HomeReportsBureau of Economic and Business Affairs2019 Investment Climate Statements...Burkina Faso

# 					2019 Investment Climate Statements: Burkina Faso			

 In this section										/

													Executive Summary											

                -  Executive Summary 
                -  1. Openness To, and Restrictions Upon, Foreign Investment   
                -  2. Bilateral Investment Agreements and Taxation Treaties   
                -  3. Legal Regime   
                -  4. Industrial Policies   
                -  5. Protection of Property Rights   
                -  6. Financial Sector   
                -  7. State-Owned Enterprises   
                -  8. Responsible Business Conduct   
                -  9. Corruption   
                -  10. Political and Security Environment   
                -  11. Labor Policies and Practices   
                -  12. OPIC and Other Investment Insurance Programs   
                -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                -  14. Contact for More Information   

## Executive Summary

Burkina Faso welcomes foreign investment and actively seeks to attract foreign partners to aid in its development.  It has partially put in place the legal and regulatory framework necessary to ensure that foreign investors are treated fairly, including setting up a venue for commercial disputes and streamlining the issuance of permits and company registration requirements.  More progress is needed on diminishing the influence of state-owned firms in certain sectors and enforcing intellectual property protections. Burkina Faso scored 59.4 out of 100 in the 2019 Heritage Foundation Economic Freedom Index and ranked 78 out of 180 countries in Transparency International’s 2018 Corruption Index.

The gold mining industry has boomed in the last seven years, and the bulk of foreign investment is in the mining sector, mostly from Canadian firms.  Moroccan, French and UAE companies control local subsidiaries in the telecommunications industry, while foreign investors are also active in the agriculture and transport sectors.  In June 2015, a new mining code was approved with the intent to standardize contract terms and better regulate the sector, but the new code is not yet fully operational. In 2018, the parliament adopted a new investment code that offers many advantages to foreign investors. This code offers a range of tax breaks and incentives to lure foreign investors, including exemptions from value-added tax on certain equipment.  Effective tax rates as a result are lower than the regional average, though the tax system is complex and compliance can be burdensome. Opportunities for U.S. firms exist in the energy sector, where the government has an ambitious plan for the installation of new power capacity in both traditional and renewable sources.

Despite significant progress in building democratic institutions, the recent political and security environment in Burkina Faso has been marked by a series of terrorist attacks, especially in the northern and eastern regions, and the rise of self-defense groups comparable to militias in rural areas.  Most recently, in March 2018, the Army headquarters and the French Embassy in Ouagadougou were the targets of a terrorist attack. The government is still struggling to balance security concerns with its economic priorities, and will continue to face the twin challenges of too few resources and high public expectations.

*Table 1: Key Metrics and Rankings*

							1. Openness To, and Restrictions Upon, Foreign Investment					

**Policies Towards Foreign Direct Investment**

In his policy statement delivered on February 18, 2019 at the National Assembly, the newly appointed Prime minister focused on the resolution of Burkina Faso’s economic difficulties.  He acknowledged the low productivity of the production sectors. He considered six measures to boost economic activity including improving the business and investment climate. He also stated that the government will strengthen the conduct of reforms, including those contained in the minimum matrix of business climate reform, in order to improve Burkina Faso’s *Doing Business* ranking and foster the development of the private sector.

The World Bank published the 2019 Doing Business Report (DB/2019), on November 1, 2018. This report announced a slight drop for Burkina Faso in its ranking for “ease of doing business for small and medium-sized businesses” as it slipped in ranking from 148th place out of 190 in 2018 to 151st in 2019.

The government of Burkina Faso adopted the National Program for Economic and Social Development (PNDES) with the aim to structurally transform the Burkinabè economy in order to generate strong, sustainable, resilient, and inclusive growth and thus create decent jobs for all and improve social well-being.  The total amount of funding required for the implementation of the PNDES is CFAF 15,395.4 billion, or about USD 27 billion. Of this sum, it is expected that 63.8 percent (CFAF 9,825.2 billion or USD 17 billion) of the amount be mobilized by own resources, namely the mobilization of taxes. The other 36.2 percent (CFAF 5,570.2 billion or USD 10 billion) represents the need for funding from Public Private Partnership (PPP) projects, the mobilization of funds from the Burkinabe diaspora and technical and financial partners, and the voluntary contributions.

As of December 2018, According to PNDES Permanent Secretariat technicians, CFAF 3,884.5 billion of CFAF 9,825.2 billion (39.5 percent) was mobilized from internal resources.  Out of external resources, the amount of agreements signed amounts to CFAF 2,573.35 billion of CFAF 5,570.2 billion, or 46.2 percent. The main difficulties to internal revenue collection are related to security issues and strikes initiated by government workers.

Article 8 of the investment code stipulates there is to be no discrimination against US foreign investors.  However, in order for any foreign investor to benefit from the exemptions provided for by the investment code, they are required to submit a request to the General Directorate for the Promotion of the Private Sector.

