WEF_GrowAfrica_AnnualReport2014

2013 in Review
2013 in Review
2.1
Country
Report
2013 IN REVIEW
Burkina Faso
PROGRESS
Steady inroads are being made to
ease the path for agri-investors
Leveraging Growth Poles for
scale and momentum
Over the years, Burkinabe agricultural growth has
generally been limited by low productivity owing to
climate conditions and land access constraints, but
even more so due to limited access to agricultural
inputs and equipment, including mechanisation.
Indeed, only 44% of farmers have access to
mechanisation across the country, while only 15% use
improved seeds.
Agro-processing, in turn, remains largely a small-scale
industry not always up to the standard necessary to
access regional and international export markets,
and is therefore considered a priority sector for
development.
Aimed at addressing these significant and persistent
challenges, in 2010 the Government of Burkina Faso
(GoBF) adopted a five-year Strategy for Accelerated
Growth and Sustainable Development (SCADD). As
part of this strategy, an agricultural investment plan –
the Rural Sector National Programme (PNSR) – was
also developed around two main axes: increasing
and diversifying sustainable production of agricultural
products, and improving the productivity and
competitiveness of livestock products.
In pursuance of its SCADD target of accelerating
annual GDP growth to an average of 10%, the GoBF
has chosen to implement a number of substantive
measures, aimed at creating a more conducive
enabling environment, and has also embraced a
“Growth Poles” approach to attracting and accelerating
private-sector investments in agriculture. The approach
is predicated on an integrated offering of agricultural
goods and services in high-potential areas endowed
with facilitative infrastructure, secure land tenure
and good water management. It is anticipated that
the concentration of activities and partnerships in
designated Growth Poles will produce a multiplier
effect, helping to foster further collaborative synergies
around innovative market-oriented agricultural projects.
The first such Growth Pole to be established –
Bagré – has been structured as a public-private
partnership (PPP) and is managed through the Prime
Minister’s Office. Essentially serving as a pilot, the
initiative is expected to yield a significant increase
in economic activity and private-sector investment,
boost agricultural production and processing, and
generate employment. Current efforts are focused
on ensuring the effective completion of infrastructure
works to enable agricultural activities to commence
in early 2015, with a view to Bagré playing a pivotal
role in advancing Burkina Faso’s strategy for garnering
private-sector investment to spur agricultural growth.
In 2013, companies with Letters of Intent (LoIs)
for Burkina Faso demonstrated a determination to
advance their investments in Burkinabe agriculture
despite a difficult business environment. Some small
to medium-sized domestic companies expanded their
operations, but often slowly due to financial constraints
and frequently with support from development
partners. Several larger investors undertook field visits
and feasibility studies but held back from serious
commitments. The most substantial growth and
investment was seen in companies focussed on export
commodities, such as cotton, sesame and shea nuts,
for which Burkina Faso has ideal growing conditions.
It is these ventures that have reached the most
smallholders and created jobs, largely by embracing
inclusive business models.
In parallel with company efforts, the government has
taken significant steps to improve Burkina Faso’s
enabling environment, starting with the passing of two
major laws: one providing guidance on the channelling
of investments and the other dealing with PPPs. An
agricultural investment code is being developed in
consultation with stakeholders from all agri-sectors,
while a National Committee has also been set up to
address the issue of rural land tenure security.
A Presidential Agency for Investment has recently
been instituted to put into action the national strategy
for investment in all sectors. In order to ensure the
effectiveness of the Agency’s work with regards
to agriculture, efforts will need to be focussed on
strengthening coordination and establishing a clear
division of roles with other government agencies with
responsibilities in the sector, in particular the Ministry of
Agriculture and the Prime Minister’s Office.
Significant progress has also been made in developing
road networks and connecting production zones to
marketplaces.
An institutional structure to manage and control
Growth Poles was established by decree in 2013, with
priority value chains identified along the Growth Poles.
Potential PPP opportunities are also in the process of
being packaged to share with investors, with a view
to generating interest in the scaling-up of a number of
pilot projects that have proved successful.
More specifically, two calls for expressions of interest
in land allocation within the Bagré Growth Pole were
issued during 2013, targeting both domestic and
international companies and investors. At the time
of this Report going to print, the official process
of land attribution was still on-going due in part to
delays in infrastructure work over the past year. As a
consequence, agricultural activities are currently not
expected to commence before early 2015. The Bagré
Growth Pole has nevertheless taken advantage of this
delay to review its overall approach and look for ways
to further enhance its PPP approach and investment
promotion strategy.
Last but not least, at the request of domestic
companies, an annual meeting between the private
sector and the GoBF (with representation from
various Ministries) has just been launched. The aim
of this multi-stakeholder forum is to find solutions
for bottlenecks encountered by the private sector
in developing and expanding their businesses, and
to explore how the government can support these
companies.
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Burkina Faso
Burkina Faso
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