Overview and role of the EITI
Burkina Faso is rich in mineral resources, and produces gold, zinc, copper, manganese, phosphate, and limestone in substantial quantities. It also has reserves of diamonds, bauxite, nickel and vanadium, however these remain largely unexploited. While the extractive sector accounted for only 8% of government revenues, it contributed to 75% of exports in 2019.
Increased investment and the progressive opening of industrial mines has led to a development of the mining sector. The sector has played an important role in Burkina Faso’s national development plan (PNDES), which contributed to an increase of gold production from 38.5 tonnes in 2016 to 50.5 tonnes in 2019.
The government also introduced several legislative and regulatory changes to encourage further investment, diversify the economy and increase revenues from the sector. The country’s mining legislation provides for artisanal mining, semi-mechanised mining and industrial mining.
Burkina Faso has used the EITI to contribute to debates relating to transfers to local communities, poverty reduction and gender representation in the extractive sector. Despite government efforts to formalise the sector, political instability and security challenges threaten sustained progress in extractive governance.
Economic contribution of the extractive industries
- to exports
- to GDP
- to total government revenues
- to employment
Innovations and policy reforms
- Following advocacy by Burkina Faso’s EITI multi-stakeholder group, the government passed a decree providing a legal framework for requesting and collecting beneficial ownership data for extractive companies.
- The government has made efforts to institutionalise the artisanal mining sector and curtail illicit financial flows by streamlining data collection. ITIE-BF has collaborated with the state-owned company ANEEMAS – which markets, administers and monitors of artisanal mining sector – and the National Anti-Gold Fraud Brigade to regulate the sale of gold and include it in EITI reporting.
Mining activity in Burkina Faso is governed by the 2015 Mining Code, instituted by the Law n°036-2015/CNT, and its implementing decrees. Authorities under the Ministry of Economy and Finance – including the General Tax Directorate (DGI), the General Treasury and Public Accounting Directorate (DGTCP) and the General Customs Directorate (DGD) – collect duties, taxes and revenues from the mining sector. The General Directorate of Mines and Geology (DGMG) is responsible for the design, development, coordination and implementation of the Ministry of Mines' mining policy.
Mining permits are granted by the Council of Ministers (after consultation with the Minister of Mines and the National Commission) on a first come first served basis. The procedure for license allocations and transfers is based on the Mining Code, but not on the applicant’s ability to make the expenses needed for the successful development of the mining site.
Permit maps can be obtained from the Bureau of Mines and Geology of Burkina Faso (BUMIGEB), on payment of fees depending on the data requested. In 2019, Burkina Faso digitalised its mining cadastre with the support of the World Bank.
The Mining Cadastre General Directorate (DGCM) manages the update of the mining cadastre and maintains an updated list of active licenses awarded or transferred. The government also hosts an online geoportal, which allow for active consultation of geological, geophysical, and geochemical data is managed by BUMIGEB. Awarded licenses can also be consulted in the Official Gazette.
Burkina Faso’s Mining Code (Article 15) mandates the publication of contracts or mining agreements in the government’s official journal. Mining contracts cannot deviate from the model agreement, in accordance with Decree no. 2005-049/PRES/PM/MCE. Some contracts are also published on resourcecontracts.org.
In June 2021, the Burkinabe government adopted a decree mandating the disclosure of beneficial ownership data for extractive companies. Burkina Faso’s EITI multi-stakeholder group is working with key stakeholders to expand the scope beneficial ownership disclosure to other sectors.
Burkina Faso is working on developing a beneficial ownership registry. Some beneficial ownership data is disclosed in EITI Reports.
The 2015 Mining Code (Article 145) stipulates that 20% of area taxes collected by mining companies be distributed to communities that host mining activities, as follows:
- 90% to municipal authorities;
- 10% to regional authorities.
According to the provisions of the decree, the shares are distributed equally between the community’s beneficiaries. Transfers are to be made on an annual basis by the Public Treasury no later than six months following the fiscal year in which the taxes were collected.
Mining companies are also required to contribute to the Local Development Mining Fund, as stipulated by Decree No. 2017-024. All resources collected by the Fund are transferred based on the stipulations of the decree and order of the Cour des Comptes.
ITIE-BF is administered by the Burkina Faso Multi-Stakeholder Group (MSG), also known as the Comité de Pilotage. The MSG is hosted by the Ministry of Economy, Finance and Development and chaired by Mr. Seglaro Somé, Secretary General to the Minister. It is comprised of representatives from government, industry and civil society.
Government expresses intent to commit to join the EITI
Multi-stakeholder group is formed
Government announces commitment to join the EITI
Burkina Faso joined
2010 Report published
Burkina Faso designated a compliant country
2011 Report published
2012 Report published
2013 Report published
2014 Report published
2015 Report published
First Validation: Meaningful progress
2016 Report published
2017 Report published
Burkina Faso status
2018 Report published
2019 Report published
Next EITI Report expected to be published
Next Validation is expected to begin
Burkina Faso was found to have made meaningful progress with considerable improvements in implementing the 2016 EITI Standard in January 2020, following its second Validation. Burkina Faso has fully addressed five of the six corrective actions identified in its previous Validation. The next Validation is expected to commence in January 2023.