**Limits on Foreign Control and Right to Private Ownership and Establishment**

Burkina Faso is a member of the Organization for the Harmonization of Corporate Law in Africa (OHCLA).  All the Uniform Acts enacted by this organization are applicable in the country. Regarding business structures, OHCLA allows most forms of companies admissible under French business law, including: public corporations, limited liability companies, limited share partnerships, sole proprietorships, subsidiaries, and affiliates of foreign enterprises.  With each scheme, there is a corresponding set of related preferences, duty exceptions, corporate tax exemptions, and operation-related taxes.

From 1995 to 2018, Law 062-95, which was amended several times, governed investments in Burkina Faso.  However, in order to adapt this code to the new exigencies of the world economy and to respond to the fierce competition between states for attracting foreign investment, the National Assembly adopted a new Investment Code by Law 038 on October 30, 2018.  It replaces Law 062-95 of December 14, 1995, which presented several shortcomings, including the non-coverage of investments in renewable energies and hydraulics.

According to Article 5 of the Investment Code, certain sectors of activity may be subject to restrictions on foreign direct investment. Foreign companies wishing to invest in these sectors must follow a specific procedure specified by decree.  Burkina Faso has not established a procedure to scrutinize foreign direct investment. Under the investment code, all personal and legal entities lawfully established in Burkina Faso, both local and foreign, are entitled to the following rights: fixed property; forest and industrial rights; concessions; administrative authorizations; access to permits; and participation in government procurement process.

The investment code establishes a special tax and customs regime for investment agreements signed by the state with large investors.  This scheme provides significant tax benefits.

U.S. investors are not specifically targeted regarding ownership or control mechanisms.

**Other Investment Policy Reviews**

There have been no recent investment policy reviews by the WTO or UNCTAD.  In July 2014, the organizations Réseau Africain de Journalistes pour l’Intégrité et la Transparence and the Natural Resource Governance Institute published a report entitled “Impact of Tax and Customs Regimes on the Mining Sector and on the EITI Reports in Burkina Faso.”

**Business Facilitation**

In March 2013, the GoBF created the Burkina Faso Investment Promotion Agency (API-BF).  The establishment of the Presidential Council fulfilled recommendations of a 2009 UNCTAD Investment Policy Review.  The website is www.investburkina.com  .

To simplify the registration process for companies wishing to establish a presence in Burkina Faso, the government has created eight enterprise registration centers called Centres de Formalités des Entreprises, known by their French acronym as CEFOREs.  The CEFOREs are one-stop shops for company registration. On average, a company can register its business in 9 days according to the Doing Business report 2019. The CEFOREs are located in Ouagadougou, Bobo-Dioulasso, Ouahigouya, Tenkodogo, Koudougou, Fada N’Gourma, Kaya, Dedougou and Gaoua.

In 2018, Burkina Faso strengthened protections for minority investors by enhancing access to shareholder actions and by increasing disclosure requirements on related-party transactions.  The 2019 *Doing Business* report ranked Burkina Faso 149th of 190 in minority investor protection.

Other sites of interest:

Chamber of Commerce business registration: http://cci.bf/?q=fr/creation-dentreprise  

Mining Chamber of Commerce: http://chambredesmines.bf/  

Investment Promotion Agency of Burkina Faso or l’Agence de Promotion des Investissements du Burkina Faso (API-BF): http://www.investburkina.com  

Tax and administrative procedures: https://burkinafaso.eregulations.org/  

World Bank Investing Across Borders: http://iab.worldbank.org/data/exploreeconomies/burkina-faso  

Among the 21 countries covered by the World Bank’s *Investing across Sectors* indicators in the Sub-Saharan Africa region, Burkina Faso is one of the more open economies to foreign equity ownership.  Most of its sectors are fully open to foreign capital participation, although the law requires companies providing mobile or wireless communication services to have at least one domestic shareholder.  Furthermore, the state automatically owns 10 percent of the shares of all companies active in the mining sector. The government is entitled to nominate one member of the board of directors for such companies.  Select additional strategic sectors are characterized by monopolistic market structures. In particular, the oil and gas sector, and the electricity transmission and distribution sectors.

**Outward Investment**

The Burkinabe Government tries to promote outward investment via the Investment Promotion Agency of Burkina Faso or L’Agence de Promotion des Investissements du Burkina Faso (API-BF), which sits under the Presidential Council for Investment (Conseil Presidentiel pour l’Investissement).  The API-BF’s mission is to promote the economic potential of Burkina Faso to attract investment and spur economic development.

Burkina Faso currently imposes no restrictions for investors interested in investing abroad, within the framework of the Economic Community of West African States (ECOWAS) and West African Economic and Monetary Union (WAEMU) regional markets.

							2. Bilateral Investment Agreements and Taxation Treaties					

Burkina Faso is a member of ECOWAS.  In August 2014, the United-States signed a Trade and Investment Framework Agreement (TIFA) with ECOWAS during the US-Africa Leaders’ Summit in Washington.

In 2002, the United States signed a Trade and Investment Framework Agreement with the WAEMU.  This agreement establishes a forum for discussion of trade and investment matters between the United States, the WAEMU Commission, and the eight member states of WAEMU.  Outside of these regional accords, Burkina Faso has no investment agreement with the United States.

