, and
production from irrigated plains.  The 111,800 tonn es of paddy rice produced in 1996-1997 were
equivalent to 67,080 tonnes of husked rice, or a little over 40 per cent of domestic rice requirements,
estimated at 156,402 tonnes.
25. While irrigated rice growing has developed in recent years, in particular because it leads to a
better use of working time and more regular production, about half of the crop is dry rice orbottomlands rice.  Despite being heavily protected, the rice subsector was in great difficulties before
the devaluation.  Since then, non-industrially huske d local rice has been competitive with imported
rice.  The General Equalization Fund (CGP) had a monopoly on the domestic market dating back to
1978, controlled imports through the grant of Spec ial Import Authorizations (ASI), and carried out
equalization operations throughout the country.  The National Rice Marketing Company(SONACOR), 90 per cent owned by the CGP, was set up in 1989 with a monopoly for collection and
processing;  rice and paddy rice prices were set by the State.  Liberalization of the rice market began
on 18 October 1996 with the freeing of rice prices
2 and was completed with the elimination of the ASI
and privatization of SONACOR.  During the first nine months of 1997, of the 81,220 tonnes of rice
imported, 24,498 tonnes or 30 per cent were imported by the private sector.
26. Cereals are subject to a Special Export Authorization, for statistical reasons according to the
authorities.  Wheat flour is subject to standards (Chapter III(2)(vii)).  Import duties on cereals amount
to 11 per cent, and to 37 per cent in the case of cereal-based preparations.
(d) Sugar
27. Cane sugar is produced by complexes that engage in irrigated cultivation.  The Comoé Sugar
Company (SOSUCO) controls all production and processing and is one of the country's main
employers, with 4,000 permanent or seasonal employees for a production of some 30,000 tonnes
covering about three quarters of domestic needs.
28. Under its contract-plan wi th SOSUCO for the period 1993-1998, the State undertakes inter
alia "to provide SOSUCO with tariff protection that takes account of its financing needs and to
                                                     
2Order No. 96/063 of 18 October 1996.Burkina Faso WT/TPR/S/46
Page 53
maintain its sugar import monopoly" (Article 19).  This contract-plan was first amended and then
terminated.3  Sugar was subject to an ASI so that imports of sugar could be restricted and came as a
complement to domestic production.  The ASI was eliminated in March 1998 and imports of sugar
liberalized.  Nevertheless, a safeguard system was established in case of a fall in international prices.
The system consists of reference prices of CFAF 326 (for tariff headings 17 01 9910/17 01 9920) and
CFAF 379 per kilo imported (for tariff heading 17 01 9990) and an additional tax of 7.5 per cent (overand above the applicable duties and taxes) when the c.i.f. price is below CFAF 253 and 306,
respectively.  The commitments entered into by Burkina under the Uruguay Round Agreement on
Agriculture did not include this system.  Sugar and sugar products are subject to average import duties
of 29.2 per cent.
(e) Fruit and vegetables
29. Burkina produces fruit and nuts (in particular mangoes, citrus fruit, bananas and cashews) and
vegetables (especially tomatoes, onions, string beans and potatoes).  In 1996, production of fruit and
vegetables totalled some CFAF 40 billion
4;  and is increasing steadily (Table IV.5).  There are various
types of farm (cooperatives, private producers, village plantations, individual gardens in the
surroundings of urban areas) bringing in income per hectare that is six to ten times higher than thatobtained from traditional crops (rice, sorghum and maize), and working time can also be used more
advantageously.  Despite the improvement in roads and other infrastructure, the development of
exports is limited by the cost and rigidity of air transport in particular (Section 5(i)(b) below).  Not
only is the cost of air transport high (e.g. 60 per cent of the price delivered at Rungis [Paris wholesale
market] for string beans) but the service provided has in the past suffered from serious problems such
as delays and schedules that are badly coordinated with the requirements of foreign, particularly
European, markets.
Table IV.5
Overall trend of production of fruit and vegetables, 1989-1996
1989 1990 1991 1992 1993 1994 1995 1996
Gross production (1,000 t.) 324.9 336.7 350.0 364.0 378.6 393.7 411.4 432.0
Net production (1,000 t.) 284.8 295.2 306.8 319.1 331.9 345.2 360.7 378.7
Average price CFAF/kg.) 99.3 92.1 85.6 82.0 86.0 103.2 103.2 106.3
Production (million CFAF) 28,299 27,197 26,277 26,177 28,542 35,620 37,223 40,257
Production (millions CFAF of 1985) 25,121 26,033 27,064 28,146 29,272 30,443 31,813 33,404
Source:   Burkina authorities.
30. Implementation of the PASA concluded in April 1992 led to the liberalization of the fruit and
vegetables sector.  In 1993, the State withdrew fr om the Burkina Union of Agricultural and Market
Garden Cooperatives (UCOBAM) in which it ha d acquired a dominant position in the early 1980s.5
State management of UCOBAM had caused its financ ial situation to deteriorate.  UCOBAM markets
the produce of about 20,000 producers and handles around 50 per cent of exports of string beans.  The
National Fruit and Vegetable Exports Committee (CNPFL), under the supervision of the Ministry of
Industry, Trade and Crafts, and the Burkina Association of Fruit and Vegetable Exporters, a privatetraders' organization set up in 1994, are also involved in exports of fruit and vegetables.  The
conditions applicable, under the supervision of the CNPFL, to professional exporters of fruit and
vegetables by air were officially established in 1994.
