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BURKINA FASO · POLICY
Key Facts
- —The country Burkina Faso is a landlocked West African country run by a military-led government under Captain Ibrahim Traoré, who took power in a 2022 coup.
- —What happened On Monday 19 October 2026, the legislature passed a law that bans the full or partial privatization of strategic state companies.
- —The vote 70 lawmakers voted for the law and one abstained in the Assemblée législative du peuple, the transitional parliament in Ouagadougou.
- —The test A company counts as strategic if it touches national sovereignty, state security or the social and economic balance of the country.
- —New state powers The state may buy shares in private firms judged strategic, and may reserve some activities for Burkinabè nationals.
- —Protection Assets and bank accounts of strategic public firms cannot be seized by creditors under the new text.
- —Still open Which companies make the strategic list, and how the law treats foreign owners already in place.
Burkina Faso bans privatization of its strategic state companies under a law passed on Monday 19 October 2026. The vote was 70 in favour with one abstention, Lefaso.net reported from the session in Ouagadougou, the capital.
For US and other foreign investors, the message is that the door to key state assets is closed. The law also lets the state take stakes in private firms, which raises the stakes for any business with a Burkinabè partner.
What Lawmakers Approved in Ouagadougou
Burkina Faso’s legislature, the Assemblée législative du peuple, is the transitional parliament that sits in Ouagadougou under the military-led government. It passed a bill that defines strategic entities, and Burkina Faso bans privatization of any such state-owned company, in full or in part.
Industry minister Serge Poda defended the bill before the lawmakers, Lefaso.net said. The vote came on Monday 19 October, with 70 votes in favour and one abstention.
How a Company Becomes Strategic
The law sets several tests that decide whether a company, an entity or a whole sector is strategic. One is national sovereignty and the security of the state against threats from inside and outside the country.
A second test is the weight of the entity for the social and economic balance of Burkina Faso. Poda told lawmakers that the state now has full powers to supervise, control and follow these entities.
New Powers for the State
The state can now supervise and control strategic public entities, and take shares in private firms judged strategic, Poda said. Some decisions at state-run strategic firms will need prior approval from the Council of Ministers, the cabinet.
The law also lets the state reserve certain strategic activities, to be named by regulation, for Burkinabè nationals. A further clause shields the assets and bank accounts of strategic public or majority-public firms from seizure.
Why the Government Is Rewriting the Rules
Poda said the law replaces a 1993 text that shielded strategic companies from a wave of privatizations in the 1990s, he recalled. In his words, that text showed gaps, and the push for national sovereignty made a rewrite necessary.
The vote follows the state takeover of the sugar maker SN-SOSUCO and the oil maker SN-CITEC, which the state daily Sidwaya covered in November 2025. SN-CITEC had been privatized in 1995, and Sidwaya called its return to the state a sign of economic sovereignty.
What It Means for US Readers
American companies and funds that hoped to buy state assets now face a legal bar if the asset is on the strategic list. Burkina Faso bans privatization for those firms, and private owners in strategic sectors could see the state ask for a share.
The law fits the policy of the military-led government, which the Rio Times described in its Burkina Faso explainer. It also sits beside the sovereignty push of the Sahel states covered in the joint Sahel speech at the UN.
What Is Not Known
The list of strategic companies has not yet been named, so it is open which firms in mining, farming or utilities fall under the ban. It is also open when the president will sign the law.
The text as reported does not say how it treats foreign owners who already hold shares in a firm later judged strategic. Nor is it clear what compensation, if any, the state would offer if it raised its stake in a private company.
More: Africa news in English, every day from The Rio Times.
Frequently Asked Questions
What did Burkina Faso’s legislature decide on 19 October?
Burkina Faso bans privatization of strategic state companies, in full or in part, under the law it passed. The vote was 70 in favour with one abstention.
Who decides which companies are strategic?
The law sets criteria such as national sovereignty, state security and the social and economic balance of the country. The final list of companies is still to come.
Can the state buy shares in private companies?
Yes, industry minister Serge Poda said the state may take shares or raise its stake in private firms judged strategic. Some activities may also be reserved for Burkinabè nationals.
What does the ban mean for foreign investors?
Burkina Faso bans privatization of strategic firms, so foreign buyers cannot purchase them, fully or in part. Investors in private firms in strategic sectors face the risk of a state stake.
What was the earlier law on strategic companies?
A 1993 law protected strategic companies from the privatization wave of the 1990s. Poda said it had gaps and needed a rewrite.
Sources: Lefaso.net, privatisation des entreprises stratégiques interdite, 19 October 2026; Sidwaya via allAfrica, SN-CITEC un acte fort de souveraineté, 27 November 2025.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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