ANNEX 1 
BURUNDI  EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-53 
 
 
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CONTENTS 
   
I.  ECONOMIC ENVIRONMENT A1-57  
 (1)   MAIN FEATURES OF THE ECONOMY  A1-57  
 (2)   RECENT ECONOMIC DEVELOPMENTS  A1-58  
 (3)   TRADE AND INVESTMENT PERFORMANCE  A1-63  
 (i)   Trade in goods and services A1-63  
 (ii)   Direct investment A1-68  
 (4)   OUTLOOK  A1-69  
II.  TRADE AND INVESTMENT REGIMES A1-71  
 (1)   OVERVIEW  A1-71  
 (2)   TRADE AGREEMENTS AND ARRANGEMENTS  A1-73  
 (i)   World Trade Organization (WTO) A1-73  
 (ii)   Regional and bilateral agreements A1-74  
 (3)   INVESTMENT REGIME  A1-74  
III.  TRADE POLICIES AND PRACTICES BY MEASURE A1-78  
 (1)   INTRODUCTION  A1-78  
 (2)   MEASURES DIRECTLY AFFECTING IMPORTS  A1-78  
 (i)   Registration and documentation A1-78  
 (ii)   Customs procedures and customs valuation A1-80  
 (iii)   Rules of origin A1-82  
 (iv)   Customs duty A1-82  
 (v)   Other duties and levies A1-84  
 (vi)   Internal taxes A1-84  
 (vii)  Duty and tax concessions and exemptions A1-85  
 (viii)  Import prohibitions, quantitative restrictions, and licensing A1-87  
 (ix)   Contingency measures A1-87  
 (x)   Standards and other technical requirements A1-87  
 (xi)   Other measures A1-89 
 (3)   MEASURES DIRECTLY AFFECTING EXPORTS  A1-90  
 (i)   Procedures A1-90  
 (ii)   Export prohibitions, restrictions and controls A1-90  
 (iii)   Subsidies and export duty and tax concessions A1-90  
 (iv)   Free zones A1-91  
 (v)   Export promotion, financing and guarantees A1-92  
 (4)   MEASURES AFFECTING PRODUCTION AND TRADE  A1-92  
 (i)   Incentives and other forms of support for enterprises A1-92  
 (ii)   Local content requirements A1-94  
 (iii)   Government procurement A1-94  
 (iv)   State trading, state-owned ente rprises and privatization A1-97  
 (v)   Competition policy and price controls A1-100  
 (vi)   Intellectual property A1-101  WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
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IV.  TRADE POLICIES AND PRACTICES BY SECTOR A1-103  
 (1)   AGRICULTURE , LIVESTOCK , FISHING AND FORESTRY  A1-103  
 (i)   Overview A1-103  
 (ii)   Agricultural policy A1-106  
 (iii)   Trade policy by main product category A1-109  
 (2)   MINING AND ENERGY  A1-119  
 (i)   Mining A1-119  
 (ii)   Energy A1-124  
 (3)   MANUFACTURING  A1-127  
 (4)   SERVICES  A1-129  
 (i)   Overview A1-129  
 (ii)   Financial services A1-130  
 (iii)   Postal and telecommunications services A1-134  
 (iv)   Transport A1-137  
 (v)   Tourism A1-142  
REFERENCES   A1-145 
APPENDIX TABLES  A1-147  
 EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
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CHARTS 
I.  ECONOMIC ENVIRONMENT 
 
I.1 Structure of merchandise trade, 2005 and 2010 A1-65 
I.2 Average share of coffee exports in total export earnings, 2008-2010 A1-66 
I.3 Direction of merchandise trade, 2005 and 2010 A1-67 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Simple average of applied MFN rates, 2009 vs. 2011 A1-83 
 
TABLES 
I.  ECONOMIC ENVIRONMENT 
 
I.1 Economic indicators, 2005-10 A1-60 
I.2 Balance of payments, 2005-11 A1-63 
I.3 Share of exports in GDP, 2010 A1-66 
II.  TRADE AND INVESTMENT REGIMES 
 
II.1 Main trade laws and regulations, June 2012 A1-72 
II.2 Notifications to the WTO, 2003-12 A1-74 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Thresholds for procurement methods in Burundi in 2012 A1-96 
III.2 Statistics on the award of government procurement contracts in Burundi, 
 by type of procurement and by mode/method of awarding contracts A1-97 
III.3 List of state-invested companies and State's share, 2011 A1-99  
IV. TRADE POLICIES AND PRACTICES BY SECTOR 
 IV.1 Classification of private state land A1-104 
IV.2 Food production by groups of crops, 2002-10 A1-105 
IV.3 Production of main export crops, 2000-10 A1-105 IV.4 Programmes and subprogrammes of the PNIA A1-108 
IV.5 Trends in the animal herd, 2002-10 A1-116 
IV.6 Trends in mining output, 2003-09 A1-120 IV.7 Issuing and renewal costs for mining permits A1-121 
IV.8 Ordinary mining royalty rates A1-122 
IV.9 Taxes, royalties, duties, and percentages of foreign-currency earnings to be surrendered A1-123 
IV.10 Electricity production and consumption, 2001-07 A1-125 
IV.11 Electricity rates  A1-126 IV.12 Production of the main industries, 2007-11 A1-128 
IV.13 Lending by branch of activity, 2009 and 2011 A1-131 
IV.14 Indicators of the soundness of the Burundian banking system, 2006-11 A1-132 IV.15 Selected indicators for the telecommunications sector, 2008 A1-135 
IV.16 Annual number of arrivals and departures of passengers and goods at 
 Bujumbura International Airport, 2000-08 A1-141  
 WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
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APPENDIX TABLES 
 
I.  ECONOMIC ENVIRONMENT 
 
AI.1 Structure of imports, 2004-10 A1-149 
AI.2 Structure of exports, 2004-10 A1-151 
AI.3 Destination of exports, 2004-10 A1-153 AI.4 Origin of imports, 2004-10 A1-154 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
 
