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RecruitDoing Business in Burkina Faso
Do you want to expand your business into Burkina Faso or hire employees there? Find out the key things you need to know about Burkina Faso expansion below.
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Burkina Faso Economy Overview
Currency
West African CFA Franc (XOF)
Working hours
40 hours/week
Public/bank holidays
9 public holidays
Capital
Ouagadougou
Languages
French
Population
~23.8 million
Minimum hourly salary
200 XOF
Tax year
1st Jan – 31st Dec
Date format
DD/MM/YYYY
Misclassification penalties
In Burkina Faso, misclassifying employees as contractors can lead to penalties, including back taxes, fines, and legal action. Proper classification is crucial to avoid these risks.
Fun fact
Often called “white gold,” cotton is one of Burkina Faso’s most important exports and a key contributor to its economy.
Burkina Faso is a small country in West Africa. It borders Niger, Benin, Togo, Ghana, Ivory Coast, and Mali and was a former part of French West Africa. After becoming independent in 1960, the country’s population has grown considerably to 24.062 million people.
Its GDP has also greatly increased in the past few decades. In 2020, it was valued at just $2.96 billion, while at the end of 2024, it had grown by over seven times to $21.9 billion. This growth is expected to continue at an average of 5% per year in the near future.
This country has a wealth of natural resources and hosts very multicultural human resources as well. If you’re thinking of doing business in Burkina Faso, this article will give you an introduction to the country’s economy, its business regulations, and methods you can use to get into the local market.
Overview of Burkina Faso’s Economy
Burkina Faso has a largely agriculture-driven economy which employs nearly 90% of the population. The rest, however, are employed in the growing mining industry which is especially focused on gold. Nearly 79% of its exports are in the form of gold, while cotton (5.6%), oil seeds (3%), and nuts (2.7%) make small contributions to the GDP.
| Industry | Economic Significance |
|---|---|
| Agriculture | Agriculture employs over 80% of the population and contributes around 30% of GDP. Key exports include cotton, sorghum, and millet. Investments in irrigation and modern farming techniques are expanding productivity and export potential. |
| Mining | The mining sector, particularly gold, is a cornerstone of Burkina Faso’s economy, contributing over 70% of export revenue. Other minerals like zinc and manganese are also gaining traction. The sector attracts significant foreign direct investment (FDI). |
| Renewable Energy | Energy shortages create high demand for solar and wind energy projects. The government incentivizes renewable energy initiatives, positioning this sector for growth. |
| Infrastructure Development | Infrastructure projects, including roads, telecommunications, and urban housing, are critical to supporting economic growth. These initiatives create opportunities for construction companies and suppliers. |
| Trade and Logistics | Burkina Faso’s landlocked position makes logistics crucial. As a member of ECOWAS, the country is a key player in regional trade, driving demand for transportation, warehousing, and trade facilitation services. |
| Trade and Logistics | Burkina Faso’s landlocked position makes logistics crucial. As a member of ECOWAS, the country is a key player in regional trade, driving demand for transportation, warehousing, and trade facilitation services. |
| Information and Communication Technology (ICT) | Digital transformation is gaining momentum, with growth in mobile banking, e-commerce, and digital services. The ICT sector is becoming a vital driver of economic modernization. |
| Textiles and Cotton Production | Burkina Faso is one of Africa’s largest cotton producers. The textile industry is expanding, with opportunities for value-added processing and export of finished goods. |
Burkina Faso’s main imports include petroleum, cement, electricity, medications, and rice. Switzerland takes 67.6% of Burkina Faso’s exports with other major partners, including the United Arab Emirates, Mail, Ivory Coast, and India. The country imports goods from the Ivory Coast, China, France, Ghana, and India, and it has a trade deficit of around $1.5 billion.
Despite being classified as a low-income country, Burkin Faso’s economy has grown impressively in the past 25 years, averaging around 5%. While the global pandemic slowed growth in this economy, it didn’t reverse it, and the economy seems to have fully recovered, growing by 5.5% in 2024, and inflation is under control at just 2%. Unemployment was reported at a moderate 5.9% in 2023, which represents a fairly healthy labor market.
Taxes in Burkina Faso
Employer Tax: 18-21%
Social Security (Pensions, Disability, Survivors, Family Allowances)
Typically 16% of the monthly gross salary, capped at a certain threshold (often around XOF 600,000 per month).
Occupational Accident/Work Injury Insurance
Ranges between 1% and 5% depending on the risk classification of the industry.
