Introduction

Burkina Faso is a country of 274,200 square kilometres, located in the heart of Western Africa. The country borders Benin, Côte d'Ivoire, Ghana and Togo to the south; Mali to the north and west; and Niger to the north and east.

Economic Environment – The economic atmosphere in Burkina Faso is free market, free economy. The country enjoys a good economic environment favourable to Trade and Investment. Agriculture is the most dominant economic activity and the largest employer of the country’s labour force.

Agriculture, livestock and mining are the mainstays of the Burkinabè economy. Agriculture products represent more than 60 percent of the country’s exports. Cotton, shea nuts (Karité), sesame, vegetables and tobacco are major exports, while millet sorghum, peanuts, sweet potatoes, yams, rice and corn are the main food crops produced. In order to boost agricultural production, the government has launched programmes to combat the serious problems of desertification, poor soil and lack of rainfall. Efforts are also underway to modernise equipment.

Livestock also plays an important role in the economy. This includes bovines, porcines, sheep, equines, azines, camelines and poultry. Cattle, hides and poultry are exported. Traditionally considered as an agricultural based country, Burkina Faso has emerged in recent years as a country with great mining potential. Mineral resources are very significant in several areas of the country.

Survey work has established the existence of more than 200 mining sites. Today gold is a major export item of the country. The first mine to be industrially exploited was the Poura gold mine in the southern region, producing 2.15 tons per year. An important manganese deposit is located in the north. Phosphate is also produced in the country.

The industrial sector of Burkina Faso is at a developing stage. Industry accounts for 20 percent of GDP. Light industries of transformation are located in the urban centres – Ouagdougou, Bobo-Dioulasso, Koudougou and Baufora. These include food processing, textiles, leather, plastic, cement, mechanical and metallic industries and chemicals and chemical by products.

Investment Climate

Burkina Faso offers an attractive incentives package to foreign investors. The new Burkinabè Investment Code was drawn up in 1992. It provides general guarantees to investors, regardless of their nationality, and specific regimes (A, B, or C, described below), which guarantee certain fiscal and customs conditions. To benefit from a specific regime, an eligible project must take into account one major consideration: the investment's capacity to generate added value.

In broad terms, the general guarantee ensures consistency and equality with no discrimination on the basis of nationality, the right to freely control assets, freedom of organization of the business, free movement of goods in Burkina Faso, and free access to natural resources.

Specific Regimes - The Burkinabè legislature has outlined three specific regimes. Regime A covers small businesses and the craft industry. In particular, it grants an exemption during the first five years from tax on industrial and commercial profits, patents, revenue from real-estate values, employer apprenticeship tax, transfer tax on property held by non-profit organizations, and the flat-rate tax on industrial and commercial professions. Note also that Regime A provides for spreading over four years the payment of registration fees and a rebate of 50 percent of already-paid taxes after the first five years in business. Regime B covers large businesses. This regime grants an exemption of eight years on taxes previously mentioned in Regime A. Payment of registration fees can be averaged over a five-year period. Regime C covers businesses, which realize 80 percent of their production on exports. These businesses benefit from a total and permanent exemption on all duties and taxes related to their operations. If so desired, these businesses can sell up to 20 percent of their production on the local market, in which case, the portion of the production that is sold locally is subject to the same duties and taxes levied on similar imported products.

Investment Opportunities – Enormous potential for investment exists in the following areas:

	Agriculture– Commercial farming, processing of cereals, oil seed, fruit and vegetables;
	Livestock – Poultry, ranching, milk and meat processing;
	Mining – Exploitation and processing of minerals;
	Manufacturing Industries – Pharmaceutical, chemical, electronic and electrical goods, rubber goods, transport equipment, construction material, medical equipment, etc.; and,
	Financial Services – Banking, tourism and other services business.