AIII.1 Products for which th e applied tariff may exceed  the bound tariff A1-155 
AIII.2 Fiscal incentives and aid for enterprises A1-163 
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  I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY  
1. The Republic of Burundi is a landlocked country st raddling Central and East  Africa.  It covers 
a total area of 27,834 km², of which 23,500 km² (or about 84.5%) is agricultural or potentially 
agricultural (arable) land.  In 2010 its tota l population was 8,444,102, that is, a density 
of 326 inhabitants/km², making Burundi one of  Africa's most densely populated countries.  
Almost 90% of the population live in rural areas. 
2. A decade-long sociopolitical crisis (Chapters II and V) has had a serious impact on Burundi's 
economic fundamentals and social indicators.  Acco rding to the authorities' most recent estimates, 
made in 2010, the crude death rate (15.1 per thou sand) and crude birth rate (38.5 per thousand) 
are rising.  The acute malnutrition rate exceeds 10%, the per capita daily caloric intake is well below 
the required standards (1,650 calories compared with the recommended 2,250 calories), and 85% of households face food insecurity every day.
1  With a per capita GDP of US$175.9 in 2010 and life 
expectancy at birth of 49.6 years, Burundi is one of the world's poorest least developed countries.  The majority of socio-economic indicators are notably lo wer than the average for sub-Saharan Africa, and 
the HIV/AIDS pandemic has also helped to lower standards of living.
2  The proportion of households 
living below the poverty threshold has almost doubled in the space of 20 years, standing at 67% in 2010 compared with 35% in 1990;  in the UNDP Human Development Index (HDI), Burundi is ranked 185
th out of 187 countries. 
3. Burundi remains a primarily agricultural nati on.  Agriculture (encompassing subsistence 
farming, livestock raising, fisheries and forestry) occupies 90% of the total population, produces on 
average around 45% of GDP, provides 95% of the food supply and accounts for 95% of export 
earnings.  Coffee is the principal export, followed by  tea.  Small farmers account for most of the 
production of these commodities, as a subsistence activity.  A prominent feature is the presence, in most branches of commercial agriculture, of semi-public enterprises and entities involved in 
processing and marketing activities.  Since the beginning of the 1990s, state involvement has been 
reduced somewhat as a result of various reforms;  nevertheless it remains significant, particularly 
through the fixing of prices for producers of coff ee, tea, cotton and sugar, and the dominant position 
of the semi-public enterprises.  In general these sectors are in difficulty, as the presence of numerous 
intermediaries is inflating post-production pri ces to levels in excess of those found on the 
international market. 
4. The secondary sector, accounting for about 15.8% of  GDP in 2010, is rudimentary and mainly 
serves the domestic market.  The tertiary sector (services), representing around 35% of GDP, has displayed burgeoning growth since 2000, particular ly in the mobile telephony segment.  Burundi 
relies heavily on the external sector, and the valu e of its trade in goods and services is approaching 
60% of GDP.  It has had a balance-of-payments deficit since 2000, which grew from US$5.7 million 
in 2005 to US$300.9 million in 2010, corresponding to around 20% of GDP. 
5. Burundi has a certain amount of mineral wea lth, including nickel, vanadium, cassiterite, 
colombo-tantalite and gold.  Its climate and its fe rtile soil give Burundi a comparative advantage in 
certain agricultural subsectors.  In the past, Burundi 's geographical situation was used to advantage to 
make the country a trade hub in the subregion.  This potential has been under-exploited since the 1990s, mainly because of the country's chronic instability, which makes it difficult to implement 
                                                      
1 Ministry of Agriculture and Livestock (2008a). 
2 UNDP (2010);  World Bank (2010);  and International Monetary Fund (2011a). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
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  policies to encourage development and means that i nvestment in Burundi is not very attractive to 
nationals or foreigners. 
6. Burundi is emerging from a long period of war, civil unrest and economic crises, the huge 
consequences of which are visible in all aspects  of the country's social, cultural, political and 
economic life.  The infrastructure deficit, partic ularly in the areas of energy and transport, 
is hampering the development of several sectors, particularly agriculture, industry and mining.  
Only about 3% and 2% of the population have access to electricity and telephony (fixed and mobile) 
respectively.  However, this rate rises to 13.72% for mobile telephony.  The authorities have made 
efforts in the areas of infrastructure construc tion and improvement of the legal and regulatory 
framework (Chapters II and IV).  Thus, 2011 saw  substantial progress which enabled Burundi to 
climb to 169th place in the World Bank's Doing Business 2012  report, having been ranked 174th out of 
183 countries in 2010.  Burundi is listed as one  of the global top ten reformers for 2012. 
7. The national currency is the Burundi franc (FBu).   Burundi accepted Article VIII of the IMF's 
Articles of Agreement in 1963, and adopted a floating exchange-rate system with effect 
from 1 April 1992.  The freezing of international fi nancial cooperation and th e drop in export earnings 
following the sociopolitical crisis which erupted in 1993 drove the foreign exchange reserves down to 
very low levels and led to the introduction of a dua l exchange-rate regime.  The Bank of the Republic 
of Burundi therefore decided to set up a second desk  for the sale and purchase of foreign currency by 
commercial banks.  On 4 July 2000, a foreign exch ange auction market was introduced with the aim 
of correcting the distortions caused by the multiple exchange-rate system and unifying the 
three exchange rates (1st and 2nd desk rates, and parallel market rate).   The participants in this market 
are the BRB as seller, and the commercial banks  and foreign-exchange offices as buyers. 
(2) RECENT ECONOMIC DEVELOPMENTS  
8. Following a long decade of economic stagnation in the 1990s and the early 2000s, Burundi's 
GDP growth rate has improved considerably sin ce 2006, increasing from 3.8% in 2007 to 4.5% in 
2008, thus outpacing population growth at around 4.1% (Table I.1).  These positive results are 
attributable to the easing of the sociopolitical crisis, improved security and a combination of the 
reforms undertaken since 2005, and favourable commodity-price trends.  However, Burundi's economic performance over the past two years has been weakened by the global financial and 
economic crisis.  Growth has decelerated, dropping fro m 4.3% in 2008 to 3.9% in 2010, primarily as a 
result of a decline in private transfers and foreign di rect investment.  The fall in international prices 
for petroleum and food products brought end-peri od headline inflation down from 24.1% in 2008 to 
10.5% in 2009, then to around 6.4% in 2010.  In 2011 the authorities announced an inflation rate of 
9.5%.  Thanks to donor support and th e allocation of SDRs, gross offici al reserves remained stable at 
6.5 import months in 2009-2010. 
9. Following the signing of the Arusha Peace and Reconciliation Agreement in 2000, to bring 
peace to the country, the Government moved forwar d with the consolidation of the macroeconomic 
framework by signing up to IMF programmes.  The objectives of these programmes include the sound 
management of public finances and of the nationa l currency, and the improvement of the business 
climate (Chapter II), through the following reforms in particular:  (i) operationalization of the Burundi 
Revenue Office (OBR);  (ii) better allocation of public spending to priority sectors;  and 
(iii) establishment of a single treasury account, censu s of government employees, etc.  These reforms 
have led to an increase in the level of its own r esources, as well as greater mobilization of external 
financing.  They have also helped to curb the growth of current expenditure and increase the fiscal 
space for the financing of investments.  In the bu dgetary area, the reforms have made it possible to EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-59 
 
