Burundi still among the poorest countries in 2025

The World Bank launched itsfirst report on the economic and financial situation in Burundi, on 16 September 2014. Burundi’s economic growth is 5%; if it keeps this pace Burundi will remain among the poorest countries in the world.-By J.Berchmans Siboniyo

The World Bank representatives launch the report ‘Aid for Trade: the regional integration as a tool of growth’ ©Iwacu

In the report titled ‘Aid for Trade: regional integration as a tool of growth’, the Word Bank (WB) suggests a diversification of Burundian economy, by developing the limited number of value chains where the country is better positioned than it neighbors, such as coffee.The report highlights that the non-tariff barriers hamper the regional trade development. The WB encourages Burundi to build a competitive economy. The competition should begin with neighboring countries and not the prosperous ones of the South-West Asia.

“Growth acceleration is needed, and to attain it, the economy of Burundimust find a new complementary tool, together with the strengthening of the macroeconomic stability”, says Philippe Dongier, the Director of Operations of the World Bank in Burundi, Uganda and Tanzania.The report shows that this tool should boost export, regional export in particular.
According to Rachidi Radji, the Representative of the World Bank in Burundi, decreasing Burundi’s isolation through regional infrastructures especially energy transport and the removal of non-tariff barriers is essential if Burundi wants to profit fully from regional integration.

Albert Zeufack, the Sector Director of Macroeconomic and Budget Management, thinks that the mining sector providesthe best opportunity for Burundi to accelerate export and earn enough revenues to develop economic and social infrastructures.
“In 2013, Burundi performed well macro economically with a growth of 4.5%, 7.9% inflation rate and a budget deficit of 1.6%. However, the commercial balance keeps on deteriorating because of the low export level. In 2012 and 2013, the account deficit went from 17.5% to 21.3% of the gross domestic product (GDP)”, says Mamadou Ndione, the Chief Economist of the WB in Burundi.

Even so, the government of Burundi appreciates the steps the country has made so far. “The integration of Burundi in the EAC in 2009 and prioritizing the business environment consists of a big step towards the diversification of the economy and export boosting”, states Gervais Rufyikiri, the 2nd Vice President.