Burundi Business Overview

Business and Economic Overview

Burundi’s current inflation rate is expected to fall to 22% and to 12.6% in 2025 due to an improvement in local food supplies. Overall, the economy is in turmoil as two thirds of the population live below the poverty line and the value of the Burundian Franc to US Dollar has continued its inexorable trend downwards: the country ranks 197 out of 204 countries in the UN’s Human Development Report.

Economic reforms have not been implemented, meaning that there is an overwhelming reliance on agriculture and particularly subsistence farming. Tea and coffee form almost 50% of export earnings and are an important source of foreign currency, but these are highly susceptible to global demand and the economy’s overall is vulnerable to external shocks.

Also, the nation is geographically isolated, and its domestic infrastructure is lacking. Bribery, embezzlement, nepotism and clientelism are all rife in Burundi and is most pervasive in government procurement, land procurement and customs.

Burundi is ranked 166 of 190 in the World Bank’s Doing Business Index but is ranked 44 of 190 in the Starting a Business Index.

Despite this, some opportunities do exist. Burundi’s government actively seeks foreign investment and has no laws or strategies that discriminate against foreign investors, save in the defence sector. Indeed, amendments to the Investment Code grant substantial tax benefits to foreign business that hire Burundian workers.

Burundi’s Investment Promotion Authority outlines its key sectors and opportunities for investment and development. Given the importance of tea and coffee to the economy, significant opportunities exist in the sector particularly in initialising commercial farming schemes, which have been supported by EU and World Bank finances in the past.

Burundi’s location between trading blocs and entry into the EAC have created a market for educational services, particularly capacity-building centres for government officials. Burundi also seeks major investment into its transport infrastructure, both onshore and maritime.

Reference:

https://data.undp.org/countries-and-territories/BDI#:~:text=Burundi’s%20Human%20Development%20Index%20value,of%20204%20countries%20and%20territories.

https://archive.doingbusiness.org/en/rankings