Doing Business 2020 Burkina Faso Economy Profile Burkina Faso Page 1 Doing Business 2020 Burkina Faso Economy Profile of Burkina Faso Doing Business 2020 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Employing workers Flexibility in employment regulation and redundancy cost Page 2 Doing Business 2020 Burkina Faso About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation. These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. To learn more about Doing Business please visit doingbusiness.org Page 3 Doing Business 2020 Burkina Faso Ease of Doing Business in DB RANK DB SCORE Region Sub-Saharan Africa Burkina Faso Income Category Low income Population 19,751,535 51.4 151 City Covered Ouagadougou Rankings on Doing Business topics - Burkina Faso 88 95 109 120 122 141 152 154 165 183 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Topic Scores 88.2 68.7 29.4 51.4 30.0 42.0 55.9 66.6 41.1 40.8 Starting a Business (rank) 88 Getting Credit (rank) 152 Trading across Borders (rank) 122 Score of starting a business (0-100) 88.2 Score of getting credit (0-100) 30.0 Score of trading across borders (0-100) 66.6 Procedures (number) 3 Strength of legal rights index (0-12) 6 Time to export Time (days) 13 Depth of credit information index (0-8) 0 Documentary compliance (hours) 84 Cost (number) 42.8 Credit registry coverage (% of adults) 0.0 Border compliance (hours) 75 Paid-in min. capital (% of income per capita) 6.3 Credit bureau coverage (% of adults) 2.0 Cost to export Documentary compliance (USD) 86 Dealing with Construction Permits (rank) 95 Protecting Minority Investors (rank) 120 Border compliance (USD) 261 Score of dealing with construction permits (0-100) 68.7 Score of protecting minority investors (0-100) 42.0 Time to export Procedures (number) 15 Extent of disclosure index (0-10) 7.0 Documentary compliance (hours) 96 Time (days) 121 Extent of director liability index (0-10) 1.0 Border compliance (hours) 102 Cost (% of warehouse value) 7.6 Ease of shareholder suits index (0-10) 5.0 Cost to export Building quality control index (0-15) 12.0 Extent of shareholder rights index (0-6) 4.0 Documentary compliance (USD) 197 Extent of ownership and control index (0-7) 2.0 Border compliance (USD) 265 Getting Electricity (rank) 183 Extent of corporate transparency index (0-7) 2.0 Score of getting electricity (0-100) 29.4 Enforcing Contracts (rank) 165 Procedures (number) 4 Paying Taxes (rank) 154 Score of enforcing contracts (0-100) 41.1 Time (days) 169 Score of paying taxes (0-100) 55.9 Time (days) 446 Cost (% of income per capita) 8,977.4 Payments (number per year) 45 Cost (% of claim value) 81.7 Reliability of supply and transparency of tariff index (0-8) 0 Time (hours per year) 270 Quality of judicial processes index (0-18) 7.5 Total tax and contribution rate (% of profit) 41.3 Registering Property (rank) 141 Postfiling index (0-100) 49.3 Resolving Insolvency (rank) 109 Score of registering property (0-100) 51.4 Score of resolving insolvency (0-100) 40.8 Procedures (number) 4 Recovery rate (cents on the dollar) 23.6 Time (days) 67 Time (years) 4.0 Cost (% of property value) 11.9 Cost (% of estate) 21.0 Quality of the land administration index (0-30) 12.5 Outcome (0 as piecemeal sale and 1 as going 0 concern) Strength of insolvency framework index (0-16) 9.0 Page 4 Doing Business 2020 Burkina Faso Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the (number) procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited • Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office. • Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for the home to register the company the second largest business city. • Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily Time required to complete each procedure (calendar days) polluting production processes. • Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits. -Is 100% domestically owned. • Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the start on the same day) company shares, two owners have 20% of shares each, and two owners have 15% of shares • Procedures fully completed online are recorded as ½ day each. -Is managed by one local director. • Procedure is considered completed once final document is -Has between 10 and 50 employees one month after the commencement of operations, all of them received domestic nationals. • No prior contact with officials -Has start-up capital of 10 times income per capita. -Has an estimated turnover of at least 100 times income per capita. Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate. capita) -Has an annual lease for the office space equivalent to one income per capita. • Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet). -Has a company deed that is 10 pages long. • No professional fees unless services required by law or commonly used in practice The owners: Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there • Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old. or up to 3 months after incorporation -Are in good health and have no criminal record. -Are married, the marriage is monogamous and registered with the authorities. -Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population. Page 5 Doing Business 2020 Burkina Faso Starting a Business - Burkina Faso Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement XOF 25,000 City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedure – Men (number) 3 7.4 4.9 1 (2 Economies) Time – Men (days) 13 21.5 9.2 0.5 (New Zealand) Cost – Men (% of income per capita) 42.8 36.3 3.0 0.0 (2 Economies) Procedure – Women (number) 3 7.5 4.9 1 (2 Economies) Time – Women (days) 13 21.6 9.2 0.5 (New Zealand) Cost – Women (% of income per capita) 42.8 36.3 3.0 0.0 (2 Economies) Paid-in min. capital (% of income per capita) 6.3 9.3 7.6 0.0 (120 Economies) Figure – Starting a Business in Burkina Faso – Score 88.2 87.4 78.6 98.4 Procedures Time Cost Paid-in min. capital Figure – Starting a Business in Burkina Faso and comparator economies – Ranking and Score DB 2020 Starting a Business Score 0 100 93.7: Côte d'Ivoire (Rank: 29) 90.6: Benin (Rank: 65) 88.2: Burkina Faso (Rank: 88) 85.0: Ghana (Rank: 116) 84.3: Mali (Rank: 124) 80.1: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6 Doing Business 2020 Burkina Faso Figure – Starting a Business in Burkina Faso – Procedure, Time and Cost Time (days) Cost (% of income per capita) 35 12 30 Cost (% of income per capita) 10 25 Time (days) 8 20 6 15 4 10 2 5 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 7 Doing Business 2020 Burkina Faso Details – Starting a Business in Burkina Faso – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Deposit subscribed capital in a bank 1 day on average no charge Agency : Bank or any other credit or micro-credit establishment Business founders must deposit their startup capital at a bank. 2 Have a notary public notarize the declaration of capital subscription and deposit the two 3 days 3 % of declared capital acts with the notary office Agency : Notary Proof of capital deposit is required. Since 2014, the use of notaries is no longer required (Decree N 2014-462/PRES/PM/MJ/MICA). However, most entrepreneurs still use their services. 3 Register at Centre des Formalités des Entreprises (CEFORE) for company registration, tax 9 days see procedure details number (IFU), labor, and social security Agency : CEFORE By Decree No. 2005-332/PRES/PM/MCPEA/MFB/MTEJ of June 21, 2005, the Center for Business Formalities (CEFORE) was created and became operational in Ouagadougou. A single application form must be submitted to complete company registration with the Trade Register and Personal Credit (RCCM), to obtain the fiscal identification (or identifiant financier unique, IFU, at the Direction Générale des Impots) and the professional license (carte professionnelle de commerçant, at the Ministry of Commerce). After the form is submitted, CEFORE organizes the registration with the court and other authorities. Companies are assigned a unique company identification number for company registration, fiscal identification, and social security affiliation. The official time for the completion of the registration process in this procedure is 7 working days. Because CEFORE forwards the documents to the respective agencies, however, in practice the delay is longer. On May 23, 2007, the Minister of Labor and Social Security, the Minister of Commerce, and the Minister of Employment signed a decree that the required declarations must be filed with CEFORE. CEFORE then transfers the relevant information to Caisse Nationale de Sécurité Sociale (CNSS), which has the mandate to disseminate that information to the National Agency of Employment Promotion (ANPE) and the Labor Inspectorate. Registration fees are XOF 47,500 as follows: XOF 12,500 (RCCM) + XOF 7,500 (IFU) + XOF 5,000 (CNSS) + XOF 7,500 (CEFORE) + XOF 5,000 (Court registration) + XOF 10,000 (fee for publication) + XOF 3000 (seal affix) The sworn declaration (declaration sur l'honneur), instead of a copy of the criminal records of the manager is provided with the registration application. The entrepreneur will need to send a copy of her/his criminal record within 2 months. On July 2015 the CEFORE has launched an e-registration process for business registration called "Systeme Integre des Guichets Uniques, SIGU" (www.sigu.gov.bf). Entrepreneurs have the possibility of registering via the online portal, but in practice they are still