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Stakeholders encourage the local supply of goods and services to mining companies in Burkina

The Chamber of Mines of Burkina Faso and the Ministry of Mines and Quarries organized the second edition of the Promotional Days for the local supply of mining goods and services. In 2019, more than 50.3 tons of gold were produced by the industrial mines, generating more than $2.54 billion (CFAF 1.42 trillion) in export earnings and more than $493.7 million (CFAF 276 billion) in revenue contribution.

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The second edition of the event Promotional Days, entitled “Local supplies and opportunities for SMEs,” will be held over two days and aims to raise awareness and build the capacity of local economic actors to stimulate the local supply of mining goods and services.

According to a joint study carried out in 2018 by the Burkina Chamber of Mines and the Ministry of Mines and Quarries, for all the supplies made by mining companies, Burkina Faso was only able to capture 15% of this amount, which is more than $715.5 million (400 billion CFA francs) per year. This represents a considerable shortfall for the national economy and a significant gap between the needs of the industry and local capacities.

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The mining sectors in Burkina Faso

It is therefore to overcome this problem and offer a promotional showcase for local actors in the mining sector, that the Burkina Chamber of Mines, in collaboration with the agency Burkina Networking, initiated this annual event called “Promotional Days on the local supply of mining goods and services”.

As pointed out by Dr. Ousmane Ilboudo, Permanent Secretary of the West African Mining Week (SAMAO) at the Ministry of Mines and Quarries, 17 industrial mines are active throughout the national territory with an ever-increasing number of mining titles issued by the administration, which shows the enormous potential of mineral resources that abound in the Burkinabe subsoil.

For Tidiane Barry, President of the Burkina Chamber of Mines, since 2010, the number of local companies is increasing but there are barriers. The need for competitive products, compliance with standards, and access to markets. He therefore suggested a collective effort to achieve this. He added that “the opportunity is there and we must seize it in a business logic.”

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According to Caroline Mireault, representative of the Canadian Embassy, this is an excellent opportunity to promote the mining sectors. Canada’s belief is that if more local companies provide goods and services to the miners, it would strengthen their capacity, create indirect employment and have a greater impact on the national economy. It therefore encouraged Canadian mining companies to join the momentum of promoting local supply and commended them for their efforts in this regard.

How could the economy of Burkina Faso benefit from the mining sector

For Moumouni Konaté, General Manager of the Savonnerie Parfumée du Houet, President of the National Association of Shea Processors into Derived Products, and supplier of local products in two mines, this is an opportunity for small and medium enterprises because the mines are not always accessible. He expressed the wish that mining companies would open up more to suppliers so that they could have markets, which would be beneficial for the economy of Burkina and also for local businesses.

In 2019, more than 50.3 tons of gold were produced by the industrial mines, generating more than $2.54 billion (CFAF 1.42 trillion) in export earnings and more than $493.7 million (CFAF 276 billion) in revenue contribution. To this must be added the indirect and induced contributions of the mining sector through local supply, the creation of local companies that help boost the national economy.

Mining companies, major consumers of goods and services, collaborate with more than 500 Burkinabe companies which, according to data from the survey conducted in 2016 by the Ministry and the Chamber of Mines, manage to satisfy less than 15% of the overall demand of the mining industry.

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(Featured image by Shane McLendon via Unsplash)

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First published in lefaso.net, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.