A Better Business Environment in Burkina Faso

Tiny, landlocked Burkina Faso is rapidly improving the quality of its business environment, thanks to the support of an IFC program designed to help stimulate growth, create employment, and reduce poverty.

Sandwiched between six countries in West Africa, Burkina Faso is heavily dependent on agriculture, boasts few natural resources, and is also one of the continent’s poorest countries.

A difficult and overly-complicated business environment has hampered private sector growth, dissuading foreign investment and compounding an already difficult economic situation.

In a drive to light a fire under private sector growth, Burkina Faso’s government recently embarked on a bold reform program. IFC is a close partner on this project, supporting efforts by the government and other stakeholders to reshape and reform the country’s business climate.

IFC is supporting legal reform in eight areas to help bring clarity, transparency, and simplicity to everyday business procedures in Burkina Faso. The eight areas are: Business registration and start-up: to streamline procedures, and reduce time and costs Employment regulation: to encourage formal employment while protecting workers Contract enforcement: to help businesses access the legal system to settle commercial disputes Property registration: to simplify and reduce the costs of acquiring and registering property associated with private investment Business closing: to simplify liquidation and bankruptcy procedures Construction permits: to simplify and reduce the costs of issuing building permits Cross-border trading: to help speed and simplify trade Paying taxes: to simplify the payment process

MAJOR MILESTONES

IFC, which supports private sector growth to bring opportunity to some of the world’s poorest people, and Burkina Faso have recently scored major reform milestones.

The reform program has succeeded in reducing the number of procedures required to start a business, to obtain a construction license, and to register property. Burkina has also cut corporate income taxes, and adopted a new labor code, which will increase labor market flexibility.

These and other innovations have led to a dramatic improvement in Burkina’s ranking on the World Bank’s Doing Business Report, a scorecard that measures the ease of doing business in economies across the world.

In the 2006 report, Burkina languished at a lowly 171 out of 178 countries, scoring uniformly low on the ease of procedures such as starting a business, dealing with licenses, registering property, and protecting investors.

In the 2009 report, Burkina has leaped to 148 out of 181 countries, a dramatic climb in a short space of time that reflects the success of efforts to create an environment conducive to business growth.

Mamadou Sanou, Burkina Faso’s Commerce Minister, expressed gratitude at the support IFC had given reform efforts and said: “This country was ranked second to bottom in the 2005 Doing Business Report, but is now of the world’s top ten reformers.”

WORKING IN 35 COUNTRIES

IFC is advising on the design and implementation of business-friendly reforms at both the national and local levels in 35 countries across sub-Saharan Africa, including conflict-affected economies such as the Democratic Republic of Congo and Liberia.

IFC helps establish private-public dialogue in countries that are seeking reform, and then advises them on how to achieve sustainable and equitable changes to legislation and business codes and practices.

Bernard Chidzero, General Manager of Pep Africa, said: “The goal is to help African economies build a strong and inclusive private sector that will support broad economic growth and lift people from poverty.”

For more information contact:
Jason Hopps
Communications Officer
Johannesburg, South Africa
Tel: +27 11 731 3120
Email: jhopps@ifc.org