registering over the counter at the CEFORE office. Takes place simultaneously with previous procedure. Page 8 Doing Business 2020 Burkina Faso Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates The construction company (BuildCo): • Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest inspections business city. For 11 economies the data are also collected for the second largest business city. • Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects • Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed Time required to complete each procedure (calendar days) experts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse upon its • Does not include time spent gathering information completion. • Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule The warehouse: - Will be used for general storage activities, such as storage of books or stationery. • Procedure is considered completed once final document is received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be • No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of income per - Will have complete architectural and technical plans prepared by a licensed architect. If capita) preparation of the plans requires such steps as obtaining further documentation or getting prior • Official costs only, no bribes approvals from external agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory Building quality control index (0-15) requirements). • Quality of building regulations (0-2) The water and sewerage connections: • Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water • Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. • Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow • Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and • Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9 Doing Business 2020 Burkina Faso Dealing with Construction Permits - Burkina Faso Standardized Warehouse Estimated value of warehouse XOF 19,741,859.40 City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 15 15.1 12.7 None in 2018/19 Time (days) 121 145.4 152.3 None in 2018/19 Cost (% of warehouse value) 7.6 8.9 1.5 None in 2018/19 Building quality control index (0-15) 12.0 8.9 11.6 15.0 (6 Economies) Figure – Dealing with Construction Permits in Burkina Faso – Score 60.0 72.6 62.1 80.0 Procedures Time Cost Building quality control index Figure – Dealing with Construction Permits in Burkina Faso and comparator economies – Ranking and Score DB 2020 Dealing with Construction Permits Score 0 100 70.5: Benin (Rank: 82) 68.7: Burkina Faso (Rank: 95) 67.6: Ghana (Rank: 104) 61.4: Mali (Rank: 133) 58.5: Regional Average (Sub-Saharan Africa) 57.4: Côte d'Ivoire (Rank: 152) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Page 10 Doing Business 2020 Burkina Faso Figure – Dealing with Construction Permits in Burkina Faso – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 120 3.5 3 Cost (% of warehouse value) 100 2.5 80 Time (days) 2 60 1.5 40 1 20 0.5 0 0 1 2 *3 *4 5 6 7 8 9 10 11 * 12 13 14 * 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 11 Doing Business 2020 Burkina Faso Figure – Dealing with Construction Permits in Burkina Faso and comparator economies – Measure of Quality 14 12.0 12 11.0 10.0 10 Index score 9.0 8.5 8.9 8 6 4 2 0 Burkina Benin Côte Ghana Mali Sub-Saharan Faso d'Ivoire Africa Details – Dealing with Construction Permits in Burkina Faso – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Legalize copy of deed (proof of right to ownership) 1 day XOF 200 Agency : Notary One of the requirements to apply for a construction permit at the CEFAC is to submit at least two certified copies of the title of use or ownership of the land. This legalization can be done at any notary. 2 Obtain soil survey from National Laboratory of Building and Public Works 30 days XOF 600,000 Agency : Laboratoire National des Batiments et Travaux Publics Burkina- LNBTP The soil survey is carried out by the National Laboratory of Construction and Public Works (Laboratoire National des Batiments et Travaux Publics Burkina). The purpose of this study is to analyze and inform the construction company of the parameters for the foundations (what type of foundations are required, how deep in the soil should they dig, what is the quality of the soil, etc.). 3 Obtain fire safety study from a licensed fireman or competent private agency 10 days XOF 150,000 Agency : Licensed Fireman As of January 2011 a fee schedule has been established in Ouagadougou for the cost of the fire safety study. To obtain this study, a company must make a request with a licensed fireman (‘personne agréé - pompier) or at the agency SCEPSI -- ‘Societe Commerciale d’Etudes, de Prevention et de Securité Incendie’. 4 Obtain a land survey from a private consultant 7 days XOF 116,000 Agency : Private company A land plot survey (plan de bornage) is obtained from a private surveyor. This is necessary since there is Master plan for the city of Ouagadougou, therefore in order for the builder to ensure that the boundary of the land is correct, a private surveyor will do a land survey. This is not a requirement to obtain a building permit, but it is done in practice by the builder. 5 Obtain building permit at CEFAC one-stop shop and pay fees 20 days XOF 158,948 Agency : Centre de Facilitation des Actes de Construire (CEFAC) Documents obtained from the first 3 procedures (soil survey, legalized copy of ID and land title, and fire safety study) along with the architecture plans are brought to CEFAC. The files will be reviewed by one of CEFAC’s two experts on construction permits. If the agent finds that the application package is incomplete, the agent will inform BuildCo before sending the application to other agencies and will ask BuildCo to provide the missing materials. The following documents must accompany an application to construct a warehouse (category C): • An application form, with a FCFA 200 stamp fee • A copy from the RCCM of the company’s status • A legalized copy of the land title • A demarcation plan • An architectural study report established by a recognized architect by the Order of Architects • An engineering report detailing the construction requirements When the application package is complete, the file is ready to be submitted to the CEFAC Commission. Four agencies are represented in this commission: the fire department, the tax office, the municipality, and the Urban Planning Ministry (Ministere de l’Habitat et l’Urbanisme). The committee meets every fifteen days. The Commission can reject an application for many reasons (including wrong zoning) but BuildCo can only appeal once. An application is rarely rejected. Even in cases when the application requires further information, the Commission issues a conditional permit, allowing the applicant to work on the remaining elements. The permit issued by the Commission is valid for 5 years and can be renewed once. 6 Receive excavation inspection 15 days XOF 9,871 Agency : Laboratoire National des Batiments et Travaux Publics Burkina- LNBTP The laboratory subcontracts with a private laboratory, which conducts weekly inspections. It is assumed that the project will be built in 30 weeks. Page 12 Doing Business 2020 Burkina Faso 7 Receive foundation inspection 1 day no charge Agency : Laboratoire National des Batiments et Travaux Publics Burkina- LNBTP The laboratory subcontracts with a private laboratory, which conducts weekly inspections. It is assumed that the project will be built in 30 weeks. 8 Receive concrete work inspection 1 day no charge Agency : Laboratoire National des Batiments et Travaux Publics Burkina- LNBTP The laboratory subcontracts with a private laboratory, which conducts weekly inspections. It is assumed that the project will be built in 30 weeks. 9 Notify the CEFAC of the end of construction and request a certificate of occupancy 1 day no charge Agency : CEFAC According to Art. 5 - 7 of le Decree N 2008-004/PRES/PM/MHU/MATD, dated January 10, 2008, it is mandatory for the owner or builder to inform the authority of the end of construction and request a certificate of occupancy. 10 Receive Final inspection from CEFAC 1 day no charge Agency : CEFAC Once the builder or owner has requested an occupancy permit, the technical department of CEFAC wil visit the construction to verify that it was built according to approved plans. This is based on article 8-9 of decree N 2008-004/PRES/PM/MHU/MATD, dated January 10, 2008. 11 Obtain certificate of conformity 20 days XOF 41,000 Agency : Centre de Facilitation des Actes de Construire (CEFAC) The issuance of the certificate of conformity is governed by Article 207 of Law No. 017/2006/AN of 18 May 2006 on the Code of Urbanism and Construction. The certificate of conformity, an administrative document attesting that the building was constructed in accordance with the approved building permit, is issued either by the Mayor or by the Minister in charge of the construction within one month from the date of the application. An application for a certificate of conformity is submitted by the owner or his agent within one month from the end of construction. The request must be accompanied by the statement of completion of work duly signed by the contractor and the client. Request water connection 1 day no charge 12 Agency : Office National de l’Eau et de l’Assainissement (ONEA) 13 Obtain inspection for water connection cost estimate 1 day no charge Agency : Office National de l’Eau et de l’Assainissement (ONEA) When requesting a connection to water, the distance between the concession and the water mains cannot exceed 50 m. Beyond 50 m and after examining your file, an extension you can be offered if there are at least 5 applications, that would justify such grid extension. 