Research and consulting in Burkina Faso

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Research and consulting in Burkina Faso

Country overview:

IOA’s experience conducting research and providing consulting services in Burkina Faso has been on-going for many years, empowering our ability to offer insights on topics and trends in the West African country. Long considered one of the world’s least developed countries, Burkina Faso has been further weakened by economic and political isolation brought about by the ascendancy of the incumbent military junta in September 2022, which withdrew the country from the Economic Community of East African States (ECOWAS) in February 2024, and sought closer relations with Russia and other nearby juntas. In addition, an ongoing insurgency by Al Qaeda and ISIS aligned militants have caused large scale population displacements and hampered the provision of essential government services like education, further harming the country’s medium term developmental prospects.

IOA economic consultants have determined that, although gold production is on the rise locally, Burkina Faso’s future growth potential in mining is rather limited. With limited natural resources, the economies developmental trajectory will likely be concentrated in the agri-industrial and service sectors.

Key opportunities in Burkina Faso:

  • Agricultural land can provide inputs for industrial-scale value-added production, particularly cotton
  • IOA analysts have documented how the mining sector (including gold, manganese and zinc) have grown significantly in the last decade, contributing 1% to GDP in 2010 and 12% in 2023
  • The services sector is in its infancy and offers nearly unlimited investment potential

Key concerns/risks in Burkina Faso:

  • The country’s poverty and lack of development will only worsen under the military junta that holds power
  • Although persistent droughts will bring a predicted 10% drop in rainfall by 2050, no climate change mitigation plans are being pursued
  • Because of poverty and a lack of opportunity, Burkina Faso is one of Sub-Saharan Africa’s largest sources of migrants, which has also resulted in the removal of entrepreneurs and the educated needed to build an economy
Burkina-Faso

Tips on doing business in Burkina Faso:

Starting a business:

  • Business setup time is estimated at around 13 days. Foreigners can register their company as one of three entities – Limited liability, public limited or “Société en Commandite Simple”. The latter requires no start-up capital, but individual owners have full liability
  • Foreigners may own property in Burkina Faso, and the local constitution provides for individual property rights

Doing business:

Culture and society:

  • Burkina Faso, an Islamic country, adheres to conservative standards of public behaviour and dress. Public displays of affection are considered obscene and strangers of different genders are expected to refrain from interacting in public unless at an appropriate distance
  • Local partners will expect that appropriate time is allowed for the building of rapport before negotiations and deal making can take place

A sample IOA research report on Burkina Faso: