International Trade in Burundi

News Related to International Trade in Burundi

Business outline for Burundi

Economic Overview

According to the IMF, Burundi's growth reached 4% per year between 2006 and 2008 and the macro-economic prospects for 2009 are rather positive, with the GDP expected to settle at 4.8%. Economic growth is driven by coffee and tea exports. Burundi's geographical location makes the country a trade hub of the sub-region, despite the fact that this has not been utilized to the fullest.

The country is coming out of a decade of civil war, which has displaced people as well as made them refugees, and caused many deaths. Despite a certain amount of political stability, the weakness of the judiciary and the administrative system, the corruption, State interference in economic activities, security problems and dependence on foreign aid are definite obstacles that have to be overcome.

Burundi is a very poor country where health and social conditions are poor: only one child out of two goes to school, one adult out of 15 is HIV positive, food, medical and electricity supplies are insufficient and 68% of the population lives under the threshold of poverty.

FDI in Figures

Foreign direct investments into Burundi, non-existant untile 2007, are showing a certain albeit slow degree of revival. The adoption of the new Investment Law and the reduction of the country's debt in accordance with the HIPC Initiative is expected to improve the business climate and create investment opportunities.

Political instability, the high cost of public services, the ambiguous trade policies, the poor condition of infrastructures, low-skilled workforce, limited privatization program and the lack of foreign currency are all factors limiting the influx of FDI into the country.

The mining sector attracts most of the investments. France and Japan are the two main investor countries.

Foreign Trade Overview

Burundi is open to international trade (trade represents more than two-thirds of the GDP). The country is a member of different trade organizations: WTO, COMESA (Eastern and Southern Africa), ECCAS (Central Africa).

Burundi recorded a large trade deficit in 2008. This was mainly due a weak industrial sector and an undiversified tertiary sector.

The country mainly exports agricultural products (coffee, tea, sugar and cotton) to Japan, Germany, Pakistan, Rwanda and Soudan and it imports mainly petroleum products, food, and capital goods from Saudi Arabia, Kenya, Uganda, Europe, China and India. Burundi's main trade partners are the Gulf Cooperation Council member states (Saudi Arabia, Bahrain, United Arab Emirates, Kuwait, Oman and Qatar), the East African Community (Kenya, Uganda, Rwanda and Tanzania), and the Democratic Republic of Congo.