According to commit4fitness, Burkina Faso is a West African nation with an economy that is largely based on agriculture, mining and tourism. The country has a thriving services sector which includes banking and finance, real estate, insurance and professional services. Additionally, Burkina Faso also has an established manufacturing base which produces food products, apparel and chemicals. The government of Burkina Faso has invested heavily in infrastructure projects such as roads, railways and airports which have helped to improve access to markets across the region. Furthermore, Burkina Faso also has a well-developed financial sector which offers a wide range of services including asset management, private banking and wealth management. Additionally, Burkina Faso is home to several large international companies such as Ecobank Transnational Incorporated and Banque Atlantique (Burkina).
According to countryaah, an unfavorable climate for agriculture, lean soils and an undeveloped infrastructure constitute major obstacles to the development of business in Burkina Faso. The main focus of the country’s economy is agriculture at self-sustaining level. In 1991, in cooperation with the World Bank, the country implemented a structural adjustment program to increase agricultural production, increase privatization and facilitate investors. In the mid-1990s, efforts began to produce results, but the civil war in Ivory Coast in 2002–03 hit the country’s foreign trade hard. As the country is very dependent on agriculture, it is severely affected by natural disasters such as droughts, floods and insect invasions. In 2007, the country was hit by floods and almost 100,000 became homeless.
- According to abbreviationfinder, BF is the 2 letter abbreviation for the country of Burkina Faso.
Despite the cancellation of the international debt decreed in 2005, Burkina Faso’s economic conditions are precarious; the country has a considerable GDP growth, but also a per capita income among the lowest in the world and an average availability of calories just in line with vital values. Natural resources are limited, infrastructural problems (especially relating to communications) and social problems await a substantial solution, and energy deficiencies are serious. The economy of Burkina Faso remains based on the self-subsistence of rural populations (sorghum, millet, corn and rice), while only cotton and peanuts provide a contribution to exports, alongside the important livestock activities. The breeding, in fact, is very developed (goats and sheep, but also cattle), even if the zootechnical patrimony has been seriously damaged by the recurring drought crises; in general, the desertification processes have affected the productive capacity (including spontaneous ones) of the soils.
- Mining exploration since the 1960s has revealed the presence of interesting reserves, but only a modest amount of gold contributes to the country’s budget. The manufacturing sector is limited to certain processing of agricultural products, with particular emphasis on cotton and some consumer goods industries (clothing, footwear, woodworking, bicycle assembly). A petrochemical plant is in operation in Bobo-Dioulasso.
- In addition to the aforementioned railway line of penetration from the Ivory Coast, the connections make use of a mediocre road network and growing aerial communications. International trade (always in strong passive) takes place almost exclusively with neighboring countries and with France, Germany and Japan.
Agriculture, forestry and fishing
Although Burkina Faso is a prominent agricultural country, production does not meet the country’s food needs. The problems for the agricultural sector are serious: meager soils, large erosion damage, recurring dry periods and even between general water shortages. As early as 1980, the population in the drier zones of the country had exceeded the ecological sustainability. In addition, the availability of firewood is a limiting factor. Overpopulation in this sense easily results in desertification. Dominant food crops are millet and corn. The dominant sales crop is cotton, which accounts for half of the country’s export earnings. In 2007, the country had a record crop of cotton, making Burkina Faso the country in sub-Saharan Africa that exported the most cotton.
About 25 percent of the area is wooded, but despite this, the setback is only 9.5 million m 3 per year, of which 95 percent is used for firewood. The fishing industry is poorly developed and catches are consumed locally.
Minerals and industry
There are good mineral resources in Burkina Faso, but only a small part of these are utilized. The most important economic deposits are gold, which is the country’s second most important export commodity. During the 00s, gold production has risen sharply and in recent times several foreign companies have invested in the sector. In addition to gold, zinc is the only mineral that is mined on any major scale, but the country also has deposits of silver, manganese, vanadium and phosphates. The country’s energy supply is covered by 90 percent of firewood. Electricity production takes place mainly in the country’s oil-powered power plant.
The industrial sector alongside the mining industry is relatively small, but the share of GDP has increased. The problems for this industry are mainly a small local market and low investment. The sector is characterized by processing of agricultural products and import substitution (manufacture of goods to reduce imports of these goods).
Burkina Faso’s foreign trade is characterized by a long-term and large deficit. The dominant export goods are cotton and gold. Imports are dominated by capital goods and food. The main trading partner for imports is China, Ivory Coast and the United States and for exports Switzerland, India and South Africa. Many men work abroad and send home money to their families.