Finance Law in Burkina Faso
Burkina Faso's financial legal framework is influenced by its membership in regional organizations such as the West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA). These bodies issue legislation that significantly impacts the regulation of commercial entities, banks, financial institutions, and insurance companies within the country. citeturn0search5
Key Financial Legislation:
Banking Regulation: The Loi 2008 portant règlementation bancaire au Burkina Faso governs banking operations, ensuring compliance with WAEMU's banking regulations. citeturn0search3
Anti-Money Laundering: As a WAEMU member, Burkina Faso enforces regional laws against money laundering, complemented by its national legislation to prevent financial crimes. citeturn0search4
Commercial Law: The Acte uniforme du 15 décembre 2010 portant sur le droit commercial général standardizes commercial law practices, facilitating business operations across member states. citeturn0search3
Financial Reporting: Burkina Faso aligns with international standards by adopting the International Financial Reporting Standards (IFRS) for financial reporting, enhancing transparency and comparability. citeturn0search5
Recent Developments:
2024 Finance Law: Parliament adopted Finance Law No 042-2023/ALT, effective from January 1, 2024. Key amendments include a reduction in the tax rate on financial activities from 17% to 15%, the introduction of a specific tax on cement at CFA2,000 per ton, VAT exemptions for cement sales and imports subject to the specific tax, and exemptions from VAT and customs duties for construction materials used in real estate development.
Nationalization of Gold Mines: In a significant move, Burkina Faso nationalized two gold mines, Boungou and Wahgnion, from Lilium Mining for approximately $80 million, despite their previous sale price exceeding $300 million. This action reflects the government's intent to exert greater control over natural resources.
These developments underscore Burkina Faso's commitment to refining its financial legal framework, aiming to enhance economic control, attract investment, and ensure sustainable development within its financial sector.
RELATED Blog
0 comments