• Burkina Faso nationalizes SOTRACO transport firm, acquires private shares
• Observers say state ownership may squeeze out private bus and taxi operators
• Move aligns with West African trend of expanding public transport systems

Burkina Faso's state transport company SOTRACO is now fully owned by the government following a buyout of private shareholders last week.

The government adopted two decrees on Nov. 27 to repurchase 36,075 shares, representing 8.39% of the capital held by private investors. The nationalization is part of a broader urban transport modernization plan, which includes acquiring 500 buses financed partly through a public-private partnership with Vista Bank Burkina for 44.87 billion CFA francs ($79.4 million).

The move signals a stronger state role in regulating the urban transport market, with potential repercussions for the balance between public, private and informal operators.

According to observers, SOTRACO's transformation into a sole public operator could intensify competition with existing private actors, including private bus companies, metered taxis and informal minibuses. Private market participants could be squeezed, potentially forcing them to define complementary niches in peripheral routes or local transport.

The situation could also cool the ambitions of private investors seeking to enter urban transport, as they would face a public operator benefiting from state subsidies or support.

The approach in Burkina Faso resembles initiatives in several West African states to strengthen public transport and reduce the dominance of private companies. Examples include a program in Guinea to purchase 300 new buses for public transport and an investment plan in Ivory Coast to expand the fleet of SOTRACO's counterpart SOTRA, followed by an ambitious metro project under construction in Abidjan.

In Senegal, Dakar Dem Dikk benefited from an investment program that added 370 buses to its fleet in 2023. Benin, supported by the World Bank and the Asian Infrastructure Investment Bank (AIIB), has begun implementing a plan to launch the first public transport services, including Bus Rapid Transit (BRT) and ferry services, in Cotonou and four other cities.

A stronger public intervention in urban transport is perceived as a threat to private actors. However, some analysts present it as a lever to reduce fares and improve service quality, which is often deemed poor among private operators, particularly in the informal sector.

These projects present significant challenges for the state. Beyond the need to integrate or regulate other operators, the success of the initiatives will depend on long-term state commitment to ensure fleet maintenance, rigorous governance, sustainable financing and social inclusion.

Henoc Dossa