Burkina faso Country Commercial Guide
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Investment Climate Statement
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Executive Summary

Since September 2022, Burkina Faso has been led by the Transition Authorities headed by Captain Ibrahim Traoré, who came to power in a putsch that overthrew Lieutenant Colonel Paul-Henri Damiba. Former Transition President Damiba had assumed power after successfully carrying out a coup d’état against the democratically elected government of former President Roch Marc Christian Kaboré on January 24, 2022. In addition to the Transition executive body, Burkina Faso now has the Transition Legislative Assembly and a Transition Charter and has a fully restored constitution. The transition period, initially set to conclude on June 30, 2024, was extended, granting the Transition Authorities a five-year mandate starting from July 1, 2024. In January 2024, following heightened tensions, the Transition Authorities of Burkina Faso announced their withdrawal from the Economic Community of West Africa States (ECOWAS) with immediate effect. Burkina Faso, Mali, and Niger, which comprise the Alliance of Sahel States (created in 2023), jointly announced their ECOWAS exit, which became effective January 29, 2025. However, Burkina Faso remains in the West African Economic and Monetary Union (WAEMU, or UEMOA in French), the eight-country common currency union, and benefits from a free movement policy within ECOWAS and AES states.

Shortly after taking over, the Transition Authorities unveiled their guiding document, the Action Plan for Development and Stabilization (PASD, 2023-2025), which focuses on the following:

  • fighting terrorism and restoring territorial integrity,

  • responding to the humanitarian crisis,

  • rebuilding the state to improve governance, and

  • working toward national reconciliation and social cohesion.

The PASD is expected to cost $12.4 billion and will be financed through a combination of domestic resources and loans and grants. Confronted with a deteriorating security environment, where terrorists reportedly control 30-35 percent of the national territory, the Transition Authorities are prioritizing the war effort and have introduced new taxes, royalties, and voluntary contribution campaigns to generate revenue to acquire the requisite military resources.

Burkina Faso is a landlocked country and among the world’s poorest countries; according to the UN Development Program (UNDP) Human Development Index, it is ranked 185 out of 193 countries in 2022. The country, with an estimated population of 24 million, has been facing a complex humanitarian and security crisis since 2015. More than 40 percent of the Burkinabè population live below the poverty line and 80 percent of the population is engaged in agriculture – mostly subsistence – with only a small fraction directly involved in agribusiness. Despite these challenges, Burkina Faso’s economy has shown some resiliency. As per the International Monetary Fund (IMF), GDP grew on average at nearly 4 percent between 2021-2024, primarily driven by the mining sector. However, it is still below the 6 percent average recorded during the 2010-2019 period. Inflation increased from below 1 percent in 2023 to 4.2 percent in 2024.

The budget deficit decreased from 10.4 percent of GDP in 2022 to 5.8 percent in 2024. Fiscal consolidation is primarily focused on reducing investment spending, while increases in military and humanitarian expenditures put pressure on the state budget. The risk of over-indebtedness remains moderate according to the International Monetary Fund (IMF). However, budgetary pressures, rising financing costs on the regional financial market, and recurring twin deficits leave the country with limited room to absorb external shocks. In 2023, the IMF approved a $302 million Extended Credit Facility arrangement for Burkina Faso to address a balance of payments problem and promote macroeconomic stability.

While the Transition Authorities have launched several projects, including gold refineries and factories, and expanded state influence over the economy, Burkina Faso continues to welcome foreign investment and actively seeks international partners to support its development. Opportunities for U.S. firms exist across many sectors, including:

  • agriculture,

  • energy,

  • banking and finance,

  • telecommunications,

  • manufacturing, and

  • aviation.

The country has partially implemented a legal and regulatory framework necessary to ensure that foreign investors are treated fairly, including setting up a venue for commercial disputes and streamlining the issuance of permits and company registration requirements. However, there is room for progress to facilitate greater competition, especially in sectors where state-owned enterprises (SOEs) are dominant, and to enforce intellectual property protections. Burkina Faso ranked 141 out of 184 countries in the Heritage Foundation’s Economic Freedom Index in 2025 and scored 41 points out of 100 on the 2024 Corruption Perception Index.

Gold mining has boomed in the last decade, dominated mostly by firms from Canada, Australia, the United Kingdom, South Africa, and Russia. Gold consistently accounts for between 70 and 80 percent of Burkina Faso’s exports, with the vast majority going to refineries in Switzerland, its largest trading partner. Foreign investors are also active in sectors such as:

  • banking and financial technology,

  • agriculture,

  • transport and logistics, and

  • energy

while Moroccan and French companies control local subsidiaries in the telecommunications industry. Overall, the mining sector has been the main destination of inward foreign direct investment in recent years in Burkina Faso, followed by the financial services sector (including insurance and pensions), the manufacturing sector, and the telecommunications sector. In addition, there are growing foreign investment opportunities in the security sector, a top focus of the Transition Authorities. Energy remains one of the key constraints to private sector development as the national grid company (SONABEL) struggles to meet the energy demand during peak periods. Burkina Faso imports nearly 70 percent of its electricity from neighboring Togo, Ghana, and Côte d’Ivoire and faces electricity reliability and affordability challenges.

The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 countries and economies that are or could be markets for U.S. businesses. Economic officers around the world prepare the statements. The Investment Climate Statements are also references for working with partner governments to create enabling business environments that are not only economically sound, but address issues of labor, human rights, responsible business conduct, and steps taken to combat corruption. The reports cover topics including Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-owned Enterprises, Responsible Business Conduct, and Corruption.

To access the ICS, visit the U.S. Department of State Investment Climate Statements