Burkina Faso is preparing to tighten regulations on the privatization of strategic companies while expanding the State’s ability to acquire shares in both public and private businesses. The proposed reform could reshape government involvement in several sectors of the national economy.
The Burkinabè government plans to prohibit the sale of public companies classified as strategic. It also intends to retain the power to acquire stakes in private and public companies that fall within this category.
Announced during the Council of Ministers meeting on Thursday, October 8, the draft bill uses monopoly status as a criterion for defining a strategic company. The stated objective is to maintain public oversight of activities considered vital and provide the State with greater opportunities to participate in the sectors concerned.
The proposed legislation is expected to replace the law of December 20, 1993, which defines and identifies strategic companies and businesses. The change is intended to bring the legal framework into line with the country’s current economic governance priorities.
For investors, however, several uncertainties remain. These concern the procedures for State participation in company capital, the methods used to value shares, and the rights granted to shareholders. The State’s influence over corporate governance and strategic decisions will depend on the size of its stake and the rights attached to it. At this stage, the information released by the government is insufficient to determine the reform’s impact on private investment.
Moreover, acquiring stakes in these companies could place a financial burden on public resources. The cost will depend on the number of companies involved, the proportion of capital the State seeks to acquire, and the financing arrangements selected. The Council of Ministers’ report provides no details about the funds to be mobilized or the mechanisms that will finance these transactions.
The draft bill must still be submitted to the Transitional Legislative Assembly. Its adoption, followed by any implementing regulations, will clarify which companies are affected and the conditions governing State participation in their capital.
This reform forms part of a broader strategy to strengthen public control over certain strategic assets. On April 16, 2026, the government approved the nationalization of SOFITEX, the country’s leading cotton company, by buying back the 6% stake held by private investors.
Burkina Faso has also reinforced its presence in the mining sector through the Société de participation minière du Burkina Faso (SOPAMIB). The organization was created to increase State participation in the exploitation of the country’s mineral resources.
In Ghana, the State Ownership Policy adopted in 2023 identifies the protection of strategic assets and sectors as a justification for public ownership stakes. This framework allows the State to retain shares in sectors considered essential without ruling out all forms of privatization.
