• Burkina Faso to tax interest on new WAEMU bonds from Aug 1, 2025, excluding its own.
• Ends unregulated tax exemption causing state revenue losses.

Burkina Faso will begin taxing interest earned on new bond issues in the West African Economic and Monetary Union (WAEMU) starting August 1, 2025. This measure is detailed in a circular signed by Minister of Economy and Finance Aboubakar Nacanabo, published on Monday, June 23, 2025. It applies to all new borrowings, including bonds and treasury bills, issued from August onward. Only borrowings contracted by the Burkinabè state or its affiliates will continue to receive tax exemptions.

Previously, interest paid to Burkinabè investors on borrowings issued within WAEMU by Côte d’Ivoire, Senegal, Niger, Benin, Guinea-Bissau, Mali, and Togo was exempt from taxation in Burkina Faso. However, this exemption lacked legal oversight and resulted in revenue losses for the state. The Ministry noted that this situation led to "significant fiscal losses for the national budget."

With this reform, bonds issued by other WAEMU member states may become less attractive to Burkinabè investors, as they will no longer offer a tax advantage. This could prompt local investors to favor bonds issued by the Burkinabè state. The reform is also expected to boost national budget revenues by capturing a share of income generated through financial investments. Financial institutions and lenders in Burkina Faso have been instructed to make the necessary arrangements to apply the new rule and ensure taxes are collected on bond interest, except when the issuer is the Burkinabè state.

Burkinabè investors are increasingly favoring debt securities issued by their own government. On June 18, 2025, Burkina Faso raised 32.99 billion CFA francs, or $59 million, on the regional financial market through a treasury bond and bill issuance. This operation attracted investors from Burkina Faso (35.96%), Côte d’Ivoire (30.96%), and Senegal (21.77%), who together accounted for over 89% of the amount raised.

This article was written in French by Chamberline Moko,

Edited in English by Mouka Mezonlin