Burkina Faso Adopts Law Defining Strategic Enterprises

The National Legislative Assembly of Burkina Faso has unanimously adopted a law that defines and determines economic, commercial, and industrial entities with strategic importance. The law, which was passed on October 19, 2026, aims to protect vital national enterprises and secure the business environment. According to Inoussa Sawadogo, Director General of Public and Private Sector Companies at the Ministry of Industry, Commerce, and Handicrafts, the law is a revision of an old law dating back to 1993.

The 1993 law was enacted during a period of structural adjustment programs, when the state was withdrawing from the productive sector. The law established a list of 15 enterprises that required special attention due to their impact on social balance and national interest. However, over time, the law revealed several limitations, including the lack of prohibition on privatization. As a result, many of the listed entities were privatized between 1991 and 2001. The new law addresses these limitations and takes into account the government's evolving vision for enterprise governance.

The old law had several shortcomings, including the absence of a prohibition on privatization, which led to the privatization of several strategic entities. The new law introduces an objective definition of strategic entities based on five criteria: national sovereignty, development, and social balance, national security, monopoly, and service constraints. Entities that meet these criteria will be considered strategic and subject to special regulations. The law also establishes a list of strategic entities by decree, allowing for updates as the context evolves.

One of the key innovations of the new law is the requirement for strategic entities to obtain prior authorization from the Council of Ministers for certain operations. This allows for a comprehensive overview of partnerships, agreements, and other commitments entered into by these entities. Additionally, the law provides for the insolvency of strategic entities' assets, which was not previously provided for. This provision aims to prevent the cessation of activities of vital services that are essential to national interest.

The law also allows the state to acquire shares in private entities that are declared strategic. This provision aims to enable the state to take control of sectors that are essential to national sovereignty and security. According to Sawadogo, the law protects vital national enterprises and secures the business environment. The law is expected to have a positive impact on the economy and the lives of Burkinabe citizens.

The adoption of this law is part of the government's efforts to strengthen its control over strategic sectors and ensure the protection of national interests. The law is also expected to promote transparency and accountability in the management of strategic entities. Sawadogo emphasized that the law is a significant step forward in the government's efforts to promote economic development and social balance.

The implementation of the law is expected to have a positive impact on the business environment in Burkina Faso. The law provides a framework for the management of strategic entities and ensures that they operate in a transparent and accountable manner. The government's efforts to strengthen its control over strategic sectors are expected to promote economic growth and development in the country.

Key points

• The law defines strategic enterprises based on five criteria: national sovereignty, development, and social balance, national security, monopoly, and service constraints.