 
  increase total public income to around 20% of GDP thr ough, in particular, better collection of income 
tax and indirect taxes.  Total expenditure, includi ng the wage bill, has esse ntially been contained 
within the budgetary limits.  However the low leve l of income, when set against expenditure, poses a 
problem in terms of Burundi's actual capacity to fi nance its development.  Overall, the budget deficit 
(excluding grants) worsened in 2010 and 2011, reaching 25.6% and 28.7% of GDP respectively 
(Table I.1). 
10. An analysis of Burundi's extern al debt by economic sector reveals that most of the debt is 
owed directly by the State to multilateral and bilate ral creditors (94% in 2010, compared with 80% in 
2009).  The remainder consists of  on-lent debt, i.e. amounts borrowed by the State for public 
beneficiaries.  In January 2009 Burundi attained  the completion point under the HIPC Initiative, 
reducing its public debt by more than 90% of its  net present value and cutting the debt burden by 
around 30 to 40 million per year over the next 30 years.   The country has also been granted additional 
debt relief in the framework of the Multilateral De bt Relief Initiative (MDRI).  The level of its 
external debt went down from 144.6% of GDP in 2005 to 22% in 2010.3  However, since 2010 the 
State's direct external debt has again been rising.  This debt is absorbed firstly by public amenities, 
where almost three quarters of e xpenditure is accounted for by transport (roads, airport and port), 
followed inter alia, by the balance of payments, technical assistance, the management of state-owned 
enterprises, and project studies;  the debt for th e productive and social sectors represents only about 
11.5% and 9.6%, respectively, for the period under review. 
11. The Government has embarked upon a number of re forms with a view to reducing its deficit.  
The main objective of the budgetary policy is to ma intain a prudent position in order to control the 
debt and ensure debt sustainability in a context of great vulnerability in the medium term, particularly 
given the decline in budgetary assistance and donors'  increased preference for project support rather 
than budgetary support.  This involves reducing th e share of current public expenditure in GDP and 
reallocating resources towards strategic investments (particularly in the energy sector, with a major 
investment in the construction of an electric pow er plant - KABU 16 - representing 0.5% of GDP in 
2012), and towards poverty reduction spending.  In  the medium term, one key assumption of the 
strategy is that civil service salaries will be cont ained:  the 2012 budget assumes strict maintenance of 
public sector staffing levels in all sectors except h ealthcare, and basic and secondary education, as 
well as the strict control of nominal salaries, so th at the share of public sector remunerations in GDP 
falls by 0.4%.  In the longer term the objectiv e is to strengthen domestic resources through the 
activities of the OBR, and by means of a new fiscal reform whose main focus is on:  aligning income 
taxes and excise duties on the harmonization guidelines of the East African Community (EAC);  
reducing existing tax exemptions in order to broa den the tax base;  continuing the public finance 
reforms heralded by the adoption in 2008 of th e new Organic Law on Public Finance (LOFP), by 
means of a new strategy for the reform of public finances which was due to be finalized during the 
first quarter of 2012 following validation of the Public Expenditure and Financial Accountability 
report (PEFA);  adopting progra mme budgeting with effect from 2014;  decentralizing payment 
authorization in the sectoral ministries;  the gradua l adoption of risk-based controls;  and switching to 
the accrual basis of accounting.  A decree ushering in these reforms (General Regulations on Public 
Budget Management (RGGBP)) was adopted at th e end of 2011.  A text on budget governance is 
under preparation.4 
                                                      
