BURKINA FASO – The government of Burkina Faso has announced a tax exemption on the local production of wheat flour, corn, sorghum, and other cereals.
This is a significant step toward bolstering food security, promoting industrialization, and reducing the country’s dependency on costly cereal imports.
The tax exemption was confirmed in a press release following the Council of Ministers’ meeting on September 19, 2024, during which the draft amending Finance Law for executing the 2024 State budget was adopted.
The new Finance Law, which amends the previous one, aims to strengthen the country’s social protection system and support efforts toward industrial development.
The tax relief on locally produced cereal flours is expected to alleviate the financial burden on millers and attract more private sector investments into the cereal processing segment, a vital component of the nation’s economy.
Cereals such as wheat, corn, and sorghum are staple foods in Burkina Faso, making up a significant portion of the population’s daily diet.
The government’s decision to reduce taxes on cereal production comes amid rising wheat import costs and an increase in wheat flour demand.
Earlier in April 2024, Burkina Faso had imposed a ban on wheat flour imports to reduce dependency on foreign markets.
The National Institute of Statistics and Demography (INSD) reported a 31% increase in wheat flour imports in 2023, with purchases reaching 16,360 tonnes. Additionally, wheat imports climbed by 26%, hitting over 270,000 tonnes.
Since Burkina Faso imports nearly all of its wheat, the government’s efforts to promote local cereal production through tax incentives are seen as a critical step toward reducing the country’s reliance on imports.
By reducing the cost of production for millers, the policy could lead to more demand for locally grown cereals, providing farmers with more stable markets and better prices for their crops.
In addition, the exemption will enable millers to invest in better processing technologies, increasing the quality of local flour and expanding access to processed cereals across the country.
The exemption also ties into broader efforts to promote innovation in rural agro-processing across the region. Experts believe that by encouraging local industries to invest in cereal processing, Burkina Faso can reduce post-harvest losses, improve food safety, and stimulate rural economies.
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