Burkina Faso is the fourth largest gold producer in sub-Saharan Africa, behind South Africa, Ghana and Mali. Gold reserves are estimated at more than 800 tons, and gold accounts for the largest source of government revenue. Between 2009 and 2012, gold represented 26 percent of gross domestic product and 45 percent of exports.
Burkina Faso’s Performance on the RGIBurkina Faso received a “partial” score of 54 out of 100, ranking 23rd out of 59 countries. A high score on the Institutional and Legal Setting component contrasted with poor Reporting Practices.
(out of 58)
(out of 100)
|9||Institutional & Legal Setting||81|
|21||Safeguards & Quality Controls||65|
Institutional and Legal Setting (Rank: 9th/59; Score: 81/100) learn more
Burkina Faso's comprehensive mining legislation, independent licensing process and compliance with the Extractive Industries Transparency Initiative (EITI) since February 2013 earned it a "satisfactory" score of 81.
The 2003 Mining Code clearly defines the licensing process and revenue collection. The Ministry of Mines grants licenses on a first-come, first-served basis and the Ministry of Economy and Finance collects all mining payments.
The Constitution guarantees access to information, but this right is limited in the mining sector. Social impact assessments of mining projects are not governed by a specific text.
Reporting Practices (Rank: 35th/59, Score: 44/100) learn more
Burkina Faso provides limited information on the mining sector, resulting in a "weak" score of 44.
Mining contracts are not published. Model conventions are available on the Ministry of Mines' website, but their content is not published once signed. Environmental impact assessments are mandatory, and mining companies organize public consultations before any license allocation. Outside aggregated information in the finance law, the Ministries of Finance and of Mines do not publish any information on the mining sector. Only the Central Bank publishes gold production volumes between 2009 and 2012.
The 2013 EITI report, which covers the 2011 fiscal year, includes the most comprehensive information on the sector (although outdated). The report includes information on reserves, production volumes, prices, value of exports, names of operating companies, and on different revenue streams such as royalties, acreage fees and dividends.
Safeguards and Quality Controls (Rank: 21st/59; Score: 65/100) learn more
The "partial" score of 65 reflects some legislation against conflicts of interest. However, in practice, very few government officials with a role in the oversight of the mining sector disclose information about their participation in extractive projects. Burkinabe authorities have nonetheless expressed their commitment during the 2013 G8 to publishing beneficial ownership of mining industries.
The Audit Court publishes annual reports on public finances but does not conduct specific audits of the mining sector. Parliament does not receive regular reports on the award of contracts and licenses in the mining sector.
Enabling Environment (Rank: 32nd/ 59; Score: 35/100) learn more
Burkina Faso performed particularly poorly on rankings of budget transparency, government accountability and effectiveness, earning a "failing" grade of 35.
Subnational Transfers (Rank: 10th/31; Score: 35/100) learn more
According to the Mining Code, 20 percent of acreage fees should be redistributed to the province where the mine is exploited. Subnational authorities do not collect any direct tax or fees. The Treasury writes reports about transfers to local authorities, but these reports are not published.
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INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2005 international $ billion)||12,3||16,9||26,8|
|GDP per capita, PPP (constant 2005 international $)||1064||1262||1582|
|Extractive exports (% total exports)||3||2||46|
|Sources: World Bank and UNCTAD.|