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SUBJECT: BURKINA FASO 2009 INVESTMENT CLIMATE STATEMENT 
 
REF: 08 STATE 123907 
 
¶1.  In response to reftel, the following is the 2009 Investment 
Climate Statement for Burkina Faso. 
 
Table of Contents 
----------------- 
 
A.1.  Openness to Foreign Investment 
  ¶2.  Conversion and Transfer Policies 
  ¶3.  Expropriation and Compensation 
  ¶4.  Dispute Settlement 
  ¶5.  Performances Requirements and Incentives 
  ¶6.  Right to Private Ownership and Establishment 
  ¶7.  Protection of Property Rights 
  ¶8.  Transparency of the Regulatory System 
  ¶9.  Efficient Capital markets and Portfolio 
      Investment 
  ¶10. Political Violence 
  ¶11. Corruption 
  ¶12. Bilateral Investment Agreements 
  ¶13. OPIC and Other Investment Insurance program 
  ¶14. Labor 
  ¶15. Foreign Trade Zones/Free Ports 
  ¶16. Foreign Direct Investors in Burkina 
  ¶17. Foreign Direct Investment Statistics 
 
 
¶2.  Investment Climate Statement 
 
----------------------------------- 
A.1. Openness to Foreign Investment 
----------------------------------- 
 
¶3.  The Government of Burkina Faso (GOBF) wishes to attract more 
Foreign Direct Investment (FDI) and has recently had success in 
doing so, primarily in the mining sector.  The GOBF overhauled its 
investment code in 2004 with the hope that new FDI would boost Gross 
Domestic Product (GDP) and help diversify its economy, which is 
currently based heavily on subsistence agriculture and cotton 
production for world markets. 
 
¶4.  The government has extended the responsibilities of its newly 
developed Enterprise Registration Centers (Centres de Formalites des 
Entreprises) by simplifying registration formalities and eliminating 
obstacles to opening a business (such as eliminating the requirement 
to provide copies of any criminal records or leasing contracts). 
This one-stop shop for company registration cut registration time to 
18 days.  To further improve the business climate in Burkina Faso, 
the government is working with the World Bank to reduce the time 
needed to meet all formalities in bankruptcy cases.  In the 2009 
International Finance Corporation (IFC) report, Burkina Faso now 
ranks 148 out 181 countries, up from 164 in 2008; this dramatic 
improvement reflects the country's successful efforts to create an 
environment conducive to business growth. 
 
¶5.  The 2004 Investment Code demonstrates the government's interest 
in attracting FDI to create industries that produce export goods and 
provide training and jobs for its domestic workforce.  The Code 
provides standardized guaranties to all legally established firms, 
whether foreign or domestic, operating in Burkina Faso.  It contains 
six investment and operations preference schemes, which are equally 
applicable to all Greenfield investments, mergers, and acquisitions. 
 Burkina Faso's regulations governing the establishment of 
businesses include most forms of companies admissible under French 
business law, including: public corporations, limited liability 
companies, limited share partnerships, sole proprietorships, 
subsidiaries, and affiliates of foreign enterprises.  With each 
scheme there is a corresponding set of related preferences, duty 
exceptions, corporate tax exemptions, and operation-related taxes. 
 
¶6.  According to the 2004 Investment Code, all personal and legal 
entities lawfully established in Burkina Faso, both local and 
foreign, are entitled to the following rights: fixed property, 
forest and industrial rights; concessions; administrative 
authorizations; access to permits; and participation in state 
contracts. 
 
¶7.  Burkina Faso also revised its mining code in 2004 to create a 
more favorable climate for the mining industry.  This new code 
lowered the corporate tax rate from 35 to 25 percent, eliminated 
preproduction taxes, and limited royalty fees to three percent. 
 
¶8.  Burkina Faso does not have a local stock exchange. 
 
¶9.  GOBF announcements for privatization bids are widely 
distributed, targeting both local and foreign investors.  Bids are 
published in local papers, international magazines, mailed to 
different diplomatic missions, e-mailed to interested foreign 
investors, and published on the Internet on sites such as 
www.tradepoint.bf or www.dgmarket.com.  Foreign investors receive 
the same treatment and timetable as local investors in the bidding 
process.  Bidding criteria, which are established and enforced by 
the newly established Autorit de Regulation des Marches Publics 
(ARMP) (Government Tenders Regulation Aothority), are clear, and the 
process is transparent.  Bid requirements are the same for all 
bidders.  Established in July 2008, ARMP advocates free access to 
government tenders, equality in bidding process and transparency of 
procedures. 
 