14 Pay fees and obtain water connection 30 days XOF 120,000 Agency : Office National de l’Eau et de l’Assainissement (ONEA) For a water connection with the following specifications: 15 millimeter for the water meter, 10 meters from the water mains and based on the daily flow, the size of the water pipe would be 1 inch. The estimated cost is FCFA 120,000.00. Build septic tank 18 days XOF 300,000 15 Agency : Private firm Takes place simultaneously with previous procedure. Page 13 Doing Business 2020 Burkina Faso Details – Dealing with Construction Permits in Burkina Faso – Measure of Quality Answer Score Building quality control index (0-15) 12.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0 of charge; In official gazette. Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 0.0 accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect. 1.0 building regulations? (0-1) Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by 1.0 external engineer or firm; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, in-house 2.0 plans and regulations? (0-2) engineer submits report for final inspection. Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0 (Latent Defect Liability or Decennial Liability)? (0-1) Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or Construction 1.0 problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) company. Professional certifications index (0-4) 3.0 What are the qualification requirements for the professional responsible for verifying that the architectural plans University degree in 1.0 or drawings are in compliance with existing building regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the qualification requirements for the professional who supervises the construction on the ground? (0- Minimum number of 2.0 2) years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Page 14 Doing Business 2020 Burkina Faso Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining all necessary clearances and permits The warehouse: • Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods. inspections - Is located in the economy’s largest business city. For 11 economies the data are also collected for • Obtaining external installation works and possibly purchasing the second largest business city. material for these works - Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway. • Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time. supply - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet). • Is at least 1 calendar day The electricity connection: • Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW). • Does not include time spent gathering information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution • Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the prior contact with officials warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other Cost required to complete each procedure (% of income per owners’ private property because the warehouse has access to a road. capita) - Does not require work to install the internal wiring of the warehouse. This has already been • Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base. • Value added tax excluded The monthly consumption: The reliability of supply and transparency of tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours • Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours • Tools to monitor power outages (0–1) (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier. - Tariffs effective in January of the current year are used for calculation of the price of electricity for • Regulatory monitoring of utilities’ performance (0–1) the warehouse. Although January has 31 days, for calculation purposes only 30 days are used. • Financial deterrents limiting outages (0–1) • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity. Page 15 Doing Business 2020 Burkina Faso Getting Electricity - Burkina Faso Standardized Connection Name of utility Société Nationale d’Electricité du Burkina (SONABEL) Price of electricity (US cents per kWh) 23.8 City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 4 5.2 4.4 3 (28 Economies) Time (days) 169 109.6 74.8 18 (3 Economies) Cost (% of income per capita) 8977.4 3,187.5 61.0 0.0 (3 Economies) Reliability of supply and transparency of tariff index (0-8) 0 1.6 7.4 8 (26 Economies) Figure – Getting Electricity in Burkina Faso – Score 83.3 34.3 0.0 0.0 Reliability of supply and transparency of Procedures Time Cost tariff index Figure – Getting Electricity in Burkina Faso and comparator economies – Ranking and Score DB 2020 Getting Electricity Score 0 100 77.4: Ghana (Rank: 79) 59.2: Côte d'Ivoire (Rank: 141) 51.8: Mali (Rank: 161) 50.4: Regional Average (Sub-Saharan Africa) 33.8: Benin (Rank: 178) 29.4: Burkina Faso (Rank: 183) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Figure – Getting Electricity in Burkina Faso – Procedure, Time and Cost Time (days) Cost (% of income per capita) 10000 160 Cost (% of income per capita) 140 8000 120 Time (days) 100 6000 80 4000 60 40 2000 20 0 0 1 *2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures Page 16 Doing Business 2020 Burkina Faso reflected here, see the summary below. Figure – Getting Electricity in Burkina Faso and comparator economies – Measure of Quality 6 5 5 4 Index score 4 3 2 1.6 1 0 0 0 0 Burkina Benin Côte Ghana Mali Sub-Saharan Faso d'Ivoire Africa Page 17 Doing Business 2020 Burkina Faso Details – Getting Electricity in Burkina Faso – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to SONABEL and await external inspection 21 calendar days XOF 0 Agency : Société Nationale d'Electricité du Burkina (SONABEL) The client applies for electricity connection in person. In addition to the application form, they need to submit a (simple) copy of the ID and a (simple) copy of the title deed. 2 Receive external inspection by SONABEL 1 calendar day XOF 0 Agency : Société Nationale d'Electricité du Burkina (SONABEL) After the application, inspectors from the electricity company, the Société Nationale d’Electricité du Burkina (SONABEL), conduct an external site inspection to determine the specifics of the connection. In addition to the site inspection, an inspection of the entire internal wiring should theoretically also be carried out by the Ministry of Housing or the Ministry of Infrastructure. However, in practice this is never done. The customer could also request an inspection of the internal installation from one of the private companies subcontracted by the utility, but this is optional. 3 Await and receive external works from SONABEL’s contractor 133 calendar days XOF 35,000,000 Agency : SONABEL's Contractor The trend is to subcontract the works (80-85% of the connection projects) to a private firm, which means Sonabel puts a contract out to public tender. These companies include, among others: SOGETEL, SIMEEL, CEDEL, PPI, EODA, and SEEF. A substation is needed in this case. The material is usually available, and is either bought from the electricity utility or provided by the contractor (more common). Once the utility has selected a contractor, they prepare an estimate of the costs that the customer could then pay at the utility’s offices. 4 Obtain meter installation and final connection by SONABEL 15 calendar days XOF 446,040.65 Agency : Société Nationale d'Electricité du Burkina (SONABEL) The meter is installed separately by the utility. In this case, a 'double tariff' meter is installed. Takes place simultaneously with previous procedure. Page 18 Doing Business 2020 Burkina Faso Details – Getting Electricity in Burkina Faso – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://www.sonabel.bf/inde x.php/service- clientel/documents/catego ry/11-factures-et-tarifs# Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 19 Doing Business 2020 Burkina Faso Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the (number) transaction, the property and the procedures are used. • Preregistration procedures (for example, checking for liens, The parties (buyer and seller): notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). • Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits) • Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the municipality) second largest business city. - Are 100% domestically and privately owned. Time required to complete each procedure (calendar days) - Perform general commercial activities. • Does not include time spent gathering information The property (fully owned by the seller): • Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price. that can be fully completed online are an exception to this rule - Is fully owned by the seller. • Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years. received - Is registered in the land registry or cadastre, or both, and is free of title disputes. - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its • No prior contact with officials official limits), and no rezoning is required. Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, • Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be taxes). transferred in its entirety. • Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase. excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind. - Will not be used for special purposes, and no special permits, such as for residential use, Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required. - Has no occupants, and no other party holds a legal interest in it. • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 20 Doing Business 2020 Burkina Faso Registering Property - Burkina Faso Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 4 6.1 4.7 1 (5 Economies) Time (days) 67 51.6 23.6 1 (2 Economies) Cost (% of property value) 11.9 7.3 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 12.5 9.0 23.2 None in 2018/19 Figure – Registering Property in Burkina Faso – Score 75.0 68.4 20.5 41.7 Procedures Time Cost Quality of the land administration index Figure – Registering Property in Burkina Faso and comparator economies – Ranking and Score DB 2020 Registering Property Score 0 100 59.4: Ghana (Rank: 111) 58.6: Côte d'Ivoire (Rank: 112) 56.3: Benin (Rank: 126) 53.6: Regional Average (Sub-Saharan Africa) 51.6: Mali (Rank: 140) 51.4: Burkina Faso (Rank: 141) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Page 21 Doing Business 2020 Burkina Faso Figure – Registering Property in Burkina Faso – Procedure, Time and Cost Time (days) Cost (% of property value) 10 60 Cost (% of property value) 8 50 Time (days) 40 6 30 4 20 2 10 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 22 Doing Business 2020 Burkina Faso Figure – Registering Property in Burkina Faso and comparator economies – Measure of Quality 14 12.5 12 10.0 10 Index score 9.0 9.0 8.0 8.0 8 6 4 2 0 Burkina Benin Côte Ghana Mali Sub-Saharan Faso d'Ivoire Africa Details – Registering Property in Burkina Faso – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Check encumbrances on the property ("etat des droits reels") 7 days XOF 5,000; (XOF 4.000 + Agency : Land Registry ("Guichet unique foncier") XOF 1.000 (Stamp duty)) The statutory time for delivering the "etat des droits reels" is fixed at 5 days. However, in practice, it takes 7 calendar days. If there are any charges on the property, there is an additional FCFA 2000 for information on each such charge. In our case, there are no charges, and therefore only the basic price applies. 2 Notarize the sale agreement 1 day XOF 547,418.59; (Notary Agency : Notary fee schedule on a sliding In Burkina Faso, it is mandatory to notarize the sale contract, and a common practice to ask the scale as follows: notary to conduct the entire registration process on behalf of the parties. 1 - 2.500.000 FCFA = 7% 2.500.000 - 5 000 000 FCFA = 5% 5.000.001 - 10 000 000 FCFA = 3% above 10,000,000 = 1%) 3 Request and organize an inspection for valuation of the property at the GUF 14 days XOF 13,400; (XOF 6.000 Agency : Land Registry ("Guichet unique foncier") (assessment of the A team of surveyors from the GUF will visit the property, and determine a value for the property, property) + XOF 6.000 according to the conditions of the property (floor type, roof, building materials, etc.). An evaluation (valuation registration) + report (Procès Verbal) will be drawn up by the evaluators of the GUF and will be recorded. Based XOF 1.400 (Stamp duty)) on a table of values and the conditions of the property, the property value will be determined and will be registered in the GUF for taxation purposes (transfer and publication taxes). In practice, the visit and the assessment are done the day after the request. The problem arises at the level of the record of the evaluation report which takes more time. The statutory time to deliver the statement of valuation is fixed at 7 days. However, in practice, it takes 14 days. 4 Deposit deed of sale and pay transfer tax payment slip at Land registry 45 days XOF 1,789,338.27; (8% of Agency : Land Registry ("Guichet unique foncier") purchase price (Transfer The notary will pick up the Proces Verbal and then deposits the complete transfer file at the tax) + 1.05% (publication "Guichet Unique Foncier", and receives the notice of the transfer tax amount to be paid at the tax cost) + XOF 2.700 (Stamp agency. The transfer tax is calculated, and it's given to the notary for payment. With the transfer Duties)) tax payment slip, the transfer tax is paid. The transfer tax has been lowered from 10% to 8% of the property value by the "Loi des Finances 2008". The Publishing cost (frais de publication) of 1.05% is also paid at the same time. It takes about two months for the Conservation Fonciere to change the name and issue a new title. The name is also changed on tax records so that the new buyer pays future property taxes. Documents needed: (i) Two copies of the Mutation request, the first stamped at 200 FCFA (stamp duty) (ii) four copies of the notarized sale agreement (iii) Copy of the seller’s ID (iv) Copy of the buyer’s ID (v) Copy of the Property Title (vi) Property's evaluation report (obtained in procedure 3) (vii) Receipts of the residence tax for the last three years (both parties). Takes place simultaneously with previous procedure. Page 23 Doing Business 2020 Burkina Faso Details – Registering Property in Burkina Faso – Measure of Quality Answer Score Quality of the land administration index (0-30) 12.5 Reliability of infrastructure index (0-8) 2.0 Type of land registration system in the economy: Title Registration System What is the institution in charge of immovable property registration? Guichet Unique Foncier In what format are past and newly issued land records kept at the immovable property registry of the largest Paper 0.0 business city of the economy —in a paper format or in a computerized format (scanned or fully digital)? Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Service du Cadastre et des Travaux Fonciers In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Computer/Scanned 1.0 city of the economy—in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing cadastral information No 0.0 (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Separate databases 0.0 kept in a single database, in different but linked databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use the same identification Yes 1.0 number for properties? Transparency of information index (0–6) 4.0 Who is able to obtain information on land ownership at the agency in charge of immovable property registration Anyone who pays the 1.0 in the largest business city? official fee Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5 and if so, how? Link for online access: http://www.impots.gov .bf/informations-du- guichet-unique-du- foncier-guf Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable Yes, online 0.5 property registration in the largest business city made publicly available–and if so, how? Link for online access: http://www.impots.gov .bf/informations-du- guichet-unique-du- foncier-guf Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5 binding document that proves property ownership within a specific timeframe –and if so, how does it communicate the service standard? Link for online access: http://www.impots.gov .bf/informations-du- guichet-unique-du- foncier-guf http://www.impots.gov .bf/sites/default/files/2 017- 11/Delais_de_traitem ent_actes_dans_le_c adre_du_transfert_de _propriete.pdf Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0 in charge of immovable property registration? Contact information: Page 24 Doing Business 2020 Burkina Faso Are there publicly available official statistics tracking the number of transactions at the immovable property Yes 0.5 registration agency? Number of property transfers in the largest business city in 2018: 144.0 Who is able to consult maps of land plots in the largest business city? Freely accessible by 0.5 anyone Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, on public boards 0.5 Link for online access: Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and No 0.0 if so, how does it communicate the service standard? Link for online access: Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0 cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the largest business city formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Are all privately held land plots in the economy mapped? No 0.0 Land dispute resolution index (0–8) 6.5 Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5 them opposable to third parties? Legal basis: Art. 173, 176 and 211 of law number 34- 2012/AN Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Type of guarantee: State guarantee Legal basis: Articles 277 to 281 of law number 34- 2012/AN Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Legal basis: Articles 274 and 275 of law number 34- 2012/AN Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5 checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5 If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0 What is the Court of first instance in charge of a case involving a standard land dispute between two local Tribunal de Grande businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located Instance de in the largest business city? Ouagadougou How long does it take on average to obtain a decision from the first-instance court for such a case (without Between 1 and 2 2.0 appeal)? years Are there publicly available statistics on the number of land disputes at the economy level in the first instance No 0.0 court? Page 25 Doing Business 2020 Burkina Faso Number of land disputes in the economy in 