Title: Burkina Faso Launches Agency for the Promotion of Community Entrepreneurship
Date: June 5, 2023
In an effort to revive economic activities and promote inclusive growth, the government of Burkina Faso has established the Agency for the Promotion of Community Entrepreneurship (APEC). The agency aims to mobilize popular savings to finance community enterprises in various sectors such as agriculture, livestock, food processing, textiles, and mining.
During a press conference held on June 5, 2023, in Ouagadougou, the first leaders of APEC presented the structure and the community entrepreneurship program. According to Karim Traoré, the Director General of APEC, Burkina Faso’s current economic model has struggled to foster development. The state’s withdrawal from productive sectors and the private sector’s challenges in achieving genuine industrialization have hindered the transformation of raw materials and led to youth unemployment and growing inequalities.
To address these issues, the authorities of the Transition have embraced an endogenous and inclusive economic model, leading to the establishment of APEC. Created on March 21, 2023, the agency’s mission is to mobilize popular savings for the financing of community enterprises through popular shareholding. APEC will focus on sectors such as agriculture, farming, agri-food, textiles, and mining.
APEC’s modus operandi involves identifying projects and partnering with cooperative societies to organize subscriptions to the shares of community enterprises. Projects will be launched in batches, with 3-5 projects per launch. The state will take a minority stake through the agency to ensure the survival and good management of the companies. Investors will be granted a 2-year grace period before the distribution of dividends begins in the third year.
Already, a batch of four community businesses is in the starting block. This includes the extension of Société Faso tomate (SOFATO) with two new tomato processing factories in Bobo-Dioulasso and Tenkodogo, as well as a semi-mechanized gold mining company operating on three sites. Additionally, there is a project for mechanization and agricultural intensification, aiming to finance small-scale village irrigation kits and create one million direct jobs in two years.
Furthermore, a central purchasing office for local products will be established to create a market for agricultural production and organize the popularization and controlled sale of basic necessities. These four community business projects are now open for subscription by popular shareholders.
The official launch of the program is scheduled for June 12, 2023, at the Ouaga 2000 conference room, with the Head of State, Captain Ibrahim Traoré, making the first subscription to the projects. The program has already seen success, with the Société Faso tomate (SOFATO) raising a share capital of FCFA 1 billion, 40% of which was financed by the state through the Burkinabè Fund for Economic and Social Development.
To subscribe to the program, individuals can pay a minimum subscription fee of 15,000 FCFA, which includes 5,000 FCFA for membership in the cooperative society and 10,000 FCFA for a share. Subscriptions can be made through electronic payment or bank transfer.
The launch of APEC marks a significant step towards promoting grassroots ownership and financing community enterprises in Burkina Faso. With a focus on inclusive economic development, the agency aims to create opportunities, reduce unemployment, and foster sustainable growth in various sectors of the country’s economy.
T.ATitle: Burkina Faso Launches Agency to Finance Community Enterprises through Grassroots Ownership
Date: June 5, 2023
In an effort to revive economic activities and promote inclusive growth, the government of Burkina Faso has established the Agency for the Promotion of Community Entrepreneurship (APEC). The agency aims to mobilize popular savings to finance community enterprises in various sectors such as agriculture, livestock, food processing, textiles, and mining.
During a press conference held on Monday, June 5, 2023, in Ouagadougou, the leaders of APEC presented the structure and the community entrepreneurship program. According to Karim Traoré, the Director General of APEC, Burkina Faso’s current economic model has struggled to foster development. The state’s withdrawal from productive sectors and the private sector’s inability to drive genuine industrialization have resulted in the sale of raw materials without creating added value. This has led to youth unemployment and growing inequalities among different socio-professional groups.
To address these challenges, the authorities of the Transition have embraced an endogenous and inclusive economic model, leading to the establishment of APEC. Created on March 21, 2023, the agency’s mission is to mobilize popular savings for the financing of community enterprises through popular shareholding. APEC will focus on sectors such as agriculture, farming, agri-food, textiles, and mining.
The modus operandi of APEC involves identifying projects and partnering with cooperative societies to organize subscriptions to the shares of community enterprises through popular shareholding. Projects will be launched in batches, with 3-5 projects per launch. The state will take a minority stake through the agency to ensure the survival and good management of the companies. Investors will be granted a 2-year grace period before the distribution of dividends begins in the third year.
Already, a batch of four community businesses is in the starting block. This includes the extension of the Société Faso tomate (SOFATO) with two new tomato processing factories in Bobo-Dioulasso and Tenkodogo. Additionally, a mining company operating semi-mechanized gold on three sites and a mechanization and agricultural intensification project are part of the initial batch. The latter aims to finance a complete small-scale village irrigation kit, creating one million direct jobs in two years and equipping 100,000 boreholes with solar pumping systems.
Furthermore, a central purchasing office for local products will be established to create a market for agricultural production and organize the popularization and controlled sale of basic necessities. These four community business projects are now open for subscription by popular shareholders.
The official launch of the program is scheduled for June 12, 2023, at the Ouaga 2000 conference room, with the Head of State, Captain Ibrahim Traoré, making the first subscription to the baskets of projects. The launch will be followed by subscriptions from government members and presidents of institutions.
To subscribe to the program, individuals can do so by paying a minimum subscription fee of 15,000 FCFA (5,000 FCFA for membership in the cooperative society and 10,000 FCFA for a share). Subscriptions can be made through electronic payment or bank transfer.
The establishment of APEC and the promotion of grassroots ownership in financing community enterprises mark a significant step towards an inclusive and sustainable economic model in Burkina Faso.
T.A
How many community businesses are currently in the pipeline for subscription by popular shareholders?
Projects per launch. The state will take a minority stake through the agency to ensure the survival and good management of the companies. Investors will be given a 2-year grace period before the distribution of dividends begins in the third year.
Already, four community businesses are in the pipeline. These include the expansion of Société Faso tomate (SOFATO) with two new tomato processing factories, a semi-mechanized gold mining company operating on three sites, and a project for mechanization and agricultural intensification. Additionally, a central purchasing office for local products will be established to create a market for agricultural production and organize the popularization and controlled sale of basic necessities. These four community business projects are now open for subscription by popular shareholders.
The official launch of the program is scheduled for Sunday, June 12, 2023, at the Ouaga 2000 conference room, with the Head of State, Captain Ibrahim Traoré, making the first subscription to the projects. The program has already seen success, with the Société Faso tomate (SOFATO) raising a share capital of FCFA 1 billion, 40% of which was financed by the state through the Burkinabè Fund for Economic and Social Development.
To participate in the program, individuals can pay a minimum subscription fee of 15,000 FCFA, which includes 5,000 FCFA for membership in the cooperative society and 10,000 FCFA for a share. Subscriptions can be made through electronic payment or bank transfer.
The launch of APEC marks a significant milestone in promoting grassroots ownership and financing community enterprises in Burkina Faso. With a focus on inclusive economic development, the agency aims to create opportunities, reduce unemployment, and foster sustainable growth in various sectors of the country’s economy.
The Community Entrepreneurship Program led by APEC is a promising initiative that aims to empower local communities through entrepreneurship. By facilitating skills development and access to resources, it has the potential to drive economic growth and create sustainable livelihoods. Excited to see the positive impact it will make in fostering entrepreneurship and fostering self-reliance within communities.
“The Community Entrepreneurship Program led by APEC is a commendable initiative that aims to empower individuals within communities by providing them with the necessary tools, resources, and support to become successful entrepreneurs. By fostering entrepreneurship at the grassroots level, it not only drives economic growth but also creates a sustainable and inclusive future for all.”