Explore The Northern Corridor
Business Environment
Overview
OVERVIEW OF THE BURUNDI COUNTRY PROFILEGeneral Information
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• Official Name: Republic of Burundi (République du Burundi)
• Capital: Gitega (since 2019; previously Bujumbura)
• Largest City: Bujumbura
• Official Languages: Kirundi, French, English
• Currency: Burundian Franc (BIF)
• Government Type: Unitary Presidential Republic
• Current President: Évariste Ndayishimiye
• Independence: July 1, 1962 (from Belgium)
Geography
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• Location: East-Central Africa, bordered by Rwanda (north), Tanzania (east & south), and the Democratic Republic of Congo (west). It is also near Lake Tanganyika.
• Area: 27,834 km² (10,747 sq mi)
• Climate: Tropical, with wet and dry seasons
• Terrain: Mostly hilly and mountainous
Demographics
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• Population: Approx. 12.5 million (2024 estimate)
• Ethnic Groups: Hutu (majority), Tutsi, Twa
• Religions: Christianity (Catholic & Protestant majority), Indigenous beliefs, Islam
Economy
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• Main Sectors: Agriculture, mining, services
• Key Exports: Coffee, tea, gold, sugar, cotton
• GDP: Low-income economy, highly dependent on subsistence farming
• Challenges: Political instability, poverty, limited infrastructure, reliance on foreign aid
Politics & Governance
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• Political System: Presidential system with a multi-party framework
• Recent History: Experienced civil war (1993-2005) and ongoing political tensions
• International Relations: Member of the African Union (AU), East African Community (EAC), United Nations (UN)
Culture & Society
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• Traditional Music & Dance: Drumming (famous Royal Drummers of Burundi)
• Cuisine: Staple foods include cassava, beans, plantains, maize, and fish
• Sports: Football (soccer) is the most popular sport
INVESTMENT CLIMATE IN BURUNDI
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The Northern Corridor Member State of Burundi presents various opportunities for investors. The country has a strategic location in East-Central Africa, a youthful population, and untapped natural resources. Politically, the Member State of Burundi is enjoying a stable political environment with new leadership that is willing to reduce bureaucracy by implementing reforms to tackle inefficiencies. The Government has taken some steps to promote good political and economic governance to improve the business environment, fight corruption, promote fiscal transparency and, most recently, enact needed banking reforms
1. Key Investment Opportunities
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a) Agriculture & Agribusiness
• Agriculture accounts for over 30% of GDP and employs nearly 90% of the population.
• Major export crops: coffee, tea, sugar, cotton, and horticulture.
• Opportunities in agro-processing, irrigation, and value chain development.
b) Mining & Natural Resources
• Burundi has deposits of gold, nickel, coltan, and rare earth minerals.
• The government is working to attract foreign direct investment (FDI) into the mining sector.
c) Energy & Infrastructure
• Hydropower potential: Burundi depends heavily on hydroelectricity, but supply is inadequate.
• Renewable energy: Solar and wind energy projects offer great potential.
• Infrastructure development: Roads, bridges, and telecommunications need major investment.
d) Tourism & Hospitality
• Eco-tourism: National parks, wildlife, and Lake Tanganyika offer potential.
• Cultural tourism: Burundi has a rich cultural heritage, including the famous Royal Drummers of Burundi.
e) Financial Services & Digital Economy
• Growing demand for mobile banking, fintech, and insurance services.
• Digital transformation presents an opportunity for investment in ICT and startups.
2. Business Environment & Facilitation
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a) Business Facilitation
In addition to fiscal advantages provided in the new investment code, Burundi has approved reforms designed to improve ease of doing business, including reinforcing the capabilities of the one-stop shop at ADB, simplifying tax procedures for small and medium enterprises, reducing the time and cost of registering a business (about four hours at the cost of approximately $14), launching an electronic single window for business transactions, and harmonizing commercial laws within the East African Community. For more details and information on registration procedures, deadlines and costs, investors can visit the ADB at https://www.investburundi.bi/.
The ADB is also responsible for assisting investors in obtaining entry visas, work permits and operating licenses, connections to water and electricity, amicable resolution of disputes between investors and state-owned entities, as well as any other related appropriate assistance. According to the ADB, at least 6,324 companies were registered between July 2022 and June 2023, creating an estimated 31,729 jobs, compared to 4,794 companies and 18,994 jobs the previous year.
Burundi is a signatory of the World Trade Organization’s Investment Facilitation for Development Agreement, finalized in February 2024.
b) Ease of Doing Business
• Burundi has made reforms in business registration and tax administration.
c) Legal & Regulatory Framework
• Investment is governed by the Burundi Development Agency (ADB) former Investment Promotion Agency (API).
• Tax incentives are available for priority sectors (e.g., agriculture, manufacturing, tourism).
• Land ownership laws can be restrictive for foreign investors.
d) Political & Economic Risks
• Periodic political instability affects investor confidence.
• The small domestic market and heavy reliance on subsistence farming limit economic expansion.
• Burundi remains under some international sanctions, affecting foreign investments.
e) Regional Market Access
• Member of the East African Community (EAC), providing access to a market of 300+ million consumers.
• Burundi is also part of the African Continental Free Trade Area (AfCFTA).
3. Investment Incentives
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The Government of Burundi offers various incentives to attract investors, including:
✅ Tax exemptions on machinery & equipment imports for investment projects.
✅ Corporate tax reductions for companies creating local employment.
✅ Special Economic Zones (SEZs) to encourage industrialization.
✅ Public-Private Partnership (PPP) opportunities in key sectors.
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The Member State of Burundi has promising investment potential, especially in agriculture, mining, and energy. The current political stability, governance reforms, and infrastructure improvements are meant to create a more favourable business climate. Investors should consider partnerships with local businesses to take advantage of the Business environment and investment landscape in Burundi
Investment Incentives
Tax Incentive
Tax Incentives
The tax incentives available to eligible investors are as follows:• Exemption from customs duties on raw materials and equipment and especially special vehicles;
• Exemption from transfer duties in case of acquisition of fixed assets (land or building);
• Payment of countervailing duties of 5% instead of 10 to 25% on semi or finished products intended to carry out its investment project (consumables are not concerned);
Subsidy