Employee Tax: 5.5-8.5%
Social Security (Pensions, Disability, Survivors)
5.5% of monthly gross salary, up to the social security ceiling (often XOF 600,000).
Supplementary Health or Other Insurance (if applicable)
Certain employers may offer or require an additional 1%–3% for supplemental health coverage, but this is not a universal statutory requirement.
Retirement Pension
Covered by social security contributions, as outlined above.
Health Insurance
1-3% of salary (supplementary)
Income tax
Burkina Faso levies personal income tax on a progressive scale. The rates generally range from 0% up to 25%, depending on monthly taxable income.
Taxable Income (XOF)
0 – 30,000
30,001 – 50,000
50,001 – 80,000
80,001 – 120,000
120,001 – 170,000
170,001 – 250,000
250,001 – 300,000
Over 300,000
Tax Rate
0%
12.1%
13.9%
15.7%
18%
20%
22%
25%
Overview of Burkina Faso’s Business Regulation
Doing Business in Africa can be challenging if you’re from a different continent. Not only do you have to deal with large distances and different languages and cultures, but you also need to learn a lot of new rules and regulations that govern business operations. It’s no different in Burkina Faso, where it’s important to manage your business and employ local workers in full compliance with local laws.
Some of the most important regulations to be familiar with include:
Registration and Compliance
If your plan is to set up a business so that you can enter the Burkinabe market, you’ll need to decide what kind of entity you want to incorporate. The majority of foreigners entering the market choose to register either limited liability companies (LLCs) or public limited companies (PLCs). These businesses can be set up relatively easily through the Business Formalities Center or Centre des Formalités des Entreprises (CEFORE).
To set up an LLC, you need only one shareholder and one director of any nationality. You’ll also need a minimum of 2000 USD for paid-up share capital. For a PLC, you’ll need 20,000 USD in paid-up share capital as well as one shareholder and three directors who can be of any nationality.
Taxes and Investments
Burkina Faso uses the West African CFA Franc (XOF), which is also used by seven other neighboring countries and is worth around 0.0016 USD. VAT in Burkina Faso is 18% for businesses making more than 50,000,000 XOF though this is reduced to 10% for accommodation and catering services and 0% for mining companies.
The corporate income tax (CIT) rate is 27.5%. Social security contributions for employers total 16% (occupational accident contribution, family allowance, and old age pension contributions) and are capped at 33,000 XOF per employee. Workers are deducted 5.5% of their salaries.
There is also a 3% payroll and apprentice tax paid at the rate of 3% of employees’ salaries. Dividends and interest are taxed at 12.5% and royalties at 0% for residents but 20% for non-residents.
Employment Laws
Burkinabe workers must have oral or written contracts. These are permanent by default but can be made for fixed terms up to a maximum of two years. Employees generally work 40 hours per week, though some professions can work more hours, such as 48 hours for private company drivers, 60 hours for domestic workers, and 72 hours/week for security guards.
Overtime is paid at the rate of 115% of normal wages for the first eight hours per week and 35% for additional hours. Workers are entitled to a minimum of 22 days of annual leave, which, after 20 years of service, increases by two days every five years. Maternity leave is 14 weeks and is paid by both the employer (6%) and Social Security (94%). Fathers receive three days of paternity leave fully paid by their employers.
Intellectual Property
Burkina Faso is a member of both the African Intellectual Property Organization (OAPI) and the World Intellectual Property Organization (WIPO). The national investment code ensures that foreign investors receive the same protections as Burkinabe companies and individuals.
Patents are valid for 20 years, and so are trademarks. Copyrights last for the author’s lifetime plus 50 years or 70 years from the recording of sound and video.
What Are the Benefits of Doing Business in Burkina Faso?
While Burkina Faso may be a small country with a small economy, there are a surprising number of benefits to doing business here. These include:
Natural Resource Wealth
Burkina Faso enjoys a lot of mineral wealth in the form of gold, manganese, limestone, marble, granite, phosphates, and salt. It also hosts a wide variety of wildlife which can be important for building tourism in the country.
Growing Infrastructure
In recent decades, Burkina Faso has made large investments in building its infrastructure. This includes road maintenance, increased access to safe water and sanitation, and rapid modernization of the country’s ICT sector.
Incentives for Investment
The government has set up an investment code that protects foreign investors and offers tax incentives to businesses that set up more than 50km (31 miles) from its main urban centers.
Language Skills of Workers
Burkina Faso has four official languages (Mooré, Bissa, Dyula, and Fula) and the government recognizes a further 60 local languages. French and English both have the status of “working languages” in the country. Workers who speak multiple languages can be valuable in regional trade and international business.
