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Burkina Faso: A new investment framework for agriculture

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At the request of the government of Burkina Faso, the SWAC Secretariat, in collaboration with the NEPAD-OECD Africa Investment Initiative, conducted a review of all of the texts and regulations related to investment in agriculture in order to help develop an integrated policy framework. Following nationwide consultations, a draft version of the "Policy Framework for Investment in Agriculture” was presented at the restitution workshop, held in Ouagadougou on 22 March 2011. The final document will be available early September (French).

 

About PFI | Objectives | Impact | Method | Steps | Documents | Contacts


Background

The agricultural sector accounts for 33% of the GDP of Burkina Faso and employs about 86% of the active population. Like many of its African peers, Burkina Faso suffers from underinvestment in this sector. In fact, Burkina Faso receives little investment in this sector compared to the mining sector. Agricultural investments are mainly concentrated in the cotton sector. Burkina Faso has a high potential for production and transformation in agro-food sector, yet it is weakly valued and many investors are experiencing financial difficulties. The lack of infrastructure and inconsistent policies are major obstacles which explains the poor performance of the agricultural sector in Burkina Faso. In 2011, Burkina Faso is ranked 151st of 183 countries in the World Bank “Doing Business” Index.


 

Did you know?

  • Agriculture in Burkina Faso accounts for on average 33% of national GDP;
  • The livestock sector accounts for on average 12% of GDP and 26% of exports;
  • 80 % of the active population works in the agricultural sector;
  • Agricultural exports accounts for 90% of total exports;
  • Agriculture is dominated by cereal crops: 80.6% are planted each year;
  • 80 % of mineral fertilisers are acquired by credit ;
  • 12% (30 000 ha) of irrigation potential (233 500 ha) and 45 % of arable land was used in 2006.    
  • Irrigation potential is very weak, representing only 2.6 % of potential cultivation.

 

About the PFI

The Policy Framework for Investment (PFI) was developed by a Working Group established by the OECD, composed of representatives of 60 member economies and non-OECD members, to assist governments in addressing the lack of private investment. It is so far the most comprehensive multilateral approach for improving investment conditions. The PFI covers 10 policy areas and raises some 82 questions to governments to help design and implement policy reform to create a truly attractive, robust and competitive environment for domestic and foreign investment. > learn more

 

Objectives


Based on the OECD Policy Framework for Investment (PFI), the assessment conducted at the national level was intended to:

  • Conduct an analysis on investment in the agricultural sector aimed to improve production capacity and define and co-ordinate policies;
  • Analyse the major trends in public and private investment in the agricultural sector at the national, regional and international level in order to learn from lessons to implement measures to attract investments;
  • Establish an overview of current investment policies in the agricultural sector aimed at analysing its limitations and impact at the domestic, regional or international level;
  • Develop proposals for measures and reforms in different areas analysed in order to attract investment in the agro-food sector while taking into account the potential impact on the environment and society.

Political impact

According to the Burkinabe Minister of Agriculture, Water and Fisheries: “This review would result in the recommendation of concrete measures in favor of agricultural investments. The results will improve the discussions of the "États généraux de l’agriculture" (a national agricultural stakeholders forum) and contribute to the development of the Agricultural Orientation Law (LOA). The review could also be fundamental to the process of developing the Strategy for Accelerated Growth and Sustainable Development (SCADD), which seeks to promote rural entrepreneurship.” (> speech, launching workshop (French).

 

Method - Process

The questionnaire used by the OECD has been adapted to the context and priorities of Burkina Faso. The launch workshop (10 May 2010) officially started the assessment process which relied on a large participation of ministry representatives and other Burkinabe officials. Designated focal points for each structure have actively participated in the work; summaries have received validation at the ministerial level on the 3, 4 and 18 November 2010. They were also approved by the Strategic Orientation Committee (SOC) on 25 November 2010. The restitution workshop (22 March 2011) brought together some one hundred people involved in this review. Key findings were presented at the 5th Ministerial Conference of the NEPAD-OECD held in Dakar on the 25 and 26 April 2011. The objective was to share Burkina Faso’s experience with other countries in the sub-region in order to create an effective tool for investment in Africa. Some countries such as Senegal have expressed their interest in following the Burkinabe experience and requested to conduct a PFI review in collaboration with the OECD.

 

Key steps

Next steps

  • Presentation of key findings at the national agricultural stakeholders forum ("États généraux de l’agriculture");
  • Contribution to the development of the Agricultural Orientation Law (LOA) and the Strategy for Accelerated Growth and Sustainable Development (SCADD);
  • Improvement of the prevailing conditions of the SCADD using the PFI results;
  • Progress in the debate on the need for an agricultural investment code to better integrate in particular agricultural producers (who are not recognised in the current investment code);
  • Implementation by the various ministries of the reforms proposed…

Documents

 

Contacts