Unlock the Hidden Gem of East Africa: Discover the Diverse Investment Opportunities in Burundi

Burundi offers diverse potential for investments, especially in agriculture, mining, tourism, information and communication technologies (ICT), etc. In addition, attractive tax incentives are available. These views were presented by Dr Révérien Nizigiyimana, Director General of the Burundi Development Agency (ADB), during the Common Market Economic Forum for Eastern and Southern Africa (COMESA), held in Bujumbura on October 28, 2024.

Dr Révérien Nizigiyimana, director general of the Burundi Development Agency (ADB), believes that the Burundi government is doing its best to attract investors.

All this is driven by Burundi’s vision: A Developing Country in 2040 and a Developed Country in 2060. By 2040, Burundi’s agri-food sector will be competitive. The country’s microclimates give its agricultural production an exceptional quality in terms of flavor, taste and nutritional value, which is rare in the world. This includes coffee, tea, fruit, vegetables, sugar, fish and palm oil.

Burundi benefits from regular rainfall throughout the year and a mild temperature, around 20°C, which makes it possible to produce organic fruit and vegetables of incomparable taste quality.

Promising mining sector

In 2040, Burundi’s mining sector should be exploited for the benefit of the population. The country has a wide variety of mineral resources, such as nickel, cobalt, gold, cassiterite, wolfram and tin. Burundi holds the second largest coltan stock in the East African Community (EAC) and the second largest nickel reserve in the world, with three deposits containing approximately 260 million tonnes, or 6% of global reserves.

However, artisanal exploitation of mining resources limits production. The country’s vision is to develop this sector through public-private partnerships (PPPs) with balanced contracts that guarantee fair revenue sharing.

Opportunities in the processing industry

Burundi’s manufacturing sector offers many opportunities, as the majority of consumer goods are imported. The industries to be developed relate to the processing of agri-food products, the production of building materials, agricultural fertilisers, as well as the textile and footwear industry. The development of a pharmaceutical industry is also necessary, because very few drugs are produced locally. Burundi also needs a biodegradable packaging manufacturing industry.

In addition, the country must encourage the transformation of household waste into energy to replace charcoal in the city of Bujumbura, as well as their recycling into phosphate fertiliser. The manufacture of leather products (shoes, belts, bags) and building materials, as well as the development of IT equipment are also pressing needs.

A growing services sector

By 2040, Burundi plans a diverse, efficient and modern services sector. In ICT, the country needs new businesses that specialize in digital technology to meet the needs of government (digitalization of public services) and the financial sector (FinTech). Fast internet is essential, as is better ICT in businesses and schools. There are still very few call centers and telecommunication companies in Burundi and they need to be developed.

In the financial sector, Burundi needs international banks and related services, as well as a guarantee fund to support viable investment projects. The development of international credit and insurance information offices is also desirable.

Huge tourism potential

Burundi has diverse and magnificent landscapes. The country has more than 200 tourist sites, of which 123 are recognized. Among the main attractions is Lake Tanganyika, the largest freshwater reserve in the world and the second deepest lake on the planet. earth ” . Its coasts, which are hardly taken advantage of, have huge potential for tourists. Cruises, floating restaurants and water sports could be developed there.

The country also has forests and natural parks. Kibira Forest, a sanctuary for monkeys and chimpanzees, and Ruvubu Park, home to more than 1,500 buffalo, are major attractions. Rusizi Park is famous for its crocodiles, hippos and migratory birds. Karera Falls and Mugara Hot Springs are also notable natural sites. Burundi is also rich in cultural dances, including the famous drum, listed as a UNESCO world heritage site in 2014.

Energy sector to be developed

In 2023, Burundi’s potential energy capacity was estimated at 1700 MW, but only 107,132 MW were actually exploited, although the country needs an additional 1000 MW.

Hydroelectric power plants generate 64,132 MW, solar power plants 7.5 MW and thermal power plants 35 MW, a shortfall of 892,868 MW. Current projects are expected to fill this gap by December 2030.

Attractive incentives for investors

Burundi’s investment code provides for exemptions from transfer taxes should real estate be acquired. It also provides exemptions from VAT and customs duties on construction materials and equipment for investment projects. The corporate tax rate is 30%, but progressive reductions are given during the first years of activity.

Despite its potential, Burundi faces many challenges. The business climate suffers from energy shortages, frequent power cuts, lack of foreign exchange, fuel shortages, unfair competition, pollution, transportation problems, etc.