If you are wondering how to invest in Burkina Faso as a foreigner, the good news is that the door is open. Foreign investors can own companies here. They can also send their profits home. The country’s business laws follow a shared regional system that many investors already know.
But Burkina Faso is not a market you should enter on guesswork. The rules changed a lot in the last two years. A new mining law took effect in 2024. The country left the ECOWAS trade bloc in 2025. Security problems affect some regions. Getting local legal advice early is not optional. It is the difference between a project that works and one that stalls.
This guide explains what you need to know, in plain language.
Why investors look at Burkina Faso
Burkina Faso is one of Africa’s largest gold producers. According to the US Library of Congress, industrial gold production grew from 5.5 tonnes in 2008 to 56.85 tonnes in 2023. The sector’s contribution to the state budget rose from about 8.91 billion CFA francs to 529.25 billion over the same period. Gold is now the country’s top export.
Farming also draws steady interest. Cotton, sesame and cashew are the main crops. Cotton is often called the country’s “white gold.”
There are other opportunities too:
- Renewable energy, especially solar
- Telecoms and digital infrastructure
- Logistics, since Burkina Faso sits between several neighbouring markets
- Agro-processing, turning raw crops into finished goods
The government wants foreign money. It offers tax breaks through its Investment Code. It also runs a one-stop shop that makes company registration faster than in many neighbouring countries.
Still, you should go in with clear eyes. Some regions face serious security risks. Community relationships matter enormously. And the legal ground has shifted recently, as we explain below.
Can foreigners own a business in Burkina Faso?
Yes. Foreign investors can own 100% of a company in most sectors. The Investment Code treats foreign and local investors the same way, with a few sector-specific exceptions.
The Code also protects your right to move money out of the country. You can send profits, dividends and capital abroad. This matters more than almost anything else if you are putting real money into a project.
Mining is the main exception to full ownership. Under the 2024 mining law, the state takes a free stake in mining projects, and companies must open part of their shares to Burkinabè investors. More on that below.
The laws you need to know
The Investment Code
Burkina Faso’s Investment Code is Law No. 038-2018/AN of 30 October 2018. It sets out what foreign investors can do and what benefits they can claim.
The Code offers tax and customs breaks in two phases:
- The set-up phase: when you are building, importing equipment and getting ready to trade
- The operating phase: your first years of actually doing business
What you get depends on three things: how big your investment is, what sector you are in, and where you build. Projects outside the capital, Ouagadougou, often get better terms. The government wants investment spread across the country, not concentrated in one city.
One important practical point. You must apply for these benefits before you start operating. Investors who apply late often lose out. Build the application into your project timeline from day one.
OHADA business law
Burkina Faso belongs to OHADA. That stands for the Organisation for the Harmonisation of Business Law in Africa. It is an intergovernmental body covering 17 mostly French-speaking African states, which share one common set of business laws.
This is a real advantage. If you already run a business in Senegal, Côte d’Ivoire or Cameroon, the rules for setting up a company, signing contracts and handling insolvency will look familiar. You can learn more on the official OHADA website.
Company types come from OHADA’s Uniform Act on Commercial Companies. Lawyers across the region know these rules well, which keeps advice costs reasonable.
Rules for specific sectors
Some industries have their own rulebooks that sit on top of the Investment Code.
Mining
This is where the biggest changes happened. Burkina Faso adopted a new Mining Code on 18 July 2024, and it took effect on 31 July 2024, replacing the 2015 Mining Code for new permits. The law is Act No. 016-2024/ALT. A separate local content law, Act No. 017-2024/ALT, was passed at the same time.
What changed for foreign investors:
- The state’s free stake in mining projects rose from 10% to 15% under Article 66 of the new code.
- Mining companies must offer part of their share capital to Burkinabè investors.
- Companies must contribute to a national gold reserve.
- Some minerals must be processed locally rather than shipped out raw.
- The 2015 code referred to arbitration for disputes; the new code contains no such reference. This is significant, and we return to it below.
Many parts of the new code still depend on implementation decrees that were not yet in place when the law passed. Check the current position before you commit. You can follow developments through the UNCTAD Investment Policy Monitor and the Library of Congress summary of the new code.
Energy
A separate framework covers licensing, tariffs and grid access. If you want to sell power to the grid, you will negotiate a power purchase agreement. Expect to deal with both the regulator and the state utility. Start those conversations early — they take time.
Agriculture and land
Land is the big issue here. Burkina Faso recognises two kinds of land rights: formal registered title, and customary rights held by communities. A piece of land can have a clean paper title and still carry customary claims. Check both before you buy or lease. Skipping this step causes more failed agriculture projects than any other mistake.
Telecoms
The regulator is ARCEP, the Autorité de Régulation des Communications Électroniques et des Postes. You will need a licence and must follow the rules on spectrum allocation.