                                                     
3Articles 19 and 5 of the contract-plan were amended in 1996 and 1997 respectively.  It was terminated
pursuant to Decree No. 98-003/PRES/PM/MCIA/MEF of 26 January 1998 and Order No. 98/012/MCIA/MEFestablishing a reference value as the basis for assessment of duties and taxes on imported sugar.
4Statistics to be taken with caution.
5UCOBAM was set up in 1968.WT/TPR/S/46 Trade Policies Review
Page 54
31. Fruit is subject to average import duties of 36.5 per cent, as against 33.2 per cent for
vegetables and 37 per cent for preparations of fruit and vegetable products.
(f) Livestock farming
32. Livestock farming is a major sector of the economy, accounting, for about 10 per cent of GDP
and 20 per cent of exports in the period 1990-1996.  Despite the development of modern livestock
production units in recent years, stock farming, in particular cattle farming, remains largely traditionalwith low productivity.  There is little local processi ng in the form of dairy products, local slaughter
and meat-based products.  Owing to its extensive na ture, livestock farming is increasingly in conflict
with crop farming which is likewise extensive because of the low yields (the cultivated area is
increasing rapidly).
33. According to a herd census of 1989, there were 3.86 million large bovine animals, 4.9 million
sheep and 6.37 million goats.  By extrapolation, the herds in 1996 should have totalled about
4.4 million cattle, 6 million sheep, 7.7 million goats, 20 million poultry and 575,000 swine.  The boost
given to exports by the elimination of export taxes was reinforced by the devaluation of the CFA franc
in 1994:  exports of live bovine animals rose by 3.7 per cent to 92,029 head in 1991 and by 70.4 per
cent to 173,023 head in 1994, and altogether livestock products account for over a fifth ofmerchandise export earnings.
34. Under the PASA various measures were planned to encourage livestock farming:  legal status
for cattle trails, privatization of the veterinary profession (under way), and introduction of a Livestock
Development Fund (FODEL).
6  FODEL funds come from a 40 per cent levy on the livestock sector
contribution and subsidies of any kind it may receive.  The special contribution of the livestock sector,
established by a law of November 1995 and levied at the domestic marketing or export stage, amounts
to:  CFAF 3,000/head of cattle, CFAF 50/head of poultry, CFAF 20/head of sheep and goats andCFAF 1,000/kilo of raw skins.  This tax could encourage clandestine slaughter and exports and hinder
the development of the industry, and its effects are currently being reviewed.  A National
Concertation Framework for the promotion of trad e in livestock products (CNC) was set up in 1997,
consisting of representatives of the profession, government services and various partners such as the
relevant NGOs.
35. The export of raw sheep and goat hides and skins is prohibited in order to encourage their
processing locally.  Milk and preserved foodstuffs of animal origin are subject to standards
(Chapter III(2))vii)).  Average import duties are 29.4 per cent for live animals, 37 per cent for meat,
meat preparations, animal fodder, skins, hides and other animal products, and 26.3 per cent for dairy
produce and eggs.
(g) Fishing
36. Because Burkina Faso has no sea coast, fishing has traditionally been little developed.
Fishing provides around 10,000 jobs, including 7,000 fishermen.  Catches are currently around
8,000 tonnes per annum, although the potential is 12,500 tonnes from a water surface area of
180,000 hectares that is constantly growing because of the increasing number of artificial reservoirs.Fishing contributes about 1 per cent to the GDP and the imports needed to cover domestic needs are
now around 4,500 tonnes a year.
                                                     
6FODEL was created in July 1996 to finance measures to improve the animal health and public health
situation and support stock farmers efforts to develop agriculture, forestry and grazing areas and production.FODEL has not disbursed any funds for such activities as yet.Burkina Faso WT/TPR/S/46
Page 55
37. Fishing is regulated by granting fishing permits, concessions and fishing guide licences.
Fishery products are marketed by individuals, some of whom belong to economic interest groups;  the
price of fish products is fixed after consultation between these groups and traders.  Fish imports are
currently regulated by the Ministry of Trade.7  Fish traders' licences (since 1998, one for the
importers, one for the exporters, one for fish wholesalers and one for sellers) are issued by the
Directorate-General of Water and Forestry Resources.  Licences are valid from 1 January to31 December of the year of issue.
38. Action has been undertaken to improve rational use of fisheries resources, conserve
biodiversity and create jobs in rural areas.  Fish, crustaceans and preparations thereof are subject to
37 per cent import duty.
(h) Forestry
39. Burkina's forestry resources are limited by unfavourable natural factors (above all
geographical factors).  Forests currently occupy a little under 14 million hectares.  The area cleared
each year is estimated at more than 50,000 hectares.  Timber for construction is cut by organized
enterprises and firewood by the informal sector.  The various types of forest are suffering a high level
of degradation due to agricultural and pastoral activities stimulated by demographic pressures;  for along time, forests have been neglected in favour of animal and crop production.  The imbalance is
particularly marked on the central plateau.  The only place where the forest grows at a faster rate than
it is cut down is in four provinces in the far south-west, which account for 40 per cent of Burkina's
forests.
