Africa Economy Podcast Podcast

Burkina Faso: the repercussions of the crisis between Nigeria and Benin

In Burkina Faso, since the closure of the border between Benin and Nigeria, spare parts for cars are running out. Inventories are exhausted at the reseller level and prices are rising. Some traders, those who have more means, are already thinking of turning to China or Europe for their supply.

"We changed the transmission belt. It costs 45,000 francs, but it can go up to 60,000! "

At Sori, as in many garages, vehicle repairs are becoming increasingly difficult since the closure of the border between Benin and Nigeria.

" We are suffering right now, with the spare parts. The ones that we paid 10,000 increased, we sell them to 15,000, sometimes even 20,000 . And the customer, he does not understand. "

Resellers blame local suppliers for raising prices. Seydou Ouedraogo, a reseller, says he has to pass on the price increases to the customers.

"It became very complicated for us traders, Burkina Faso, here. The pieces are missing, and for example, a coin that was sold at 5,000 francs, today costs 7,500, sometimes even 8,000 . So it's complicated. "

El haj Amidou Kindo sells vehicles and spare parts. He has been in this field for 22 years. It was through the Nigerian canal that he supplied.

" Like there, they count in naira and we in CFA francs, we won both the exchange rate and the prices, which are lower in Nigeria. We could make 20 to 25% profit, if we bought there to sell here. "

But since the borders closed, the situation is becoming untenable. His trucks are stranded in Nigerian territory and he is already thinking of new partners.

" The old stocks are exhausted and we have no more stocks because the borders are closed. Only those who can go to Europe or China buy the parts to sell us. But prices have gone up. "

Not far from him, Rasmané Ouedraogo, specialized in the supply of industrial equipment, also records losses. Given the difficulties to meet his commitments, he no longer takes orders.

" Today we have requisitions coming in and we can not even quote. Our partners, especially the mines, are asking for a lot of things, but we can not meet the demand. So for us, these are losses. "

These Burkinabè traders hope for a solution as soon as possible, in which case they plan to turn to other supplier countries.