Investing in Burkina Faso

Common investment choices include government securities, BRVM-listed shares and bonds, regulated collective investment schemes, and direct investments in agriculture, mining, energy, information and communication technology, industry, healthcare, education, tourism, real estate and transport. Short-term government bills, known as BAT, generally mature in less than two years and specify their interest in advance. OAT are medium- or long-term government bonds, while OS combine several government securities and are repaid at maturity according to their issue terms. Interest, taxation, maturity and repayment conditions always depend on the relevant issue document. The BRVM is the regional West African securities exchange serving the UEMOA market, rather than a separate Burkina Faso stock exchange. Shares and bonds may include Burkina Faso issuers such as BOABF, CBIBF, ONATEL BF and SANCFIS FASO. Individuals and companies normally access listed securities through an authorised bank or Société de Gestion et d'Intermédiation (SGI). Burkina Faso-based SGIs listed by the BRVM include CORIS BOURSE, SBIF and SA2IF. The AMF-UMOA supervises and authorises market participants, while the BCEAO provides the central-bank and monetary framework. Verify the current authorisation in the AMF-UMOA register before placing an order. Collective investment schemes, called OPCVM, pool investors' money and invest according to a fund mandate. Examples available in Burkina Faso include FCP CORIS ACTIONS, FCP CORIS PERFORMANCE, FCP ASSURANCES, FCP VALORIS, FCP SECURITAS and FCP EXPANSIO. Their allocations may focus on shares, bonds or short-term instruments, and the net asset value may be calculated daily, weekly or monthly depending on the fund. Entry, exit and management charges, redemption rules and dealing dates come from each fund's prospectus. A practical process usually includes opening a securities account, completing customer identification and source-of-funds checks, reviewing the order or issue terms, paying intermediary charges, and monitoring settlement, custody, interest, dividends, valuation and repayment. Government securities offered to private individuals and companies are accessed through an accredited bank or SGI. Direct participation in a government tender is reserved for banks, SGIs and financial institutions with a BCEAO settlement account. An auction instrument is not automatically listed on the BRVM; the issue notice determines whether secondary-market trading is available. Selection requires more than comparing a stated return. Check the issuer's reports, prospectus, maturity, coupon or expected return, credit quality, liquidity, repayment terms, spread, custody and order fees, and applicable taxes. For a direct business or property project, review the company's RCCM registration, ownership and land rights, construction approvals, sector licences, business plan, cash flow, partners, exit plan, security arrangements and insurance. An investment approval or tax incentive under the investment framework does not guarantee profitability. Key risks include issuer default, interest-rate and price movements, limited market liquidity, dependence between banks and the public sector, security and humanitarian conditions, climate and harvest shocks, energy and fuel costs, concentration in gold prices and exports, and legal, land-title, licensing, corruption or fraud risks. Investors using a currency other than XOF face exchange-rate exposure. The XOF is used in Burkina Faso, and the euro parity is 1 EUR = 655.957 XOF; this does not remove other currency or investment risks. Securities and funds do not carry a state or deposit guarantee, and no return is guaranteed. Diversifying between government and corporate securities, shares, funds and suitable direct projects should reflect liquidity needs, time horizon and ability to bear losses. Bank and SGI charges, custody fees, fund charges, spreads, taxes and project due-diligence or licensing costs must be checked separately because no single nationwide retail tariff applies to every provider.