40. The aim of Burkina's forestry policy is the rational organization of rural areas to allow
sustainable exploitation of forestry resources, the rehabilitation of resources that have been degraded,
the conservation of biological diversity and the creation of jobs and stable incomes.  In order to reachthese objectives, the authorities count on the active participation of the population, the integration of
forestry in rural development policies and decentralization (regionalization) of activities.
41. Since the mid 1980s, many activities have been undertaken in order to encourage the
production of timber and to conserve the environmen t.  The most important steps were the adoption of
a National Plan to Combat Desertification (PNLCD) in 1986, a National Land ManagementProgramme (PNGT) in 1985, a National Village Forests Programme in 1991 and a National
Environmental Plan (PANE), which replaced th e PNLCD;  the PANE took into account the
recommendations of the Rio Conference.  Lastly, the 1997 Forestry Code defines forestry activities
and sets out the methods for exploitation of other natural resources such as wildlife and fishery
resources.
8  Since 1991, the authorities no longer fix prices, which had been subject to regulations
since 1985.  Wood and wood products are subject to average import duties of 14.9 per cent, compared
with 37 per cent for plants.
(3) MINING AND ENERGY SECTORS
(i) Mining
42. Mining contributes around 3 per cent of real GDP.  It includes gold (the major product of the
mining industry), phosphates (mined, ground and used  as a fertilizer in Burkina) and, since 1993,
                                                     
7Decree No. 98-308/PRES/PM/MEE/MCIA/MEF of 15 July 1998;  the orders implementing this
decree have not yet been issued.
8An Environment Code (Law 002/ADP, which entered into force on 19 January 1994), is also aimed at
rational management and protection of natural resources.WT/TPR/S/46 Trade Policies Review
Page 56
manganese (deposits of 19 million tonnes and annual production of less than 100,000 tonnes).
Burkina also has deposits of zinc, lead, silver, bauxite, iron, nickel and cobalt.
43. The gold produced is mainly sent for export (around 10 per cent of merchandise export
earnings);  a small part of the production is worked on the spot.  Since 1990, the quantity of gold
produced has fallen (Table IV.6) due to the exhaustion of the mines being exploited.  Since March
1996, the Poura mine, which is the largest, has been under renovation;  it is expected that its activitieswill recommence in the year 2000.  Gold production by some 75,000 gold panners
9 working on 200
sites in Burkina Faso generally exceeds the amount produced industrially. Industrial production is
carried out by two companies in which the State is a minority shareholder.
Table IV.6
Trend in gold production
(Kilogrammes)
Year Gold panning Industrial gold Exports World price
(US dollar/ounce of fine gold),
London
1986 272 2,456 .. ..
1987 616 2,677 .. ..
1988 805 2,558 3,154.9 320
1989 1,255 965 2,038 385
1990 2,302 1,199.5 3,480.5 383
1991 1,499 988.7 2,456.2 362
1992 1,338 938.6 2,802.6 344
1993 928 1,027.4 1,933.9 360
1994 698 731 1,392.9 384
1995 805 674 1,478.5 385
1996 788 294 1,085.3 360
1997 (31/10/97) 752 144 1,084 310
.. Not available.
Source:  Burkina Precious Metals Company (CMBP).
44. The high cost of transport due inter alia  to Burkina's land-locked situation and to lack of
financing are two of the factors that have held back mining development in Burkina.  The
Government responded to this situation by organizing a mining investment conference in
December 1995.  A new Mining Code offering investors enhanced benefits was adopted in 1997 and
offers both tax and customs incentives (Chapter II(4)( ii)).  It provides for three types of licence;  a
prospection licence (three years, renewable twice);  small-scale exploitation (ten years, renewable for
consecutive periods of five years until the mine is exhausted);  and industrial exploitation (20 years,
renewable for consecutive five-year periods until the mine is exhausted.
45. Each prospection licence covers a maximum area of 250 km2;  a fee of CFAF 1 million is
payable when the licence is issued together with a "surface-owner's" tax which increases over time:
first year, CFAF 5,000/km2/year;  second year, CFAF 7,500/km2/year; third year,
CFAF 10,000/km2/year;  as from the fourth year, CFAF 20,000 km2/year.  These taxes are indexed to
the BCEAO discount rate each year.  Each time the licence is renewed, the area covered is decreasedby one quarter.  The number of mining prospection licences given to national and foreign companies
has increased sharply (130 at the end of 1997).  In 1996, spending on mining prospection amounted to
US$40 million, and was even more in 1997.  The fee payable for issuing an exploitation licence is
CFAF 5 million.  There are also fees proportional to the f.o.b. value;  7 per cent for diamonds and
                                                     
9Statistics on small-scale production to be taken with caution.Burkina Faso WT/TPR/S/46
Page 57
other precious stones, 4 per cent for base metals and 3 per cent for gold and precious metals.  At the
end of 1997, three exploitation licences had been issued (all for gold).  The Mining Code restricts
State participation in the capital of mining companies to 10 per cent.
46. In May 1997, the marketing of gold, which had previously been a monopoly of the
Burkina Precious Metals Company (CBMP), was liberalized;  approval still remains necessary,
however.10 Mining takes into account environmental constraints:  a joint committee of the ministries
responsible for mining and for the environment has been set up.  The surface-owner's taxes were
imposed in order to discourage prospection or exploitation over too large an area;  a project to
reinforce national capacity for managing the mining sector and the environment has been drawn up;
lastly, a task force on environmental problems has been set up within the Ministry of Energy and
Mines, and works closely with the Ministry of the Environment and Water Resources.  There are alsorelevant provisions in the Environment Code (Chapter III(2)(vii)).