Burkina Faso has investment cooperation agreements with France and Switzerland, providing free transfer of corporate earnings, interests, dividends, etc., between the two countries.  Burkina Faso has signed and ratified investment promotion and mutual protection agreements with Germany, the Netherlands, Malaysia, Belgium-Luxembourg Economic Union, Guinea, Ghana, Benin, Comoros, South Korea, Mauritania, Morocco, Taiwan and Tunisia.  Burkina Faso signed, but did not ratify, bilateral investment treaties (BITs) with Chad, and Singapore. There are BIT revision or negotiation processes going on with France, Italy, Mauritius, Turkish, Kenya and the United Arab Emirates. Burkina Faso has signed various multilateral investment agreements including provisions in the Lomé Convention and the WAEMU Treaty.

							3. Legal Regime					

**Transparency of the Regulatory System**

The government of Burkina Faso aims for transparency in law and policy to foster competition.  By law, prices of goods and services must be established according to fair and sound competition.  The government believes that cartels, the abuse of dominant position, restrictive practices, refusal to sell to consumers, discriminatory practices, unauthorized sales, and selling at a loss are practices that distort free competition.

At the same time, the price of some staple goods and services are still regulated by the government, including fuel, essential generic drugs, tobacco, cotton, school supplies, water, electricity, and telecommunications.

There are regulatory authorities for government procurement, for electronic communication and posts, for electricity, and for quality standards.

Provinces and municipalities have the power to regulate in their jurisdiction, but that regulation has a minimal effect on business entities.  There are several regulatory bodies at the national level and they usually internalize regulations enacted by international organizations. Regulations exist at the supra-national level mostly through WAEMU and ECOWAS.

Burkina Faso’s legal, regulatory, and accounting systems are transparent and consistent with international norms.  Since January 2018, Burkina Faso as an Organization for the Harmonization of Corporate Law in Africa (OHCLA) member state adopted the revised version of the OHCLA accounting system  It is composed of the Uniform Act on Accounting and Financial Law (AUDCIF); the OHADA General Accounting Plan (PCGO); the SYSCOHADA application guide, and the International Financial Reporting Standards (IFRS) application guide. The OHCLA accounting system complies with the IFRS norms.

There is no online Regulatory Disclosure. However, the regulations of the parliament allow the various commissions to hear civil society organizations wishing to share information to inform MPs when they are examining bills.

**International Regulatory Considerations**

Burkina Faso is a member of the West African Economic Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS).  There is a supranational relationship between these organizations and their state members. Burkina Faso is also a member of the Organization for the Harmonization of Corporate Law in Africa (OHCLA).  As such, Uniform Laws adopted by the OHCLA are automatically part of the national legal system.

The Government of Burkina Faso regularly notifies all the draft technical barriers to the relevant WTO Committee.  In the October 2017 Trade Policy Review, the WTO congratulated WAEMU countries for their continued efforts to improve their international trading environment, especially through the implementation of the Trade Facilitation Agreement (TFA).  Burkina Faso has begun the ratification process of the TFA but it has not yet completed it. However, WAEMU and ECOWAS members already implement many of the TFA provisions.

**Legal System and Judicial Independence**

The legal system of Burkina Faso is the civil law. Contracts must always be performed in good faith. Burkina Faso has commercial courts that judge commercial cases. Commercial law is constituted by the uniform acts of the OHADA. The Commercial Code governs all matters that are not covered by the OHADA law.

The Burkinabe judiciary is independent despite cases of corruption of judges that have been reported in the press.  In addition, even the Disciplinary Commission of the Judiciary has sanctioned corrupt judges. There are three degrees of jurisdiction in Burkina Faso allowing the loser to appeal a decision rendered in first instance.  In the event of a dispute over the execution of a contract, the plaintiff must first abstain a judgment from a court first and if the loser does not execute, the winner can retain a bailiff.

**Laws and Regulations on Foreign Direct Investment**

The investment code adopted by law 038-2018 demonstrates the government’s interest in attracting FDI to create industries that produce export goods and provide training and jobs for its domestic workforce.  The code provides standardized guarantees to all legally established firms operating in Burkina Faso, whether foreign or domestic. It contains four investment and operations preference schemes, which are equally applicable to all investments, mergers, and acquisitions.

Burkina Faso’s regulations governing the establishment of businesses include most forms of companies admissible under French business law, including: public corporations, limited liability companies, limited share partnerships, sole proprietorships, subsidiaries, and affiliates of foreign enterprises.  With each scheme, there is a corresponding set of related preferences, duty exceptions, corporate tax exemptions, and operation-related taxes.

Under the investment code, all personal and legal entities lawfully established in Burkina Faso, both local and foreign, are entitled to the following rights: fixed property, forest and industrial rights, concessions, administrative authorizations, access to permits, and participation in state contracts.

