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Promising sectors: “Law 050 will be emptied of its content”, Paul Ouédraogo

AIn Burkiina Faso, 12 agricultural sectors are governed by Law No. 050-2012/AN of October 30, 2012 and its seven implementing decrees. In order to allow them to have financial autonomy for the implementation of their missions, this law stipulates the establishment of the compulsory flat-rate contribution (CFO), levied at the level of the actors in the sector. The development of a new law to introduce taxes/levies on the products of promising sectors in place of the CFO divides the players. To denounce this situation, the Consultation Framework for Interprofessional Agro-Sylvo-Pastoral, Fisheries and Wildlife Organizations (CCOIP-ASPHF) organized a press conference on July 29, 2023, in Ouagadougou. The coordinator of this framework, Paul Ouédraogo, explains the issues here. This interview took place in July, before the general meeting on promising sectors at the end of last August.

L’Economiste du Faso: The inter-professional associations do not seem to be in phase with the Ministry of Commerce on levies in the sectors, what is this about?

Paul Ouédraogo: It is rather the Ministry of Commerce which has problems with law O50-2012/AN OF October 12, 2012 on interprofessions, in particular, its aspect of levying the compulsory flat-rate contribution, CFO. The ministry finds that law 050 cited above is not a good law; Consequently, he proposes or imposes another law called ”levy on promising sectors”.

If this law from the Ministry of Commerce prospers, it empties Law 050 of all substance. It should be noted that the Ministry of Commerce is neither the technical supervisor of the inter-professions, nor even concerned by Law 050 governing the inter-professions. This is an abuse of position and a desire to monopolize resources to the detriment of inter-professions to make it a sort of fund for stabilizing the prices of agricultural products or promoting them. sectors.

However, the development of ”boosting” sectors is the responsibility of the inter-professions according to law 050! Not to a particular ministry, especially not to commerce!

We are therefore against this attempt to circumvent the Ministry of Commerce.

Is it the destination of the direct debit that poses a problem or the distribution key?

The compulsory flat-rate contribution (CFO) is a self-financing mechanism for IPs provided for by Law 050. The Ministry of Commerce is neither involved nor concerned by the so-called ‘boosting’ sectors.

Consequently, this ministry cannot claim of the management of agricultural sectors. We contest these claims and these activities on the sectors.

We recognize, however, that the Department of Commerce can handle donor projects for the benefit interprofessions, but from there to monopolize of the prerogatives of the interprofessions, there is a step that must not be taken.

Does this mean that with the new laws on promising sectors, a sector like mango will lose its gains?

Quite ! But not just mango!

There are other sectors which will lose everything, not only the resources to carry out sector development activities, but above all their autonomy in representing the sectors.

What is the solution so that everyone comes out a winner in this matter?

The Ministry of Commerce or any other ministry must abandon any attempt to rule or monopolize of the prerogatives of the inter-professions recognized by law! Someone among them had sworn to repeal the O5O law to have free rein! We tell them that it’s an error on their part, even if we has the power, because it is a hold-up not to be committed!

Justice has issued an opinion on a complaint from the shea industry table, can you tell us more?

It is rather the cashew sector which is in this situation, due to illegal harvesting. on the sectors without interprofessions.

If we are not careful, all the inter-professional organizations which are in this situation of taking samples outside of all legality will follow in the footsteps of the cashew nut. For us, we must focus on the application of law 050, namely the fixed bond contribution, the CFO, by the inter-professional organizations!

The final word ?

The law authorizes inter-professions to levy the fixed bond contribution within the sectors for the development of each agricultural sector.

This CFO is implemented with the support of the State. To this end, we thank the Ministry of Agriculture for its support in the implementation of the CFO, through the interprofessions. The CFO is an autonomous financing tool for interprofessions provided by the legislator since 2012. It allows the different interprofessions to finance sector development activities, thus preventing IPs from reaching out to donors, which have become too complicated and rare in these times of security crisis.

Interview conducted by FW

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