3 International Monetary Fund (2011b) . 
4 PEFA (2012) . WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
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  Table I.1 
Economic indicators, 2005-10 
 2005 2006 2007 2008 2009 2010
GDP at market prices (FBu million) 860,90 0 946,402 1,060,132 1,386, 199 1,637,111 1,843,893
GDP at market prices (US$ million) 796 920 980 1, 169 1,331 1,498
Real GDP, growth rate (%) 0.9 5.1 3.2 4.3 3.4 3.9
Population (million) 7. 4 7.6 7.8 8.1 8.3 8.5
Nominal GDP per capita (US$) 107.9 121.0 125.0 144.8 160.3 175.9
 (Percentage of GDP) 
Sectoral distribution of GDP   
Primary sector  45.2 45.1 43.7 43.5 42.8 42.9
  Food cropsa 44.2 42.2 42.6 41.9 41.9 41.3
  including subsistence farming 37.1 35.3 35.5 34.9 34.7 34.1
  Export-oriented agriculture  1.1 2.9 1.1 1.6 1.0 1.6
Secondary sector  15.4 15.3 15.3 15.4 15.7 15.8
  Industry, mining and energyb 10.6 10.4 10.3 10.2 10.2 10.3
  Construction  4.8 4.9 5.1 5.2 5.4 5.5
Tertiary sector  32.5 32.8 34.3 34.5 35.0 35.0
  Tradable services  11.5 11.5 12.5 12.5 12.8 12.8
  Non-tradable services  21.0 21.2 21.9 22.0 22.2 22.2
GDP at factor cost 93.1 93.2 93.3 93.4 93.5 93.6
Indirect taxes, minus subsidies  6.9 6.8 6.7 6.6 6.5 6.4
 (Percentage of GDP) 
National accounts       
Private final consumption 92.0 94.9 95.1 87.0 81.8 80.0
Public final consumption 26.5 27.3 27.1 41.6 36.7 39.2
Gross fixed capital formation 10.5 16.3 17.5 22.3 22.1 20.6
Variation in inventory 0.0 0.0 0.0 0.0 0.0 0.0
Net exports -29.1 -38.5 -39.8 -50.9 -40.7 -39.7
Exports of goods and services 11.5 10.1 8.6 9.0 7.3 9.1
Imports of goods and services 40.6 48.6 48.3 59.9 48.0 48.8
   
Prices and interest rates   
Inflation (CPI, % change) 13.5 2.8 8.3 24.1 11.0 6.4
Deposit rate (interest rate) 9.6 8.9 8.3 8.1 7.6 7.3
Lending rate (long term) 19.2 16.6 17.1 15.1 13.1 10.2
Exchange rates       
FBu/US$ (annual average)  1,082 1,029 1,082 1,186 1,230 1,231
Real effective exchange rate (end of period, 
% change) .. .. -6.2 28.5 9.5 6.2
Nominal effective exchange rate (end of period, 
% change) .. .. -10.2 33.3 1.2 2.1
   
Public finances c    
Revenue and grants 32.5 30.4 34.3 28.7 25.9 39.4
Revenue  20.5 19.3 19.0 18.8 18.9 19.9
  Tax revenue  18.5 17.3 17.5 17.1 17.0 18.6
  Non-tax revenue 2.0 2.0 1.5 1.7 1.4 1.3
  Special revenue (COMESA) 0.0 0.0 0.0 0.0 0.5 0.1
Table I.1 (cont'd)EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
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   2005 2006 2007 2008 2009 2010
Grants 12.0 11.1 15.2 9.9 6.5 19.3
Expenditure 34.7 33.7 37.1 31.6 32.8 46.8
  Current expenditure  25.7 24.0 25.0 26.1 26.4 27.5
  Expenditure on goods and services  16.1 17.4 17.3 18.6 17.3 16.8
  Wages  8.5 9.5 10.5 11.2 11.0 11.5
  Purchases of goods and other services  7.6 7.9 6.7 7.5 6.3 5.3
  Subsidies and other transfers  3.5 3.8 4.4 5.2 6.9 8.5
  Interest payments  3.7 2.1 2.8 1.9 1.6 1.6
  Special fund expenditure   2.4 0.7 0.5 0.4 0.5 0.6
Current account balance, excluding grants  -5.2 -4.7 -6.0 -7.3 -7.5 -7.6
Current account balance, including grants  6.8 6.4 9.3 2.6 -0.5 11.9
  Capital expenditure  9.0 9.7 12.1 5.5 6.4 19.3
Overall balance, excluding grants (accrual basis)  -14.2 -14.3 - 18.1 -12.8 - 13.9 -26.9
Overall balance, including grants (accrua l basis)  -2.3 -3.3 -2.8 -2.9 -6.9 -7.4
Financing  2.3 3.3 2.8 2.9 6.9 7.4
  External financing  1.6 2.1 0.9 1.0 4.7 6.1
  Net domestic financing  0.4 3.9 0.4 2.4 5.2 1.3
  Errors and omissions  0.2 -2.7 1.6 -0.5 -3.1 0.0
    
Public debt   
  Domestic debt (end of year) / GDP 22.4 24.4 22.7 19.7 22.4 23.2
  External debt (end of year) / GDP 144.6 140.0 144.4 113.1 34.3 28.6
   
Memorandum items   
Inward FDI stock (% of GDP) 4.4 3.9 3.7 5.0 5.7 6.1
Outward FDI stock (% of GDP) 0.2 0.2 0.2 0.2 0.2 0.2
 
.. Not available.  
a Current  subsistence agriculture, livestock raising, fisheries and forestry. 
b Including handicrafts. c Provisional 2010. 
 
Source:  Bank of the Republic of Burundi.  Viewed at:  http://www. brb.bi;  IMF, IFS database.  Viewed at: http://elibrary- 
 data.imf.org;  and UNCTAD statistical data.  Viewed at:  http://unctadstat.unctad.org. 
12. The establishment, in 2009, of the OBR has helped  to increase revenue and, as a result of the 
automation of the expenditure chain, the integrated  public finance management system has improved 
the monitoring of expenditure execution and enhanced transparency in public finances.  The structure 
of Burundi's budget still contains a very large pr oportion of current expenditure (wages, operating 
expenses, interest payments, and transfers and subsidies) in relation to capital expenditure.  
Between 2005 and 2010, annual average current expenditure accounted for around 29% of GDP, 
compared with around 8% of GDP for capital expenditure (Table I.1). 
13. Monetary policy is in the hands of the Ba nk of the Republic of Burundi (BRB), whose 
key objective is to ensure price stability (with an in flation rate of less than 10%) through management 
of the national currency.  In addition to this main  mission, the BRB is responsible for:  management 
of the country's official reserves;  regulation of foreign-currency transactions;  participation in the 
negotiation of international agreements on paymen t modalities;  regulation and control of lending 
establishments and financial intermediaries;  and promotion of the proper functioning of money and 
capital markets.  The BRB's intervention tools are th e refinancing rate and the required reserves of 3% WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-62 
  
