The inauguration of Lt Col Paul Henri Sandaogo Damiba as president comes about three weeks after he led a military coup to overthrow elected head of state Roch Marc Christian Kabore.
The bloc's 15-member Peace and Security Council has voted to suspend the participation of Burkina Faso in all African Union activities "until the effective restoration of constitutional order in the country."
The leaders previously issued a statement to say the bloc "firmly condemns" the coup, accusing the military of forcing Kabore to resign "under threat, intimidation and pressure".
Soldiers in poor landlocked African country stage mutinies at several barracks to demand sacking of military top brass and allocation of more resources to seven-year battle against insurgents.
The protesters call for President Roch Marc Christian Kabore to resign for his government's inability to stop attacks linked to Al Qaeda and Daesh spreading across the country.
President Roch Marc Christian Kabore accepts the resignation of PM Christophe Dabire, according to a decree.
Some towns weren’t able to conduct voting at all, including Bartiebougou and Tin Akoff, where 14 soldiers were killed in an ambush by Daesh earlier this month.
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