Burkina Faso Market Entry

Burkina Faso Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

According to cheeroutdoor.com, the situation in Burkina Faso is complicated for Czech exporters for many reasons. In addition to the factors operating in most countries of the region (low purchasing power, geographical distance, laboriousness of cases, often little seriousness of the partner, high level of corruption…) there are also specific factors (consumer goods are mostly imported and distributed by wholesalers – Lebanese, Chinese; importers of luxury goods just as mining companies usually buy and import goods directly from the manufacturer), or orientation towards traditional (primarily francophone) suppliers and the current lack of a bilateral contractual basis. Establishing a relationship with a local, reliable partner (importer, distributor, representative), with good contacts, is a basic condition for successful business

Forms and conditions of operation on the market

Burkina Faso’s regulations governing the formation of businesses cover most of the company forms permitted under French commercial law, including: public corporations, limited liability companies, limited partnerships, natural persons, subsidiaries and affiliates of foreign companies. To simplify the registration process for companies wishing to establish a presence in Burkina Faso, the government launched eight business registration centers called Centers de Formalités des Enterprises, known by their French acronym CEFOREs. CEFORE are one-stop shops (OSS) for any type of company or business registration. The rights of foreign and domestic private entities to establish and own businesses and carry out all forms of gainful activities are guaranteed by the Constitution and the Investment Code. Businesses can be set up and sold freely. Most public enterprises have a monopoly in their markets. By introducing structural reforms, the government liberalized some monopolies. Foreign investors are encouraged to participate in the privatization of state-owned enterprises Foreign entrepreneurs can choose to establish a joint stock company, limited partnership or branch in Burkina Faso Limited liability company: Burkina Faso Limited Liability Company must appoint at least one director and one shareholder who can be of any nationality. The minimum paid-up capital required to complete the incorporation process is $2,000. A Burkina Faso Public Limited Liability Company requires a minimum capital of US$20,000, which must be fully paid up prior to incorporation. At least one shareholder and three board members must be appointed. They can be of any nationality.

Marketing and communication

Advertisements in the daily press have a limited reach due to the educational structure and costs.

L’Observateur Paalga01 BP 584 Ouagadougou 01 Tel: 226 5033 2705 Fax: 226 5031 4579 Website: www.lobservateur.bf

Le Pays01 BP 4577 Ouagadougou Tel: 226 5036 2046; Fax: 5036 0378 Website: www.lepays.bf

The advertising has the greatest reach/response on the radio broadcast: Radio Télévision du BurkinaOuaga FM

Advertising on TV may have a limited reach: Television Nationale du BurkinaRTB Television

Marketing research can be provided by Delphicom Afrique – www.delphicomafrique.com

Issues of intellectual property protection

Burkina is a member of the World and African Intellectual Property Organization (World Intellectual Property Organization, WIPO; African Intellectual Property Organization, AIPO). It ratified the copyright treaties (WIPO Copyrights Treaty, WCT; WIPO Performances and Phonograms Treaty, WPPT) in 1999. The implementation (WTO Trade-Related Intellectual Property Rights/TRIPS) is entrusted to the Copyright Office (Bureau burkinabè des droits d’auteurs, BBDA) at the Ministry of Culture, Arts and Tourism. However, the fact is that due to Burkina Faso’s existential problems, the protection of intellectual property is not among the government’s priorities. The representation of counterfeit goods from sentence brands (mostly of Asian origin) is high. In Burkina Faso, the National Investment Code guarantees foreign investors the same rights and protections as Burkinabe companies for trademarks, patent rights, labels, copyright and license. The Bureau Burkinabe du Droit d’Auteur is charged with the administration of the copyright system, while the Directeur Général de la Propriété Industrielle within the Ministry of Industry and Trade deals with patent and trademark issues

Public procurement market

International tenders : Tenders are published in local newspapers, international magazines, sent by post to various diplomatic missions, sent by email to interested foreign investors and published on the Internet at http://www.dgmarket.com. Foreign investors are given the same procedure and timeline as local investors in the bidding process. The tender criteria are set and required by the government regulation for public procurement, the authority for the regulation of public procurement is (ARCOP), originally called “Autorité de regulation des marches publics” (ARMP).

National tenders : Procurement methods depend, among other things, on the purchase amount. Open public tendering is mandatory if the estimated cost, including all taxes, is CFAF 20 million or more; the call is published in the public procurement review and in at least one major press. Tendering may be open (with or without preselection). In exceptional cases, the contracting authority may choose tendering or direct negotiation (private agreement). The price request procedure, which only requires publication in the public procurement overview and ends with an order, can be used if the amount is equal to or greater than CFAF 1 million but less than CFAF 20 million. Public contracts not exceeding CFAF 1 million are carried out in the form of a “purchase order” following a request for tenders, a simplified procedure, which does not have a written form Restrictive tendering Contracts in the framework of a restrictive tendering procedure are limited to organizations that are contacted by the contracting authority. In order to ensure a certain level of competition, the number of tenderers invited to submit tenders in a tendering procedure shall not be less than three.

Burkina Faso Market Entry