  of deposits in local and foreign currencies.  The implementation of these instruments is decided on by 
the Monetary Policy Committee. 
14. The BRB also offers a marginal lending facility  to commercial banks experiencing temporary 
difficulties.  This facility, granted subject to the lodging of sufficient security with the central bank, 
is a refinancing window lasting no more than one day.  At present the marginal lending rate is 
dissuasive, being set at the weighted average rate for the previous issue of treasury bonds, increased 
by three percentage points.  The BRB has decided to  set a floor for net foreign assets and a ceiling for 
net domestic assets in order to restrict the growth of  money supply to a level compatible with nominal 
GDP growth.  Money supply showed a continuo us upward trend between  2004 and 2010, and was 
estimated at FBu 638.1 billion in 2010, compared with FBu 530.77 billion in 2009.  Over the same 
period, net foreign assets, which had also b een rising, fell from FBu 168.8 billion in 2009 
to FBu 139.9 billion in 2010.  Domestic cr edit also rose steadily, and was estimated 
at FBu 669.8 billion in 2010 compared with FBu 3 64.7 billion in 2006.  The State's difficulties in 
financing its budget deficit are evidenced by th e increase in net debts owed by the State over 
the period. 
15. Where exchange rate policy is concerned, th e BRB adopted new regulations in July 2010 to 
replace those which had been in force since 2006.  These new regulations are intended to further the 
policy of liberalizing international current account  transactions.  In 2010 the BRB continued with the 
policy of determining the exchange rate by mean s of the symmetrical foreign exchange auction 
market introduced in April 2009.  The policy allo ws both the central bank and the commercial banks 
to sell and buy foreign currency on this market.  On an annual average, the Burundi franc (FBu) has 
depreciated significantly against the Japanese yen (7 .1%) and the Swiss franc (5.2%), and slightly 
against the U.S. dollar (0.05%).  On the other hand, it has appreciated against the euro (-4.1%) and the 
British pound (-0.7%). 
16. The exchange rate of the FBu relative to th e U.S. dollar has not fluctuated greatly over 
the period.  BRB authorization is required for cer tain major capital account transactions (by both 
natural and legal persons). 
17. Inflation in Burundi is driven essentially by the level of the budget deficit, the production 
growth rate and the increase in money supply.5  The combination of prudent monetary and budgetary 
policies, implemented following reforms supported by the IMF and the World Bank since 2005, made 
it possible to reduce the cumulative inflation rate  from 13.5% in 2005 to 6.4% in 2010, before it 
climbed to 9.5% in 2011 (Table I.1).  Burundi reco rded a very high inflation rate in 2008 (24.1%), 
primarily as a result of the surge in global food pri ces.  On the other hand, the global financial crisis 
did not have serious consequences for Burundi's ba nking system.  Nevertheless, a concentration risk 
has been identified by the Financial Sector As sessment Program (FSAP) as one of the banking 
system's main vulnerability factors.  Despite the o il and food shock and the glob al financial crisis, the 
country's external position has been supported by th e debt relief obtained under the HIPC and MDRI 
Initiatives, and by the allocation of SDRs.  Despite the impact of the food and oil crisis on the trade 
balance, the external current account deficit fell in  2008 as a result of substantial transfers, before 
worsening in 2009 because of a drop in donor assistance. 
                                                      
5 Burundi's Economic Development Institute (IDEC, 2008). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
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  (3) TRADE AND INVESTMENT PERFORMANCE  
(i) Trade in goods and services 
(a) Trade in goods 
18. The structure of Burundi's trade has not changed significantly since the previous review of the 
country's trade policy (TPR) in 2003 (Tables AI.1 and AI.2, and Chart I.2).  Burundi's balance of 
payments shows a chronic current account deficit, due in particular to a low rate of cover of imports 
by exports and a relatively large deficit in the ser vices account.  In 2010, expor ts and imports of goods 
accounted for 9.1% and 48.8% of GDP, respectively.   The exports/GDP ratio fell during the second 
half of the 2000s, whereas the imports/GDP ratio gr ew rapidly, giving rise to an ongoing trade deficit 
which reached US$300.9 million in  2010, corresponding to 20% of GDP.  The resulting current 
account deficit has been partially financed by th e increase in foreign aid flows, which averaged 
around 17.7% of GDP between 2008 and 2010. 
Table I.2 
Balance of payments, 2005-11 
(US$ million) 
 2005 2006 2007 2008 2009 2010 2011
Current account  -5.7 -133.5 - 108.0 -259.4 -163.6 -300.9 -283.6
Goods -128.1 -186.0 -195.3 -265.8 -277.0 -337.2 -428.6
  Credit 60.8 58.7 58.8 69.6 66.0 101.2 123.9
  Debit -188.9 -244.7 -254.1 -335.5 -343.0 -438.4 -552.5
Services -99.3 -167.7 -148.1 -175.5 -126.7 -88.7 -101.2
  Credit 34.8 34.5 30.8 83.3 49.9 79.5 111.7
  Debit -134.1 -202.2 -178.9 -258.8 -176.6 -168.2 -212.9
Income -17.8 -8.8 -5.9 -4.3 -17.0 -10.9 -17.4
  Credit 3.2 4.6 8.7 10.9 1.4 1.1 7.5
  Debit -20.9 -13.4 -14.6 -15.2 -18.4 -12.0 -24.9
Current transfers 239.5 229.0 241.2 186.2 257.1 135.9 263.6
  Credit 242.8 231.8 241.7 188.2 260.4 149.5 277.1
  Debit -3.3 -2.7 -0.5 -2.0 -3.2 -13.6 -13.5
Capital account 31.8 62.0 128.0 140.7 1,025.3 77.9 96.5
  Credit 32.7 63.1 129.3 146.2 1,028.7 86.5 ..
  Debit -0.9 -1.1 -1.3 -5.5 -3.3 -8.6 ..
Financial operations account 58.2 67.7 6.1 60.9 -758.1 214.9 181.8
  Direct investment 0.6 0.0 0.5 3.3 0.3 0.8 3.4
  Portfolio investment 0.0 0.0 0.0 0.0 0.0 0.0 0.0
  Other investment 91.5 85.8 68.7 166.2 -701.4 234.1 162.5
  Reserve assets -33.9 -18.2 -63.1 -108.5 -57.0 -20.0 15.9
Errors and omissions -84.3 3.8 -26.1 57.8 -103.6 8.1 5.4
Indicators (%)   
  Balance of goods/GDP -16.1 -20.2 -19.9 -22.7 -20.8 -22.5 ..
  Current account balance/GDP -0.7 -14.5 -11.4 -22.2 -12.3 -20.1 ..
.. Not available. 
Source:  IMF, Balance of payments.  Viewed  at:  http://elibrary-data.imf.org (accessed:  June 2012);  and Bank of 
the Republic of Burundi, Annual Report 2011. 
19. Burundi's export base remains particularly narrow and is highly concentrated on a small 
number of products, including coffee, tea, sugar, b eer and cigarettes (Table AI.2 and Chart I.1).  
Compared to other countries, Burundi remains over-re liant on coffee exports (Chart I.2).  Most of the WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-64 
  
