WELCOME TO BURKINA FASO «Country of upright people»

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Posy Rodgers
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1 WELCOME TO BURKINA FASO «Country of upright people»

2 Agenda i. Overview of Burkina Faso ii. Burkina Trade partners iii. Opportunities by sector iv. Doing Business in Burkina v. Warranties and Investment incentives vi. Role of the Investment Promotion Agency (API-BF)

STRATEGICAL AND UNIQUE GEOGRAPHICAL POSITION With an area of 274 200km², Burkina is in the middle of west african market.

3 STRATEGICAL AND UNIQUE GEOGRAPHICAL POSITION With an area of km², Burkina is in the middle of west african market. It offers access to 101 million people through WAEMU, 308 through ECOWAS, USA (318) and EU (738). Burkina Faso population (18,3) UNIQUE COUNTRY THAT SHARES BORDERS WITH THE MOST OF WEST AFRICAN COUNTRIES The Transit point of trade between west african countries Member/Eligible: UN, AU, ECOWAS, UEMOA, AfDB, AFREXIMBANK, ISESCO, ACP, AGOA, BADEA, IDB, MIGA, etc.. Rating: B (S&P)

4 STRATEGICAL AND UNIQUE GEOGRAPHICAL POSITION

5 SOME REFERENCES 1 st largest producer of cotton in Africa (~700,000 T ) 2 nd largest producer in Bio coton (867 T in 2014, Textile Exchange report) 2 nd largest producer of fruit and vegetables in West Africa (~750,000 T) 3 rd most competitive tourism destination and 2 nd most welcoming countries in West Africa 4 th biggest gold producer in Africa (~36T/year) 4 th biggest livestock country of West and Central Africa One of most favorable weather conditions for exportable products growing Holds some top african events: FESPACO, SIAO, SEMICA, AFRICALLIA, TOUR DU FASO 3 rd in WAEMU of the Mo Ibrahim governance index, th investment preferred place by mining industry in Africa (Institut Fraser),,,

MACROECONOMIC KEY INDICATORS 600 FDI INFLOWS - BURKINA FASO 2000-2014 (UNCTAD) Million US$ 500 490 400 344 329,3 342 300 200 137,1 171,4 143,6 100 0-100 23,1 6,3 15 29,1 14,3 34,2 33,6 2000 2001 2002

6 MACROECONOMIC KEY INDICATORS 600 FDI INFLOWS - BURKINA FASO (UNCTAD) Million US$ , ,1 171,4 143, ,1 6, ,1 14,3 34,2 33, TOP INVESTORS CANADA MOROCCO INDIA FRANCE UK AUSTRALIA SOUTH AFRICA RUSSIA GERMANY LIBAN 38,8 TOP SECTORS RECEIVING INFLOW FDI MINING TELECOM BANK AND INSURANCE CONSTRUCTION - WORKS AGRO-INDUSTRY (COTON, SUGAR, BREVERAGE, FLOUR) ENERGY (THERMAL, SOLAR, BIOFUEL) HOTELS DISTRIBUTION (FOODSTUFFS, TRUCKS, CARS, FUEL, MEDICINES, AGRIC INPUTS) TRANSPORT (AIR, RAILWAY) MOTORCYLES ASSEMBLY UNITS

7 Burkina Faso Trade partners Exports Main exports: Gold, Cotton, Sesame, Shea nuts & butter, cashew nuts, fruits &vegetables, arts, livestock, ruminants hides & skins; Major Customers: Switzerland, India, Singapore, South Africa, Côte d Ivoire, China, France, Togo, Ghana, UK Imports Main Imports: Oil and oil related products, pharmaceuticals, fertilizers, foodstuffs, cars, electric equipment and materials, IT&Telecom equipment. Main suppliers: China, France, Côte d Ivoire, Netherlands, USA, Ghana, Spain, Togo, India, Belgium

8 Investment opportunities by sector

UNTAPPED OPPORTUNITIES FOR GROWTH ENERGY SECTOR Hydrocarbons: National Strategy to increase the oil and gas storage capacities, to secure supplies and distribution inland.

