Copyright newbusinessethiopia
By Africa Risk Control (ARC) – Burkina Faso, a landlocked West African nation of nearly 23 million people, is quietly emerging as a frontier economy with growing investment appeal — despite the security and logistical challenges that often dominate the headlines. The country’s GDP was estimated at around USD 23 billion in 2024, expanding by nearly 5 percent — a recovery driven by agriculture, services, and mining. Gold remains the backbone of the economy, accounting for over 70 percent of export earnings. The government continues to issue new exploration licenses for precious and base metals, while foreign operators from Canada, Australia, and West Africa deepen their presence. In the agricultural sector, Burkina Faso remains one of Africa’s largest cotton producers, with growing interest in sesame, shea, and livestock value-chains. Ambitious reforms in irrigation and rural electrification aim to boost productivity and attract agro-processing ventures. The energy sector is also opening up: only about one-quarter of the population has reliable access to power, creating room for renewable and off-grid investments supported by the African Development Bank and IFC. Still, investors must navigate a fragile security environment and the limitations of a landlocked logistics system. Rising transport costs, periodic political uncertainty, and infrastructure gaps weigh on the business climate. Yet, the government’s drive for macroeconomic stability and its engagement with ECOWAS and WAEMU continue to anchor the reform outlook. For investors with medium- to long-term horizons, Burkina Faso presents both high risks and high rewards. Strategic positioning, local partnerships, and solid due diligence are essential for success. Read the full in-depth economic analysis on Africa Risk Control — including data, sector trends, key investors, and risk-mitigation strategies for those exploring opportunities in this evolving frontier market.