  major gold exports reported in recent years are not corroborated by the mining production statistics, 
and appear more likely to be re-exports ( Global Witness 2009 ).6 
20. Exports have grown more slowly than GDP over the past decade, hence the drop in the share 
of exports of goods in GDP from around 10% on averag e between 2005 and 2007 to less than 5% in 
2010.  The exports to GDP ratio almost doubles when  services are included, primarily because of the 
spectacular increase in exports of "Government services".7  These ratios are far below the averages for 
sub-Saharan Africa (SSA) and the least developed countries (LDCs), and are also weaker than the 
performances of all the other EAC member countries (Table I.3). 
21. The European countries continue to dominate Burundi's export markets, but their relative 
importance is declining (Chart I.2 and Table AI.3).  These countries received around 78% of 
Burundi's exports in 2004, compared with 59% in 2010  - a contraction of almost 20 percentage points.  
Certain developing countries have become relativel y important destinations for Burundi's products.  
For example, in 2010 exports to Singapore and th e Democratic Republic of the Congo accounted for 
around 6.1% and 6.2% of the total, respectively.  Exports to the United States declined during the decade, indicating that Burundi has not really been able to take advantage of its admission to the 
AGOA since 2006.  Exports to African markets rose from 11.1% to 22.8% between 2004 and 2010 
(Chart I.1).  These markets are currently the main importers of Burundian manufactures. 
22. The EAC has become an increasingly important region for Burundi's exports since 2001, 
i.e. well before Burundi joined the Community.  Ex ports to and imports from the EAC have increased 
rapidly over the past decade (Charts I.2 and I.3).  This evaluation is based on the official statistics, 
which do not record informal cross-border flows and are therefore likely to underestimate the 
importance of the subregion.  The shares of tota l exports going to Rwanda (5.6%) and Kenya (9%) 
have been stable, but the shares going to Uganda  and Tanzania have increased during the decade 
(from 0.9% and 0.3% respectively in 2004, to 2. 4% and 1.5% in 2010).  The main exports from 
Burundi to the EAC include hides and skins (a round 25%), raw cane sugar (20%), ferrous scrap 
(17%), coffee and tea (8%), and soap (5%).
8 
23. The structure of imports has changed somewh at since 2001.  They consist essentially of 
manufactured goods, capital goods, food produc ts, chemicals and petroleum products.  
Burundi's integration in the subregional a nd global economy has changed the geographical 
distribution of its trade.  A small shift in the country's trade flows has been observed since 2003.  
Burundi's main traditional sources of imports have seen their shares in the country's total imports 
decrease slightly (Chart I.3 and Table AI.4).  Th e European Union and the EAC member countries are 
major import markets for Burundi, but their shares  have declined (from 34.2% to 28.2%, and from 
29% to 26%, respectively).  At the same time, im ports from other countries have increased:  Saudi 
Arabia (averaging 12% in recent years, mainly o il, with a peak in 2007) and China (from 3.3% in 
2004 to 12% in 2010). 
 
                                                      
6 World Trade Organization (2003a);  and World Bank (2011). 
7 Governmental services include goods and services transactions by international organizations, 
embassies, or military units and their personnel in the host countries and correspond to mode 2 in the case of services.  For details, see IMF (undated). 
8 Burundi's gross exports to th e EAC also include the variou s re-exports of manufactures.  
See "East African Community S ecretariat" report (2010). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-65 
 
 
  Agricultural raw
materials
4.4Mining and
quarrying
6.7Manufactures
5.3
Agriculture  76.8
Coffee, not roasted
59.3Gold
11.0
Other
0.2
Agriculture  76,8Chart I.1
Structure of merchandi se trade, 2005 and 2010
2005 2010
(a)    Exports (f.o.b.)
Total:  US$113.8 millon Total: US$118.2 millon
(b)    Imports (c.i.f.)
Other
0.6
Iron and steel
12.4Agriculture  
7.8
Mining and 
quarrying
9.2Manufactures
82.3
Chemicals
12.4Other
semi-manufactures 
14.0Non-electrical
machinery 8.3Office and 
telecommunications 
equipment 6.4Other consumer
goods 7.1Other electrical
machinery 4.7Automotive industry
products 
13.2
Other 
manufactured 
articles 3.9
Manufactures
81.6
Agriculture  
15.1
Mining and 
quarrying
2.8
Iron and steel
7.2 Chemicals
17.1Other
semi-manufactures
16.2Automotive industry
products 
11.1
Office and 
telecommunications 
equipment 6.6Other consumer
goods 7.3
Other 
manufactured 
articles 5.2
Other
0.5Non-electrical 
machinery 6.9Other electrical 
machinery 4.0
Total:   US$258.2 millons Total:   US$404.1 millonPer cent
Other food
products
4.7
Coffee, not roasted
40.9
WTO Secretariat calculations, based on data from the UNSD Comtrade database (SITC Rev.3).Agriculture 47.3
Other food
products
3.5Agricultural raw
materials
2.2Mining and 
quarrying
1.4Gold
48.0
Manufactures
3.2Other
0.1
Source :Tea
0.7Tea
8.5
 WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-66 
  