**Competition and Anti-Trust Laws**

The National Commission for Competition and Consumption (Commission Nationale pour la Concurrence et la Consommation) reviews competition matters.  Some competition matters are under the aegis of the West African Economic and Monetary Union (WAEMU). Law No. 016-2017/AN of 27 April 2017 on organizing competition in Burkina Faso governs the competition sector.  This law is intended to create a free and transparent market, a guarantee of the development of a market economy driven by competitive and wealth-creating businesses.

**Expropriation and Compensation**

The Burkinabe constitution guarantees basic property rights.  These rights cannot be infringed upon except in the case of public necessity, as defined by the government.  This has rarely occurred. Until 2007, all land belonged to the government but could be leased to interested parties.  The government reserves the right to expropriate land at any time for public use. In instances where property is expropriated, the government must compensate the property holder in advance, except in the event of an emergency.

In 2007, Burkina Faso drafted a national land reform policy that recognizes and protects the rights of all rural and urban stakeholders to land and natural resources.  It also clarifies the institutional framework for conflict resolution at a local level, establishes a viable institutional framework for land management, and strengthens the general capacities of the government, local communities and civil society on land issues.

A 2009 rural land management law provides for equitable access to rural lands in order to promote agricultural productivity, manage natural resources, encourage investment, and reduce poverty.  It enables legal recognition of rights legitimated by traditional rules and practices. In rural areas, traditional land tenure rules have long governed land transactions and allocations. The 2009 law reinforces the decentralization and devolution of authority over land matters, and provides for formalization of individual and collective use rights and the possibility of transforming these rights into private titles.

In 2012, the government revised the 2009 law, marking the end of exclusive authority of the state over all land.  It includes provisions to recognize local land use practices. The new law provides conciliation committees to resolve conflicts between parties prior to any legal action.  There are several property rights recognition and protection acts, such as land charters, individual or collective land ownership certificates, and loan agreements that govern the nature, duration and counterparties for transfer rights between a landowner and a third party.

The first (2010-2014) Millennium Challenge Corporation (MCC) compact supported the establishment of local authorities and the issuance of titles as part of the land tenure reform process.  USAID continues to support the decentralization of land policy, through the establishment of the National Land Observatory, which produces, collects, and distributes information on national/local land tenure issues to aid in government decision-making.

**Dispute Settlement**

*ICSID Convention and New York Convention*

The 1965 Convention of the International Center for Settlement of Investment Disputes (ICSID) entered into force for Burkina Faso on October 14, 1966.  In the event that an amicable settlement of a dispute between the government and an investor cannot be reached, the investment code requires that arbitration procedures be submitted to international arbitration under the rules outlined by ICSID .

When the ownership of a company does not meet the nationality requirements laid out by Article 25 of ICSID, the code specifies that the dispute be resolved in accordance with the dispositions of the supplementary mechanisms approved by ICSID in September 1978.

Burkina Faso is a member of the New York Convention since March 23, 1987.

*Investor-State Dispute Settlement*

Burkina Faso is a party to the Washington Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards and outlines arbitration procedures in its investment code as a means of solving investment disputes.  BITs signed by Burkina Faso provide for international arbitration. Burkinabe courts accept international arbitration as a means for settling investment disputes between private parties. Longstanding disputes that remain unresolved after administrative jurisdictional hearings may be submitted to arbitration.  Burkinabe courts recognize and enforce foreign arbitral awards. The United States did not sign a BIT with Burkina Faso.

*International Commercial Arbitration and Foreign Courts*

Mediation and conciliation are available and encouraged in Burkina Faso.  In 2006, Burkina Faso introduced specialized commercial chambers in the general courts and in 2007 opened the Arbitration, Mediation and Resolution Center (Centre d’Arbitrage, de Mediation et de Conciliation de Ouagadougou (CAMCO)) under the auspices of the Chamber of Commerce and Industry.  (http://www.camco.bf/  ).  If a dispute is not settled by the CAMCO, the case can be referred to international bodies such as the International Chamber of Commerce of Paris.

The parliament adopted the Law n ° 047-2017 laying down modalities for intervention by the state jurisdictions on arbitration in Burkina Faso.  Burkina Faso is not a member of the Apostille Convention. Consequently, any arbitral award rendered abroad should receive an exequatur before enforcement.

**Bankruptcy Regulations**

Burkina Faso, as a member of the OHADA, the Uniform Act on Bankruptcy is applicable.

There is no credit bureau in Burkina Faso.  The World Bank’s 2019 “Doing Business” report ranked Burkina Faso 107 out of 190 countries for Resolving Insolvency.

							4. Industrial Policies					

**Investment Incentives**

The 2018 investment code demonstrates the government’s interest in attracting FDI to create industries that produce export goods and provide training and jobs for its domestic workforce.  The code provides standardized guarantees to all legally established firms operating in Burkina Faso, whether foreign or domestic. It contains five investment and operations preference schemes, which are equally applicable to all investments, mergers, and acquisitions.

Burkina Faso’s regulations governing the establishment of businesses include most forms of companies admissible under French business law, including: public corporations, limited liability companies, limited share partnerships, sole proprietorships, subsidiaries, and affiliates of foreign enterprises.  With each scheme, there is a corresponding set of related preferences, duty exceptions, corporate tax exemptions, and operation-related taxes.