2018: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes Do married men and married women have equal ownership rights to property? Yes 0.0 Page 26 Doing Business 2020 Burkina Faso Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit • Rights of borrowers and lenders through collateral laws (0-10) information index measures rules and practices affecting the coverage, scope and accessibility of • Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights (0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to • Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a Credit bureau coverage (% of adults) secured lender, BizBank. • Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B as a percentage of adult population (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral. Credit registry coverage (% of adults) • Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: percentage of adult population - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 27 Doing Business 2020 Burkina Faso Getting Credit - Burkina Faso Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Strength of legal rights index (0-12) 6 5.1 6.1 12 (5 Economies) Depth of credit information index (0-8) 0 3.9 6.8 8 (53 Economies) Credit registry coverage (% of adults) 0.0 8.3 24.4 100.0 (2 Economies) Credit bureau coverage (% of adults) 2.0 11.0 66.7 100.0 (14 Economies) Figure – Getting Credit in Burkina Faso – Score 30.0 Score - Getting Credit Figure – Getting Credit in Burkina Faso and comparator economies – Ranking and Score DB 2020 Getting Credit Score 0 100 70.0: Côte d'Ivoire (Rank: 48) 60.0: Ghana (Rank: 80) 45.2: Regional Average (Sub-Saharan Africa) 30.0: Benin (Rank: 152) 30.0: Burkina Faso (Rank: 152) 30.0: Mali (Rank: 152) Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index. Page 28 Doing Business 2020 Burkina Faso Figure – Legal Rights in Burkina Faso and comparator economies 6.2 6 6 6 6 6 6 5.8 Index Score 5.6 5.4 5.2 5.1 5 4.8 4.6 Burkina Benin Côte Ghana Mali Sub-Saharan Faso d'Ivoire Africa Page 29 Doing Business 2020 Burkina Faso Details – Legal Rights in Burkina Faso Strength of legal rights index (0-12) 6 Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents Yes to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description Yes of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of Yes collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the Yes original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an No electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third No party? Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law No protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell Yes the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Burkina Faso and comparator economies 9 8 8 7 6 Index Score 6 5 3.9 4 3 2 1 0 0 0 0 Burkina Benin Côte Ghana Mali Sub-Saharan Faso d'Ivoire Africa Page 30 Doing Business 2020 Burkina Faso Details – Credit Information in Burkina Faso Depth of credit information index (0-8) Credit bureau Credit registry Score Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and No No 0 financial institutions - distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries No No 0 that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No No 0 By law, do borrowers have the right to access their data in the credit bureau or No No 0 credit registry? Can banks and financial institutions access borrowers’ credit information online No No 0 (for example, through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help No No 0 banks and financial institutions assess the creditworthiness of borrowers? Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 204,425 N/A Number of firms 5,274 N/A Total 209,699 0 Percentage of adult population 2.0 0.0 Page 31 Doing Business 2020 Burkina Faso Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions • Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about approval requirements for related-party transactions the business and the transaction. • Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for The business (Buyer): prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange. remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law. the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members. • Ease of shareholder suits index (0–10): Access to internal - Has not adopted bylaws or articles of association that go beyond the minimum requirements. corporate documents; Evidence obtainable during trial and allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory. - Is a manufacturing company with its own distribution network. • Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of The transaction involves the following details: shareholder suits indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to • Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board. and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores. • Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s safeguards protecting shareholders from undue board control distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of and entrenchment Buyer’s assets and is higher than the market value. • Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the transparency on ownership stakes, compensation, audits and authority of the company. financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently. • Extent of shareholder governance index (0–20): Sum of the - The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and extent of shareholders rights, extent of ownership and control directors that approved the transaction. and extent of corporate transparency indices • Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices Page 32 Doing Business 2020 Burkina Faso Protecting Minority Investors - Burkina Faso Stock exchange information Stock exchange Bourse Régionale des Valeurs Mobilières Stock exchange URL http://www.brvm.org Listed firms with equity securities 46 City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Extent of disclosure index (0-10) 7.0 5.5 6.5 10 (13 Economies) Extent of director liability index (0-10) 1.0 3.5 5.3 10 (3 Economies) Ease of shareholder suits index (0-10) 5.0 5.5 7.3 10 (Djibouti) Extent of shareholder rights index (0-6) 4.0 1.8 4.7 6 (19 Economies) Extent of ownership and control index (0-7) 2.0 1.4 4.5 7 (9 Economies) Extent of corporate transparency index (0-7) 2.0 1.5 5.7 7 (13 Economies) Figure – Protecting Minority in Burkina Faso – Score 42.0 Score - Protecting Minority Investors Figure – Protecting Minority Investors in Burkina Faso and comparator economies – Ranking and Score DB 2020 Protecting Minority Investors Score 0 100 60.0: Ghana (Rank: 72) 42.0: Benin (Rank: 120) 42.0: Burkina Faso (Rank: 120) 42.0: Côte d'Ivoire (Rank: 120) 42.0: Mali (Rank: 120) 38.5: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index. Page 33 Doing Business 2020 Burkina Faso Figure – Protecting Minority Investors in Burkina Faso and comparator economies – Measure of Quality Burkina Faso 2 1 7 2 4 5 Benin 2 1 7 2 4 5 Côte d'Ivoire 2 1 7 2 4 5 Ghana 3 5 7 3 5 7 Mali 2 1 7 2 4 5 OECD high income 5.6 5.6 6.6 4.3 4.5 7.4 Sub-Saharan Africa 1.7 3.6 5.6 1.5 1.9 5.6 0 5 10 15 20 25 30 35 40 Sub-Indicator Score Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7) Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10) Page 34 Doing Business 2020 Burkina Faso Details – Protecting Minority Investors in Burkina Faso – Measure of Quality Answer Score Extent of conflict of interest regulation index (0-30) Extent of disclosure index (0-10) 7.0 Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0 material facts Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0 transaction and on the conflict of interest Must Buyer immediately disclose the transaction to the public? (0-2) No disclosure 0.0 obligation Extent of director liability index (0-10) 1.0 Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0 Buyer? (0-1) Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0 Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0 Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) No 0.0 Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) No 0.0 Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0 Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of fraud 0.0 or bad faith Ease of shareholder suits index (0-10) 5.0 Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? Yes 1.0 (0-1) Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0 directly prove specific facts in the plaintiff’s claim Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) No 0.0 Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-20) Extent of shareholder rights index (0-6) 4.0 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? Yes 1.0 Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new shares? No 0.0 Do shareholders elect and dismiss the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0 Extent of ownership and control index (0-7) 2.0 Page 35 Doing Business 2020 Burkina Faso Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? No 0.0 Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0 Must the board of directors include a separate audit committee exclusively comprising board members? No 0.0 Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? No 0.0 Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Extent of corporate transparency index (0-7) 2.0 Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and directorships in other No 0.0 companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0 Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? No 0.0 Page 36 Doing Business 2020 Burkina Faso Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of • Total number of taxes and contributions paid or withheld, filing and payments, time taken to comply with tax laws, time taken to comply with the including consumption taxes (value added tax, sales tax or requirements of postfiling processes and time waiting. goods and service tax) • Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: - TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured • Collecting information, computing tax payable at all levels of government. • Preparing separate tax accounting books, if required • Completing tax return, filing with agencies The VAT refund process: - In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times • Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income Total tax and contribution rate (% of commercial profits) per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred • Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output • Social contributions, labor taxes paid by employer VAT in June 2018. • Property and property transfer taxes The corporate income tax audit process: • Dividend, capital gains, financial transactions taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, • Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the Postfiling Index tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax • Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. • Time to obtain VAT refund (weeks) • Time to comply with a corporate income tax correction (hours) • Time to complete a corporate income tax correction (weeks) Page 37 Doing Business 2020 Burkina Faso Paying Taxes - Burkina Faso Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Payments (number per year) 45 36.6 10.3 3 (2 Economies) Time (hours per year) 270 280.6 158.8 49 (3 Economies) Total tax and contribution rate (% of profit) 41.3 47.3 39.9 26.1 (33 Economies) Postfiling index (0-100) 49.3 54.7 86.7 None in 2018/19 Figure – Paying Taxes in Burkina Faso – Score 30.0 65.8 78.4 49.3 Payments Time Total tax and contribution rate Postfiling index Figure – Paying Taxes in Burkina Faso and comparator economies – Ranking and Score DB 2020 Paying Taxes Score 0 100 68.0: Côte d'Ivoire (Rank: 114) 57.8: Regional Average (Sub-Saharan Africa) 56.0: Ghana (Rank: 152) 55.9: Burkina Faso (Rank: 154) 49.3: Benin (Rank: 171) 48.9: Mali (Rank: 173) Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold. Page 38 Doing Business 2020 Burkina Faso Figure – Paying Taxes in Burkina Faso and comparator economies – Measure of Quality 70 64.8 60 54.7 49.3 49.3 49.5 50 Index score 40 30 25.7 20 10 0 Burkina Benin Côte Ghana Mali Sub-Saharan Faso d'Ivoire Africa Page 39 Doing Business 2020 Burkina Faso Details – Paying Taxes in Burkina Faso Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR mandatory (number) Payments rate contribution contribution rate (% of profit) Social security 12.0 120.0 16% gross salaries 18.05 contributions Corporate 1.0 30.0 27.5% taxable profit 16.24 income tax Payroll and 12.0 3% gross salaries 3.38 apprentice tax Business license 1.0 8% + fixed assets 2.47 amount Mortmain 1.0 10% property value 0.50 property tax after deduction Interest tax 1.0 12.5% interest income 0.32 Tax on insurance 1.0 20% insurance 0.20 contracts premium Motor vehicle tax 1.0 XOF 50,000 weight of truck 0.13 Advertising tax 1.0 0.00 small amount Employee paid - 0.0 jointly 5.5% gross salaries 0.00 withheld Social security contributions Fuel tax 1.0 included in fuel 0.00 small amount price Stamp duty on 1.0 XOF 400 per page 0.00 small amount contracts Value added tax 12.0 120.0 18% value added 0.00 not included (VAT) Totals 45 270 41.3 Page 40 Doing Business 2020 Burkina Faso Details – Paying Taxes in Burkina Faso – Tax by Type Taxes by type Answer Profit tax (% of profit) 16.2 Labor tax and contributions (% of profit) 21.4 Other taxes (% of profit) 3.6 Page 41 Doing Business 2020 Burkina Faso Details – Paying Taxes in Burkina Faso – Measure of Quality Answer Score Postfiling index (0-100) 49.3 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Restricted to international traders and others Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund per 0.0 case study scenario Time to obtain VAT refund (weeks) No VAT refund per 0.0 case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax correction (hours) 3.0 97.2 Time to complete a corporate income tax correction (weeks) No tax audit per case 100 study scenario Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction. N/A = Not applicable. Page 42 Doing Business 2020 Burkina Faso Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: • Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as origin economy 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, • Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours. • Covers all documents required by law and in practice, including electronic submissions of information Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. • Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about • Inspections by other agencies (if applied to more than 20% of exchange rates. shipments) Assumptions of the case study: • Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in or border the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy. Domestic transport - It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from • Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is • Transport between warehouse and port/border the largest purchaser of this product. Shipment value is assumed to be $50,000. • Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and route the trading partner, as is the seaport or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 43 Doing Business 2020 Burkina Faso Trading across Borders - Burkina Faso Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Time to export: Border compliance (hours) 75 97.1 12.7 1 (19 Economies) Cost to export: Border compliance (USD) 261 603.1 136.8 0 (19 Economies) Time to export: Documentary compliance (hours) 84 71.9 2.3 1 (26 Economies) Cost to export: Documentary compliance (USD) 86 172.5 33.4 0 (20 Economies) Time to import: Border compliance (hours) 102 126.2 8.5 1 (25 Economies) Cost to import: Border compliance (USD) 265 690.6 98.1 0 (28 Economies) Time to import: Documentary compliance (hours) 96 96.1 3.4 1 (30 Economies) Cost to import: Documentary compliance (USD) 197 287.2 23.5 0 (30 Economies) Figure – Trading across Borders in Burkina Faso – Score 53.8 75.4 50.9 78.6 63.8 78.0 60.3 71.9 Time Cost Time Cost Time Cost Time Cost to to to to to to to to export: export: export: export: import: import: import: import: Border Border Documentary Documentary Border Border Documentary Documentary compliance compliance compliance compliance compliance compliance compliance compliance Figure – Trading across Borders in Burkina Faso and comparator economies – Ranking and Score DB 2020 Trading Across Borders Score 0 100 73.3: Mali (Rank: 95) 68.9: Benin (Rank: 110) 66.6: Burkina Faso (Rank: 122) 54.8: Ghana (Rank: 158) 53.6: Regional Average (Sub-Saharan Africa) 52.4: Côte d'Ivoire (Rank: 163) Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import. Page 44 Doing Business 2020 Burkina Faso Figure – Trading across Borders in Burkina Faso – Time and Cost Time (hours) Cost (USD) 120 300 261 102 265 100 96 250 84 Time (hours) 197 Cost (USD) 80 75 200 60 150 40 86 100 20 50 0 0 Export Export Import Import - - - - Border Documentary Border Documentary Compliance Compliance Compliance Compliance Page 45 Doing Business 2020 Burkina Faso Details – Trading across Borders in Burkina Faso Characteristics Export Import Product HS 10: Cereals HS 8708: Parts and accessories of motor vehicles Trade partner Switzerland Japan Border Burkina Faso-Côte d'Ivoire border crossing Cinkasse border crossing Distance (km) 512 293 Domestic transport time (hours) 17 17 Domestic transport cost (USD) 408 635 Details – Trading across Borders in Burkina Faso – Components of Border Compliance Time to Complete (hours) Associated Costs (USD) Export: Clearance and inspections required by 26.5 209.5 customs authorities Export: Clearance and inspections required by 48.0 51.5 agencies other than customs Export: Port or border handling 2.5 0.0 Import: Clearance and inspections required by 73.0 256.0 customs authorities Import: Clearance and inspections required by 24.0 8.5 agencies other than customs Import: Port or border handling 30.0 0.0 Page 46 Doing Business 2020 Burkina Faso Details – Trading across Borders in Burkina Faso – Trade Documents Export Import Commercial invoice Commercial invoice Fumigation certificate Packing list Phytosanitary certificate Pre-import declaration Customs Export Declaration Electronic cargo tracking note (BESC) Certificate of origin Acquis de passage Packing list Declaration of release for consumption Acquis de passage Certificate of conformity Bill of lading Bill of lading SOLAS certificate SOLAS certificate Page 47 Doing Business 2020 Burkina Faso Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic (calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. • Time to file and serve the case • Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the case are used: • Time to enforce the judgment - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the claim