9 UNTAPPED OPPORTUNITIES FOR GROWTH ENERGY SECTOR Hydrocarbons: National Strategy to increase the oil and gas storage capacities, to secure supplies and distribution inland. Opportunities areas Construction of Bolgatenga-Bingo pipeline project (8, 230km, 30M US$, ) SONABHY-Péni storage infrastructure (4000 T of gas, 26 M$) Independent Power Producer (Supply to Government, Industries and mining) EPC contracts and maintenance of power plants, pipelines Assembly unit and distribution of photovoltaic modules, solar products, generators Installation of distribution infrastructures in rural areas Consulting services

and railway lines, and to construct new strategic infrastructures.

10 UNTAPPED OPPORTUNITIES FOR GROWTH INFRASTRUCTURE - TRANSPORT PPP encouraged. The Government and regional institutions have plans to facilitate border transport, to rehabilitate existing roads and railway lines, and to construct new strategic infrastructures. Transport (buses, trucks, air/sea cargo) International Airport of Donsin Highway Ouagadougou-Yamoussokro Railways Dry Port of Ouagadougou Rehabilitation of national roads Construction of hydroelectric dams

11 MINING Many non exploited mines with gold, manganese, zinc, copper, limestone, phosphate and bauxite. Room for new permits to be allocated, up to 250km², up 7 permits/company Finance small mines, promoted by local. Provides income or helps to secure your supplies of ores All services related to mining sector Construction, laboratories, catering, maintenance, clothing, security systems, construction, chemical products, etc. UNTAPPED OPPORTUNITIES FOR GROWTH Copper (ore) Substances Manganese (ore) Iron, titanium, Vanadium (ore) Nickel (ore) Bauxite (ore) Limestone (ore) Dolomite (ore) Phosphate (ore) Estimated resources (tonnes) 70 million 19 million 66 million 30 million 12,7 million 93.1 million 20.7 million Millions Antimony (metal) 700 Graphite (material) 9,000 Marble (material)

Opportunities in Agriculture and Livestock With free access to land and thousand hectares of arable lands, opportunities abound across the entire value chains

dairy) - Installation of Textile and leather industries - Production of fertilizers and seeds - Machinery and irrigation facilities - Manufacturing of animal

12 Opportunities in Agriculture and Livestock With free access to land and thousand hectares of arable lands, opportunities abound across the entire value chains in : - Modern and intensive farming (poultry and breeding) - Processing of agricultural and livestock products (fruits, legumes, oilseeds, cereals, meat and dairy) - Installation of Textile and leather industries - Production of fertilizers and seeds - Machinery and irrigation facilities - Manufacturing of animal feedings and Health - Standards, training and BIO certification - Building refrigerating slaughterhouses - Packaging solutions UNTAPPED OPPORTUNITIES FOR GROWTH

13 UNTAPPED OPPORTUNITIES FOR GROWTH ICT: Promising market Population of 18.5 M inhabitants (+3% by year). 59% under 20 years old Mobile penetration rate 80 % in 2016 High and increasing demand for a high speed internet to connect public entities, banks, mining companies, and medium class households. Fast growing of value added services market: mobile money, E_Banking, E_governance, E_commerce, mobile TV, Online courses, Teleconference, mobile applications. Opportunities : Provide with Bandwidth, High speed Internet Telephony and TNT services ( Upcoming tenders for 4 th carrier licence, and TNT) Assembly unit and distribution of electronics products Building and maintenance of IT and Telecom infrastructures (Fiber optic, Data centers) Value added online services Electronic security systems Consulting services

TOURISM SECTOR 2 nd most welcoming countries in the ECOWAS region (World Economic Forum,2014) 2 nd emerging country in tourism in WAEMU in terms of its tourism assets (2013 World Bank report on

14 TOURISM SECTOR 2 nd most welcoming countries in the ECOWAS region (World Economic Forum,2014) 2 nd emerging country in tourism in WAEMU in terms of its tourism assets (2013 World Bank report on tourism in Africa) 3 rd most competitive destination within WAEMU; Largest population of elephants in West Africa. Safari (Zebra, lions, domesticated crocodiles, 477 species of birds, 60 species of reptiles, Buffaloes) Burkina Faso is host to major International events such as: FESPACO, the biggest African movies festival SIAO, International Art and Craft Fair of Ouagadougou SITHO, the International Fair of Tourism and Hospitality of Ouagadougou AFRICALLIA SEMICA TOUR DU FASO

