Burkina Faso's new EITI Report provides valuable information on the country’s mining sector in 2011.
The new EITI Report, published last month provides valuable information on the country’s mining sector in 2011, including on the government’s revenue.
It shows that Burkina Faso at least doubled its in mining revenue between 2010 and 2011. The exact figure is unclear since the 2011 report covers more revenue streams and companies than the 2010 report. However, it is clear the increase was driven mainly by an increase in gold production of 48% compared to 2010, and an increase in gold price of 28%. Accounting for 24% of the state budget, mining revenue was in 2011 the dominant source of income.
In addition to disclosing these payments, Burkina Faso’s new EITI Report includes a detailed analysis of the country’s extractive sector including a description of the legal framework and the fiscal regime; payments and transfers to local government; and an indication of the contribution of extractive industries to the economy – including job creation. The report aims to inform better governance of the sector.
The report identifies discrepancies of 0.38%, which were mostly related to payments of customs tariffs. As a consequence, Burkina Faso is looking into expanding its payment collection software system to all customs offices so as to facilitate and improve revenue collection. Whilst this recommendation from the report may be difficult to implement soon, it might be part of the package of support that the country is getting in the extractive sector as part of a so-called G8 Fast Track Partnership with France.