  Table I.3 
Share of exports in GDP, 2010 
(%) 
Country Exports of goods Exports of goods and services 
Burundi 4.6 9.7 
Kenya 13.4 25.1 
LDCs 25.3 28.7 
Rwanda 3.6 10.2 
SSA 29.0 32.9 
Tanzania 12.0 21.0 
Uganda 6.2 13.9 
Source:   Burundi Diagnostic Trade Integra tion Study (DTIS) 2012, data from Comt rade/WITS (goods exports, mirror data) 
and UNCTADstat (services exports), p.16. 
24. The African countries' share in Burundi's imports has grown steadily since Burundi's 
previous TPR in 2003.  Tanzania, Kenya, Uganda and Zambia have been the leading 
African exporters to Burundi.  The African continen t is now the top exporter to Burundi, with 34.5% 
of the market in 2010.  The share of imports from the COMESA countries stood at 22.5% in 2010.  
The Asian countries, including Japan, China and In dia, were the second largest source of imports, 
with 29.3% in 2010. 
 
 
EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-67 
 
 
  Chart I.3
Direction of merchandise trade, 2005 and 2010 
2005 2010
(a)    Exports (f.o.b.)
Singapore
6.1
Other
2.0Africa
22.8
EU (27)
31.0Europe
57.9United Arab
Emirates
8.8
Other Asia
2.3Switzerland and
Liechtenstein
26.9Kenya
8.7Dem. Rep. of the 
Congo 6.2
Other Africa
8.0
Total:   US$113.8 millon Total:  US$118.2 millon
(b)    Imports (c.i.f.)
EU (27)
34.2Africa
29.2
China  4.2
America
3.8Zambia
3.4Other Africa
9.4
Other 1.4Europe
43.4Other Europe
9.2United Arab
Emirates 3.1
Asia
19.1 Japan  8.8
India  4.1
Other Asia
2.0Kenya
12.2Uganda
3.9 Tanzanía
4.9
EU (27)
26.8Tanzanía
6.0
China
12.0
Asia
29.3
America
1.9Other 1.5Europe
28.2Africa
34.5United Arab
Emirates 4.6
Other Europe
1.4Zambia
8.4Kenya
7.3Uganda
6.8Other Africa
6.0
Japan
9.4
India  6.0
Other Asia
1.9
Total:   US$258.2 millon Total:   US$404.1 millonPer cent
Source :  WTO Secretariat calculations, based on data provided by the authorities.Europe
56.4Switzerland and
Liechtenstein
36.2Kenya
7.1
Africa
15.4
Other
1.3United Arab
Emirates 25.3
Singapore
0.9
Other Asia
0.7Dem. Rep. of the 
Congo 0.9
Other Africa
7.5
EU (27)
20.2
 WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-68 
  
  25. The other four EAC member countries' rela tive shares in Burundi's imports varied 
between 2004 and 2010:  Uganda's share rose from 5.7% to 6.8%, with peaks approaching 10% of 
total imports between 2007 and 2008 , whereas Kenya and Tanzania saw their shares decline from 
14.9% to 7.3% and from 8.4% to 6%, respectively.   Imports from the EAC countries are more diverse 
than exports to them, but consist primarily of mate rials such as iron and steel (18%) or cement (14%), 
paper and related manufactures (11%);  other ma nufactures (20%);  chemicals and related products 
(15%);  and cereals and other foods (11%).9 
(b) Trade in services 
26. Between 2001 and 201010, the share of services in total tr ade increased from 12% to 51% for 
exports and from 22% to 29% for imports.  This pa ttern reflects the increasing role of the services 
sector in the domestic economy.11  In Burundi trade in services in relation to GDP has grown much 
faster than in other EAC countries. 
27. The growth of trade in services as a proportion of GDP is attributable primarily to exports 
of "government services", which are currently domin ating Burundi's exports of services;  this is 
a reflection of increased donor presence since 2005.  The remaining exports of services 
(i.e. "commercial services") are negligible and c onsist of travel services (the purchase of goods and 
services in Burundi by non-residents, transport servi ces, financial services and other business services.  
Export earnings from commercial services range between US$2 and 7 million per year.  Imports of services averaged US$200 million between 2008 and 2010 (almost five times the annual average 
recorded between 2001 and 2003).  This is due to the rapid increase in imports of transport and 
travel services, which represent between 80 and 90% of Burundi's total imports of services. 
(ii) Direct investment 
28. Despite its legislative efforts (C hapter II(3)), Burundi is still finding it hard to attract foreign 
direct investment (FDI).  FDI inflows per capit a are even lower in Burundi than in all the 
other EAC countries, even though they have been rising since 2008.  On average, FDI represented 1% 
of GDP between 2008 and 2010, compared to almo st zero between 2001 and 2007.  The relatively 
high volumes recorded in 2008 (US$14 million), 2009 (US$10 million), and 2010 (US$14 million) 
were mainly in telecommunications and the bank ing sector.  According to UNCTAD, in 2010 the 
estimated FDI stock reached US$91 million and 6% of GDP.
12  These figures are comparable with the 
FDI estimates for Kenya (7%) and Rwanda (8%).  The Doing Business 2012  report makes reference 
to progress, and to recent reforms for the protection of  investors.  Nevertheless, Burundi's capacity to 
attract FDI could usefully be improved by reducing high production and transaction costs, as well as 
improving energy infrastructure and other basic commercial services.13 
29. The major investments in the telecommunications sector reflect the Government's 
liberalization of the mobile telephony market (Cha pter IV(5)(iii)).  In 2008, the Egyptian company 
Orascom acquired U-Com, recently owned by the Indian group Global Vision.  Moreover, 
two additional licences have been granted, one to  HITS Telecom, a Uganda-Saudi Arabia joint 
venture, and the other to the Nepalese company Lacell SU (Smart Mobile). 
                                                      
