Burkina Faso Economy Profile - Doing Business 2019
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Doing Business 2019 Burkina Faso Economy Profile of Burkina Faso Doing Business 2019 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 post-filing 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 Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2
Doing Business 2019 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 labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation 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 reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports 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 report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report 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. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2019 Burkina Faso Ease of Doing Business in Region Sub-Saharan Africa DB 2019 Rank 190 1 Burkina Faso Income Category Low income 151 DB 2019 Ease of doing business score Population 19,193,382 0 100 City Covered Ouagadougou 51.57 DB 2019 Ease of Doing Business Score 0 100 58.00: Côte d'Ivoire (Rank: 122) 54.15: Senegal (Rank: 141) 53.50: Mali (Rank: 145) 51.61: Regional Average (Sub-Saharan Africa) 51.57: Burkina Faso (Rank: 151) 51.42: Benin (Rank: 153) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Burkina Faso 1 28 58 55 79 82 Rank 107 109 120 136 145 144 149 153 165 163 181 190 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 Ease of Doing Business Score on Doing Business topics - Burkina Faso 100 88.19 80 73.25 66.58 Score 60 55.89 50.47 40.00 41.05 40.90 40 29.42 30.00 20 0 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 Page 4
Doing Business 2019 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 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the 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 - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a also collected for the second largest business city. business or to leave the home to register the - The entire office space is approximately 929 square meters (10,000 square feet). company - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits. procedures cannot start on the same day) - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final The owners: document is received - Have reached the legal age of majority. If there is no legal age of majority, they are • No prior contact with officials assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5
Doing Business 2019 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 (New Zealand) Time – Men (days) 13 23.3 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 42.5 44.4 3.1 0.0 (Slovenia) Procedure – Women (number) 3 7.6 4.9 1 (New Zealand) Time – Women (days) 13 23.4 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 42.5 44.4 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 6.6 10.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Burkina Faso and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 93.70: Côte d'Ivoire (Rank: 26) 90.60: Benin (Rank: 61) 89.94: Senegal (Rank: 64) 88.19: Burkina Faso (Rank: 79) 84.05: Mali (Rank: 110) 78.52: 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 2019 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 2019 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 3 days 3 % of declared deposit the two acts with the notary office capital 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 9 days see procedure details registration, tax 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). 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 2019 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 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or • Registering and selling the warehouse after its topographical experts. completion - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering - Will be used for general storage activities, such as storage of books or stationery. information - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted as procedures. Cost required to complete each procedure (% of - Will take 30 weeks to construct (excluding all delays due to administrative and income per capita) regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water 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 • Quality control before construction (0-1) installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - 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 2019 Burkina Faso Dealing with Construction Permits - Burkina Faso Standardized Warehouse Estimated value of warehouse XOF 18,941,904.40 City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 14 14.7 12.7 None in 2017/18 Time (days) 121 145.7 153.1 None in 2017/18 Cost (% of warehouse value) 4.7 8.8 1.5 None in 2017/18 Building quality control index (0-15) 12.0 8.5 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Burkina Faso and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 73.95: Benin (Rank: 51) 73.25: Burkina Faso (Rank: 58) 66.74: Mali (Rank: 109) 59.60: Senegal (Rank: 140) 59.37: Côte d'Ivoire (Rank: 142) 58.59: Regional Average (Sub-Saharan Africa) 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. Figure – Dealing with Construction Permits in Burkina Faso – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 120 1.8 1.6 Cost (% of warehouse value) 100 1.4 80 1.2 Time (days) 1 60 0.8 40 0.6 0.4 20 0.2 0 0 1 2 *3 *4 5 6 7 8 9 10 11 * 12 13 14 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 10
