Study on illicit financial flows in Burkina Faso's extractive sector

Executive summary

Due to the extractive sector’s high exposure to illicit financial flows (IFFs), and the country’s deteriorating security situation, the government of Burkina Faso has undertaken efforts to disrupt terrorist financing by tackling IFFs. One such initiative is this study, which supports the Stabilisation and Development Action Plan (PA-SD), Pillar 3: “Reshape the State and Improve Governance.”

This study also contributes to the monitoring of SDG indicator 16.4.1: “Total value of inward and outward illicit financial flows.”

Objectives

The study aims to help reduce IFFs in Burkina Faso’s extractive sector. Specifically, it seeks to:

• Diagnose the main sources and channels of IFFs;
• Provide an overview of criminal economies within the sector;
• Estimate the value of IFFs;
• Propose an action plan to curb them.

Methodology

A participatory and scientific approach was used, in collaboration with UNCTAD and the Burkina Faso National Institute of Statistics and Demography. The study covers 2012–2021 and draws on primary data from institutional and artisanal actors and secondary data from reports and the UN Comtrade database.

Key findings

• CFAF 119.46 billion in offences tied to the sector (2018–2022).
• IFF typologies include laundering, misreporting, informal gold trade, and terrorist financing.
• Estimated total IFFs: USD 4.926 billion (CFAF 2,774.59 billion), with gold accounting for 61%.
• Between 2015 and 2021, IFFs exceeded mining revenues by 118.28%.
• The amount of illicit financial flows is equivalent to the value of building 15,867 health centres or 88,589 primary schools.

Recommendations

• Develop a national strategy against IFFs.
• Digitise title management and revenue tracking.
• Establish an independent oversight body.
• Formalise artisanal mining and enhance traceability.
• Monitor stock exchanges, assess mining titles, and engage academia.

The study is also available on the ITIE-BF website.