Commercial Guide

I - Executive Summary

This Country Commercial Guide (CCG) presents a comprehensive look at Burkina Faso’s commercial envirocnment using economic, political, and market analysis. The CCGs were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at U.S. embassies through the combined efforts of several U.S. Government agencies.

Overview: Burkina Faso is a small market with a low per capita income and a reliance on subsistence-style agriculture. Nevertheless, the prospects for U.S. trade and investment opportunities are good. Burkina has pursued a World Bank/International Monetary Fund Structural Adjustment Program (SAP) since 1991. The public sector is being streamlined, privatization is continuing, most trade barriers have been lifted, and prices liberalized. From 1995 to 1997, the inflation rate has fluctuated slightly within the range of 6.1% to 8%.

Commercial environment: Burkina Faso’s limited market is offset by a stable commercial environment and the potential to exploit the larger West African francophone market. Burkina is a member of the West African Monetary and Economic Union (UEMOA), and its currency is the Community of Francophone Africa Franc (CFAF). The CFAF is backed by the French Treasury, trades at a fixed rate with the French franc, and is fully convertible.

Burkina’s politics and infrastructure also make it a good business bet. The country is connected by rail to Abidjan, a modern port city and capital of the region’s economic "elephant" - Côte d’Ivoire. The President of Burkina Faso has been in power since 1987 and has moved the country through several steps of a democratization process. Official relations between the U.S. and Burkina are good.

Business opportunities: Foreign investment is welcome in Burkina Faso. Investment and mining codes permit full repatriation of profits, 100% ownership of companies, and many tax exemptions. Investors have shown most interest in the mining industry (particularly the gold sector) since Burkina lies between the gold-rich countries of Mali and Ghana. As of mid-1997, more than 140 requests had been filed for permission to explore for gold.

Competitively priced necessities such as generic pharmaceuticals, medical supplies, and dairy products, along with fertilizers and chemical products, are best poised to enter the post-devaluation market. Telecommunications, computer equipment, and used clothing are U.S. exports that already capture a significant market share.

For more information: Country Commercial Guides are available for U.S. exporters from the National Trade Data Bank’s CD-Rom or via the Internet. Please contact stat-usa at 1-800-stat-usa for more information. Country Commercial Guides can be accessed via the World Wide Web at http://www.stat-usa.gov and http://www.state.gov. They can also be ordered in hard copy or on diskette from the National Technical Information Service (NTIS) at 1-800-553-NTIS. U.S. exporters seeking general information or assistance and country-specific commercial information should contact the U.S. Department of Commerce's Trade Information Center by phone at 1-800-USA-TRADE or by fax at (202) 482-4473.