BUSINESS ENVIRONMENT AND
INVESTMENT OPPORTUNITIESIN BURKINA FASO

Chamber of Commerce and Industry
Tokyo June 2014
1BURKINA FASOYour Gateway to the West African Market
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AGENDA
Geographic Context
Economic Environment
Business Environment
Business Opportunties
Major Ongoing Projects and Programs
Reasons to investing to Burkina Faso

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Key numbers on Burkina Faso
INDICATOR

VALUE

Surface274 200 km²

Population

17,3 millions inhabitantsLife Expectancy

Doing Business 2014 Ranking
4-YEAR

2013

56,72006 (INSD)

154/189
24th in Sub-SaharanAfrica

2014Key Macro-economic indicators
VALUEINDICATORGDP
GDP per Capita

YEAR

10. 95 billion USD

2013

634.32 USD

2012

6.8%

2013

0.5%

2013

Growth Rate

Inflation Rate
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Evolution of Key Macroeconomic indicators

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Evolution of Export &Import

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Economic environment
 Exports
 Main exports: Gold (67% in 2012), Cotton (18% in 2012), livestock,Sesame, Shea nuts & Shea butter , fruits &vegetables, cashew nuts, arts,
hides & skins;
 Major Customers: Switzerland, Côte d’Ivoire, Japan, Germany, France; Japan : 7th in Asia with 1.140 million
 Main export products : cotton and seeds
 Imports
 Main Imports: Oil and oil related products (roughly 20% of totalimports), pharmaceuticals, foodstuffs, cars, electric equipment andmaterials, telecommunications equipment, industrial supplies.
 Main suppliers: Côte d’Ivoire, France, Mainland China ; Japan : 3trd in Asia with 52.826 million
 Main products: vehicles (tourism, transport), motorcycles; tyres,rice, and spare parts, tractors, etc
8A friendly business environment A liberal trade and pricing policies after anextensive state-owned companies’ privatization
program Setting up of the Presidential Council forInvestment
 The Creation of an Investment Promotion Agency
 A Strong and permanent public-private dialogue
9Speedy business setting up procedures
 Establishment of a Single Window Centre for centralizing, streamlining,

simplifying and speeding up trade and investment procedures
 3 days to complete a company creation procedures at the Business

Formalities Centers (CEFORE) for only 68 euros
 19 days to obtain a building permit at the Centre for construction

documentation (CEFAC)
 14 days to obtain a land title at the One-Stop-Shop for Property land issues• Creation of the Crafting and the Mining Chambers for sectorial policy

advocacy10Institutional arrangement to ensure therule of law in Business• Commercial courts to settle commercial cases• Centre for Arbitration, Mediation andConciliation of Ouagadougou (CAMCO) for thesettlement of trade disputes;• Establishment of a Procurement Regulations
Authority to ensure greater transparency in publicprocurement11

An improved business environment•••

Reduction of the number ofsetting up procedures•The reform of the labor lawto ensure more flexibility

A favorable tax and customs
theme in compliance with
regional economic
community’s texts•

Reform of the financialsystem•

Attractive investment andmining codes•

Adoption of a law on legal
regime of the public-private
partnership to secure
private sector investments

A new procurement code toensure more transparency
in public procurements

12Agriculture sector profile
1000
900

 Potential in irrigablelands: 233 500 ha ofwhich only 26 758 ha aredeveloped Water resources: 10
billion m3 of surface water& 113 billion m3
underground13800700

1000 tons

 21 % contribution to GDPformation in 2010
 9 millions ha arable landof which only 1/3 iscurrently used600

Bea ns500

Ma ngoes

400300200

Oni onCotton
Ri ce

100

Toma tos0
Coton

CerealesFruits et légumes

Pea nuts
Ses ameOléagineux

Profile of livestock sector
 Burkina Faso is the 4th cattle-rearing in West andCentral Africa– Poultry: 42 million– Goat breeding: 13 million– Sheep: 8 million– Cattle: 8.5 million– Pigs: 2.2 million

