Burkina Faso: Investing

FDI in Figures

Burkina Faso encourages FDI and offers tax benefits. A foreign company can own 100% shares in a local company. However, investments in sectors like mining, telecommunications, financial services and electricity are subject to regulations. Important reforms are being undertaken to facilitate the return of investors into the country, the objective being to reach 7% of the GDP. Burkina Faso is eligible for Millennium Challenge Account subsidies, which would increase investment in the country's human capital.

The country has a stable government, economy favourable to foreign trade and decent infrastructures. However, it lacks access to the sea, has few mineral resources and a weak industrial basis, as well as inadequante mechanisms in terms of contract enforcement and investor protection.

The mining sector draws most of the investments, but it suffered heavy losses in 2009. The main investor countries are Libya, Lebanon and France. France accounts for 70% of the FDI.

	Burkina Faso	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	3.7	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	137	171	37
FDI Stock (million USD)	696.6	868.0	905.1
Performance Index*, Ranking on 141 Economies	111	72	-
Potential Index**, Ranking on 141 Economies	129	-	-
Number of Greenfield Investments***	2.0	1.0	-
FDI Inwards (in % of GFCF****)	8.2	16.4	-
FDI Stock (in % of GDP)	8.8	11.2	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT: 18%
Company Tax: 30%
Withholding Taxes: Interests: 25%, Dividends: 12.5%, Royalties: 20%.
Social Security Contributions Paid By Employers: 16%

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
African Development Bank Group, Public Oversight Body
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Burkina Faso.
Useful Resources: Trade point, The national office for foreign trade (only in french)
Economic Developments and Prospects in Burkina Faso - African Economic Outlook

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