Under the investment code, all personal and legal entities lawfully established in Burkina Faso, both local and foreign, are entitled to the following rights: fixed property, forest and industrial rights, concessions, administrative authorizations, access to permits, and participation in state contracts.

**Foreign Trade Zones/Free Ports/Trade Facilitation**

There are no foreign trade zones or free ports in Burkina Faso.  The Burkinabe investment code prohibits discrimination against foreigners.  American firms not registered in Burkina Faso can compete for contracts on projects financed by international sources such as the World Bank, U.N. organizations, or the African Development Bank.

**Performance and Data Localization Requirements**

The GoBF does not mandate local employment, but in recent years has encouraged investors to promote local employment and support local economies.  The GoBF does not require investors to purchase materials from local sources or to export a certain percentage of output. However, regarding the mining sector, according to the article 101 of the mining code, “Holders of mining title or authorization and their subcontractors give preference to Burkinabe enterprises for any contract of provision of services or supplies of goods in equivalence of price, quality and time.” The GoBF does not impose “offset” requirements, which dictate that major procurements be approved only if the foreign supplier invests in Burkinabe manufacturing, research and development, or service facilities in areas related to the items being procured.  Burkina Faso does not have “forced localization” policies.

							5. Protection of Property Rights					

**Real Property**

Since the 2009 land tenure reform law, the government of Burkina Faso has been engaged in an effort to issue titles recognizing land ownership rights.  The first Millennium Challenge Corporation (MCC) compact focused on beginning this process in 47 communes, with plans for the government to expand the effort throughout the country.

Only about 5,000 land titles have been granted countrywide since 1960, according to the National Land Observatory, and the majority of those were issued pursuant to the first Millennium Challenge compact.  Obtaining a title is the last step in the process of land acquisition, and is preceded by obtaining a use permit or an urban dwelling permit, developing the land, and paying applicable fees. The title-holder becomes the owner of the surface and the subsoil.

Mortgages exist in Burkina Faso both for land and for structures.  Rules governing mortgages are set at the regional level by the West African Economic and Monetary Union, specifically under the Organization for the Synchronization of Business Rights in Africa (Organisation pour l’Harmonisation en Afrique des Droits des Affaires (OHADA)).  Liens are not widely used.

**Intellectual Property Rights**

Burkina Faso has a legal system that protects and facilitates acquisition and disposition of all property rights, including intellectual property rights (IPR).  Legal protection exists for intellectual property, including patents, copyrights, trademarks, trade secrets, and semiconductor chip design. In practice, however, government enforcement of intellectual property law is lax.  Burkina Faso is a destination point for counterfeit medicines, which can readily be purchased on the street in Ouagadougou and Bobo-Dioulasso.

Burkina Faso is not cited in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List.

Burkina Faso is a member of the World Intellectual Property Organization (WIPO) and the African Intellectual Property Organization (AIPO).  The national investment code guarantees foreign investors the same rights and protection as Burkinabe enterprises for trademarks, patent rights, labels, copyrights, and licenses.  In 1999, the government ratified both the WIPO Copyrights Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT). In 2002, Burkina Faso was one of 30 countries that put the WCT and WPPT treaties into force.  The government issued several decrees and rules to implement the two treaties.

The implementation of the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is under the purview of two ministries: (1) the Office of Copyrights (le Bureau Burkinabe des Droits d’Auteurs, or BBDA), under the Ministry of Art, Culture and Tourism, has the lead on copyrights and related rights, and (2) the National Directorate of Industrial Property, under the Ministry of Commerce, Industry, and Handicrafts, has the lead concerning industrial property.  These two authorities have the technical competence to identify needs. Arrangements are underway to assess the needs for the implementation of the TRIPS Agreement in Burkina Faso.

Statistics on the seizure of counterfeit goods are available upon request from the relevant agency.  For example, please contact BBDA if the inquiry pertains to artistic material, or contact the National Directorate of Industrial Property if it pertains to pharmaceuticals.

For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/  

							6. Financial Sector					

**Capital Markets and Portfolio Investment**

The government of Burkina Faso is more focused on attracting FDI and concessionary lending for development than it is on developing its capital markets.  Net portfolio inflows were estimated at around 0.1 percent of GDP in 2017, while FDI was about 2.9 percent, according to Standard & Poor’s. While the government does issue some sovereign bonds to raise capital in the WAEMU regional bond market, in general the availability of different kinds of investment instruments is extremely limited.

**Money and Banking System**

The banking system is sound, relatively profitable and well capitalized, but credit is highly concentrated to a small number of clients and a few sectors of the economy, according to the IMF’s March 2018 Country Report.  Only 15 percent of the population has a checking account. Like all member states of WAEMU, Burkina Faso is a member of the Central Bank of West African States. Many foreign banks have branches in the country. The traditional banking sector is composed of twelve commercial banks and five specialized credit institutions called “établissements financiers.”  The use of mobile money is becoming more prevalent.

**Foreign Exchange and Remittances**

*Foreign Exchange*

Burkina Faso is a member of the West African Economic and Monetary Union (WAEMU, or UEMOA when referred to by its French acronym), whose currency is the CFA franc (XOF), or FCFA.  The FCFA is freely convertible into euros at a fixed rate of 655.957 FCFA to 1 euro. Investors should consider the advantages offered by the WAEMU, which allows the FCFA to be used in all eight member countries: Senegal, Togo, Cote d’Ivoire, Mali, Benin, Guinea Bissau, Niger, and Burkina Faso.

Burkina Faso’s investment code guarantees foreign investors the right to the overseas transfer of any funds associated with an investment, including dividends, receipts from liquidation, assets, and salaries.  Such transfers are authorized in the original currency of the investment. Once the interested party presents the request for transfer, accompanied by all relevant bank documents, Burkinabe banks transfer the funds directly to the recipient banking institution.  Foreign exchange is readily available at all banks and most hotels in Ouagadougou and Bobo-Dioulasso.

*Remittance Policies*

The GoBF is not expected in the near future to change its current remittance policy concerning purchasing foreign currency in order to repatriate profits or other earnings.

As a member of a regional currency union (WAEMU), Burkina Faso does not engage in currency manipulation.

Burkina Faso is a member of the Intergovernmental Action Group against Money Laundering in West Africa (GIABA), a FATF-style regional body.

**Sovereign Wealth Funds**

Burkina Faso does not have a sovereign wealth fund.

							7. State-Owned Enterprises					

Private enterprises are allowed to compete with State-Owned Enterprises (SOEs) on the same terms and conditions.  The bidding process is considered to be open and fair. In practice, SOEs enjoy monopoly control of the segments in which they are active.

SOEs or “strategic companies” are present in several sectors such as public services (health, telecom), energy (hydrocarbon, electricity, water), media (television and press), and social security.

The primary SOEs are in the areas of: oil imports and distribution (SONABHY), water and sanitation (ONEA), lottery (LONAB), mailing services (SONAPOST), rail equipment (SOPAFER-B), electricity (SONABEL), and social security benefits (CNSS and CARFO).

Every year, all of the SOEs meet to report to the Prime Minister.  While this meeting is covered in the press and top-line revenue and profit figures are announced, detailed SOE budgets are in most cases not publicly available.  The government publishes the list of all SOEs with their basic financials.

**Privatization Program**

GoBF announcements for privatization bids are widely distributed, targeting both local and foreign investors.  Bids are published in local papers, international magazines, mailed to different diplomatic missions, e-mailed to interested foreign investors, and published on the Internet on sites such as http://www.dgmarket.com  .

							8. Responsible Business Conduct					

There is a general awareness of corporate social responsibility among both producers and consumers.  The GoBF requires mining companies to invest in social infrastructure, such as health centers and schools, and other projects to benefit the local populations in the areas of their mining operations.  A common practice for many companies is to provide food supplies, typically rice or millet, to their workers often at the end of the year. Larger private businesses, such as civil engineering firms, sponsor sport events like the Tour du Faso and donate sporting equipment to disadvantaged communities.  SOEs such as SONABHY and LONAB frequently undertake social projects.

Burkina Faso is a member of the Extractive Industries Transparency Initiative (EITI) since 2008.  In 2013, it was declared an EITI compliant country, and has continued to show progress in each evaluation.

							9. Corruption					

Transparency International indicates that corruption remains a problem.  Burkina Faso ranked 78th out of 180 on Transparency International’s 2018 Corruption Perception Index.  The main challenges the country currently faces are poor access to information, a weak judiciary, limited enforcement powers of anti-corruption institutions, misappropriation of public funds, and the lack of an effective separation of powers.

According to public perception, civil servants who most commonly engage in corruption include custom officials, members of the police force and gendarmerie, justice officials, healthcare workers, educators, tax collectors, and civil servants working in government procurement.

In March 2015, Burkina Faso’s interim parliament, the National Transition Council, adopted an anti-corruption law (loi N° 004-2015/CNT of 03/03/2015), which greatly expanded the list of public officials required to declare their assets.  Government officials, including the president, lawmakers, ministers, ambassadors, members of the military leadership, judges and anyone charged with managing state funds, must declare their assets as well as any gifts or donations received while in office.  Infractions are punishable by maximum jail term of 20 years and fines of up to 25 million FCFA (USD 45,000). The new law also deals with international cooperation regarding asset recovery and mutual legal assistance in corruption cases. Among other changes, the law shifts the burden of proof on potential defendants to prove that their assets and properties were acquired legally.  It punishes “whoever cannot reasonably explain an increase in his lifestyle beyond the threshold set by regulation in relation to his/her lawful income.” Offenders risk imprisonment for two to five years and a fine of five to 25 million FCFA (USD 8,500 to USD 42,300). In addition, the court can order the confiscation of the unjustified part of the assets.

One of the main governmental bodies for fighting official corruption is the Superior Authority of State Control (ASCE), an entity under the authority of the Prime Minister.  ASCE has the authority to investigate ethics violations and mismanagement of public funds in the public sector, including state civil service employees, local and public authorities, state-owned companies, and all national organizations involved with public service missions.  ASCE publishes an annual report of activities, which provides details on its investigations and issues recommendations on how to resolve them. Most of its findings are followed by judicial action.

