**Burkina Faso**: A recent INSD report indicates a 9.8% downturn in the commerce sector for Q3 2024, with wholesale trade suffering significant losses. While some areas like automobile sales show growth, challenges persist due to raw material shortages and financial constraints across industries.
In its latest report, the National Institute of Statistics and Demography (INSD) has highlighted a significant downturn in Burkina Faso’s commerce sector for the third quarter of 2024. The findings are outlined in the Business Turnover Index in Commerce (ICA) and Industry (ICI).
According to the INSD, the turnover index in the commerce sector plummeted by 9.8% compared to the previous quarter, a stark contrast to the optimism observed among business leaders just a quarter earlier. Specifically, wholesale trade activities, which include the handling of raw agricultural products and live animals alongside various consumer goods, saw a notable decline. The wholesale trade of agricultural products, live animals, and food products experienced a drastic drop of 22.5%, while machinery and equipment supplies fell by 21.8%. On the other hand, wholesale trade of non-food consumer goods posted an increase of 13.3%.
Retail trade also faced challenges, marking a decline of 10.9% quarter-on-quarter and 8.6% year-on-year. The specialised retail shops were particularly hard hit, experiencing an 11.1% decrease in sales compared to the previous quarter. Nonetheless, the segment dealing with automobile and motorcycle trade and repair saw growth of 4% from the previous quarter, with a significant year-on-year increase of 39.7%. This surge was largely influenced by an 83.2% growth in motorcycle sales, although there were declines in spare parts and automotive accessories.
The INSD report further discusses the industrial sector, which revealed mixed results. The industrial turnover index dropped by 7.8% from the previous quarter, albeit recording an annual growth of 16.7%. Within this sector, extractive industries noted a 12.4% decrease compared to the previous quarter, while still achieving a 22.6% increase on an annual basis. Manufacturing industries demonstrated a slight growth of 2.2% quarter-on-quarter, with the agri-food industry being one of the standout performers, increasing by 5% during the quarter and a remarkable 72.7% year-on-year.
However, the production and distribution of electricity, gas, and water experienced a significant decline of 32.3% compared to the previous quarter, despite a 19.8% annual increase.
The INSD report attributes these downturns in both commerce and industry to multiple contributing factors. A significant 65.5% of industrial enterprises surveyed reported challenges in sourcing raw materials, creating logistical issues that hinder production capabilities. Additionally, nearly half of the participating firms cited financial constraints and an unfavourable economic climate as influencing their operations.
Overall, the findings by the INSD reflect a complex economic landscape in Burkina Faso, revealing challenges in the commerce sector alongside varied performances within the industrial sector.
Source: Noah Wire Services
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