47. With the exception of ore, slag and ash, mining products and articles thereof are subject to
import duties of 37 per cent in general (Table AIV.1).
(ii) Energy and water
48. Production and distribution of electricity are the monopoly of the Burkina National Electricity
Company (SONABEL), a State enterprise.  Generally speaking, more than two thirds of the electricity
consumed is of thermal origin (Table IV.7).  Prices are fixed by the State, and are relatively high
(Table IV.1);  only 7 per cent of households use electricity.  In order to bring prices down, the
Government plans to restructure SONABEL, to allow private companies to produce electricity for
their own consumption and to turn to cheaper electricity supplies from the neighbouring countries, in
particular through interconnection with networks in Ghana and Côte d'Ivoire.  The use of solar energy
is also envisaged.
Table IV.7
Electricity supplied by SONABEL, 1991-1997 (in GWh)
1991 1992 1993 1994 1995 1996 1997
Total production 194 201 216 216 243 274 306
H y d r a u l i c 1 32 04 77 39 47 46 1
Thermal 181 181 169 143 149 200 245
Source:  Burkina authorities.
49. The supply of petroleum products is the monopoly of the Burkina National Hydrocarbons
Company (SONABHY).  Prices are fixed on the basis of international rates by a commission set up by
the World Bank and comprising representatives of several ministries, including those responsible for
trade, finance and energy.  Since September 1994, the prices have been adjusted every four months in
accordance with the different components. A feasibility study for a Ghana-Burkina Faso pipeline
aimed at lowering supply costs was completed in June 1997.  Finally, the National Water ResourcesOffice (ONEA), set up as a State company in 1994, has a monopoly on storage, purification,
distribution and sale of water.
50. The prices of energy products and water are relatively high in Burkina Faso, a considerable
obstacle to the development of modern productive activities which are heavily dependent on them.
Mineral fuels are subject to average import duties of 33 per cent as against 37 per cent for electricity.
                                                     
10See Order 97/035 regarding liberalization and Order 97/062 of 18 September 1997 regarding
approval.  The CBMP's monopoly was abolished in July 1996.WT/TPR/S/46 Trade Policies Review
Page 58
(4) INDUSTRY AND CRAFTS
(i) Industry
51. The industrial sector is not very developed in Burkina Faso.  It comprises some 60 companies,
essentially concentrated in the towns of Ouagadougou and Bobo-Dioulasso and located in the
industrial zones.  Industrial units have also been set up in some of the smaller towns such as
Koudougou and Banfora.  The sector is dominated by the food industries, producing sugar, flour, beerand soft drinks, oil, alcohol, fruit juice, syrup, cigarettes and pasta;  the textile industries (yarns and
printed fabrics), cotton ginning and the processing of raw hides and skins;  the chemical industries,
manufacturing tyres, phytosanitary products, plastic household and industrial articles, soaps and
cosmetics, drugs, paint, foam for mattresses, batt eries and matches;  and the wood- and metal-working
industries, manufacturing angles, shapes and sections, agricultural equipment and boilers, assemblingmotor bicycles and bicycles, and producing articles  and constructions of metal and wood (Table IV.8).
Table IV.8
Active companies by industry, December 1997
Industry Companies
Food, beverages and tobacco SOSUCO, SN-CITEC, MABUCIG, GMB, BRAKINA, SOPAL, BURKINA PAT, COBU,
SOFIB-huilerie, SAFCO, UCOBAM
Textiles, clothing and leather SOFITEX, FASO FANI, TAN ALIZ, SBMC
Paper articles, printing INB, INC, GIB, SONACEB, IBT, SAVANE, SOGIEF, Presses Africaines, Imprimerie
Kadiogo
Chemical industry SAP, SOFAPIL, FASOPLAST, SIBAM, SOBUGAZ, SOFIB Savonnerie,
TECHNIMETAL, MEDIFA, SAPHYTO, Adam Afrique, SOFACI, SOPEF
Manufacturing, works, metal SIFA, PROMETAUX, CBTM, EMETAL, Hage Métal, DIACFA Industriel, CNEA,
APICOMA, OMA
52. Some 16,000 persons were employed in industry in 1996.  The agri-food industries accounted
for more than half (53 per cent) of production in the modern industrial sector, dominated by the
beverage and tobacco industry, with its two monopoly firms (31 per cent of industrial production).However, most of the agri-industrial units are working below installed capacity, with rates of
utilization of 10 to 40 per cent.