¶10.  There are no laws or regulations specifically authorizing 
private firms to adopt articles of incorporation or association, 
which limit or prohibit foreign investment, participation, or 
control. 
 
¶11.  The World Bank's Doing Business 2009 report ranked Burkina Faso 
among the top ten reformers for 2009. 
 
------------------------------------ 
A.2 Conversion and Transfer Policies 
------------------------------------ 
 
¶12.  Burkina Faso is a member of the West African Monetary and 
Economic Union (WAEMU), whose currency is the CFA franc, or CFA. 
The CFA is freely convertible into Euros at a fixed rate of 655.957 
CFA to 1 EURO.  Investors should consider the advantages offered by 
the WAEMU, which allows CFA to be freely used between all member 
countries.  WAEMU countries include: Senegal, Togo, Cote d'Ivoire, 
Mali, Benin, Guinea Bissau, Niger, and Burkina Faso. 
 
¶13.  Burkina Faso's Investment Code guarantees foreign investors the 
right to the overseas transfer of any funds associated with an 
investment, including dividends, receipts from liquidation, assets, 
and salaries.  Such transfers are authorized in the original 
currency of the investment.  Once the interested party presents the 
request for transfer, accompanied by all relevant bank documents, 
Burkinabe banks transfer the funds directly to the recipient banking 
institution.  The GOBF is not expected in the foreseeable future to 
change its current remittance policy concerning purchasing foreign 
currency in order to repatriate profits or other earnings.  Foreign 
exchange is readily available at all banks and most hotels in 
Ouagadougou and Bobo Dioulasso, Burkina Faso's second largest city 
and economic capital. 
 
---------------------------------- 
A.3 Expropriation and Compensation 
---------------------------------- 
 
¶14.  The Burkinabe constitution guarantees basic property rights. 
These rights cannot be infringed upon except in the case of public 
necessity, as defined by the government.  This has rarely occurred. 
Until 2007, all land belonged to the government, but could be leased 
to interested parties.  The government reserves the right to 
expropriate land at any time for public use.  In instances where 
property is expropriated, the government must compensate the 
property holder in advance, except in the event of an emergency.  In 
2007, Burkina Faso drafted a national land reform policy that 
recognizes and protects the rights of all rural and urban 
stakeholders to land and natural resources; clarifies the 
institutional framework for conflict resolution at a local level; 
establishes a viable institutional framework for land management; as 
well as strengthens the general capacities of the government, local 
communities and civil society on land issues.  It is under review by 
civil society, and the National Assembly is expected to adopt this 
law very soon.  In November 2008, the government held a validation 
workshop with stakeholders in Ouagadougou before the Council of 
Ministers approved the new policy. 
 
---------------------- 
A.4 Dispute Settlement 
---------------------- 
 
¶15.  Over the last several years, Burkina Faso has not been involved 
in investment disputes with U.S. or any other foreign investors or 
contractors. 
 
¶16.  The Civil Code provides legal language that works to protect 
property and contractual rights.  Government interference in the 
court system occurs less frequently in Burkina Faso than in most 
countries in Africa, and judgments from foreign courts are accepted 
and enforcd by local courts.  It should be noted, however, that the 
World Bank ranked Burkina Faso as 144th in the world for its ability 
to enforce contracts because fees, number of required procedures, 
and the amount of time needed to resolve disputes are all abnormally 
high. 
 
¶17.  Burkina Faso's 1995 Code of Commerce contains all applied 
commercial law used by the Burkinabe business community.  In 2007, 
Burkina Faso opened the Arbitration and Commercial Dispute 
Resolution Center (Centre d'Arbitrage et de Reglement des Litiges 
Commerciaux) under the auspices of the Chamber of Commerce and 
Industry. 
 
¶19.  In 2006, Burkina Faso introduced specialized commercial 
chambers in the general courts and lowered enforcement costs by 
cutting the related registration tax from 4 to 2 percent of the 
judgment amount.  In December 2007, IFC, Doing Business Better in 
Burkina, and the government jointly held a workshop to discuss the 
efficiency of the Burkinabe judicial system in settling commercial 
disputes.  Workshop attendees included judges, lawyers, university 
teachers, donors, and private sector representatives.  The goal of 
the workshop was to raise the business community's confidence in the 
Burkinabe judicial system and its capacity to implement decisions 
relating to agreements and property, as well as to introduce the 
idea of specialized courts to deal commercial matters. 
 
