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Burkina Faso mining code – new draft released

Burkina Faso – A new draft of the Burkina Faso mining code has been released which has been adopted to replace the 2003 code.

This is according to EY’s (Ernst & Young’s) March 2015 Resource nationalism update report. The bill can now be passed to the National Transitional Council (NTC), which is acting as Parliament. The transitional government needs to pass the new mining code and an anti-corruption bill with some urgency as the World Bank has delayed releasing US$100m in budgetary support until the bills pass.

In February this year, IHS Global Insight Daily Analysis noted: “Referral of draft mining code to Burkinabe parliament increases risk of state participation and local content requirements”.

According to the International Monetary Fund:

“Over the course of 2014, economic activity in Burkina Faso was increasingly affected by significantly lower international commodity prices – especially gold and cotton — and the regional impact of the Ebola crisis in neighboring countries. These developments significantly affected revenue collection, which led to lower government expenditures that in turn negatively affected growth.

The political events of end-October only marginally exacerbated this situation but are not a main factor for revised growth projections. Economic growth is now expected to be around 5% in 2015 (earlier projections were 6−7%), with subsequent impacts on revenues anticipated for 2015 lisinopril price.”

“Based on these developments, the transition authorities and the IMF team discussed broad parameters for a draft 2015 budget that would be both realistic and fully-financed. Agreement was reached on a resource envelope that takes into account estimates of additional budget support commitments under discussion by development partners, new measures to improve revenue administration, and an improved outlook for domestic financing. However, eliminating remaining financing gaps required some downward adjustment in planned expenditures for 2015, including for investment. The IMF team urged the authorities to continue seeking additional resources to preserve investment spending during 2015.

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