Burkina Faso adopts National Strategy on Green Economy

Ouagadougou, 8 July 2019 - Burkina Faso adopted the National Strategy on Green Economy (NSGE) last month, marking a major milestone in the country’s inclusive green economy transition. The Strategy promotes the creation, development and consolidation of a critical mass of competitive, sustainable, value-adding industries and decent jobs providers, primarily in the transformation of local raw materials. 

The adoption of the Strategy creates a pathway for strong commitment from national authorities at the highest level for a transition of the country to green industry. It also promises the commitment of the private sector in the implementation of green economy principles in industrial activities.

Targets & Activities

The targets of the Strategy are to increase the manufacturing industry's share of GDP from 6.6% in 2016 to 12% in 2023, increase the share of manufactured goods in the export of goods and services to 20% in 2023 and improve the country’s 'Ease of Doing Business' ranking from 143rd in 2016 to 130th by 2023.

The activities within the Strategy can be defined within five strategic axes:

  1. Improvement of the legal, institutional and organizational support framework for the industrial sector;
  2. Support for development industrial projects;
  3. Consolidation of existing industrial firms by modernization of facilities and promotion of green industry;
  4. Support for improvement of financing access for the industrial sector,
  5. Development of industrial infrastructures and promotion of the sustainability of industrial firms.

Background

In African countries, industrialization is essential as a means of increasing incomes, creating jobs, developing value-added activities and diversifying economies. The high economic growth rates of the past 10 years in Africa have proven that commodity-based economies do not lead to the structural transformation needed. African incomes are still the lowest in the world, and 34 African countries rank among the least developed countries with manufacturing sectors' share of gross domestic product lower than it was 30 years ago.

In order to stimulate and enable an environment conducive to industrial expansion, Africa needs government-driven industrial policies to add value and strengthen industrial upgrading. However, in the light of the current context of climate change, scarcity of natural resources and ethics, the “Business as Usual” way is not the solution. Instead, industrial policies should integrate issues of environmental degradation and resource depletion. Countries must adopt green growth strategies that will be supported by green industry.

PAGE Support

In Burkina Faso, UNIDO, through the framework of PAGE, conducted a green industry study that demonstrated the opportunities for the country to promote an inclusive green industry strategy given its characteristics, its development imperatives and its dependence on natural resources. The study also highlighted the commitment and compatibility of green economy with the political vision of development. Thereby, the Government with the support of PAGE has developed this new green industrialization strategy.

Opportunities Going Forward

The operationalization of the Strategy will bring together various stakeholders, including ministries, local and regional authorities, the private sector, technical and financial partners, academia and civil society organizations. This commitment from national authorities is essential as the necessary reforms for this transition will engage the entire productive apparatus and will inevitably affect the established interests of certain sectors and actors.

Moreover, the industry diagnosis phase identified that many national manufacturing firms operate in an inefficient and resource-intensive manner. These inefficiencies represent an opportunity for significant progress, as investment in new technologies promoted by the Strategy can lead to significant economic and environmental gains. Thereby, the implementation of the Strategy will help the country overcome, among other challenges, the reduction of the production factors’ costs, the increase of productivity and the transition to the green industry in order to link competitiveness and sustainability.