53. Since the beginning of the 1990s, industrial activity has been on the decline (Table IV.9) and
its share in GDP has dropped owing to:  lack of competitiveness which the devaluation of the CFA
franc in 1994 was unable to remedy (the cost of factors such as electricity, water and fuel are amongthe highest in the subregion);  problems with the takeover by the private sector of activities
relinquished by the State;  and lack of domestic demand. The development of the modern industrial
private sector has been considerably hampered by the small size of the domestic market and the
importance given to the public sector.  It has also suffered from the high costs engendered by heavy
protection and strict regulation.  Local industrial activities such as the African Tyre Company (SAP),Burkina National Tile Company (SONACAB) a nd the Faso Industrial and Commercial Match
Company (SICOMAF) are threatened by contraband.  The initial response has included measures to
liberalize foreign trade, the adoption of a new investment code providing particularly strong
incentives, price liberalization and finally, the progressive withdrawal of the State from production
activities - a privatization programme is already under way (Chapter III.4(i)).Burkina Faso WT/TPR/S/46
Page 59
Table IV.9
Trend of industrial production (in volume), 1990-1995
(base of 100 in 1990)
1990 1991 1992 1993 1994 1995
Food, beverages, tobacco 100 77.2 85.8 53.4 41.9 41.8
Textiles 100 76.9 70.9 64.9 76.1 84.2
Chemical industry 100 80.5 83.3 73.7 34.2 76.4
Wood- and metal-working 100 105 108.9 85.8 69.7 37.8
Industry as a whole excluding mining 100 96.6 95.8 87.5 88.2 92.7
Source:  Burkina authorities.
54. Certain Government departments (Ministries of  Industry, Trade and Mining) and parastatal
institutions (Chamber of Commerce, Industr y and Crafts, National Foreign Trade Office,
Burkina Faso Council of Shippers) provide support to the industrial sector in the form of information,
counselling and training.  Over the past few years, institutional reforms have led to the merging of taxservices under a single management and the creation of a single window, the Business Promotion
Centre (CPE), responsible for non-customs foreign tr ade formalities and for all procedures relating to
the application of the Investment Code.
11  An interministerial committee was set up in July 1997 to
rationalize and simplify formalities.  In addition, international donors have lent their support for
studies to draw up a strategic industrial plan (UNDP), have assisted small and medium enterprises(the European Union) and finally, having contributed to investment projects (Caisse française de
développement).
55. With the assistance of UNDP and UNIDO, the Government embarked, in November 1991, on
an industrial policy based on a branch-by-branch approach (eight branches were identified, see
Chapter II(3)), consultation among the different pa rticipants from each branch and incorporation of
the industrial component in overall macroeconomic policy.  The aim is to develop local raw materials,
including agricultural and mining products (ver tical diversification), through modernized local
techniques or the transfer of appropriate technologies, and to create jobs and an industrial labour
force.  To that end, certain advantages are provided for under the Investment Code.  The new strategy
has targeted the production of competitive and mass consumption goods for which Burkina Faso has
comparative advantages.  It is supposed to prepare Burkina Faso's industry for the competition that
will result from the establishment of the WAEMU Customs Union.
56. Type R6 or R20 saline electric batteries, cold vulcanizing glues, tyres and inner tubes,
pesticides, insecticides and by-products are subject to certain standards (Chapter III(2)(vii)).  There is
an average import duty of 37 per cent on clothing, fabrics, textiles, shoes and cosmetics, 25.6 per cent
on cars and 15 per cent on other motor vehicles.
(ii) Crafts
57. Burkina Faso has a number of strengths in the crafts sector (Chapter I(1)) of which the main
branches are artistic handicrafts and small-scale production. Crafts generate more jobs than any other
sector excepting agriculture, employing some 637,000 people, including 370,000 women, in a broad
range of activities.
12  These activities are generally conducted jointly with agricultural and/or
household work. Crafts represent the main source of employment for 114,000 people, the chiefactivities being cutting, and repairing two-wheeled vehicles.
                                                     
11The responsibilities of the windows created in 1992 were extended to all operations relating to
investment or the creation of enterprises.  In 1995, these windows were merged to form the CPE.
12The share of crafts in real GDP is estimated at 20 per cent.WT/TPR/S/46 Trade Policies Review
Page 60
58. Among the problems facing the crafts sector in Burkina Faso are access to financing and
training, and lack of organization.  A "Master Plan for the Promotion of Crafts in Burkina Faso" was
adopted in May 1990 in an effort to solve some of these problems.  The Plan aims to improve the
professional qualifications of craftsmen through training courses;  create structures for self-promotion
and protection of the interests of craftsmen;  expand markets for craft products and related services;
and establish communication among the different people involved.  Studies were conducted in thisrespect;  a number of promotional activities in favour of crafts in Burkina were identified, and a
national information network is currently being developed.  A National Commission for the
Promotion of Crafts was created and craftsmen' s offices set up in Ouagadougou and Bobo-Dioulasso
with a view to creating trades associations in the medium term, and trades chambers in the long term.
The European Union and the German Agency for Technical Cooperation (GTZ) have also beenproviding assistance to craftsmen.
59. The various actions undertaken have made it possible to identify, among the problems of
traders and industrialists belonging to the Chambe r of Commerce, Industry and Crafts (CCIA-B), the
problems that are specific to the craft sector.  The informal sector's contribution, a single tax on
companies whose turnover is less than CFAF 15 million (CFAF 5 million in the case of servicessuppliers) was introduced in 1994 as a means of taxing the informal sector, of which crafts account
for a significant share.  Works of art and antiques are subject to an import duty of 37 per cent.
(5) 
SERVICES
60. The services sector accounts for about 47 per cent of real GDP.  Transport, financial services,
tourism (including hotels and restaurants) and telecommunications are among its main activities.  In
the framework of the Uruguay Round General Agreement on Trade in Services, Burkina Faso has
bound, without limitations, consumption abroad and commercial presence for the supply of hotel andrestaurant services as well as travel agency and tour operator services.  Cross-border supply of travel
agency and tour operator services has also been bound.  However, the number of foreign travel
agencies in Burkina Faso must not exceed one th ird of the national total.  Burkina Faso has also
obtained a derogation from MFN treatment for computer reservation systems in air transport.  Apart
from the physical presence of company managers, executives and specialists (under the immigrationrules in force in Burkina Faso), the other modes of supply for these categories of services are not
bound.  Burkina Faso has not bound the supply of other categories of services.