INVEST IN TOURISM AND HOSPITALITY Safari (Watch lions,

of hunting areas Construction hotels and high level restaurants

Shopping malls UNTAPPED OPPORTUNITIES FOR GROWTH INVEST IN

Vocational training centers; E_learning offers; Manufacturing

15 INVEST IN TOURISM AND HOSPITALITY Safari (Watch lions, domesticated crocodiles, elephants, birds, buffaloes) Operation of hunting areas Construction hotels and high level restaurants in big cities; Development of attraction parks Organisation of international meetings and events. INVEST IN REAL ESTATE Social houses Villas Commercial buildings Shopping malls UNTAPPED OPPORTUNITIES FOR GROWTH INVEST IN HEALTH AND EDUCATION Business and Engineering graduate schools; Vocational training centers; E_learning offers; Manufacturing and distribution of pharmaceutical products; Medical equipements assembly and supply Hospitals and private clinics.

16 DOING BUSINESS IN BF

17 Doing Business in BF Only minimum of 200,000 USD of investment is required to Benefit of legal advantages under investments code, within 30 days, 24 hours to register your company (limited, LLC, Sole proprietorships, subsidiaries) Possible to hire foreigners Own 100% a land is possible for local and foreigners Your profit and revenue can be rapatriated without constraints All Goverment bodies are commited through API-BF and the Presidential Council to secure you and your investments Burkinabè courts accept international arbitration as a means for settling investment disputes between private parties.

18 How to entry BF market? Investors can enter Burkina Faso market by: Expanding their regional presence from Ghana, Nigeria, or Ivory Coast to Burkina Faso (Affordable workforce, cost of living, few competition, untapped opportunities) Setting up greenfield project in solo or joint venture with local companies ; Taking the initiative to develop your own PPP project or being a partner in existing projects. Competing for tenders on international calls: Contracts for construction and equipements (600 million US$/year), Bids are published in local papers, international magazines, mailed to different diplomatic missions, ed to interested foreign investors, and published on the Internet on sites such as

19 INVESTMENT INCENTIVES A. Rights and warranties granted to investors by Laws Right for foreign investors to benefit of the same protection granted to nationals Freedom to transfer funds and income Freedom to make foreign exchange transactions Free access to currencies at market rate Freedom to convert local currency and other currencies Ability to acquire any kind of rights required for their activities Ability to register your intellectual properties and benefit of protection Labour market is liberalised. Labour Code fosters a full control of human resources management by employers 20

20 INVESTMENT INCENTIVES B. Preferential Treatments of the Investments Codes Duty relief and tax exemption for investors according to the volume of investments made. During the investment period: 5% of Customs duties + Total exemptions* on VAT for new registered companies Carry- over successive deficits balance up to 7 th and 8 th financial year. Deduction of a part of the investments (50%) till 7 th year Exemption of corporate profit tax, up to 7 years (in special economic zones) C. Preferential Treatments of the Mining Code Mining Code grants the following basic warranties: Exclusive right to prospecting permits; Right to renew permits; Grant of a right on a mining title to a prospecting permits holder who discovered a deposit; Possibility to partially or wholly transfer or pass titles; Freedom to manage your business (marketing, choice of suppliers, etc.) 21

21 API-BF is the entry point for investors in Burkina Faso, and their main contact. Our role is to : Roll out the red carpet to investors that visit Burkina Faso Support and provide assistance and guidance to foreign and domestic investors Arrange and facilitate meetings with relevant Government Agencies and local entrepreneurs ROLE OF API-BF Negotiate special incentive packages for investment projects Arrange and coordinate visits in Burkina Faso Provide prompt assistance to investors where they encounter problems (under the Presidential Council for Investment)

22 THANK YOU FOR CONSIDERING TO INVEST IN

ENERGY INVESTMENT FACILITATION: THE EXPERIENCE OF BURKINA FASO. INVEST IN BURKINA FASO Km² of Investment opportunities

ENERGY INVESTMENT FACILITATION: THE EXPERIENCE OF BURKINA FASO INVEST IN BURKINA FASO 274 200 Km² of Investment opportunities Agenda INTRODUCTION CURRENT SITUATION OF THE ENERGY SECTOR IN BURKINA FASO