Post #163

💡Resource Nationalism Index [ BURKINA FASO ] Burkina Faso is one of the 3 countries of the western Sahel that have recently embarked on the path of stricter mining oversight and taxation policies. Since we've already covered its ideological and actual allies - Mali and Niger - let's look into the resource policies of Ouagadougou inour "Resource Nationalism Index" series. Today Burkina Faso mostly sells abroad gold, which accounts for more than 70% of its exports. So, what do the policies of Ouagadougou in relation to the natural wealth of the nation look like? 🔸"Process It First" – 6/10 – For gold, there is a threshold of at least 50% of the production volume, which must be processed (refined) on the territory of Burkina Faso. Nevertheless, the first refining plant is just under construction (as of early November 2025). 🔸 "Share With the State” – 2/10 – No such policies in general, but, according to the law, the state may in theory require the payment of taxes in kind - that is, in gold - if it wants. 🔸 “We’re in Too!” – 9/10 – The government has the right to a free-of-charge share in each newly created mining company, which attains 15%. The government also has the right to buy out (or transfer to local investors the right to buy out) up to another 30% of the shares of the new enterprise. 🔸 “The Money's Yours, the People Are Ours" – 9/10 – Among all categories of personnel, the requirements of local residents employment share starts from at least 50%. A few years after the start of a company's operations, the threshold is set at about 90-100%. 🔸“Just Pay Up" – 7/10 – Gold royalties range from 3 to 7% depending on the world prices (and then +1% for every $500 of the gold price over $2,000). 🔸"You Come – You Build" – 8/10 – Gold miners pay a contribution to the Local Community Development Fund in the amount of 1% of the company's monthly turnover. 🔸“We’ll Do It Ourselves” – 6/10 – Since 2023 the state supports the construction of a refining factory (the first in Burkina Faso). In theory, the law also provides for the creation of special economic zones. 🔸“Come Here, You Bast*rd!” – 3/10 – Some remote areas rich in gold are in the hands of non-State armed groups. Artisanal gold mining has largely gone into the shadows, with illegal mining producing inflows of some $3B a year. Final score is 6.3 out of 10 — a robust result, spoiled by weak state control of the national wealth and the absence of requirements to transfer a part of production to the government or sell it in the local market. #BurkinaFaso#ResourceNationalism Devils Below