(i) Transport services
(a) Land transport
61. Burkina Faso has a total of 13,000 kilometres of roads, a modest network considering the size
of the country.  The network is unevenly distributed among the different regions.  Asphalted roads
account for 27 per cent of the network, and two-thirds of them are in poor shape.  The trunk roads are
outwardly oriented: four main corridors serve the sea ports of the neighbouring coastal countries(Benin, Côte d'Ivoire, Ghana and Togo).  In all four cases, the sections within Burkina Faso are
asphalted.  In 1995, the country had a total of 164,277 vehicles, of which 100,604 were motorcycles
or motor bicycles.  The public transport sector had about 3,450 vehicles.  Table IV.10 shows the
tonnage of goods transported by land from 1994-1997.Burkina Faso WT/TPR/S/46
Page 61
Table IV.10
Transport of  goods by land, 1994-1997
Year Rail Road
1994 205,511 698,422
1995 203,865 810,719
1996 404,560 744,229
1997 285,322 738,048
Source:  Burkina authorities.
62. There is no restriction on the supply of interurban and international transport services – any
person with a vehicle is free to do so.  Thus, the informal sector represents 15 per cent of the value
added in this sector.  Since 18 March 1996, SOTRAO, a private company, has had an exclusive
concession for the operation of an urban public tran sport network for a renewable period of five years.
According to the authorities, urban transport services are in the process of being completely
liberalized.
63. Burkina Faso has signed the ECOWAS conventions on transit (TRIE) and road transport
(TIE) among member countries.  Bilateral agreements regulate road transport between Burkina Faso
and each one of its transit countries, Benin, Côte d'Ivoire, Ghana and Togo.
64. There are only two railroad links in Burkina Faso:  Ouagadougou-Abidjan, 1,155 km long
with 517 km. in Burkina Faso, and Ouagadougou-Kaya, 100 km long.  The railway network is chiefly
devoted to freight transport.  The main products transported are cereals, sugar, cotton fibre, live
animals, fruit and vegetables, and fertilizers.
65. The Ouagadougou-Abidjan railway was managed by Abidjan-Niger Railway Authority
(RAN);  however, the convention on the organizati on and operation of the RAN was terminated.  A
separate management was introduced on 23 May 1989, and on 12 December 1994 a concessionagreement for the operation of the railways was signed between the States of Burkina Faso and Côte
d'Ivoire on the one hand, and the company SITARAIL (owned by Belgian, Burkina Faso, French and
Côte d'Ivoire nationals) on the other hand.
66. An investment plan has been prepared for ro ad and rail transport in the framework of the
Structural Adjustment Programme for the Transport Sector (PASEC-T).  The plan seeks to find thebest possible trade-off between new investments and expenditure on the maintenance of existing
infrastructure (60 per cent of overall expenditure).
(b) Air and maritime transport
67. Burkina Faso has two international airports  (Ouagadougou and Bobo-Dioulasso), 49 airfields
and 13 private air strips.
13  Air transport services, which, in principle, are open to all operators, are
regulated by an Aeronautical Code.  Seven airlines have scheduled flights to Burkina Faso under
17 bilateral air transport agreements.14  Air Burkina (66 per cent State-owned) links local and regional
destinations while Air Inter-Burkina covers domestic and postal traffic.  Burkina Faso is a signatory to
the Warsaw Convention, the Chicago Convention and the Yaoundé Treaty creating the multinationalairline Air Afrique.  A dozen draft air transport agreements are currently being negotiated.
68. In 1995, air traffic statistics showed 199,791 passengers and 6,106 tonnes of cargo for
4,692 aircraft movements.  The goods transported by air freight are essentially perishable goods (in
                                                     
13Europa (1997).
14Of the 17 Agreements, only nine are operative.WT/TPR/S/46 Trade Policies Review
Page 62
particular fruit and vegetables for export);  the chief problems are the high cost of freight and the
irregularity of flights.15  Burkina Faso has signed an agreement with Air Afrique to improve the
regularity of the country's freight transport by that airline.  There are also plans to build refrigerated
warehouses near the airport in order to reduce storage losses.
69. Although Burkina Faso is a land-locked country, approximately 90 per cent of its trade goes
by way of the sea.  Abidjan is the main port for goods transiting to and from Burkina Faso.
70. The Burkina Faso Council of Shippers (CBC ) was created in 1978 in the spirit of the
1975 Abidjan Charter to defend Burkina Faso shippers, penalized by their geographical position and
by Burkina Faso's limited influence in international transactions, including regional transactions.  The
purpose of the CBC is to develop and promote a policy for the defence of the interests of importers
and exporters in the field of cargo transport.  It manages, inter alia , international sea freight.  The
CBC is currently being restructured and its activities reoriented in response to the evolution of the
international maritime environment.
