Explore The Northern Corridor
Business Environment
Overview
Bordered by Rwanda to the North, Tanzania to the East, and the Democratic Republic of Congo to the West, the East African nation, the Northern Corridor Member States of Burundi, is home to an abundance of natural resources. Although previously driven by the services sector, the agricultural sector now dominates the Burundi economy, accounting for 80% of the country’s total employment. Significant regulatory reforms and infrastructural developments, including the construction of photovoltaic power plants and the Bujumbura Port, have marked significant steps towards boosting the country’s economic resilience.
Prominent sectors that may be of interest to investors include the agriculture, mining, and financial sectors. This article explores the benefits of doing business in Burundi and the steps to setting up a legal entity in the country.
Burundi has shown impressive economic resilience, owing mainly to enhanced agricultural production driven by increases in rainfall and foreign investment. In 2023, Burundi’s economy expanded by 2.7% and is set to further grow by 3.9% in 2026. Since COVID-19, economic activity in Burundi has been dominated by the agriculture sector. In 2023, exported agricultural goods, including tea and coffee, accounted for 90% of the country’s foreign exchange earnings.
INVESTMENT CLIMATE
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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.
✅ 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 the Burundi Development Agency (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.
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.
✅ Ease of Doing Business, Legal & Regulatory Framework and Regional Market
Access:
Burundi is a signatory of the World Trade Organization’s Investment Facilitation for Development Agreement, finalized in February 2024. The Country is a member of the East African Community (EAC), providing access to a market of 300+ million consumers. It is also part of the African Continental Free Trade Area (AfCFTA).
The Member State of Burundi has made reforms in business registration and tax administration. 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).
KEY INVESTMENTS OPPORTUNITIES
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✅ Agriculture & Agribusiness:
Agriculture accounts for over 30% of GDP and employs nearly 90% of the population. The major export crops include: coffee, tea, sugar, cotton, and horticulture. There are opportunities in agro-processing, irrigation, and value chain development.
✅ Mining & Natural Resources:
The Member State of Burundi has also good business opportunities in the sector of mining and natural resources. The Member State of 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.
✅ Energy & Infrastructure:
The country has hydropower potential as it depends heavily on hydroelectricity, but supply is inadequate. The Renewable energy, such as Solar and wind energy projects, offers great potential. Infrastructure development in Roads, bridges, and telecommunications need major investment.
✅ 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.
✅ Financial Services & Digital Economy
Growing demand for mobile banking, fintech, and insurance services.
Digital transformation presents an opportunity for investment in ICT and startups.
For more information about doing business and investing in Burundi get guided through the links provided hereafter -
Prominent sectors that may be of interest to investors include the agriculture, mining, and financial sectors. This article explores the benefits of doing business in Burundi and the steps to setting up a legal entity in the country.
Burundi has shown impressive economic resilience, owing mainly to enhanced agricultural production driven by increases in rainfall and foreign investment. In 2023, Burundi’s economy expanded by 2.7% and is set to further grow by 3.9% in 2026. Since COVID-19, economic activity in Burundi has been dominated by the agriculture sector. In 2023, exported agricultural goods, including tea and coffee, accounted for 90% of the country’s foreign exchange earnings.
INVESTMENT CLIMATE
---------------------------------
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.
✅ 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 the Burundi Development Agency (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.
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.
✅ Ease of Doing Business, Legal & Regulatory Framework and Regional Market
Access:
Burundi is a signatory of the World Trade Organization’s Investment Facilitation for Development Agreement, finalized in February 2024. The Country is a member of the East African Community (EAC), providing access to a market of 300+ million consumers. It is also part of the African Continental Free Trade Area (AfCFTA).
The Member State of Burundi has made reforms in business registration and tax administration. 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).
KEY INVESTMENTS OPPORTUNITIES
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✅ Agriculture & Agribusiness:
Agriculture accounts for over 30% of GDP and employs nearly 90% of the population. The major export crops include: coffee, tea, sugar, cotton, and horticulture. There are opportunities in agro-processing, irrigation, and value chain development.
✅ Mining & Natural Resources:
The Member State of Burundi has also good business opportunities in the sector of mining and natural resources. The Member State of 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.
✅ Energy & Infrastructure:
The country has hydropower potential as it depends heavily on hydroelectricity, but supply is inadequate. The Renewable energy, such as Solar and wind energy projects, offers great potential. Infrastructure development in Roads, bridges, and telecommunications need major investment.
✅ 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.
✅ Financial Services & Digital Economy
Growing demand for mobile banking, fintech, and insurance services.
Digital transformation presents an opportunity for investment in ICT and startups.
For more information about doing business and investing in Burundi get guided through the links provided hereafter -
Investment Incentives
Tax Incentive
Corporate Tax Reduction
✅Profit tax discountThis incentive is made to encourage companies to create local employment. The standard corporate tax rate in Burundi is 30%. It is reduced by 2% if 50-200 Burundians are employed; it is reduced by 5% if more than 200 Burundians nationals are employed.
✅Any investor in Free Trade Zone
For investors in free trade zone, the following incentives are offered:
Corporate income tax during the first 10 years of establishment is 0%.
Corporate income tax - starting from 11th year of establishment is set at 15%.
Corporate income tax - if investor employs more than 100 permanent Burundian Employees is set at 10%.
If investor reinvest more than 25% of profits realised during the 10 years of Existence, corporate income tax is set 10%.
Tax on dividends Exempted
All kind of Imports on the list submitted during registration Exempted
All kind of Exports on the list submitted during registration Exempted
Financial Incentive
Incentives for Investment Projects
Tax exemptions on machinery & equipment imports for investment projectsExemption of charges on property transfer (mutation fee)
No duty on Raw material, Capital goods & Specialized vehicles
No customs duty is charged if investment goods are made within the EAC or COMESA
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
Subsidy and Non Fiscal Incentives
The Government of the Member State of Burundi has thrown its support behind farmers by subsiding as much as 70% of farmers day-to-day operating costs.Subsidies play a key role in supporting agriculture and addressing food security in the Burundi economy. The Government actively subsidizes various agricultural inputs. Specifically, subsidies are provided for fertilizers, soil amendments, and seeds, reflecting the priority placed on agricultural production. The Government also monitors and regulates market prices to prevent speculative practices, aiming to protect both farmers and consumers from price volatility.
Key aspects of the subsidy program in Burundi
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✅ Agricultural Focus:
The government prioritizes agriculture and provides substantial subsidies to support farmers.
✅ Input Subsidies:
Subsidies are offered for fertilizers (64.8%), soil amendments (78.13%), and seeds (51.1%).
✅Food Security Goal:
The subsidies are intended to ensure food security and economic stability, as outlined in President Ndayishimiyes slogan.
✅ Market Regulation:
The government monitors and regulates market prices to prevent speculative practices, ensuring fair prices for both farmers and consumers.
✅ Commitment to Agriculture:
The government is deeply committed to supporting the agricultural sector, with the intention of promoting both food security and economic growth
Other non fiscal incentives including financial incentives present as follows:
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Special Economic Zones (SEZs) to encourage industrialization
Public-Private Partnership (PPP) opportunities in key sectors
Free repatriation of profit after payment of tax
Cheapest labour force in the region
Focal point and the gateway through the ADB for any foreign investor as well as the privileged partner of the investor residing in Burundi
Collecting by ADB and availing to investors of useful information likely to facilitate entry, stay and establishment as well as access to legislative and regulatory texts relating to the economic and social sectors concerned by the projects
Business registration in less than one working day
Moderate climate along the year