ASSETS AND HANDICAPS
The main factors that determine an economic operator’s decision to invest in a given area (country or region) are:
- The existence of investment opportunities; it is more a prerequisite than a determine;
- And above all, the existence on this area, of a favourable environment for business in general and for investment in particular, which addresses issues relating to economic governance, the macro policy framework and the legal environment and the securing of investment and investors.
In this respect, Burkina is certainly facing heavy constraints, but it has assets and forces that are likely to open good prospects for it and to confer it a certain comparative advantage in the race for investments that the countries are making.
These investment constraints are the isolation and high cost of inputs – energy in particular – that affect the competitiveness of the economy.
These obstacles are also, the weakness of basic infrastructure roads, water, telephone and access to information and communication technologies.
Finally, handicaps relate to the availability and quality of human resources.
The assets are the existence of deposits of investment opportunities in the sectors of mines, agro-sylvo-pastoral and services; the existence of a sustainable macroeconomic framework and highly advanced political governance, the quality of which is reflected in terms of political and institutional stability, social cohesion, peace, security and the continuous expansion of areas of freedom.
These assets are also the existence of a favourable environment for facilitating business in general and investment in particular, the progress of which is welcomed by the international financial community and one of the elements of the architecture, is the Presidential Council for Investment.
The following references can be given as an illustration of Burkina’s good performance.
Ranked among the top 5 African countries and the top 10 in the world, in terms of reform qualities in the World Bank’s 2009 and subsequent “Doing Business Better” reports.
- Ranked 4th among the most consistent reformers in the world over the last five (5) years in the Doing business 2011 report. These advances demonstrate both commitment and consistency in the implementation of reforms aimed at improving the business climate and promoting private investment in Burkina Faso;
- 7th in Africa and 1st in ECOWAS countries in the 2007 World Bank report on economic governance;
- A good ranking (79th out of 180 countries) in the 2009 report of «Transparency International» on the state of corruption in the world.
These assets are, finally, the implementation for more than a decade, of a policy of intensive public investment in basic infrastructure, in order to improve the competitiveness of the economy: roads, dams, dry ports, etc.