At least three people reported dead in fighting, while Blaise Compaoré backtracks and says he will stand down • Burkina Faso’s revolution 2.0

The iron grip of one of Africa’s longest serving rulers is weakening as tens of thousands of protesters clashed with security forces outside the presidential palace in Burkina Faso, demanding that Blaise Compaoré step down.

Compaoré, who has led the west African nation for 27 years, declared a state of emergency after protesters stormed parliament and torched other state buildings. At least three protesters were shot dead and scores were wounded by security forces, emergency services said, as the crowds forced Compaoré to dissolve the government and pledge talks with the opposition.

“A state of emergency is declared across the national territory,” said the president’s statement, read by a presenter on national radio. “The chief of the armed forces is in charge of implementing this decision which enters into effect today.”

It added: “I dissolve the government from today so as to create conditions for change. I’m calling on the leaders of the political opposition to put an end to the protests. I’m pledging from today to open talks with all the actors to end the crisis.”

In a statement broadcast on TV on Thursday, Compaoré said he was ready to discuss with the opposition a transitional government at the end of which he would then hand over power.

He added that he was lifting the “state of siege” announced earlier in the day and withdrawing a proposed law to allow him to seek re-election next year.

Compaoré was 36 when he seized power in the coup in which Thomas Sankara, his former friend and one of Africa’s most revered leaders, was ousted and assassinated. Now 63, he is a staunch ally of the US and France but was also notoriously close to Muammar Gaddafi, the former Libyan leader, and ex-Liberian president Charles Taylor, found guilty of aiding and abetting crimes against humanity.

The protests were triggered by the planned parliamentary vote to change the constitution and allow Compaoré to rule longer. It was scrapped as the scale of the anger became clear. Emile Pargui Pare from the opposition Movement of People for Progress said Thursday was “Burkina Faso’s black spring, like the Arab spring”.

Facebook Twitter Pinterest An anti-government protester shot in Ouagadougou is helped in the street. Photograph: Joe Penney/Reuters

A huge crowd converged on the main square in Ouagadougou, the capital, and began marching towards Compaoré’s presidential palace, where security forces reportedly fired live rounds and tear gas. The president’s whereabouts were unknown, though he appealed for calm via Twitter.

Opposition leaders said they had held talks with retired general Kouame Lougue, a former defence minister, about forming a transitional government.

Reuters reported that general Lougue then marched to the presidential palace with supporters, and soldiers at the scene said he was allowed inside with a handful of aides.

Simon Compaoré, a senior opposition figure not related to the president, told Reuters: “It is absolutely necessary for Blaise Compaoré to leave power and for a transitional government to take over. Talks are taking place with General Lougue … but there is no agreement yet.”

Months of tension in one of the world’s poorest countries erupted earlier on Thursday when about 1,500 people broke through a heavy security cordon and laid siege to the parliament building in Ouagadougou despite police firing warning shots in the air.

Many MPs fled to a nearby hotel. Ablassé Ouedraogo, an opposition member, told the Associated Press: “I was inside when the demonstrators stormed in. I was put in a secure place by security people of the parliament. Now it is difficult to say what happens next but things are out of control because the demonstrators do not listen to anyone.”

Black smoke poured out of shattered windows and several offices succumbed to flames, including the speaker’s office, although the main chamber appeared to be unscathed. Protesters looted computers and TVs and wheeled away police motorbikes.

Facebook Twitter Pinterest Blaise Compaoré has ruled Burkina Faso for 27 years. Photograph: Stephanie Lecocq/EPA

The city hall and headquarters of the ruling Congress for Democracy and Progress party was also gutted by fire. At the headquarters of state television, which was forced off the air after the building was taken, jubilant protesters posed on the set of the evening news programme.

A Reuters witness said people took a dead protester from the streets and wrapped his body in the Burkina Faso flag, while softly singing the national anthem. They drove it to the central Place de la Nation, where more protesters had gathered.

Benewende Sankara, one of the leaders of the opposition which had called for the people to march on parliament over the Compaoré law, told AFP: “The president must deal with the consequences.”

The ruling party headquarters in Burkina Faso’s second city of Bobo Dioulasso was also torched by demonstrators, according to witnesses.

The parliament had been due to examine a proposed amendment that would allow Compaoré to run for re-election in November next year. The opposition feared the planned new rules would enable Compaoré to seek re-election three more times – meaning up to 15 more years in power.

Alain Edouard Traore, communications minister, said the government had dropped the proposal to amend a two-term limit on the presidential mandate.

But protesters said they would not stop until Compaoré stood down. “We did this because Blaise was trying to stay too long,” Seydou Kabre, protesting in Ouagadougou, told Reuters. “We are tired of him. We want a change. He must go.”

George Sawadogo, a 23-year-old student, added: “If needs be, we are going to march to the presidency. We want Blaise Compaoré to leave. We want change.”

Protesters have erected barricades and burned tyres in the capital since the proposal was announced on 21 October.

Burkina Faso is an important US ally in west Africa against fighters linked to al-Qaida operating in the Sahel region. France, the former colonial power, has special forces based in the country.

The White House said on Thursday that it was deeply concerned about the developing crisis and criticised the attempt to alter the constitution. “We believe democratic institutions are strengthened when established rules are adhered to with consistency.”

A French foreign ministry spokesman said: “We deplore the violence that has taken place in and around the national assembly. We call for a return to calm and ask all parties to show restraint.”

Compaoré’s attempt to cling to power has infuriated the opposition and much of the public, including many young people in a country where 60% of the population of almost 17 million is under 25. Many have been led by one man for their entire lives.

Known in colonial times as Upper Volta, the landlocked country became independent from France in 1960 and its name was changed to Burkina Faso (“the land of upright men”) in 1984.