Doing Business 2019 Burkina Faso Figure – Dealing with Construction Permits in Burkina Faso and comparator economies – Measure of Quality 15 12.0 Index score 10.0 10.0 10 9.0 8.5 8.5 5 0 Burkina Faso Benin Côte d'Ivoire Mali Senegal Sub-Saharan 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 300,000 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.). The fees depend on the size of the building, and according to the arrêté conjoint N 2008-066/MHU/MATD/MEF/MID and the circulaire N 10- 01195/MID/SG/LNBTP, the cost of the soil survey from National Laboratory of Building and Public Works is FCFA 300,000.00. 3 Obtain fire safety study from a licensed fireman or competent private 10 days XOF 150,000 agency 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 agréée’ - pompier) or at the agency SCEPSI -- ‘Societe Commerciale d’Etudes, de Prevention et de Securité Incendie’. The fee schedule has reduced the fire safety study fees for Category 3 buildings (e.g., warehouse) from FCFA 500,000.00 to FCFA 165,000.00. The document takes about 1 -- 2 weeks to be issued. 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. Page 11
Doing Business 2019 Burkina Faso 5 Obtain building permit at CEFAC one-stop shop and pay fees 20 days XOF 158,788 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. By law, they have to get back to the applicant within 18 days so a decision is delivered every 20 -- 30 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 9,471 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. 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 1 day no charge occupancy 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) Page 12
Doing Business 2019 Burkina Faso 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. Takes place simultaneously with previous procedure. Page 13
Doing Business 2019 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; 1.0 Free of charge; In official gazette. Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0 regulations or on any 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 Licensed 1.0 compliance with existing building regulations? (0-1) architect. 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? Inspections by 1.0 (0-2) 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 Yes, in-house 2.0 with the approved 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 Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible Construction 1.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance company. or Decennial Insurance)? (0-1) Professional certifications index (0-4) 3.0 What are the qualification requirements for the professional responsible for verifying that the University degree 1.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or engineering; Being a registered architect or engineer. Page 14
Doing Business 2019 Burkina Faso What are the qualification requirements for the professional who supervises the construction Minimum number 2.0 on the ground? (0-2) of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Page 15
Doing Business 2019 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 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day 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 network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials 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 owners’ private property Cost required to complete each procedure (% of because the warehouse has access to a road. income per capita) - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been 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 • Duration and frequency of power outages (0–3) p.m. (8 hours 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 • Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (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. • Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • 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 the ranking on the ease of getting electricity. Page 16
Doing Business 2019 Burkina Faso Getting Electricity - Burkina Faso Standardized Connection Price of electricity (US cents per kWh) 22.0 Name of utility Société Nationale d’Electricité du Burkina (SONABEL) City Covered Ouagadougou Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 4 5.2 4.5 3 (25 Economies) Time (days) 169 112.0 77.2 18 (3 Economies) Cost (% of income per capita) 9353.5 3456.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 0 1.6 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Burkina Faso and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 61.37: Senegal (Rank: 127) 56.23: Côte d'Ivoire (Rank: 143) 51.57: Mali (Rank: 159) 49.00: Regional Average (Sub-Saharan Africa) 33.84: Benin (Rank: 176) 29.42: Burkina Faso (Rank: 181) 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. Page 17
Doing Business 2019 Burkina Faso 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 reflected here, see the summary below. Figure – Getting Electricity in Burkina Faso and comparator economies – Measure of Quality 8 7 6 Index score 5 5 4 4 3 2 1.6 1 0 0 0 0 Burkina Faso Benin Côte d'Ivoire Mali Senegal Sub-Saharan Africa Page 18
Doing Business 2019 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 434,485.96 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 19
Doing Business 2019 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) 185.9 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 Yes supply? 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 No exceed a certain cap? 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.b f/index.php/service- clientel/documents/c ategory/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 20