value) second largest business city. - The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of • Average attorney fees adequate quality. • Court costs - The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater. • Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater. Quality of judicial processes index (0-18) - The Seller requests the pretrial attachment of the defendant’s movable assets to secure the • Court structure and proceedings (-1-5) claim. - The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods • Case management (0-6) was not adequate. • Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. - The Seller enforces the judgment through a public sale of the Buyer’s movable assets. • Alternative dispute resolution (0-3) Page 48 Doing Business 2020 Burkina Faso Enforcing Contracts - Burkina Faso Standardized Case Claim value XOF 3,105,230 Court name Tribunal de Commerce de Ouagadougou City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Time (days) 446 654.9 589.6 120 (Singapore) Cost (% of claim value) 81.7 41.6 21.5 0.1 (Bhutan) Quality of judicial processes index (0-18) 7.5 6.9 11.7 None in 2018/19 Figure – Enforcing Contracts in Burkina Faso – Score 73.3 8.2 41.7 Time Cost Quality of judicial processes index Figure – Enforcing Contracts in Burkina Faso and comparator economies – Ranking and Score DB 2020 Enforcing Contracts Score 0 100 57.6: Côte d'Ivoire (Rank: 94) 54.0: Ghana (Rank: 117) 49.6: Regional Average (Sub-Saharan Africa) 42.8: Mali (Rank: 159) 41.5: Benin (Rank: 162) 41.1: Burkina Faso (Rank: 165) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators. Page 49 Doing Business 2020 Burkina Faso Figure – Enforcing Contracts in Burkina Faso – Time and Cost Time (days) Cost (% of claim value) 800 81.7 90 710 Cost (% of claim value) 700 654.9 80 595 620 64.7 589.6 70 600 525 Time (days) 52.0 60 500 446 41.7 41.6 50 400 40 300 23.0 30 21.5 200 20 100 10 0 0 Benin Burkina Côte Ghana Mali OECD Sub-Saharan Faso d'Ivoire high Africa income Page 50 Doing Business 2020 Burkina Faso Figure – Enforcing Contracts in Burkina Faso and comparator economies – Measure of Quality Burkina Faso 2.5 1 0 4 Benin 2.5 1 0 3 Côte d'Ivoire 2.5 2.5 0 4.5 Ghana 2.5 1 0 3 Mali 2.5 0 2.5 OECD high income 2.5 3.2 2.4 3.6 Sub-Saharan Africa 2.2 1.3 0.3 3.2 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5) Details – Enforcing Contracts in Burkina Faso Indicator Time (days) 446 Filing and service 21 Trial and judgment 196 Enforcement of judgment 229 Cost (% of claim value) 81.7 Attorney fees 53.6 Court fees 8.8 Enforcement fees 19.3 Quality of judicial processes index (0-18) 7.5 Court structure and proceedings (-1-5) 4.0 Case management (0-6) 1.0 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 2.5 Page 51 Doing Business 2020 Burkina Faso Details – Enforcing Contracts in Burkina Faso – Measure of Quality Answer Score Quality of judicial processes index (0-18) 7.5 Court structure and proceedings (-1-5) 4.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? No 0.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be granted? No 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) No 0.0 clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the competent court? Yes 1.0 5. Are there any electronic case management tools in place within the competent court for use by judges? No 0.0 6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0 Court automation (0-4) 0.0 1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0 2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the general public No through publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made No available to the general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes Page 52 Doing Business 2020 Burkina Faso 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes section of the applicable code of civil procedure encompassing substantially all their aspects (for example, definition, aim and scope of application, desig 2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No conciliation is successful, a refund of court filing fees, income tax credits or the like)? Page 53 Doing Business 2020 Burkina Faso Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used: • Measured in calendar years • Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties. Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater. • Measured as percentage of estate value - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. • Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise. • Fees of insolvency administrators In addition, Doing Business evaluates the quality of legal framework applicable to judicial • Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered. • Assessors’ and auctioneers’ fees • Other related fees Outcome • Whether business continues operating as a going concern or business assets are sold piecemeal Recovery rate for creditors • Measures the cents on the dollar recovered by secured creditors • Outcome for the business (survival or not) determines the maximum value that can be recovered • Official costs of the insolvency proceedings are deducted • Depreciation of furniture is taken into account • Present value of debt recovered Strength of insolvency framework index (0- 16) • Sum of the scores of four component indices: • Commencement of proceedings index (0-3) • Management of debtor’s assets index (0-6) • Reorganization proceedings index (0-3) • Creditor participation index (0-4) Page 54 Doing Business 2020 Burkina Faso Resolving Insolvency - Burkina Faso Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Recovery rate (cents on the dollar) 23.6 20.5 70.2 92.9 (Norway) Time (years) 4.0 2.9 1.7 0.4 (Ireland) Cost (% of estate) 21.0 22.8 9.3 1.0 (Norway) Outcome (0 as piecemeal sale and 1 as going concern) 0 .. .. .. Strength of insolvency framework index (0-16) 9.0 6.5 11.9 None in 2018/19 Figure – Resolving Insolvency in Burkina Faso – Score 25.4 56.3 Recovery rate Strength of insolvency framework index Figure – Resolving Insolvency in Burkina Faso and comparator economies – Ranking and Score DB 2020 Resolving Insolvency Score 0 100 47.9: Côte d'Ivoire (Rank: 85) 43.4: Mali (Rank: 102) 41.0: Benin (Rank: 108) 40.8: Burkina Faso (Rank: 109) 31.3: Regional Average (Sub-Saharan Africa) 25.4: Ghana (Rank: 161) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index. Page 55 Doing Business 2020 Burkina Faso Figure – Resolving Insolvency in Burkina Faso – Time and Cost Time (years) Cost (% of estate) 4.5 22.8 25 4.0 21.5 4.0 22.0 4 21.0 3.6 Cost (% of estate) 3.5 18.0 18.0 20 Time (years) 2.9 3 15 2.5 2.2 1.9 2 1.7 9.3 10 1.5 1 5 0.5 0 0 Benin Burkina Côte Ghana Mali OECD Sub-Saharan Faso d'Ivoire high Africa income Page 56 Doing Business 2020 Burkina Faso Figure – Resolving Insolvency in Burkina Faso and comparator economies – Measure of Quality Burkina Faso 5.5 2 1 0.5 Benin 5.5 2 1 0.5 Côte d'Ivoire 5.5 2 1 0.5 Ghana 2 2 0 Mali 5.5 2 1 0.5 OECD high income 5.3 2.8 2.1 1.9 Sub-Saharan Africa 4.1 2.3 1 0.5 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3) Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Figure – Resolving Insolvency in Burkina Faso and comparator economies – Recovery Rate Recovery rate(cents on the dollar) 40 36.8 35 30 28.3 25 23.6 23.9 24.0 20.5 20 15 10 5 0 Burkina Faso Benin Côte d'Ivoire Ghana Mali Sub-Saharan Africa Page 57 Doing Business 2020 Burkina Faso Details – Resolving Insolvency in Burkina Faso Indicator Answer Score Proceeding liquidation (after an As Mirage will not be able to settle its current liabilities with its available assets, it will file a declaration of cessation of attempt at payments (article 25 of the Uniform Act Organizing Collective Proceedings for Wiping Off Debts). In order to continue reorganization) operating, Mirage will try to obtain the opening of reorganization proceedings and avoid liquidation. Under article 27, a composition proposal is a proposal lodged no later than 15 days following the declaration of cessation of payments, specifying the measures and conditions envisaged to redress the company. According to our information, Mirage will not reach an agreement with its creditors, so the composition proposal will not succeed and the court will convert the proceedings to liquidation some months after the lodging of the proposal (article 33 of the Uniform Act). A reorganization proceeding that is later converted into liquidation is the most likely proceeding in Burkina Faso. Outcome piecemeal sale According to our estimations, the reorganization attempt will fail and the proceedings will probably be converted to liquidation. The hotel will stop operating and will be dismantled, and the assets of the debtor will be sold separately. Time (in years) 4.0 According to our estimations, a reorganization attempt that is later converted into liquidation takes approximately 48 months. Mirage will file a declaration of cessation of payments to obtain the opening of reorganization proceedings. The declaration has to be done 30 days following the cessation of payments. The competent court will then declare cessation of payments and open reorganization proceedings. The parties will try to reach an agreement on a composition plan. 6 months later, the attempt will fail, so the proceedings will be converted to liquidation. The liquidation of Mirage will take approximately 42 months. Cost (% of estate) 21.0 According to our estimations, a reorganization attempt that is later converted into liquidation costs approximately XOF 9,000,000 (21 % of the value of the estate). Lawyer fees (5-10%), accountant fees (5-10%), and bailiff fees (8-10%) are the main costs of the proceedings. Recovery rate 23.6 (cents on the dollar) Page 58 Doing Business 2020 Burkina Faso Details – Resolving Insolvency in Burkina Faso – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 9.