¶20.  Burkina Faso is a party to the Washington Convention of 1958 on 
the Recognition and Enforcement of Foreign Arbitral Awards and 
recommends arbitration procedures in its investment code.  Burkinabe 
courts accept international arbitration as a means for settling 
investment disputes between private parties.  Longstanding disputes 
that remain unresolved after administrative jurisdictional hearings 
are required to be submitted to arbitration.  Burkinabe courts 
recognize and enforce foreign arbitral awards. 
 
¶21.  In the event that an amicable settlement of a dispute between 
the government and an investor cannot be reached, the Investment 
Code requires that arbitration procedures be submitted to 
international arbitration under the rules outlined by the 1965 
Convention of the International Center for Settlement of Investment 
Disputes (ICSID).  In cases where the enterprise of a national does 
not meet nationality conditions stipulated by article 25 of the 
Convention, the Code specifies that the dispute be resolved in 
accordance with the dispositions of the supplementary mechanisms 
approved by ICSID in September 1978. 
 
--------------------------------------- 
A.5 Performance Requirements/Incentives 
--------------------------------------- 
 
¶22.  All investment specific incentives are outlined in the 2004 
Investment Code.  Additionally, all companies that use at least 50 
percent locally supplied raw materials are exempted from trading 
taxes and receive a 50 percent reduction in customs taxes in 
addition to the elimination of other duties.  These companies are 
also eligible to waive excise duties on production equipment and 
spare parts. 
 
¶23.  The GOBF does not require investors to purchase materials from 
local sources or to export a certain percentage of output.  Foreign 
investors are not limited access to foreign exchange commensurate 
with their level of exports.  The GOBF does not impose "offset" 
requirements, which dictate that major procurements are approved 
only if the foreign supplier invests in Burkinabe manufacturing, 
R&D, or service facilities in areas related to the items being 
procured. 
 
¶24.  In 2007, Burkina Faso reduced property registration fees to 
12.2 percent of the property value. 
 
¶25.  The government generally encourages companies to hire Burkinabe 
employees. But this not required and citizens of ECOWAS countries 
can legally work in Burkina Faso.  Other nationalities require 
employment visas/permits. 
 
--------------------------------------------- --- 
A.6 Right to Private Ownership and Establishment 
--------------------------------------------- --- 
 
26  The rights of foreign and domestic private entities to establish 
and own enterprises, and engage in all forms of remunerative 
activities, are guaranteed by the constitution and the investment 
code.  Businesses can be freely established and sold.  Most public 
enterprises have enjoyed a monopoly in their markets.  With the 
implementation of structural reforms, the government is liberalizing 
most of the monopolies.  Foreign investors are encouraged to 
participate in the privatization of state-run enterprises. 
 
---------------------------------- 
A.7 Protection of Property Rights 
---------------------------------- 
 
¶27.  The government recognizes interests in property, both movable 
and fixed, and has adopted international, regional, and local laws 
that work to protect property.  In practice, however, government 
enforcement of intellectual property law is lax.  Despite government 
efforts, counterfeited goods can readily be found and purchased on 
the street in Ouagadougou and Bobo-Dioulasso. 
 
¶28.  As a member of ECOWAS, Burkina Faso adheres to the Treaty on 
the Harmonization of Business Law in Africa (OHADA).  This 1993 
treaty created an intergovernmental organization to encourage 
foreign investment and economic development in the 16 member states 
that have ratified it.  The treaty creates institutions that 
harmonize laws for contracts, businesses, securities, and 
bankruptcies; it also established a Common Court of Justice and 
Arbitrage based in Abidjan, Cote d'Ivoire.  Since its inception it 
has adopted several uniform acts including an act relating to 
commercial law that entered into force in 1998. 
 
¶29.  Legal protection exists for intellectual property, patents, 
copyrights, trademarks, trade secrets, and semiconductor chip design 
¶37.  The government of Burkina Faso has issued a number of decrees 
to protect other forms of property.  These decrees include: 
 
Decree No 2000-577 on the collection and remuneration for 
duplication of works set on graphic or similar supports; Decree No 
2000-143 Creating the Bureau Burkinabe des Droits d'Auteur (BBDA); 
Decree No 2001-259 setting up and organizing the National Committee 
for the Fight against Piracy of Literacy and Artistic Works; 
Decision No 01-052 Price Fixing for Works Protected in Burkina Faso; 
Decision on the Collection of Remuneration for Private Copy; 
Decision No 01-053 on the Collection of Rights Payment; Decision No 
01-50 on Stamping Disks, Audio and Video Cassettes that contain 
Literary and Artistic Works; Decision on Protection Modalities for 
Delivering Import Visas on Literacy, Artistic Works, and Bank 
Supports. 
 