What Are the Downsides of Doing Business in Burkina Faso?
At the same time, as there are clear benefits to doing business in Burkina Faso, there are also downsides to consider. These include:
- Political instability: Burkina Faso has experienced military coups in the past few decades and also faces pressure from militant groups in the Sahel Desert region that can threaten regional security.
- Limited infrastructure: While the government has taken many steps to improve infrastructure in the country, there are still gaps. Getting electricity for a new business, for example, can take over 169 days or nearly half a year.
- Complex bureaucracy: The bureaucracy involved in paying taxes, obtaining electricity, and getting construction permits can be slow and complicated. The country also ranks 83rd out of 180 countries, showing it has moderate levels of corruption.
International Expansion into Burkina Faso
There are many options for working with Burkinabe employees or starting a business in Burkina Faso. The main choices you have for expansion into the country include:
Burkina Faso Employer of Record (EOR)
Working with an EOR enables quick market entry with minimal operational burden. This kind of provider hires Burkinabe workers for you when you don’t own a local entity. It also manages its HR needs like payroll, leave, benefits, and administration in compliance with local laws.
Recruitment Agencies
If you’re looking to hire Burkinabe employees, you can partner with Burkina Faso recruitment agencies to find skilled talent. With their knowledge of the recruitment industry and local networks, recruiters can help you attract the right people much more quickly than you could on your own.
Burkina Faso Professional Employer Organization (PEO)
A PEO can help you manage your Burkinabe workers if you already own an entity in Burkina Faso. You can outsource all of your HR functions to this kind of provider, which also manages compliance and your workers’ needs on your behalf.
Subsidiary Incorporation
Most foreign investors choose to incorporate LLCs or PLCs in Burkina Faso, and the World Bank gives this country a score of 88.2% for ease of starting a business. There are only three steps involved in incorporating an LLC, which include:
- Opening a company bank account and depositing the required minimum paid-up share capital.
- Having the declaration of capital subscription notarized.
- Register your company, register with the labor and social security offices, and obtain a tax number (IFU) through CEFORE.
Branch Registration
A simplified entry method for foreign companies is registering a branch in Burkina Faso. A branch office can be set up without resident shareholders and directors and can be 100% foreign-owned. However, it must have a registered office in Burkina Faso and appoint a resident to act as an agent.
Business Opportunities in Burkina Faso
Burkina Faso’s growing economy, bolstered by its abundant natural resources, youthful population, and strategic location within West Africa, presents numerous opportunities for investment.
The country’s focus on diversification and development across key sectors such as mining, agriculture, renewable energy, and infrastructure makes it a promising destination for businesses.
Entrepreneurs and investors willing to navigate its emerging market dynamics can find unique, high-growth prospects.
| Business Opportunity | Reason |
|---|---|
| Renewable Energy Development | Frequent power shortages create demand for solar and wind energy projects. Government incentives and international partnerships make this sector highly attractive. |
| AgriTech and Value-Added Agriculture | Modernizing agriculture is a priority. Opportunities exist in irrigation systems, crop processing, and sustainable farming methods to improve food security and boost exports. |
| Mining Services and Technology | As Africa’s fourth-largest gold producer, Burkina Faso requires mining equipment, services, and exploration technology to support its expanding mining sector. |
| Construction and Infrastructure | Investment in roads, housing, and telecommunications is essential for economic growth. Businesses providing construction materials or services can capitalize on these needs. |
| Logistics and Regional Trade | As a landlocked country in ECOWAS, there is a strong demand for logistics solutions, including transportation, warehousing, and customs facilitation for regional trade. |
| ICT and Digital Services | Mobile banking, e-commerce, and IT solutions are growing in demand as digital transformation becomes a government priority and businesses embrace technology. |
| Textile and Apparel Manufacturing | With a strong cotton production base, there are opportunities to develop textile factories and value-added production for export markets. |
Burkina Faso offers vast opportunities for businesses ready to invest in high-potential sectors. Renewable energy, AgriTech, and mining stand out as particularly lucrative, while infrastructure development and digital services offer long-term growth prospects. By aligning with the country’s developmental priorities, entrepreneurs can tap into a growing market and contribute to its economic transformation.
Burkina Faso offers a mix of opportunities and challenges for businesses. For seamless market entry and workforce solutions, partner with Remote People‘s business expansion services.
Are you interested in doing business in Burkina Faso? Remote People can help.
Contact us today to assess your business needs and learn how we can assist you in achieving your objectives.
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