When considering doing business in Burkina Faso, it’s important to understand various factors that can influence operations. Here’s an overview of social, cultural, political, and economic aspects:
Social and Cultural Factors
- Language and Communication
- The official language is French, and it is widely used in business.
- Building personal relationships and trust is crucial for successful business dealings.
- Business Etiquette
- Formality and respect are important in meetings.
- Initial meetings often focus on establishing trust rather than detailed negotiations.
Political Environment
- Government Structure
- Burkina Faso is a semi-presidential republic.
- The political environment has been marked by periods of instability, so staying informed is important.
- Regulatory Environment
- Business regulations are evolving, with efforts to attract foreign investment.
Economic and Foreign Exchange Factors
- Currency
- The currency is the West African CFA franc (XOF), which is pegged to the Euro.
- This provides a stable foreign exchange rate.
- Investment Incentives
- The government offers incentives for foreign investment, particularly in sectors like agriculture and mining.
Rule of Law
- Legal System
- Based on civil law, providing a framework for legal proceedings.
- Contracts and property rights have some legal protection, but enforcement can be challenging.
- Property Rights
- Protected by law, though navigating bureaucracy can be complex.
Infrastructure
- Transportation and Logistics
- Developing road and rail networks are crucial for trade.
- Telecommunications infrastructure is improving, supporting business operations.
Key URLs
- Ouagadougou Chamber of Commerce: cci.bf