¶30.  Burkina Faso has a legal system that protects and facilitates 
acquisition and disposition of all property rights, including 
intellectual property.  Burkina Faso is a member of the World 
Intellectual Property Organization (WIPO) and the African 
Intellectual Property Organization (AIPO).  The national investment 
code guarantees foreign investors the same rights and protection as 
Burkinabe enterprises for trademarks, patent rights, labels, 
copyrights, and licenses. 
 
¶31.  In 1999, the government ratified both the WIPO Copyrights 
Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT). 
In 2002, Burkina Faso was one of 30 countries that put the WCT and 
WPPT treaties into force.  The government has also issued several 
decrees and rules to implement the two treaties. 
 
-------------------------------------- 
A.8 Transparency and Regulatory System 
-------------------------------------- 
 
¶32.  The government of Burkina Faso uses transparent policies and 
effective laws to foster competition.  According to National 
Assembly Law No 15-94 prices of products, goods, and services must 
be established according to fair and sound competition.  The 
government believes that cartels, the abuse of a position of 
superiority, restrictive practices, refusal to sell to consumers, 
discriminatory practices, unauthorized sales, and selling at a loss 
are practices that distort free competition. 
 
¶33.  The government is in the process of adopting more sophisticated 
and transparent laws that foster competition.  Although some price 
controls have been lifted, the price of oil, essential generic 
drugs, tobacco, cotton, school supplies, water, electricity, and 
telecommunications are still regulated by the government. 
 
¶34.  The government does not use tax, labor, environmental, health 
and safety standards, or other laws and policies to impede entrance 
of foreign investors into the marketplace.  However, Burkina's 
complex tax schedule is currently under review.  In Burkina Faso, 
informal sector businesses and other small businesses with an annual 
turnover of CFA 15 million or less (thus roughly less than USD 
29,000) pay a unique tax called the "contribution du secteur 
informel" or CSI.  The maximum CSI tax is CFA 100,000 or roughly USD 
194 per year.  Businesses qualifying for CSI tax status are 
prohibited from bidding on state tenders. 
 
¶35.  Individual enterprises and companies in Burkina Faso with an 
annual turnover exceeding CFA 15 million (about USD 29,000) are 
subject to a complex set of taxes.  These include an annual tax on 
industrial, commercial, agricultural profits (IBICA), set at 45 
percent and a forfeit tax (IMPFIC), paid in advance each year. 
There is also a 25 percent tax on interest income (the IRC) and a 25 
percent tax on investment income (the IRVM).  Businesses must also 
pay an apprenticeship tax (TPA) on the salaries of all national and 
foreign employees (4 and 6 percent respectively), and a licensing 
tax, which has two components (a fixed amount based on gross 
revenues and an 8 percent tax based on the rental value of company 
buildings and the value of the production equipment).  Upon 
incorporating, companies must pay a registration tax equal to 3 
percent of the company's capital.  Since 1993, businesses have been 
required to apply a 15 percent value-added tax to products. 
 
¶36.  Non-IBICA profits are taxed 5 to 35 percent. Private sector 
employees and civil servants pay a tax (IUTS) on salaries and tips, 
usually by payroll deduction. 
 
¶37.  Informal regulatory processes managed by non-governmental 
organizations or private sector associations are rarely found. 
Generally, an administrative committee comprised of experts, civil 
society, and various government officials reviews drafts of laws 
before the National Assembly adopts them or makes changes to 
existing laws. 
 
¶38.  Burkina Faso's legal, regulatory, and accounting systems are 
transparent and consistent with international norms.  It adheres to 
the West African Economic and Monetary Union's accounting system, 
(Systeme Comptable Ouest Africain or SYSCOA).  Introduced in 1998, 
SYSCOA allows enterprises to use the same accounting system.  SYSCOA 
complies with international norms in force and is a source of 
economic and financial data. 
 
--------------------------------------------- -------- 
A.9. Efficient Capital Markets & Portfolio Investment 
--------------------------------------------- -------- 
 
¶39.  The traditional banking sector is composed of eleven commercial 
banks and three specialized credit institutions called, 
Etablissements Financiers.  They include: the Banque Internationale 
pour le Commerce, l'Industrie et l'Agriculture du Burkina Faso 
(BICIA-B), the Banque Internationale du Burkina (BIB), the Societe 
Generale de Banques du Burkina (SGBB), the Banque Commerciale du 
Burkina (Arabo-Libyan), (BCB), the Banque Agricole et Commerciale du 
Burkina (BACB), Ecobank, Bank of Africa, Banque Sahelo-Sahelienne 
pour l'Investissement et le Commerce (BSIC), Coris Banque 
International, and Banque Atlantique. 
 
----------------------- 
A.10 Political Violence 
----------------------- 
 
¶40.  Burkina Faso continues to undergo a peaceful democratization 
and decentralization process under the leadership of President 
Blaise Compaore, who has been in office since 1987 and part of the 
ruling group since 1984.  The governing party, the CDP, claims 
populist ideals but calls for free enterprise on the economic front. 
 Opposition to the CDP remains severely fragmented. 
 
¶41.  Burkina's commercial viability is closely linked to the 
stability of its neighbors.  The ports of Abidjan (Cote d'Ivoire) 
and Lome (Togo) serve as key shipping points for Burkina's 
imports/exports, with Lome growing in importance since the crisis in 
Cote d'Ivoire erupted in 2002.  City ports like Cotonou (Benin) and 
Tema (Ghana) have also become increasingly important as alternative 
transshipment points for Burkinabe goods. 
 
--------------- 
A.11 Corruption 
--------------- 
 
 
¶42.  Although Burkina Faso means "land of the honest men", 
Transparency International's Corruption Perceptions Index indicates 
that corruption is still a problem for this West African nation. 
The main challenges the country currently faces are poor access to 
information, a weak judiciary, limited enforcement powers of 
anti-corruption institutions, misappropriation of public funds, and 
lack of a separation of powers.  Civil servants who most commonly 
engage in corruption include: members of the police force and 
gendarmerie, customs officials, political groups, justice officials, 
healthcare workers, educators, tax collectors, and the media. 
 
¶43.  There are several anti-corruption groups, both governmental and 
non-governmental that monitor corruption in Burkina Faso.  In 2001, 
the President established a National Ethics Committee whose main 
task is to "bring morality" to public life.  In 2002, the government 
established the High Commission of Coordination for the Fight 
Against Corruption (HCFAC).  This government body evaluates the 
performance of private and public sector administrations.  Another 
internal mechanism is the State General Inspection (SGI), which 
closely monitors government management.  Though SGI is not directly 
linked to the National Gendarmerie, the two groups are known to 
collaborate their anticorruption efforts.  For example, it is not 
uncommon for the National Gendarmerie to assist with the 
investigation of corruption-related incidents brought to the 
attention of SGI.  These government-controlled structures lack 
independent oversight and enforcement power, resulting in 
anti-corruption laws which are largely ignored.  In November 2007, 
the National Assembly adopted a bill creating a new anti-corruption 
structure called the Superior Authority of State Control (ASCE), an 
entity that will be under the authority of the Prime Minister and 
will merge most existing anti-corruption entities.  In November 
2008, the GOBF held a workshop in Ouagadougou to train ASCE members. 
 In January 2008, the government established a new 11-member Gold 
Anti-fraud Squad (BNAF) and issued laws that allow BNAF to regulate 
gold marketing and curb fraud cases. In April 2008, the GOBF created 
the Autorit de Regulation des Marches Publics (ARMP), a regulatory 
oversight body to ensure transparency in the bidding process by 
monitoring the execution of all government contracts.  The ARMP is 
vested with the authority to impose sanctions, initiate lawsuits, 
and publish the names of fraudulent or delinquent businesses.  It 
will also educate communities benefiting from public investment 
monies to take a more active part in monitoring contractors. 
 
¶44. Private Citizens have also established a non-governmental 
organization (NGO) called Reseau National de Lutte contre la 
Corruption (REN-LAC).  This NGO looks broadly at the management of 
private and public sector entities.  It publishes reports on the 
state of corruption in the country and has established a wide range 
of anti-corruption initiatives and tools.  African Parliamentarians' 
Network against Corruption has a local chapter in Burkina Faso and 
cooperates with REN-LAC. 
 
¶45.  Burkina Faso has taken steps to fully adopt regional and 
international anti-corruption frameworks and the country is in the 
process of ratifying the UN Convention against Corruption.  As a 
member of the West African Economic and Monetary Union (WAEMU), 
Burkina Faso has agreed to enforce a regional law against money 
laundering and has issued a national law against money laundering 
and financial crimes. 
 
¶46.  While the government has identified corruption as an obstacle 
to doing business, the World Bank ranked Burkina Faso as the fourth 
best Sub-Saharan African country in the area of corruption control, 
trailing only South Africa, Madagascar and Ghana.  According to the 
2008 Transparency International Corruption Perceptions Index, 
Burkina Faso has reduced its perceived levels of corruption in the 
public sector and improved its worldwide ranking from 105th in 2007 
to 80th in 2008 and its regional ranking from 17th to 9th within 
Sub-Saharan Africa. 
 
----------------------------------- 
¶B.  Bilateral Investment Agreements 
----------------------------------- 
 
¶47.  In 1961, Burkina Faso signed a cooperation treaty with France 
allowing funds to be transferred freely between the two countries. 
A trade, investment protection, and technical cooperation agreement 
was signed between Burkina Faso and Switzerland in 1969.  This 
agreement provides for free transfer of corporate earnings, 
interests, dividends, etc., between the two countries.  Burkina Faso 
has also signed and ratified investment promotion and mutual 
protection agreements with Germany, the Netherlands, Malaysia, 
Belgium, Guinea, Ghana, Benin, and is in the process of signing one 
with Italy. 
 
¶48.  The Burkinabe investment code provides the right to transfer 
capital and revenues secured by alien personal and legal entities, 
which invest in Burkina Faso in foreign currencies.  Foreign 
investors have the right, subject to foreign exchange regulations, 
to transfer dividends, any returns on the capital invested, the 
liquidating or conclusion proceeds of assets, in the same currency 
used in the initial investment. 
 
¶49.  Burkina Faso has signed various multilateral investment 
agreements including provisions in the Lome Convention and West 
African Economic and Monetary Union (WAEMU). 
 
-------- 
¶D. Labor 
-------- 
 
¶50.  The Burkinabe labor code is effectively enforced by a labor 
court.  Unions are well organized and defend employee interests in 
industrial disputes.  Workers know their rights and do not hesitate 
to seek redress of grievances.  According to the World Bank, Burkina 
Faso ranked 57 out of 181 countries for the ease of hiring and 
firing workers in 2008. 
 
¶51.  The February 1, 1982 Commercial Sector Collective Agreement 
divides employees (laborers, craftsmen, and senior staff) into eight 
categories with minimum basic pay rates from 25,000 CFAF (about USD 
50) per month.  Conditions for the employment of workers by 
enterprises are provided in Decree no. 98 of February 15, 1967.  An 
employer should ask job candidates for their job-seeker registration 
card issued by the Office of Employment and Promotion, which is part 
of the Ministry of Labor, Employment, and Youth. 
 
¶52.  It is the GOBF's policy to increase employment opportunities 
for Burkinabe workers.  Therefore, in professions where there are 
too many registered and unemployed Burkinabe, a job-seeker card will 
not be issued to non-nationals.  When non-nationals are hired, the 
Director of Labor authorizes their employment contract.  According 
to a February 15, 1967 decree, statements must be made to the 
Regional Inspector of Work and Social Rules before the start up of 
any new enterprise. 
 
¶53.  In the event of a reduction in personnel, the labor code 
requires the employer to first dismiss employees with the least 
training and seniority.  The employer must advise employees of 
termination at least 30 days in advance.  Workers terminated in a 
general workforce reduction have re-employment priority over other 
applicants for a two-year period.  Employees terminated for reasons 
other than theft or flagrant neglect of duty have the right to 
termination benefits.  Burkinabe workers have a reputation as 
hardworking and dedicated employees.  There is a scarcity of skilled 
workers, mainly in management, engineering and the electrical 
trades. 
 
¶54.  To promote local employment, the government has established 
three financing instruments targeted at firms interested in 
obtaining start-up monies.  These instruments include the  Fonds 
National d'Appui a la Promotion de l'Emploi" (Employment Promotion 
Support Fund) (FONAPE), the "Fonds d'Appui au Secteur Informel" 
(Informal Sector Support Fund) (FASI), and the "Fonds d'Appui aux 
Activits Generatrices de Revenus des Femmes (Women's Income 
Generating Activities Support Fund) (FAARF). 
 
¶55.  To date, Burkina Faso has approved and ratified a myriad of 
conventions issued by the International Labor Organization.  These 
conventions include Freedom for Union and Protection of Rights to 
Union, Abolition of Hard Labor, and the Worst Forms of Child Labor. 
 
¶56. While unskilled labor is abundantly available in Burkina Faso, 
skilled labor resources are limited.  Construction, civil 
engineering, mining, and manufacturing industries employ the 
majority of the formal labor force. 
 
¶57.  Burkina Faso has undertaken the reform of the labor policy in 
order to make to make the labor market more flexible and ensure 
social justice including workers' safety and health.  In May 2008, 
the national Assembly adopted the new Labor Code to better protect 
workers.  In a press conference on October 3, the Minister of Labor 
and Social Security, Jerome Bougouma, mentioned innovations in the 
Labor Code that contributed in ranking Burkina Faso as one of the 
best reformers in the world.  According to Minister Bougouma, hiring 
conditions and social liberties have been improved.  Bougouma also 
cited such examples as increased flexibility for labor agreements, 
limitations on damages and interest, redefinition of strike 
conditions, and retirement eligibility for all workers (including 
day laborers).  Social security services have now been extended to 
include independent workers. 
 
--------------------------------- 
¶E. Foreign-Trade Zones/Free Ports 
--------------------------------- 
 
¶58.  There are no foreign trade zones or free ports in Burkina Faso. 
 The Burkinabe Investment Code prohibits discrimination against 
foreigners.  American firms not registered in Burkina Faso can 
compete for contracts on projects financed by international sources 
such as the World Bank, U.N. organizations, or the African 
Development Bank. 
 
--------------------------------------- 
¶F. Foreign Direct Investment in Burkina 
--------------------------------------- 
 
¶59.  French, Indian, Canadian, Belgian, and American investors have 
established greenfield firms and obtained enterprises through 
acquisition.  French investment in Burkina Faso accounts for about 
70 percent of total foreign direct investment.  Partially 
French-owned firms include CFAO, DAGRIS, CASTEL, TOTAL, BOLORE, 
SOUCOM, and SOUSICOM, which is the largest foreign investor in 
Burkina Faso. 
 
¶60.  In 2000, Telecel International and Mobile System 
International/Cellular Investments Holding BV invested about USD 19 
million to operate mobile phone services in Burkina Faso.  The 
Ivorian group Atlantique Telecom currently operates Telecel 
International. 
 
¶61.  In 2006, 51 percent of the shares of ONATEL telecommunications 
company were sold to Maroc Telecom for USD 315 million; another 20 
percent of the shares have been floated on the regional stock 
exchange. Maroc Telecom plans to invest approximately USD 90 million 
annually in ONATEL. 
 
¶62.  Celtel International has invested USD 57 million in Celtel 
Burkina, taking 57 percent of the mobile phone market share. 
 
¶63.  In the mining sector, a Canadian company, High River Gold Mines 
Ltd (HRG), with significant U.S. investment, through its local 
subsidiary SOMITA SA opened Burkina Faso's only commercial gold mine 
in October 2007.  HRG's next project will be the Bissa gold mine in 
the north-central Burkinabe province of Bam.  HRG will also process 
gold from nearby Bouroum.  It is estimated that these two sites have 
combined reserves of approximately 8.8 million tons of ore, 
averaging 2.99 grams per ton, and an estimated gold production of 
3.5 tons per year.  Burkina Mining Company (BMC), a subsidiary of 
the Canadian-owned Estrucan Resources Incorporated, opened the 
second commercial gold mine in 2008 in Zabre, Boulgou province. 
Total investment is approximately USD 71 million.  The Canadian 
company, Semafo, inaugurated Burkina Faso's third gold mine in June 
in Mana, in Bale Province, 270 km northwest of Ouagadougou.  Total 
investment is estimated at $116 million.  Burkina Faso expects these 
new gold mines to attract USD 260 million in new investments. 
 
¶64.  Burkina Faso announced three more sites slated for development 
in the next two years and it will soon welcome bids for the 
reopening of the Poura gold mine.  Poura opened in the southern 
province of Mouhuon in the 1950's, but was forced to close in 1999 
because of low gold prices.  At its closure, it was estimated that 
this mine still contained 450,000 tons of ore at a grade of 12 grams 
of gold per ton. 
 
¶65. Burkina Manganese, a company with significant U.S. investment, 
opened Kiere mine in December 2008. The Kiere mine has estimated 
reserves of at least 600,000 tons of manganese at grades of 44-45 
percent. 
 
¶66.  Major Belgian-owned firms include Belcot (Louis Dreyfus 
Belgique), and a cotton waste processing factory. 
 
¶67.  On February 2001, the Indian Consortium AKEDFD/IPS of the Aga 
Khan network took control of the local airline, Air Burkina, 
investing about USD 5.5 million to strengthen its air fleet.  The 
group also took control of other state-owned companies including the 
parastatal sugar company, Sn-Sosuco, Sopal (the Alcohol Company), 
and Fasoplast, a company which produces packaging, bags, and other 
plastic products. 
 
