Burundi

After the 1993 assassination of the first president to be elected democratically, ethnic fighting broke out between the Hutu and the Tutsi groups in Burundi; many Burundians sought refuge in neighboring countries. The 2003 agreement between the Tutsis and Hutus, which was internationally negotiated, allowed for a new constitution to be created and the Hutu government to take form in 2005. The country continues to face many problems, even though a ceasefire was signed in 2006 between President Pierre NKURUNZIZA and the last rebel group in the country.

Main Airports

Bujumbura International (BJM)

U.S. Embassy

Avenue des Etats Unis (Boite Postale 1720), Bujumbura
tel. [257] 22-34-54

Statistics

GDP: purchasing power parity:

$5.654 billion (2005 est.)

GDP - real growth rate:

1.1% (2005 est.)

GDP - per capita: purchasing power parity:

700 (2005 est.)

Inflation rate (consumer prices):

16% (2005 est.)

Labor force:

2.99 million (2002)

Exports:

$52 million f.o.b. (2005 est.)

Exports - partners:

Germany 24.7%, Belgium 11.2%, Netherlands 8.1%, Switzerland 5.9%, US 4.7%, Pakistan 4.1% (2005))

Imports:

$200 million f.o.b. (2005 est.)

Imports - partners:

Kenya 13.1%, Tanzania 10.7%, Belgium 10.6%, Italy 8.2%, France 5.5%, Uganda 5.4%, China 5.1% (2005)

Population:

8,090,068

Population growth rate:

3.7% (2006 est.)

Population Below Poverty Line:

68% (2002 est.)

Major Industries:

light consumer goods such as blankets, shoes, soap; assembly of imported components; public works construction; food processing

Employing Workers: 132*

Registering Property: 132*

Enforcing Contracts: 137*

Closing a Business: 121*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Burundi	Region
Procedures (number)	11	11.1
Time (days)	43	61.8

Burundi Risk Assessment

Country Rating

Rating: D

A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.

Risk Assessment

Economic growth stalled in 2007 due to a lack of rain that affected as much the hydroelectric power supply as coffee production, Burundi's main export product. Subject to better weather conditions, economic activity in this country in process of reconstruction should rebound, driven by the public works sector, consolidation of the banking sector, and development of retailing. In view of the demographic pressure, the growth — moreover vulnerable to external shocks — will remain insufficient to significantly reduce poverty in a country ranking as the world's third poorest. Defective energy infrastructure notably impeding mining sector development (nickel) has undermined the country's growth potential.

In this context, Burundi's accounts show severe imbalances with financing needs remaining covered by international aid, which resulted in 2005 in Paris Club debt rescheduling after the country reached the "completion point" under the HIPC programme for highly indebted poor countries. Substantial relief of foreign debt continues to depend, however, on a speed-up of structural reforms.

Political and security risk is still high with the Burundi's stability undermined by the suspension in July 2007 of the peace talks with the last Hutu rebel group, the National Liberation Forces and the resurgence of tensions on the occasion of the establishment of the Truth and Reconciliation Commission and the Special Court for judging war crimes. The government has moreover been struggling to organise the return of 350,000 Hutu refugees. And release of international aid hinges on the resolution of the institutional crisis paralysing the country for over a year. That will require restoring the National Unity Government set up in 2005 after twelve years of civil war, then dissolved in 2006. Burundi's integration into the East African Community in 2006 and the revival of the Economic Community of the Great Lakes Countries in April 2007 could ultimately benefit Burundi's economy and allow the capital in Bujumbura to recover its role as a regional hub for wholesale and retail sales.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation