Burkina Faso has carried out economic reform in order to attract foreign investors and achieve economic growth that will lead to poverty alleviation. The key points of these reforms are as follows:
- The liberalization of trade and suppression of price setting and price control;
The liberalization of the economy has created favorable conditions for the development of the private sector. In July 1994, the Parliament passed bills to advance the private sector through a new investment code and a mining code.
- A vast program of privatization of state owned companies with the view to develop private initiative in the productive sectors and to reframe the role of the State. The state owned companies’ privatization may be partial or fully. The state‘s share in any case must not exceed 25%of the social capital.
- A Guarantee by the new code of public bid for tenders. This new code gives way to international competition and is based on the quality and capabilities of the companies to implement works;
- Restructuring of trade support agencies for the private sector
With a strong will to provide the private sector with accurate support services and technical assistance the government decided to restructure the following institutions: the Chamber of Commerce, the Export import promotion office (ONAC), the shipping company (CBC)
- The creation of the one stop shop designed to centralize and facilitate the implementation of the required formalities for company creation either for investors or importers. It also enables the business community to get all their information needs for any investment decision met on a single desk;
- A fiscal and customs reform: the simplification of procedures and the introduction of the simplified regime on the value added tax (VAT) (18%) and the external common tariff within the boundaries of the West African Economic and Monetary Union (WAEMU) countries;
- An incentive investment code which applies to company project for production, conservation, transformation and services. Any individual corporation or corporation is eligible to this code whatever is his nationality;
- Restructuring of financial and bank legislation
- A correct handling of public finances due to the respect of deadline and regular follow of the foreign debt reimbursement calendar;
- A restructuring of the banking sector with auditing all the compromised debts. The government has opened the banking sector to private capitals and has restricted the state’s share to 25%.
- A sustained budgetary effort in favor of the social sectors that has boosted an improvement in the schooling rate and health care coverage
- A maintainancing and development of transport infrastructures\
- Regional integration: since the depreciation of the CFA Franc in 1994 and the signing of the treaty of WAMU, the implementation of a custom union among eight of sub-Saharan countries has become a reality and offers a lot of advantages
- The treaty of OHADA: to insure a safer and favor business environment for the development of economic and financial activities, Burkina Faso has ratified the Treaty of OHADA.
One can conclude that the good macro economic performance of the recent economic development of Burkina Faso encountered financial difficulties emerged in the cotton sector. The real GDP growth is estimated at 6.5% with an average inflation declined to 2.4%.