The Autorité de Régulation de la Commande Publique (ARCOP), established in July 2008, is the regulatory oversight body that ensures fairness in the procurement process by monitoring the execution of all government contracts.  ARCOP may impose sanctions, initiate lawsuits, and publish the names of fraudulent or delinquent businesses. It also educates communities benefiting from public investment monies to take a more active part in monitoring contractors.  ARCOP works with the media to strengthen journalists’ capacity to investigate suspected fraud cases. Since 2012, the media has noticeably increased its coverage of high-profile corruption cases.

Private citizens have also established a non-governmental organization (NGO) called Reseau National de Lutte Contre la Corruption (REN-LAC).  This NGO looks broadly at the management of private and public sector entities. It publishes an annual report on the state of corruption in the country, and has established a wide range of anti-corruption initiatives and tools.  REN-LAC has a 24-hour hotline that allows it to gather information on alleged corrupt practices anonymously reported by citizens. The group also annually releases a report on the state of corruption in Burkina Faso. African Parliamentarians’ Network against Corruption also has a local chapter in Burkina Faso and cooperates with REN-LAC.

A January 2015 REN-LAC study on perceptions of corruption in the mining industry found that 64 percent of respondents (direct actors in the sector) had heard of or were aware of instances of corruption.  Survey respondents said the greatest beneficiaries of this corruption were politicians, high-ranking government officials, and mining company executives. The main points of entry identified were the granting of permits and mining claims, and the management of these claims (exploration, negotiation and signing of conventions, etc.).

As a member of the West African Economic and Monetary Union (WAEMU), Burkina Faso has agreed to enforce a regional law against money laundering and has issued a national law against money laundering and financial crimes.

Burkina Faso has taken steps to fully adopt regional and international anti-corruption frameworks, and the country ratified the UN Convention against Corruption in October 2006.

However, the World Bank rating for control of corruption for Burkina Faso has declined since 2003 from the 56th percentile to the 33rd percentile.  This means that while Burkina Faso was once rated much more favorably than its regional peers for limiting corruption, it is now close to the average for sub-Saharan African countries.

Resources to Report Corruption

REN-LAC hotline: (+226) 8000 1122

Or contact:

Claude WettaExecutive SecretaryREN-LACTelephone: +226 25 36 32 15

Luc Marius IbrigaContrôleur Général d’EtatAutorité Supérieure de Contrôle d’Etat et de la Lutte contre la Corruption (ASCE-LC)Telephone: +226 25 30 10 91 or +226 25 33 60 39

							10. Political and Security Environment					

Violent extremist elements remain active in Burkina Faso and throughout the region. They have specifically targeted Westerners in attacks and kidnappings. Terrorists may conduct attacks anywhere with no warning. Targets may include hotels, restaurants, police stations, customs offices, military posts, and schools. There have been over 300 terrorist incidents in Burkina Faso since 2015, including ambushes of security forces and improvised explosive device (IED) attacks. In addition to attacking police stations, customs offices, military posts, and schools, extremists have attacked Ouagadougou three times since January 2016.

On March 2, 2018, extremists attacked the French Embassy and Burkina Faso’s military headquarters in downtown Ouagadougou. Eight security force personnel, including soldiers and police officers, were killed, and over 80 others were injured. In August 2017, a small group of armed men attacked the Aziz Istanbul Café, a restaurant in downtown Ouagadougou, and killed approximately 19 people. Extremists attacked the Cappuccino café and Splendid Hotel in the heart of Ouagadougou’s downtown on January 15, 2016.

The Government of Burkina Faso has declared a state of emergency due to insecurity in parts of 6 out of 15 administrative regions. In March and April 2019, the Burkinabè military conducted a large-scale military operation to counter extremist activity in eastern Burkina Faso.

Demonstrations may occur throughout Burkina Faso with little or no advance warning.

In the past year, there have been a number of incidents of violent extremists targeting local and foreign companies, including attacks against security forces escorting convoys of mining company employees, as well as hijackings of company vehicles and kidnappings of company personnel.

Violent extremist elements remain active in Burkina Faso and throughout the region. In the past 13 months, Post has upgraded the public travel advisory three times to reflect deteriorating security in various regions of the country. Burkina Faso is rated as “Level 3: Reconsider Travel” with areas of “Level 4: Do Not Travel”. The “Level 4” areas have increased from just a portion of the northern Sahel Region in early 2018, to include the Est Region (except Gnagna Province) in September 2018, and again in January 2019 to include all of the Est Region, Sahel Region, and portions of the Centre-Est Region and regions in western Burkina Faso bordering Mali.

							11. Labor Policies and Practices					

Burkinabe workers have a reputation as hardworking and dedicated employees.  There is a scarcity of skilled workers, mainly in management, engineering, and the electrical trades.  While unskilled labor is abundantly available in Burkina Faso, skilled labor resources are limited. Construction, civil engineering, mining, and manufacturing industries employ the majority of the formal labor force.  According to the UNDP, the unemployment rate was 20 percent for women and 8 percent for men in 2017.

