PS/PCI: ACTIVITIES IN SUPPORT OF PNDES IMPLEMENTATION
1. The “Deposit and Consignment Office” of Burkina Faso (DCO – BF)
With a view to remove the financing constraints of the economy in general and of investments in particular, the PS/PCI conducted a study to identify alternative sources as a palliative to the inadequacy and insufficiency of existing traditional financing.
The report of the preliminary study recommended the creation of a Deposit and Consignment Office.
In 2016, the former Prime Minister (Paul Kaba Thiéba) on the basis of a technical file prepared and transmitted by the PS/PCI, set up an interdepartmental working group to lead the preparatory work for the creation of the DCO -BF. The work of this committee made it possible to finalise and adopt the relevant legal texts.
2. National Conference on Taxation
During the work of the four sessions, PCI members noted that taxation is a constraint to investment development. They noted that the Burkinabe tax system, despite the reforms carried out, remains marked by a number of shortcomings that hinder its performance. The observation that emerges from the work of the annual consultation framework between the government and the private sector (Government/ private sector meetings), reveals that, among the permanent concerns raised at each edition, figure in “Tax burden” is high, despite reforms to promote business through tax incentives.
Thus, the debate on taxation is of crucial importance for the development strategy of our country because it happens to be the crossroads of several areas: economy, social and politics.
The PS/PCI therefore noted the need for an overall reflection on the tax system to be carried out in order to implement a structural reform of the Burkinabe tax system. It is with this in mind that the PS/PCI recommended to the President of Faso, to convene national foundations to promote the emergence of a tax focused on the promotion of investment and economic growth, on better tax governance and tax acceptance.
The preliminary work for the holding of the conference made it possible to draw up working documents to serve as a guiding thread for the reflections during the conference.
These documents are intended to stimulate in-depth discussions in workshops on the following themes:
– Tax governance;
– Tax expenditure;
– Modernization of tax administration;
– Local taxation for development.
The effective holding of the national conference on taxation will make it possible to conduct a diagnosis without complacency on the relevance of the current tax system and to propose axes of reforms for the implementation of a development taxation that achieves a necessary balance between the promotion and support of private enterprise, and the need for optimal mobilization of budgetary resources to strengthen the endogenous financing of Burkina Faso’s development priorities.
3. Other activities carried out under the UNDP project in support of NPESD (PA/NPESD).
– Conducting a study to develop a diaspora investment mobilization strategy. The PS/PCI mobilized funding of 50,000,000 FCFA from UNDP to finance the study. The final report of the study will be available in April 2020.These terms of reference have been validated by the PS/PCI;
– Carrying out activities prior to conducting a study to develop a strategy for mobilizing foreign direct investment;
– Conducting activities prior to the development of investor tracking software and their investments. The funding was acquired by the PS/PCI for the conduct of this activity during the year 2020.
4. Contribution of the PS/PCI to the activities of departments and institutions
The ICP/SP took part in the major reflections that were organized by the ministries and institutions on issues related to investment in Burkina Faso.
In connection with these activities, we can note his participation to the following work:
– the Paris Conference on the Financing of the NPESD (preparation of the background paper on the business environment and investment opportunities and the interim report of the Paris Conference);
– the work of drawing up and adopting the Code of Agro-Sylvo-Pastoral, Fisheries and Wildlife Investments and its implementing decrees;
– the Technical Group on the creation of a growth cluster in the Sahel;
– the Balance of Payments Committee;
– Restricted Interdepartmental Commission for the operationalization of the Depository Funds and Consignments;
– CLEP/PA-NPESD as part of the UNDP-funded NPESD Support Project (PA- NPESD);
– the National Growth Cluster Steering Committee and the related technical group;
– the Interdepartmental Working Group (IWG) on the Special Economic Areas of Ouaga and Bobo-Dioulasso;
– the Steering Committee for monitoring the improvement of the business climate chaired by the Prime Minister (with a view to improving Burkina’s ranking in the World Bank’s “Doing Business” programme).