Choosing a company structure
Pick your structure before you spend money on anything else. It affects your tax, your liability and how easily you can exit later.
Structure Best forMinimum share capitalNotesSARL (limited liability company)Small and medium ventures, local subsidiaries, joint venturesAround 1,000,000 CFA francsSimplest governance. Most common choice for foreign investors.SA (public limited company)Large projects, mining, infrastructure, multiple shareholdersAround 10,000,000 CFA francsNeeds a formal board. Standard for big deals.Branch officeTesting the market before committingNoneSimpler to set up, but your parent company carries the liability. Tax treatment differs.Joint ventureMining and agriculture projects needing local partnersDepends on the vehicle usedGives you local networks and goodwill. The agreement must be drafted carefully.
If you choose a joint venture, spend real money on the agreement. Cover who decides what, how profits are split, and how each side can exit. Vague joint venture agreements are the source of most partnership disputes in the region.
How to register a business in Burkina Faso
Registration goes through CEFORE, the Centre de Formalités des Entreprises. This is the government’s one-stop shop, run through the Maison de l’Entreprise du Burkina Faso (MEBF). It brings most steps under one roof.
The main steps are:
- Reserve your company name. File a request with CEFORE. If the name is free, you get a reservation certificate. It is usually valid for 30 days.
- Draft and notarise your statutes. These are your articles of association. They must be written in French and signed off by a registered notary.
- Deposit your share capital with a local bank and get a certificate proving it.
- Register with the RCCM — the Registre du Commerce et du Crédit Mobilier, which is the commercial register.
- Get your tax number, the Identifiant Financier Unique (IFU).
- Register with CNSS, the social security fund, if you will hire staff. This must happen within days of your first hire.
- Publish a notice of the company’s creation in an official gazette.
CEFORE advertises a turnaround of a few working days for the registration itself. In practice, the full process usually takes several weeks once you include notarising documents, opening a bank account and gathering paperwork from abroad. Use a local lawyer to run it. Documents coming from outside the country often need legalisation, and that is where timelines slip.
Tax considerations
Company profits are taxed at roughly 27.5% under the standard regime. VAT is 18%. Employers also pay social security contributions on their payroll.
Your Investment Code benefits can reduce or delay some of this during your early years. That is why the timing of your application matters so much.
On tax treaties, note an important change. Burkina Faso has tax agreements with a number of countries. The most important for regional business is the WAEMU (UEMOA) multilateral tax treaty, which still applies. However, Burkina Faso’s withdrawal from ECOWAS took effect on 29 January 2025, alongside Mali and Niger. If your tax planning assumed ECOWAS membership, revisit it with a tax adviser.
Transfer pricing rules also apply. If your Burkinabè company trades with a parent or sister company abroad, keep proper documentation showing the prices are fair. Tax authorities across the region are paying closer attention to this.
Practical steps before you commit
Do proper due diligence
Check everything before money moves.
For land deals, verify the registered title and ask about customary claims. Speak to the local community, not just the seller.
For buying an existing business, review the contracts, employment records, licences, tax history and any court cases. Businesses in the region often carry unpaid tax liabilities that only surface after a sale.
Plan for disputes before they happen
Burkina Faso’s courts can hear commercial cases. OHADA law makes outcomes reasonably predictable.
Most foreign investors still prefer arbitration for high-value contracts. The OHADA Common Court of Justice and Arbitration (CCJA) runs an arbitration service built for the region. Once the CCJA grants enforcement, an award can be enforced across all OHADA member states as though it were a local court ruling.
One warning for mining investors. Because the 2024 Mining Code dropped the arbitration reference that the 2015 code contained, do not assume arbitration is automatically available for disputes with the state. Negotiate dispute resolution explicitly in your contracts, and take advice on it.
Take community engagement seriously
If your project occupies land, a mine, a solar farm, a plantation, local relationships will determine whether it succeeds.
This is not a public relations exercise. Investors who ignore community concerns in Burkina Faso face delays, permit challenges and reputational damage. Build a stakeholder engagement plan into your project from the start, and budget for it properly.
Common mistakes foreign investors make
- Applying for Investment Code benefits after starting operations. Apply first.
- Assuming the 2015 mining rules still apply. They do not, for new permits.
- Buying land on paper title alone. Check customary rights too.
- Copying a joint venture agreement from another country. OHADA rules differ.
- Leaving dispute resolution vague. Especially in mining contracts now.
- Underestimating timelines. Build in buffer for document legalisation.
How LEX Africa can help
Investing in Burkina Faso works best when you have lawyers who know both the local system and what international investors expect. That combination is hard to find on your own.
LEX Africa is a legal alliance covering more than 30 African countries, founded in 1993. Our member firms advise on company structuring, licensing, contracts, tax and dispute resolution.
