Community Entrepreneurship Program: an initiative led by APEC

2023-06-19 07:55:13

• Use grassroots ownership to finance community enterprises

• In agriculture, livestock, food processing, textiles and mining

• Launch of subscriptions scheduled for June 12, 2023

The Chairman of the Board of Directors of the Cooperative Society Bâtir l’Avenir (SCOOP/BA), Aziz Nignan. (Ph. Yvan Sama).

As part of the revival of economic activities in Burkina Faso, the government decided to create the Agency for the Promotion of Community Entrepreneurship (APEC). On Monday, June 5, 2023, in Ouagadougou, its first leaders were in front of the press to present the structure and the community entrepreneurship program.

According to the Director General of APEC, Karim Traoré, the economic model adopted by Burkina Faso since independence is struggling to enable it to develop. Indeed, “the State has withdrawn from the productive sectors, and the private sector is struggling to meet the challenge of genuine industrialization allowing the transformation of our raw materials, which are sold raw without creating added value. Youth unemployment remains a constant, and inequalities are growing between groups who have capital to invest and other socio-professional categories who feel excluded,” he lamented.

On the strength of this observation, the authorities of the Transition have decided to move towards an endogenous and inclusive economic model, hence the establishment of APEC. Created on March 21, 2023, its mission is to ensure the mobilization of popular savings for the financing of community enterprises by popular shareholding, in the various sectors of economic activity of the country, in particular, agriculture, the farming, agri-food, textiles and mining.

Agency’s modus operandi

After identifying the projects, APEC establishes a partnership with a cooperative society. The latter organizes the subscription to the shares of community enterprises, by popular shareholding. Projects are launched in batches, including 3-5 per launch. Then, through the agency, the State takes a minority stake to ensure the survival and guarantee the good management of the companies. After the launch of activities, investors are asked for a 2-year grace period, before the start of the distribution of dividends from the third year.

A batch of 4 community businesses already in the starting block

According to the President of APEC, Karim Traoré, this is the extension of the Société Faso tomate (SOFATO) with 2 new tomato processing factories (Bobo-Dioulasso and Tenkodogo) and a mining company operating semi -mechanised gold on 3 sites (3 operating permits). In addition, there is the mechanization and agricultural intensification project which aims to finance a complete small-scale village irrigation kit (family farm). It will create 1 million direct jobs in 2 years and equip 100,000 boreholes with solar pumping systems.

In addition, there is a central purchasing office for local products intended to create a market for agricultural production, and to organize the popularization and controlled sale of the main basic necessities. From this day on, these 4 community business projects are subject to subscription by popular shareholders.

According to Aziz Nignan, Chairman of the Board of Directors of the Bâtir l’Avenir Cooperative Society (SCOOP/BA), SOFATO was forced to return to the cooperative form, following legality problems encountered, after its launch in 2019.

This program enabled the company to raise share capital of FCFA 1 billion, 40% financed by the State, through the Burkinabè Fund for Economic and Social Development, and 60% open to popular shareholders.

The official launch of the program will take place on June 12, 2023, at the Ouaga 2000 conference room, by the Head of State, Captain Ibrahim Traoré. On this occasion, he will make the first subscription to the baskets of projects, followed by that of the members of the government and the presidents of institutions. oh

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How to subscribe?

The minimum subscription fee is 15,000 FCFA (5,000 FCFA for membership in the cooperative society and 10,000 FCFA for a share). Subscription can be made by electronic payment or by bank transfer.o