TO INVEST IN BURKINA FASO
A During the 2010–2020 decade, Burkina Faso’s economy evolved in an international context, marked by financial, economic and energy crises. In spite of this contrasting international context, Burkina Faso continued to achieve remarkable economic performance and to experience a significant improvement in the social and well-being indicators of the populations.
At the national level, the economy’s growth rate would be 6.8% in 2018 compared to 6.3% in 2017. For 2019, it is projected at 6.0% and should rise to 6.4% in 2020.
In the mining sector, at the end of December 2019, the total production of industrial gold is estimated at 50,302 tonnes, down 3.9% compared to the end of December 2018.
The decrease in production would be linked to the closure of the NETIANA gold mine, the decline in the gold reserves of 02 mines, the suspension of SEMAFO’s production for 70 days for reasons of landslide and also to the suspension of the works of the BOUNGOU mine, following the terrorist attacks on the company’s staff in November 2019.
As for inflation, the Harmonized National Index of Consumer Prices for the month of December 2019 stands at 101.79, an increase of 0.5% compared to November 2019. Year-on-year, prices fell by 2.6%.
At the level of public finances, at the end of December 2019, the own revenues of the State budget were mobilized to the tune of 1,797.7 billion FCFA against 1,530.8 billion FCFA at the same period in 2018, an increase of 17.4%. As for the total expenditures of the State budget, they were executed to the tune of 2,199.6 billion FCFA at the end of December 2019 against 2,126.6 billion FCFA at the same period in 2018, an increase of 3.4%.
In terms of external trade, total exports in December 2019 were FCFA 228.3 billion, compared to 124.7 billion FCFA the previous month, an increase of 83.0%. Total imports were FCFA 230.1 billion compared to 111.7 billion FCFA in November, up 106.0%.
Public debt outstanding is estimated at FCFA 3,816.92 billion at 31 December 2019 compared to 3,366.46 billion FCFA at the same period in 2018, an increase of 450.46 billion FCFA (+13.38%). It consists of 54.2% of external debt.
In terms of money supply, it fell by 156.9 billion FCFA (-4.2%), to 3,561.3 billion FCFA at the end of November 2019 compared to 3,718.3 FCFA billion at the end of December 2018.
In short, the analysis of short-term indicators in December 2019 reflects a strengthening of the economic activity started since January 2019. Indeed, the improvement in the level of activity is induced by a good performance in almost all sectors of the economy and controlled inflation. In terms of public finances, resources mobilized during the month of December are up compared to the same month of the previous year. In terms of foreign trade, in December 2019, exports and imports increased by 83% and 106% respectively compared to the previous month.
These performances are the result of the choice and implementation of relevant policies and structural reforms that have given fruit, namely:
- A sustainable and stable public finance framework, with streamlined management and a substantial reduction in imbalances in the domestic and external accounts. The reforms in this area have made it possible to establish and strengthen the credibility of the budget and the general solvency of the Burkinabe State in the international financial centres;
- A strongly improved and buoyant investment climate, which has led to strong growth in domestic and foreign private investment.
The reforms carried out have made significant progress in improving the business climate and have made Burkina Faso the 4th most consistent reformer in the last five (5) years in the Doing Business 2011 report. This demonstrates both commitment and consistency in the implementation of reforms aimed at improving the business climate and promoting private investment in Burkina Faso.
The free movement of people and goods is also guaranteed in Burkina Faso. It is currently a recognized reality. The Economic Community of West African States (ECOWAS) rewarded Burkina Faso on October 8, 2010 for its efforts in the «rigorous» application of the ECOWAS agreements on the free movement of people and goods».