71. In May 1989, Burkina Faso ratified the UNCTAD International Convention on a Code of
Conduct for Liner Conferences.  It is also a member of the Ministerial Conference of West African
States and the Maritime Transport Centre (a s ubregional organization, comprising 25 States, whose
aim is to formulate and develop a common maritime policy with a view to strengthening the work
already done in that area by the countries concerned.
(ii) Financial services
(a) Banks and financial institutions
72. The banking system of Burkina Faso comprises the Central Bank of West African States
(BCEAO) which is the issuing authority for the me mber countries of the WAEMU, and seven other
banks:  the Trade and Investment Financing Ba nk of Burkina (BFCI-B);  the Burkina National
Agricultural Credit Fund (CNCA-B);  the Internat ional Bank for Trade, Industry and Agriculture of
Burkina Faso (BICIA-B); the International Bank of Burkina Faso (BIB);  the Commercial Bank of
Burkina (BCB);  ECOBANK (an ECOWAS bank);  and, since March 1998, the Bank of Africa.  The
State is the sole owner in the BFCI-B and has a 50 per cent share in the BCB, 27 per cent in the
CNCA-B, 22 per cent in the BICIA-B and 22.92 per cent in the BIB.  Burkina Faso's banking network
appears to be too concentrated, since most of the banks are not represented outside the main towns
(Ouagadougou and Bobo-Dioulasso).
73. There are four financial institutions16 operating in Burkina Faso:  the Burkina Automobile
Credit Company (SOBCA), the Burkina Financial Company (FIB), the Burkina Equipment Company
(SBE) and the Burkina Financial Intermediation Company (SBIF).  The activities of mutual
institutions17 such as the popular funds and the support funds for remunerative activities of women
                                                     
15High air transport costs are partly due to the price of oil, and landing and servicing fees at
Ouagadougou airport - La Lettre Afrique Expansion No. 556, 13 July 1998.
16Article 4 of the above-mentioned Zatu states:  "shall be considered as financial institutions, natural or
legal persons other than banks whose regular profession is to carry out, on their own behalf, credit, credit sale or
exchange transactions or who regularly receive funds which they use on their own account for investment
operations, or who regularly serve as intermediaries in the form of agents or brokers or in any other form, in allor part of such transactions".
17Mutual institutions (mutual funds or savings and loan cooperatives) are defined in the Zatu Article as
"a grouping of persons with legal personality, non-prof it making and open-ended, founded on the principles ofBurkina Faso WT/TPR/S/46
Page 63
(FAARF) are expanding rapidly.  At the same time, restricted access to bank loans has resulted in the
development of  tontines  in Burkina Faso.  This institution, which is based on confidence among its
members, deals with modest sums of money ultimately used for purposes ranging from equipment to
the financing of activities on a modest scale.
74. Banking activities are subject to authorization from the Minister for Finance, with the consent
of the WAEMU Banking Commission.18  A minimum capital of CFAF 1 billion is required.  Under
the legislation in force, directors, administrators and managers of banks and financial institutions or
agencies thereof must be citizens of a WAEMU member country, unless there is an establishment
agreement.19  Banks established in Burkina Faso must obtain an authorization from the Minister in
charge of finance to take out loans or to invest outside the WAEMU.20
75. Since 1983, a number of reforms have been introduced in the banking sector in Burkina Faso.In 1991, an office for the recovery of claims was set up.  The BICIA-B and the BIB were restructured
in 1994, and the BND-B in 1996.  Negotiations are currently under way for the restructuring of the
BFCI-UREBA-CAI group and the CNCA.  There are also plans to transform the Comptes Chèques
Postaux  (postal checking accounts) into a fully fledged financial institution.  Banks are free to set
their own interest rates, but they must be below the lending rate fixed by the BCEAO (18 per cent in
December 1997).
(b) Insurance services76. Insurance services are provided by:  Fonc i-Assurances (FONCIAS), 51 per cent State owned;
the National Insurance and Reinsurance Company (SONAR), 25 per cent State owned;  and the
Burkina Insurance Union (UAB), a private company.  Another three companies also operate within
the country:  the International Brokerage Comp any (SICAR), Burkina Insurance Company (ACB)
and, more recently, the General Insurance Company.  These insurance companies, which until now
have been financed exclusively through real estate investments and long-term bank deposits, will nowalso be able to enter the regional stock exchange.
21
77. Burkina Faso is a signatory to the Inter-African Conference on Insurance Markets (CIMA)
Code which entered into force on 15 February 1995.  The Code regulates insurance services in
14 African countries of the franc zone.22  Only authorized companies established under national law
(irrespective of the origin of their capital) are entitled to operate.  Authorization is provided by the
Minister for Finance with the consent of the Regional Insurance Control Commission with
headquarters in Libreville.  Subsidiaries and branch offices of foreign companies must obtain an
authorization to open up from the Minister for Economic Affairs and Finance.
78. The Code requires a separation of life insurance and non-life insurance (fire, accident,
technical and other risks) activities.23  In Burkina Faso, companies are free to choose their procedures
                                                                                                                                                                    
union, solidarity and mutual assistance, and whose purpose is to collect savings for its members and provide
them with loans".
18The Commission also controls the banks and financial institutions at the WAEMU level.
19Law 012/96/ADP of 2 May 1996 on banking regulations in Burkina Faso.
20Article 3 of Decree 96-160/PRESPM/MEF concerning certain financial operations with foreign
countries.
21All of the insurance companies deal in life insurance, fire insurance, risk insurance and transport
insurance.
22The 14 countries are:  Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros,
Côte d'Ivoire, Equatorial Guinea, Gabon, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
23These provisions apply to each of the signatories of the CIMA Code.  See WTO (1997).WT/TPR/S/46 Trade Policies Review
Page 64
for fixing insurance premiums, with the exception of the compulsory automobile insurance rate,
which must be negotiated with the Ministry of Economic Affairs and Finance.
(iii) Tourism, restaurants, hotels
79. Burkina Faso has considerable potential as a tourist destination (parks and animal reserves)
which has so far remained under-exploited.  Currently, the main reasons for travel by foreigners to
Burkina Faso are local art, international forums and festivals such as the Pan-African Film Festival
and the International Art Exhibition in Ouagadougou, and transit.  Twenty-one area concessions have
been granted with a view to exploiting the touris t potential of the country's wildlife, 19 in 1996 and
two in 1997.  In 1997, the country had a total of 185 hotels and some 4,000 beds (Table IV.11).  Thenumber of tourists has been increasing constantly, attaining 173,000 arrivals in 1995.
Table IV.11
Trend of hotel capacity in Burkina Faso, 1980-1997
Year Number of hotels Number of rooms
1980 50 100
1987 96 300
1992 116 2,315
1994 150 3,221
1997 185 3,886
Source:  Burkina authorities.
80. This activity has generated only limited resources so far.  In 1997, CFAF 385 million francs
went to the holders of the concessions, CFAF 181 million francs (in the form of taxes, fees and
licences to operate in the wildlife reserves) went to the public revenue department, and
CFAF 13 million to the local populations, who are free to set up collective interest funds (FIC).
About half of the value added of the sector comes from informal activities.
81. The operation of tourist establishments is governed by Law 16-93 of 19 May 1993 which
requires, inter alia , approval from the Ministry of Tourism for any construction or transformation of a
tourist establishment.  Lack of infrastructure and the high cost of certain factors, in particular transport
(40 to 45 per cent of subsistence expenses)24, energy and telecommunications have impeded the
development of tourism in Burkina Faso.  Studies are currently under way to identify and develop
potential tourist resorts and the hotel infrastructure.
(iv) Telecommunications
82. Telecommunications services are rapidly expanding.  Between 1990 and 1996, the number of
telephone subscribers increased two-fold in urban areas and four-fold in rural areas.  However,
teledensity (the number of main lines per 100 inhabitants) remains low, at approximately 0.35 in 1997
(Table IV.12).  Value added was CFAF 17.5 billion in 1996, which corresponded to 1.5 per cent of
GDP.  More than 1,200 persons are employed in telecommunications services, where productivity is
comparable to the average for telecommunications enterprises in the subregion.  However, telephone
rates in Burkina Faso are above the average for the subregion (Table IV.1).
                                                     
24La Lettre Afrique Expansion No. 556, 13 July 1998.Burkina Faso WT/TPR/S/46
Page 65
Table IV.12
Telecommunications services indicators, 1990-1997
1990 1991 1992 1993 1994 1995 1996 1997a
Number of main lines 16,183 18,669 21,284 22,264 25,490 28,742 34,035 39,850
Teledensity (number of lines per 100inhabitants)0.21 0.20 0.23 0.23 0.26 0.29 0.33 0.35
Number of employees (ONATEL) 1,109 1,147 1,171 1,193 1,215 1,224 1,224 1,231
Productivity (number of agents per 1,000
lines)69 62 55 54 48 43 36 34
Value added (CFAF billion) 7,.921 8,778 10,330 11,872 13,223 15,609 17,461 20, 960
a Estimated.
Source: Burkina authorities.
83. The National Telecommunications Office (ONATEL), a State company, has a monopoly on
telecommunications and all related activities.  It is  responsible for applying the relevant legislation
and regulations.  However, ONATEL may grant exemptions in the form of authorizations to supplycertain services covered by the monopoly, i.e. importation, marketing, operation and/or maintenance
of certain equipment, whether or not it is to be connected to the public network, by firms or
enterprises and natural persons.  The authorization granted to natural persons is an exceptional import
authorization (subject to a conclusive test) for appliances purchased during travel abroad for personal
use.
84. The granting of authorizations covers priv ate telecommunications, terminal equipment and
accessories, maintenance and repair, and telecommunication works (civil engineering and network
cabling, installation and commissioning of switching and transmission equipment).  Thus, all
equipment, whether or not it is to be connected to the public telecommunications network, must beapproved by ONATEL, which conducts tests and inspections.  A provisional authorization is granted
for one year, following which it can be confirmed for a longer period of time (variable according to
the type of authorization) on request.  The fees  collected by ONATEL vary according to the type of
authorization, and may reach CFAF 100,000 for authorizations concerning telecommunications
works.  Fines for violations of the regulations in force may be as high as CFAF 500,000 in the case ofthe illegal import of telecommunications equipment, which is also confiscated.  Telecommunications
services are subject to VAT, collected by ONATEL on behalf of the State.  ONATEL is subject to the
ordinary tax regime.
85. A direct connection to the Internet has been in operation since 1996.  As of 14 August 1998,
more than 964 subscribers were connected to the Internet.  Burkina Faso has one public television
channel and three radio stations, and it is possible to receive certain foreign channels such as theFrench TV5.WT/TPR/S/46 Trade Policies Review
Page 66
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