Burundi is Turning to the Private Sector

Burundi has both the resources—and the resourcefulness—to grow its economy sustainably.

This was the strong message that emerged from Burundi’s second private sector day, hosted by the government this week in Bujumbura. Dubbed Umuzinga Day, the two-day gathering highlighted Burundi’s vision for growth and job creation fueled by greater private sector engagement. It also marked my first visit to the country as IFC’s Regional Director for Eastern Africa.

The second Umuzinga Day, which means beehive in Kirundi, signals the country’s strong commitment to attracting investment. I had the opportunity to meet with President évariste Ndayishimiye, Burundi’s burgeoning entrepreneurs, foreign investors, and donor partners. During the week, IFC - International Finance Corporation and USAID hosted a roundtable with women entrepreneurs and the 世界银行 team launched the process to produce the Burundi Country Climate and Development Report.

It was a packed week! And an energizing one.

The energy from our partners, the excitement to boost investment for sustainable development and the fresh ideas from entrepreneurs ignited our team as we continue to expand our support in the country.

Burundi, a small country of about 13 million people in Eastern Africa, offers promising investment opportunities. Last year, IFC and the World Bank published the Burundi Country Private Sector Diagnostic or CPSD, which identified sectors with especially high growth and development potential: agribusiness, financial services, and infrastructure.

With roughly 80% of Burundi’s population employed in agriculture, the sector is indispensable to the country’s future development. Burundi’s value chains for tea, coffee, and cotton have the potential for growth, but currently they contribute less than 5% of GDP, partly due to low productivity. That is an opportunity to invest in the sector to increase food security and develop more food processing.

Meanwhile, only around 21% of Burundi’s adult population has access to financial services, one of the lowest rates in Africa. By connecting more people to financial products, we can help spur business growth and help entrepreneurs launch or grow businesses.

And most estimates put access to electricity below 10% of the population. Plus, the GSMA Mobile Connectivity Index 2023 ranks Burundi among the least digitally developed countries in Africa. That means the sector needs investment which would then attract greater investment in other sectors.

To realize these opportunities, IFC is working for example with CRDB Bank Plc and Interbank Burundi sa to make more financing available for small businesses and to facilitate trade. IFC is also providing financing to support the early project development of a hydropower project that would boost electricity delivered to the country’s grid by 14% and technical capacity building to Modern Dairy to expand its reach and food processing.

IFC is also supporting women entrepreneurs in the country and is putting together a new program focused on this. At the roundtable we hosted, I met with several impressive women business owners, hearing directly from them what they need to grow, the challenges they face, and the goals they are pursuing.

Strengthening Burundi’s economy with increased private sector investment and know-how could produce a range of positive results, including increased financial inclusion for small businesses, improved food production and security, better access to electricity and the digital economy, and the creation of tens of thousands of good jobs, especially for women and young people.

With the right reforms, policies, and support from the government and the private sector, Burundi can achieve economic transformation. These are early days, but the signs are already positive, both from the country’s public and private sectors.