Burkinabe law allows workers, except for essential workers such as magistrates, police, military, and other security personnel, to form and join independent unions of their choice without previous authorization, and to bargain collectively.  The law provides for the right to strike, but also limits this right with pre-strike requirements or restrictions (including notice submission and government’s requisition power to secure minimum service in essential services).

Public servants are also entitled to engage in bargaining.  In recent months, a series of public sector unions have gone on strike to demand better living and working conditions.  However, increasing labor demands across multiple ministries have begun to put stress on an already strained public finance system, and have even affected the tax collection processes.  Although President Kabore has announced the intention to work out a sensible global labor deal (as opposed to the piecemeal settlement of strikes in different sectors that has been the case until now), it is not clear that any progress is being made on this front. The Minister of Public Service has decided to put a new salary scale for more justice and fairness in the remuneration of civil servants.

It is the GoBF’s policy to increase employment opportunities for Burkinabe workers.  Therefore, in professions where there are too many registered and unemployed Burkinabe, a job-seeker card will not be issued to non-nationals.  When non-nationals are hired, the Director of Labor authorizes their employment contract. According to the 1967 decree, statements must be made to the Regional Inspector of Work and Social Rules before the start-up of any new enterprise.

Burkina Faso has undertaken reforms of labor policy to make the labor market more flexible while ensuring workers’ rights, including workers’ safety and health.  To promote local employment, the government has established several financing instruments targeted at firms interested in obtaining start-up monies. These instruments include :

- Fonds National d’Appui à la Promotion de l’Emploi – FONAPE (Employment Promotion Support Fund)
- Fonds d’Appui au Secteur Informel – FASI (Informal Sector Support Fund)
- Fonds d’Appui aux Activités Génératrices de Revenus des Femmes – FAARF (Women’s Income Generating Activities Support Fund)
- Fonds d’Appui aux Initiatives des Jeunes – FAIJ (Youth Initiative Support Fund)
- Fonds Burkinabe de Développement Economique et Social – FBDES (Burkinabe Fund for Social and Economic Development)

In the event of a reduction in personnel, the labor code requires the employer to first dismiss employees with the least training and seniority.  The employer must advise employees of termination at least 30 days in advance. Workers terminated in a general workforce reduction have re-employment priority over other applicants for a two-year period.  Employees terminated for reasons other than theft or flagrant neglect of duty have the right to termination benefits.

To date, Burkina Faso has approved and ratified 43 conventions of the International Labor Organization, including conventions on Freedom of Association and the Right to Organize, Abolition of Forced Labor, and the Worst Forms of Child Labor.  Mainly the Ministry of Civil Service, Labor, and Social Security and a labor court enforce the labor code. Unions are well organized, independent from the government, and defend employee interests in industrial disputes. Workers know their rights and do not hesitate to seek redress of grievances.

Despite the government’s substantial efforts to reduce child labor in the past few years, 42 percent of children in Burkina Faso continue to engage in child labor, particularly in agriculture and in the worst forms of child labor in mining.  Cotton and gold are included on the U.S. government’s Executive Order 13126 List of Goods Produced by Forced and Indentured Child Labor.

The 1982 Commercial Sector Collective Agreement divides employees (laborers, artisans, and senior staff) into eight categories with minimum basic pay rates from 25,000 FCFA (about USD 45) per month.  Conditions for the employment of workers by enterprises are provided in Decree no. 98 of 1967. An employer should ask job candidates for their job-seeker registration card issued by the Office of Employment Promotion, which is part of the Ministry of Civil Service, Labor, and Social Security.

							12. OPIC and Other Investment Insurance Programs					

Burkina Faso has not benefitted from any OPIC programs thus far.  Burkina Faso is a member of the Multilateral Investment Guarantee Agency (MIGA).

							13. Foreign Direct Investment and Foreign Portfolio Investment Statistics					

*Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy*

*Table 3: Sources and Destination of FDI*

*Table 4: Sources of Portfolio Investment*

Data not available.

							14. Contact for More Information					

Kenneth McBrideEconomic and Commercial Officer, U.S.  EmbassySecteur 15, Ouaga 2000Avenue Sembene Ousmane, Rue 15.873Ouagadougou, Burkina Faso+226 25 49 56 90Econouagadougou@state.gov

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### On This Page

                    -  Executive Summary 
                    -  1. Openness To, and Restrictions Upon, Foreign Investment   
                    -  2. Bilateral Investment Agreements and Taxation Treaties   
                    -  3. Legal Regime   
                    -  4. Industrial Policies   
                    -  5. Protection of Property Rights   
                    -  6. Financial Sector   
                    -  7. State-Owned Enterprises   
                    -  8. Responsible Business Conduct   
                    -  9. Corruption   
                    -  10. Political and Security Environment   
                    -  11. Labor Policies and Practices   
                    -  12. OPIC and Other Investment Insurance Programs   
                    -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                    -  14. Contact for More Information   

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