Download ACM Country Profile: Burundi

ACM Country Profile: Burundi
Highlighting political, economic and business trends
The UN Security Council on 18 February
2015 expressed concern regarding
the presence of intimidation, political
violence, arrests and detentions by
government against opposition groups
in the run-up to the 2015 elections in
one of the world’s poorest countries.
In January 2015, an unknown number
of ‘rebels’ of the 54 who were arrested
by police and soldiers with civilian help
were reportedly shot and dismembered.
Investigations have begun into what may
be Central Africa’s latest war crimes.
Bujumbura
Index 2014-2015. Burundi is not considered a failed
state, but its per capita GDP of US$ 303 is amongst
the lowest in Africa. Seven out of 10 Burundians live
in poverty, which excludes them from participation
in a consumer society, automobile ownership and the
purchase of service industry products. Burundi’s one
hope for prosperity and liberation from its economic
isolation is regional, through the formation of trade
alliances with neighbouring countries.
Government’s unwillingness to even consider tackling
the corruption that inhibits business growth is evident
in the World Bank’s Worldwide Governance Indicators
negative score for Burundi of 1 out of a possible 100
points on the subject of controlling corruption. On the
same 100 point scale, Burundi receives an abysmal 7
for government effectiveness, 15 for Rule of Law, 20
for regulatory quality and 22 for government accountability – all amongst Sub-Saharan
Business Assessment:
Africa’s worst scores and certain to
give potential investors pause. Such
“Burundi’s one hope Described invariably as poor and lacking in natural resources, landlocked
bad government performance is not
for prosperity and
Burundi has a small middle class that
likely to be tolerated forever by a disliberation from its
cannot sustain a prosperous consumgruntled populace, and Burundi rates
economic isolation
er and services sector. Investors do
only a 6 out of 100 for political stabilis regional, through
face encumbrances according to the
ity. The Corruption Perceptions Index
the formation of
World Bank’s Ease of Doing Business
(Transparency International) gives
trade alliances
survey, which ranks the country a low
Burundi 21 points out of 100, indicatwith neighbouring
152 out of 189 nations worldwide
ing that the country’s affairs are largely
countries.”
(the 172nd worst for getting credit and
corrupt. For a country of no apparent
reflecting infrastructure inadequacies
interest to international terror groups,
the 181st worst for obtaining electriciBurundi receives a surprising 4.9 out of
10 score on The Institute for Economics and Peace’s ty). Investment opportunities are few. A third of the
Global Terrorism Index, suggesting that internal strife economy is devoted to largely subsistence agriculture.
Coffee, cotton, tea, corn, sorghum, sweet potatoes,
is present.
bananas, cassava, beef, milk and hides are the principal agricultural products, although these have yet
Economic Assessment:
to be produced in significant exportable quantities.
Burundi’s economy is rated “mostly unfree” by the Some food processing operations exist and opportuHeritage Foundation and Wall Street Journal Index nities exist for more. Overall, industry is minor, comof Economic Freedom and is given an unimpressive prising 18% of the economy and employing only 2% of
5.6 out of 10 ranking by the Cato Institute Economic workers, compared to 94% of the workforce employed
Freedom of the World Index. The country is large- in agriculture. However, industry experienced 4.5%
ly uncompetitive, judging by its 3.1 out of 7 score in growth in 2013, suggesting that activity is picking up
the World Economic Forum’s Global Competitiveness in this sector.
Africa Conflict Monitor | Consultancy Africa Intelligence (Pty) Ltd
March 2015 Edition
Political Assessment:
National Profile
CENTRAL AFRICA
Table of
Contents
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