 Meat production in 2012 was 319.946 tons, farbelow the national need Milk production in 2012 was 283.6 million de litters, that

corresponds to around 10% of the national demand The Government is looking for partners on a PPP

basis for

Modernizing slaughterhouses of Ouagadougou and Bobo
Setting up a hatchery for crossbred chick production
Setting up a central purchasing center of veterinary drugs
Setting modern milk processing plants across the country

Mining sector profile Gold is the first export

product since 2009

Burkina Faso Gol Export Evolution35

 High potential30

 7 gold operating mines

development in Tambaoonces A major manganese under252032,17

15
23,50

10

 A zinc operating mine in

Perkoa with more than 6
million MT of ore at 18%

530,17

12,5002009

2010

2011

2012

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Gold operating mines
DepositCompany

Expected
Production

Investments(X 1000) $Beginning ofoperations

Taparko Bouroum(Sanmatenga)

SOMITA

35 tons

120

Youga(Boulgou)

Burkina Mining
Company(ETRUSCAN)

25 tons

92

May 16, 2008

Wona Fobiri Mana
(Balé)

SEMAFO-BF(SEMAFO)

35 tons120

June 30, 2008

Kalsaka(Yatenga)

KALSAKA Mining(CLUFF MINING)

20 tons

1 252

October 30,2008

Inata(Soum)

SMB-SA(WEGA Mining)

22.5 tons

120

April 8, 2010

Essakane(Oudalan)

ESSAKANE SA

90 to 120 tons

350 to 400

July 2010

Bissa- Zandkom(Bam)

BISSA GOLD

34.3 tons

193.2

January 16, 1013

October 7, 2007

Energy sector
 Electricity coverage rate : 28,15% en 2012 Electrification rate: 16,38% in 2012

KWh in 2012
Interconnexion

Thermic

 Current production capacity: 310.65

MW High investment potential in energy

sectorinthermic,
solarandhydroelectricity power plants rural
electrification and interconnection
programs Electricity annual growth rate: 10%1742%49%9%Hydroelectricity

Craft sector profile
The crafts employ more than one million people. This is thesecond source of employment after agriculture and livestock
sectorBurkina Faso is the showcase of African crafts thanks to theInternational Art and Craft Fair of Ouagadougou (SIAO)
organized every 2 years

18Tourism and hospitality sector
 Prime geographical location in the region
 The industry is made of: Business tourism
 Conventions
 Resorts, hunting and hiking

 Burkina Faso is host to major International events such as:
 FESPACO, the biggest African movies festival
 SIAO, International Art and Craft Fair of Ouagadougou
 SITHO, the International Fair of Tourism and Hospitality of Ouagadougou
19Major ongoing agricultural projects
Bagrepole Development of 21, 000 ha Cost: 133.70 USD
 Contribution of 115 million

USD from the World Bank
GroupSamandeni
 Total cost of the project: 305

million Euros

 1st Phase (2008-2014): 114

million Euros

 2nd Phase (2015-2019): 191

million Euros

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Major ongoing infrastructure projects
A new International
Airport in Ouagadougou
 Strong involvement ofthe private sector

 Great implication of theprivate sector

Housing Programs
“10 000 low cost houses” forabout € 106 million

“5 000 affordable housing”€ 95 million

 Cost : € 268 million
21Ten good reasons for investing in Burkina Faso
 A political and institutional stability based on a permanent quest forsocial dialogue and political consensus
 A stable and healthy macroeconomic context
 A committed choice for an opened economy
 A conducive and innovative legislative and regulatory framework with afirm investment promotion and protection policy A common and freely convertible currency within the UEMOA having afixed parity against the Euro An abundant, young, and dynamic workforce
22Ten good reasons for investing in Burkina Faso(Continued) A prime geographic position at the center of the West Africa, giving access to apotential market of more than 300 million within the ECOWAS A constantly improving legal and judicial environment within theOrganization for the Harmonization of Business Law in Africa(OHADA) A good international road network and a powerful international transit system,

making of Burkina Faso a crossroads for trade within UEMOA and ECOWASzones
 Huge and yet unexploited economic potentials in the fields of agriculture,mining, industry, tourism and services

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Thank You For Your Attention!

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