¶68.  During the 1998 bidding process for CIMAT, a government 
parastatal that made and distributed cement, an Indian investor won 
the bid and acquired the company, paying nearly USD 13 million for 
the acquisition.  This company currently operates in Burkina Faso 
under the name Diamond Cement. 
 
¶69.  In December 2007, 38 percent of shares of the most important 
bank, Banque Internationale du Burkina, were sold to the Nigeria's 
United Bank for Africa. 
 
¶70.  There are only two wholly-owned American firms in Burkina Faso: 
 AMERITEL, a telecommunications firm that sells transmission 
equipment and maintenance services, and TRADE, an English language 
service. 
 
¶71.  Foreign investment opportunities still exist in two big 
projects: the development of the Zone d'Activits Commerciales et 
Administratives (ZACA) (about USD 60 million), and the construction 
of a new international airport and free trade zone in Ouagadougou 
(about USD 218 million).  The World Bank's International Finance 
Corporation (IFC), however, in examining possible financing for the 
new international airport, has expressed concern that the GOBF may 
have overestimated future air traffic estimates. 
 
¶72.  The IFC's investment portfolio consists of an equity investment 
totaling USD 617,000 in the local affiliate of Ecobank, and a 
guaranty to a car/truck operator.  IFC's strategy for Burkina Faso 
currently focuses on improving the investment climate, building the 
capacity of small and medium-sized enterprises, micro enterprises 
and the institutions that support them.  It also provides support to 
project development in the financial, tourism, and mining sectors. 
In 2005, it provided approximately USD 2.75 million for the 
renovation of the Hotel Independence in Ouagadougou in order to 
allow it to offer reasonably priced accommodations to business and 
other travelers.  This renovation is currently underway. 
 
¶73.  Burkina Faso has been a Multilateral Investment Guaranty Agency 
(MIGA) member since 1988.  In FY05, MIGA issued guarantees totaling 
USD 38 million to Dagris for its investment in the Societe 
Cotonniere du Gourma (SOCOMA).  This project supports the 
liberalization of the cotton sector. 
 
--------------------------------------- 
¶G. Foreign Direct Investment Statistics 
--------------------------------------- 
¶74.  Burkina Faso currently has an estimated 7 percent of FDI stock 
and 5 percent of FDI inflows as a percentage of GDP.  Its major FDI 
comes from the Multilateral Investment Guaranty Agency (MIGA).  In 
fiscal year 2005, MIGA has issued $38.3 million in guarantees 
covering a 5.1 million equity investment and 12.3 million 
shareholder loan from Dveloppement Agro-Industries Sud S.A. 
(Dagris) of France to Socit Cotonnihre du Gourma (SOCOMA) in 
Burkina Faso. The coverage also includes a 15.2 million loan 
guaranty from Dagris to Banque Internationale pour le Commerce, 
l'Industrie et l'Agriculture du Burkina for a loan of the same 
amount to SOCOMA.  Coverage is against the risks of expropriation, 
war and civil disturbance, and breach of contract for a period of up 
to 15 years for the equity, and up to eight years for the 
shareholder loans and loan guaranty.  In fiscal year 2006, MIGA 
granted $6.1 million to Agro-Industries Sud SA (Dagris) of France to 
support the acquisition of cotton assets of the former Societe des 
Fibres Textiles (SOFITEX), in the eastern region of the country, the 
modernization and expansion of the cotton ginning capacity in 
eastern Burkina Faso, and the promotion of local entrepreneurship 
through the financing of the acquisition of shares by local cotton 
growers and Burkinabe investors.  In fiscal year 2007, MIGA issued 
two guarantees totaling $2.86 million to Socit Malienne de 
Promotion Httelihre of Mali to cover its equity investment in 
Socit Burkinab de Promotion Httelihre of Burkina Faso, as well as 
its loan guarantee to IFC.  The guarantees are for a period of eight 
years against the risks of transfer restriction, expropriation, war, 
and civil unrest.  In fiscal year 2008, MIGA issued a guarantee to 
cover an investment by Orezone Essakane Ltd. of the British Virgin 
Islands in the Essakane Gold Project in Burkina Faso. Orezone 
Essakane Ltd. is owned by Orezone Resources Inc. (Canada).  The 
investor applied for a MIGA guarantee of approximately $190 million 
for a period of up to 10 years against the risks of transfer 
restriction, expropriation, war, civil disturbance, and breach of 
contract. 
 
JACKSON