II. Leading Trade Prospects for U.S. Business Most recent local statistics are from 1991. However, given their questionable accuracy, they should be taken as giving an approximate value only. Telecommunications equipment (transmission and reception equipment, telephone equipment, etc.): Since the late 1980s, U.S. firms have supplied Burkina Faso's national telephone company (ONATEL) with telecommunications equipment. ONATEL engineers have generally been impressed with the performance of the equipment and, consequently, despite strong competition from the French and others, the outlook for U.S. businesses in the telecommunications market remains bright. However, compared to 1990, when U.S. firms were the leading exporters of telecommunication products to Burkina Faso with 49 percent of the market, 1991 results were disappointing. U.S. firms acquired only 3.6 percent of the USD 9.7 million market (USD 354,484). French firms replaced their U.S. counterparts with a 59 percent share. During the same period, Japan captured the third largest share of the telecommunications market with 6.5 percent. The reason for France's strong showing was the flexibility of its financing sources which made it possible for French firms to lend to ONATEL at concessionary terms through the French government. Other principal competitors include Canada, Finland, Taiwan, and Germany. (Fyi, Taiwan re-established formal ties with Burkina Faso in 1994 and now has a resident mission at ambassadorial level). Despite the flexibility of French firms' financial resources, there is a renewed and demonstrated interest by the Burkinabe for U.S. manufactured telecommunications equipment. The telecommunication field remains perhaps the best trade prospect for U.S. firms. Furthermore, the market potential for this sector remains strong given ONTATEL's plans to create a mobile cellular telephone network and to install additional exchanges in regional capitals. Interested U.S. firms should contact the Office of Telecommunications, Department of Commerce, in Washington, D.C. and the Embassy of Burkina Faso in Washington, D.C. for more information and assistance. Used Clothing, Fabric Material, and Textile Remnants: Until 1991, U.S. Exporters captured the second largest share of the used clothing market (16 percent in 1990). However, in that year, U.S. firms became the largest exporters to Burkina Faso garnering a 23.1 percent share worth approximately USD 2 million. Other principal competitors include the Netherlands with 7.7 percent of the market and Belgium/Luxembourg with 6.9 percent. The U.S. is well placed to maintain its competitive edge in this market. It is also worth noting that the sale of used shoes is becoming an important subsector. However, the 1994 CFA devaluation may cause a reduction in such overall export figures. U.S. firms are not involved in the market for fabric material or textile remnants. The bulk of the Burkinabe demand for these products is supplied by Great Britain, France and a number of Asian countries. Personal Computers, accessories and supplies: Due to price advantages, good opportunities exist for U.S. suppliers of computer hardware and software as well as suppliers of related products and accessories. While the market remains small, it is beginning to show signs of expansion. For suppliers who can sell in small quantities, it is definitely a good prospect. In 1991, U.S. firms controlled the largest portion of the computer market with 32.2 percent share worth USD 1.04 million. France was the second largest exporter with 25 percent of the market. However, it should be noted that 50 percent of that amount consisted of re-exported U.S.-made equipment. Consequently, direct sales of U.S. equipment by U.S. firms to Burkina Faso are to be encouraged since French firms generally mark up the price of re-exported U.S. equipment making the goods more expensive for the Burkinabe. Food Products: Excellent opportunities exist for U.S. firms to expand their market share in the following commodities: wheat, corn, wheat flour, yellow corn semolina, rice, and other cereals. According to government authorities, the state monopoly controlling the import of wheat and wheat flour will soon be lifted as part of the economic liberalization plan. Under the old monopoly, the "Grands Moulins du Burkina" (the recently privatized national milling company) controlled and processed all wheat flour and white corn flour for distribution to consumers. Burkina Faso's annual demand for wheat flour is estimated at an average of 30,000 metric tons. Catholic Relief Services currently distributes U.S.-donated (p.l. 480 title II) yellow corn semolina as part of a nationwide school lunch program. This product is popular in Burkina Faso and a private market does exist. Thailand was the largest exporter of cereals and grains (rice) to Burkina Faso with 24.2 percent of the market in 1991. The U.S. was the second largest exporter with a 21 percent share and France was third with a 10 percent share. Since the devaluation however, there has been both a major emphasis placed by the government on increasing domestic rice cultivation and a tendency by the local consumer to substitute locally produced millet and rice for imported rice. The bulk of U.S. exports consisted of sorghum, wheat flour, and rice. It should be noted that Burkina Faso imports a large quantity of U.S. wheat flour from European wholesalers, thus direct sale by U.S. suppliers represents another option to be pursued. Dairy products (milk, butter, and cheese) may also provide an excellent opportunity for U.S. producers to expand their market presence. Currently the Netherlands and France dominate the market controlling 41.6 percent and 25 percent respectively. However, relatively few brands of butter or milk products are marketed. U.S. brands may be able to gain marketshare by increasing the variety of products available to consumers. However, market penetration by U.S. firms depends on their ability to conform to local consumer preferences. The January devaluation of the CFA Franc has made certain U.S. products more competitive in the Burkinabe market. These include: essential and generic pharmaceuticals, acids and agricultural and industrial chemicals, light and unsophisticated water motor-pumps, irrigation equipment, air conditioners, refrigerators, electrical equipment, and electrical supplies. It is also worth noting the devaluation has made many South African products highly competitive with already well-established products from france. Whether South African businessmen take advantage of this market edge remains to be seen.