The consulting firm Associés en Management public et Développement International (AMD International) has delivered the results of the “study on the tax potential and revenue mobilization strategy of six municipalities: Mogtédo-Meguet-Absouya-Dassa-Réo-Zam” in Burkina Faso. Implementing the results of this study will contribute to further optimizing gold mining in artisanal mining sites in Burkina Faso.
An ambitious project for improved mining governance
The “study on the tax potential and revenue mobilization strategy of six municipalities: Mogtédo-Meguet-Absouya-Dassa-Réo-Zam” is part of the Responsible Gold Mining (RO) promotion project. This project aims to significantly contribute to inclusive mining governance and improve trust between artisanal and small-scale mining (ASM) stakeholders and local authorities.
The project began in May 2023 and is led by the CAS Consortium, Caritas Switzerland (CACH), Artisanal Gold Consult (AGC), and Solidar Suisse, with technical and financial support from the Swiss Cooperation. The overall objective of the project is: “responsible gold mining in artisanal mining sites in Burkina Faso is established, and stakeholders in the gold production chain benefit from the best services and working conditions, contribute to local development, and reduce the negative impacts of the sector.”
The project aimed to address the structural shortcomings of the ASM sector by working on (i) improving the governance of artisanal mining, (ii) increasing the contribution of ASM to local budget revenues, and (iii) reducing negative impacts on health, the environment, human rights, and conflicts.
According to the project’s Terms of Reference (TOR), most of the municipalities covered by the study face difficulties in carrying out investments and infrastructure projects, partly due to the limited budgetary resources allocated by the central government and partly due to the low level of tax revenue mobilization.
A methodical approach for concrete results
AMD International was selected to conduct, as part of this project, “A study on the tax potential and tax revenue mobilization strategy of six municipalities: Mogtédo-Meguet-Absouya-Dassa-Réo-Zam.” Specifically, the mission entailed:
Conducting an analysis of the tax context and existing revenue mobilization strategies in the target municipalities;
Analyzing the needs of the target municipalities in terms of tax revenue mobilization;
Identifying areas of opportunity for tax revenue in the municipalities;
Identifying challenges and bottlenecks in tax revenue mobilization in the target municipalities;
Developing a tailored revenue mobilization strategy in the various target municipalities.
AMD International, following this mission and in accordance with the Terms of Reference, was able to provide an inception report, an interim report, and organize a presentation of the results at the validation workshop and a final report. These deliverables include an analysis of the tax context and existing revenue mobilization strategies in the target municipalities, as well as an analysis of the needs of these municipalities in terms of tax revenue mobilization. Additionally, areas of opportunity, challenges, and bottlenecks in tax revenue collection in the target municipalities were identified. Finally, a tailored revenue mobilization strategy was developed for the various target municipalities.
Conclusions and Recommendations
The study concluded that the local authorities of the six target municipalities face numerous challenges in light of the growing financing needs to boost local development. The six target municipalities also face a difficult fiscal environment marked by low mobilization of their own revenues and untapped tax potential in the Artisanal Small-Scale Mining (ASM) sector. The analysis of the needs and challenges related to tax revenue collection in the target municipalities revealed a need for guidance and support for the formalization of the sector and a need to support the tax revenue mobilization chain in the ASM sector. Recommendations were also made with a view to better organizing the ASM sector and optimizing its performance.
By contributing to this study, AMD International confirms its commitment to inclusive and sustainable governance. This exemplary project illustrates how targeted expertise