Doing Business 2019 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 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past 10 years. • Each procedure starts on a separate day - - Is registered in the land registry or cadastre, or both, and is free of title disputes. though procedures that can be fully completed online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. - Has no trees, natural water sources, natural reserves or historical monuments of • Official costs only (such as administrative fees, any kind. duties and taxes). - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • 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 21
Doing Business 2019 Burkina Faso Registering Property - Burkina Faso Indicator Burkina Faso Sub-Saharan OECD high Best Regulatory Africa income Performance Procedures (number) 4 6.2 4.7 1 (4 Economies) Time (days) 67 53.9 20.1 1 (New Zealand) Cost (% of property value) 12.0 7.6 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 11.5 8.8 23.0 None in 2017/18 Figure – Registering Property in Burkina Faso and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 58.03: Côte d'Ivoire (Rank: 112) 57.47: Senegal (Rank: 118) 54.19: Benin (Rank: 130) 52.62: Regional Average (Sub-Saharan Africa) 51.51: Mali (Rank: 141) 50.47: Burkina Faso (Rank: 145) 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. 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 2019 Burkina Faso Figure – Registering Property in Burkina Faso and comparator economies – Measure of Quality 30 25 Index score 20 15 11.5 10.5 10.0 10 8.0 8.8 6.5 5 0 Burkina Faso Benin Côte d'Ivoire Mali Senegal Sub-Saharan 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 4,000 Agency : Land Registry ("Guichet unique foncier") Before the GUF, there was an option to accelerate the procedure and have it done in 1 day instead of 3 days. However, with the GUF the statutory time is fixed at 3 days. 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 contract 1 day XOF 539,419.04; Agency : Notary (Notary fee schedule In Burkina Faso, it is mandatory to notarize the sale contract, and a common on a sliding scale as practice to ask the notary to conduct the entire registration process on behalf of follows: 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 (Proces Verbal) of the 14 days XOF 11,700; (6000 property at the GUF FCFA (assessment of Agency : Land Registry ("Guichet unique foncier") the property) + FCFA A team of surveyors from the GUF will visit the property, and determine a value 4000 (valuation for the property, according to the conditions of the property (floor type, roof, registration) + FCFA building materials, etc.). Based on a table of values and the conditions of the property, the property value will be determined and will be registered in the GUF 1700 (Stamp duty)) for taxation purposes (transfer and publication taxes). A statutory time limit of 4 days was established in 2009 to process the evaluation, as well as 2 days to register the new property valuation in the GUF. 4 Deposit deed of sale and pay transfer tax payment slip at Land registry 45 days XOF 1,714,242.35; Agency : Land Registry ("Guichet unique foncier") (8% of purchase price The notary will pick up the Proces Verbal and then deposits the complete transfer (Transfer tax) + file at the "Guichet Unique Foncier", and receives the notice of the transfer tax 1.05% (publication amount to be paid at the tax agency. The transfer tax is calculated and it's given cost)) to the notary for payment. With the transfer tax payment slip, the transfer tax is paid. According to the Decree N: 2008-164, the registry has a time limit of 4 days to get back to the GUF with a newly registered title. 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: (1) The Memorandum of Association and Registration at the Company Registry (2) The Notarized sale agreement (3) Copy of the Property Title (4) Proces Verbal (PV) of the survey of the property Takes place simultaneously with previous procedure. Page 23
Doing Business 2019 Burkina Faso Details – Registering Property in Burkina Faso – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 2.0 What is the institution in charge of immovable property registration? Guichet Unique Foncier In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 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 the majority of maps of land plots kept in the largest business city—in a Computer/Scann 1.0 paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0 or mapping agency kept in a single database, in different but linked databases or in separate databases databases? Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0 same identification number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0 property registration in the largest business city? pays the official fee Is the list of documents that are required to complete any type of property transaction made Yes, on public 0.5 publicly available–and if so, how? boards Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available–and if boards so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, on public 0.5 and if so, how? boards Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Link for online access: Page 24
Doing Business 2019 Burkina Faso Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city 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 Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Is there a specific 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? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., 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 Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a property Tribunal de worth 50 times gross national income (GNI) per capita and located in the largest business Grande Instance city, what court would be in charge of the case in the first instance? de Ouagadougou How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2017: 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 25
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