A Libyan state-owned bank has taken Burkina Faso to international arbitration over the 2024 seizure of their jointly owned commercial lender.
The Libyan Foreign Bank filed its claim on 17 August at the World Bank’s ICSID tribunal in Washington.
Eversheds Sutherland’s Paris office is representing the bank in the dispute against the West African state.
Banque Commerciale du Burkina was founded in 1997 as an equal partnership between the two governments.
Burkina Faso’s government nationalised the bank in May 2024, accusing its Libyan partner of neglecting its obligations.
Officials said “fruitless exchanges” had preceded the takeover, blaming Libya for the bank’s operational troubles.
The Libyan Foreign Bank rejected that account, insisting it had honoured the original agreement and regional banking laws.
It called Burkina Faso’s proposals “terms of submission” and pressed instead for a fair balance between both sides.
The bank accused Ouagadougou of breaching the joint venture agreement and defying West African banking regulators.
The dispute unfolds against a backdrop of sweeping economic nationalism under President Ibrahim Traoré’s military government.
Since seizing power in a 2022 coup, Traoré has nationalised gold mines, exploration licences and other key assets.
Australian miner Sarama Resources is separately pursuing Burkina Faso at ICSID over a lost exploration permit.
Burkina Faso has also severed ties with regional bloc ECOWAS and deepened cooperation with Russia.
It joined Mali and Niger, both under military rule, in forming the Alliance of Sahel States.
Despite the upheaval, Burkina Faso was removed from a global financial crime watchlist last year.
Analysts credit recent anti-corruption reforms for the country’s improved standing on financial oversight.
Libya’s sovereign wealth fund faces its own ICSID battle, separately suing Belgium over frozen assets.
The Libyan Foreign Bank and Eversheds Sutherland have not yet responded to requests for comment.