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Burkina Faso eyes S’pore investments, experience for economic development

SINGAPORE — The government of Burkina Faso is committed to ensuring an open and stable business environment for foreign companies, said President Blaise Compaore, as the West African country now looks to Singapore for both investment and experience to drive its development.

Burkina Faso President Blaise Compaore meeting Prime Minister Lee Hsien Loong on Wednesday at the Istana during a private visit in Singapore. Photo: AP

Burkina Faso President Blaise Compaore meeting Prime Minister Lee Hsien Loong on Wednesday at the Istana during a private visit in Singapore. Photo: AP

SINGAPORE — The government of Burkina Faso is committed to ensuring an open and stable business environment for foreign companies, said President Blaise Compaore, as the West African country now looks to Singapore for both investment and experience to drive its development.

Speaking at the inaugural Burkina Faso-Singapore Business Forum yesterday, Mr Compaore, who is on a four-day visit, gave assurances that foreigners had nothing to worry about when investing in the country.

“Burkina Faso has created a number of legal frameworks in order to promote and protect foreign investments coming to our country. The labour code is also attractive and will protect people working there,” he told reporters.

“It is also easy for investors to repatriate the income that they gain in Burkina Faso. We also have a very good currency, which is connected to the euro, so convertibility is not an issue … All these aspects mean Burkina Faso is a very attractive option for investments.”

Mr Compaore’s comments come as Africa is highlighted as the next frontier for Singapore companies to expand to overseas, with International Enterprise (IE) Singapore opening an office last year in Ghana to join one already operating in South Africa.

Mr G Jayakrishnan, IE Singapore group director for Middle East and Africa, noted that political, economic and social stability was increasingly prevalent across Africa. “While not all countries are at the same stage of development, many African governments have successfully tackled inflation, strengthened national budgets and tightened security to attract more investment and jobs.”

With a population of 17 million and an average gross domestic product expansion of 5.5 per cent annually in the past decade, Burkina Faso is among the many developing nations in Africa that are rapidly gearing up for growth and modernisation, presenting opportunities in sectors such as infrastructure, energy and consumer products.

But the country has continued to face issues of instability. A mutiny broke out as recently as 2011, and there is an ongoing feud between the ruling party and the opposition over the limits of presidential terms.

Despite such challenges, Mr Compaore has taken the first steps to creating a business-friendly environment for Singapore companies, as he signed an investment guarantee agreement with the Ministry of Trade and Industry yesterday. This followed his meeting with Prime Minister Lee Hsien Loong on Wednesday, during which an agreement over visa exemptions was reached.

Mr Compaore said he was looking to find partners from Singapore who can help add value to Burkina Faso’s cotton industry and raise the proportion of its annual crop, which is processed domestically, from the current 1 per cent.

Other areas that Burkina Faso wishes to learn from Singapore’s experience include urban sanitation solutions, vocational training and tourism, he said. The country is also poised to grow its infocommunications and transport infrastructure and is planning to build a new airport.

To this end, Mr Compaore yesterday met the heads of Changi Airports International, Hyflux, Hotel Properties and Surbana. TODAY understands that he also had talks with SingTel.

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