INDUSTRY SPOTLIGHT
BURKINA FASO MINING SPOTLIGHT We take a deep dive in to the untapped potential of Burkina Faso’s mining sector and the critical need for the formalisation of artisanal mining Writer: Phoebe Harper | Project Manager: Matt Cole-Wilkin
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ining in Burkina Faso is big business. In this landlocked West African country, whose name literally translates as, ‘Land of the Incorruptible People’, the mining sector is a key ingredient to economic prosperity. As one of the country’s largest industries, second only to agriculture, mining in Burkina Faso contributes approximately 12 percent to the national GDP and employs approximately 65,000 people. As of 2019, the industry was reportedly worth two billion USD. The industry has been carried on a steady upwards trajectory of expansion since the early 2000s, with an average of 1.5 mines per year being established since 2010. Consequently, it is an attractive source of foreign investment. Indeed, in 2018, large-scale commercial mining operations resulted in $600 million of revenue for the national government.
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Burkina Faso’s status as a centre of economic attraction is evidenced by the large number of mines that have opened in recent years, the number of foreign investors who have entered the country, and its status as one of Africa’s most important gold producers. The scale of foreign investment has flourished since the 1990s, as the government began to privatise some state-owned entities. This, combined with intensified investment into industrial mines and the evolution of regulatory and legal framework has fed the sector’s development. Nevertheless, challenges prevail that hamper the industry’s progress. Burkina Faso’s status as a landlocked country represents a natural logistical hurdle due to the lack of sea access, on top of heightened security costs. This is complicated further by the relatively small size of the market economy.