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency proceedings? (c) Debtor may file for 0.5 reorganization only Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor 0.5 may file for liquidation only What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (a) Debtor is 1.0 Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value generally unable to of its assets pay its debts as they mature Management of debtor's assets index (0-6) 5.5 Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the Yes 1.0 debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0 Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0 insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre- 0.5 commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 0.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0 what they would obtain in a liquidation? Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0 separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency No 0.0 representative? Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0 Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0 representative? Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0 creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Page 59 Doing Business 2020 Burkina Faso Employing Workers Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business. The most recent round of data collection was completed in May 2019. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions about the worker and the (i) whether fixed-term contracts are prohibited for permanent business are used. tasks; (ii) maximum cumulative duration of fixed-term contracts; (iii) length of the maximum probationary period; (iv) minimum The worker: wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. worker. - Is a full-time employee. - Is not a member of the labor union, unless membership is mandatory. Working hours (i) maximum number of working days allowed per week; (ii) The business: premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy). (iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11 weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city. leave. - Has 60 employees. - Is subject to collective bargaining agreements if such agreements cover more than 50% of the Redundancy rules food retail sector and they apply even to firms that are not party to them. (i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements. party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected. Page 60 Doing Business 2020 Burkina Faso Employing Workers - Burkina Faso Details – Employing Workers in Burkina Faso Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single fixed-term contract (months) 24.0 Maximum length of fixed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 89.2 Ratio of minimum wage to value added per worker 0.9 Maximum length of probationary period (months) 2.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 15.0 Restrictions on night work? No Restrictions on weekly holiday? Yes Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 22.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party notification if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party notification if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 1.1 Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 5.4 Page 61 Doing Business 2020 Burkina Faso Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 11.9 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 6.1 Unemployment protection after one year of employment? No Page 62 Doing Business 2020 Burkina Faso Business Reforms in Burkina Faso From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. =Doing Business reform making it easier to do business. = Change making it more difficult to do business. DB2019 Enforcing Contracts: Burkina Faso made enforcing contracts easier by adopting a law that regulates all aspects of mediation as an alternative dispute resolution mechanism. DB2018 Getting Credit: Burkina Faso improved access to credit information by launching a new credit bureau. DB2017 Starting a Business: Burkina Faso made starting a business less costly by reducing the paid-in minimum capital required to register a company. Getting Credit: Burkina Faso improved access to credit information by introducing regulations that govern the licensing and functioning of credit bureaus in West African Economic and Monetary Union (UEMOA) member states. Resolving Insolvency: Burkina Faso made resolving insolvency easier by introducing a new conciliation procedure for companies in financial difficulties and a simplified preventive settlement procedure for small companies. DB2016 Starting a Business: Burkina Faso made starting a business easier by reducing the minimum capital requirement. DB2015 Protecting Minority Investors: Burkina Faso strengthened minority investor protections by introducing greater requirements for disclosure of related-party transactions to the board of directors and by making it possible for shareholders to inspect the documents pertaining to related-party transactions and to appoint auditors to conduct an inspection of such transactions. DB2014 Paying Taxes: Burkina Faso made paying taxes easier for companies by abolishing the separate capital gains tax on real estate properties. DB2012 Starting a Business: Burkina Faso made starting a business easier by replacing the requirement for a copy of the founders’ criminal records with one for a sworn declaration at the time of the company’s registration. Dealing with Construction Permits: Burkina Faso made dealing with construction permits less costly by reducing the fees to obtain a fire safety study. Getting Credit: Access to credit in Burkina Faso was improved through amendments to the OHADA Uniform Act on Secured Transactions that broaden the range of assets that can be used as collateral (including future assets), extend the security interest to the proceeds of the original asset and introduce the possibility of out-of- court enforcement. DB2011 Dealing with Construction Permits: Burkina Faso made dealing with construction permits easier by cutting the time to process a building permit application by a third. Paying Taxes: Burkina Faso reduced the statutory tax rate and the number of taxes for business and introduced simpler, uniform compliance procedures. Trading across Borders: Burkina Faso reduced documentation requirements for importers and exporters, making it easier to trade. Enforcing Contracts: Burkina Faso made enforcing contracts easier by setting up a specialized commercial court and abolishing the fee to register judicial decisions. DB2010 Starting a Business: Burkina Faso made starting a business easier by allowing online publication of the articles of incorporation directly on the website of the one-stop shop, by reducing registration fees and by streamlining tax registration. Dealing with Construction Permits: Burkina Faso made dealing with construction permits easier by establishing a one-stop shop for processing building permits in Ouagadougou. Registering Property: Burkina Faso streamlined property registration by allowing the payment of transfer taxes at the land registry, reorganizing the land registry, setting statutory time limits for procedures and simplifying property valuation by government officials through the use of tables of values based on materials used. Trading across Borders: Burkina Faso reduced the time needed for trading across borders by creating a one-stop shop for commercial trade documents. Page 63 Doing Business 2020 Burkina Faso DB2009 Dealing with Construction Permits: Burkina Faso made dealing with construction permits easier by eliminating random inspections during construction and by introducing a new one-stop shop for building permits, which reduced approval fees and combined several separate payments into one. Registering Property: Burkina Faso made transferring property easier and less costly by eliminating the requirement to obtain authorization from the municipality, merging the payment of 2 taxes at the land registry and reducing the transfer tax rate. Paying Taxes: Burkina Faso made paying taxes less costly for companies by reducing the corporate income tax rate as well as the dividend and property transfer tax rates. Employing Workers: Burkina Faso allowed fixed-term contracts to be concluded for permanent tasks, removed the 48-month limit on their duration. It also eliminated restrictions on “weekly holiday” work and the employer's obligation to notify a third party before dismissing one redundant worker. DB2008 Starting a Business: Burkina Faso reduced the time required to start a business through a ministerial decree simplifying notification and documentation requirements for company registration. Registering Property: Burkina Faso made registering property less costly by reducing the registration tax. Enforcing Contracts: Burkina Faso made enforcing contracts easier by increasing the efficiency of operations in the commercial court. Page 64 Doing Business 2020 Burkina Faso Page 65