9 East African Community Secretariat (2010). 
10 The availability and reliability of data on trade in services remain limited. 
11 Bank of the Republic of Burundi (BRB, 2010). 
12 UNCTAD (2010). 
13 For a detailed account of the nature and impact of - and the constraints on - FDI in Burundi, 
see UNCTAD (2010). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-69 
 
 
  30. According to the authorities, the increase in FDI is also attributable in part to the 
establishment, in 2009, of Burundi's Investment Pr omotion Agency (API), aimed at simplifying the 
investment authorization procedure and making it more efficient.  Recent figures show that the API dealt with 145 investment projects between its establishment and the end of 2011, apparently 
equivalent to FBu 477 billion (around US$400 million).  In 2010-2011, the projects handled by the 
API were concerned primarily with hotels a nd other aspects of t ourism (US$150 million), 
manufactures (US$130 million), and agri-businesses (US$104 million).
14 
31. The establishment of the EAC Common Market a nd the continuation of the liberalization and 
privatization process have opened up new opportun ities in terms of trade in services and direct 
investment.  The increased size of the regional market and the possibility of positioning Burundi as a 
regional trade hub could create strong incentives for fo reign investors wishing to establish themselves 
in the region.  Increased FDI would, in its turn , be a major advantage in terms of facilitating 
export diversification.  The UNCTAD report on  Burundi's investment policy refers to 
major FDI opportunities in the mining, manufacturing and services (telecommunications, banking services, commercial services, tourism) sectors.
15 
(4) OUTLOOK  
32. Overall, Burundi has taken some important steps in recent years to clarify the objectives of its 
trade policy and improve its business environment.  Recent trade policy commitments at the regional 
level, coupled with legislative and regulator y developments, demonstr ate the Government's 
commitment to improving the country's trade perfo rmance.  However, sustainable and effective 
implementation of the reform package remains a ma jor challenge for Burundi, whose institutional and 
human resource capacities are still li mited.  According to the authorities, several recently adopted 
reforms have not yet produced the hoped-for eff ects because they have not been implemented, 
owing to a lack of implementing texts or of fi nancial, material and human resources for the new 
institutions.  Moreover, the impact of the reforms is  likely to be limited, at least in the short term, 
by the small proportion of businesses operating in the formal sector and by the business climate, 
which is still suffering from the years of sociopoli tical conflict.  Supply-side constraints such as 
limited access to essential services (electricity, transport infrastructure, banking and insurance, 
telecommunications, etc.) and a lack of market knowledge, are preventing companies and individuals 
from participating in commercial activities and limiting the impact of the reforms. 
33. In 2012 the authorities finalized the Growth and Poverty Reduction Strategy Paper (PRSP II), 
which provides medium-term projections for the main macroeconomic aggregates.  Thus, according 
to the projections based on a scenario of continuing reforms leading to vigorous growth sustained by 
favourable developments at the in ternational level, economic growth  - estimated at 4.2% in 2011 - 
would rise to 5.1% in 2012 and 8.2% in 2015.  On average, over the period 2012-2015 Burundi's economy would grow by 6.9% a year, corresponding to  three percentage points above the average rate 
of growth recorded between 2007 and 2011.  The c ountry's resources should also be on the increase, 
even though public finances would still show a slight deficit. 
34. The structural current account deficit would deepen year by year, from 20.7% of GDP in 2011 
to 42.2% of GDP in 2015, i.e. an average of 38.1% over the period 2012-2015, compared with 17.8% between 2007 and 2011.  The capital and financial operations account surplus would average around 
38.1% of GDP over the period 2012-2015, compared  with 17.8% during 2007-2011.  This would 
result from the expected increase in foreign dir ect investment as the business climate improves.  
                                                      
14 API (2011). 
15 UNCTAD (2010). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-70 
  
  Where debt is concerned, the country would a dopt a policy aimed at promoting financing at 
concessional rates in order to avoid an excessive debt  service burden.  Inflation would be held below 
10% in accordance with the EAC convergence criteri a.  Lending to the economy would increase by 
15.6% on average, raising its ratio to GDP to 27.9% during the period 2012-2015, compared with 
22.2% on average between 2007 and 2011. 
35. Burundi's economic outlook is generally favourable , although it is exposed to risks arising out 
of the external environment, the security situ ation, the country's geographical location, the 
vulnerability of its agriculture to climate cond itions, and vulnerability to the impact of price 
fluctuations on commodity markets.  Annual growth  rates of between 5 and 7% will be needed to 
reduce the poverty level and counteract the impact of the prolonged economic downturn seen during 
the past decade. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-71 
 
 
  II. TRADE AND INVESTMENT REGIMES 
(1) OVERVIEW  
36. Burundi has amended the overall framework for its trade and investment policy since the 
previous Review in 2003.  In February 2005, th e new Constitution of the Republic of Burundi was 
adopted to replace the transitional Constitution of October 2001;  and several laws were updated. 
37. Under the Constitution, executive power is vest ed in the President of the Republic, the 
two Vice-Presidents, and the members of the Government.  The President is elected by direct universal suffrage for a term of five years, renewa ble once.  Legislative power belongs to Parliament, 
which comprises two chambers:  the National Assembly and the Senate.  Parliament's role is to adopt 
legislation and monitor action by the Government in accordance with the procedures defined in the 
Constitution.  The Judiciary is composed of the Supreme Court and other courts.  Commercial cases 
are heard by the Commercial Court, establishe d by presidential decree in 1987, which ensures 
compliance with the provisions of the Commerc ial Code and rules on violations thereof. 
38. Pursuant to the Constitution, executive power at the provincial level is delegated to a 
provincial governor responsible fo r coordinating administration of th e province.  Provincial governors 
are appointed by the President of the Republic fo llowing consultation with the two Vice-Presidents 
and confirmation by the Senate. 
39. The Constitution has precedence over all other national legal instruments.  Below the 
Constitution come the components of the legislativ e bloc, namely, in order, laws (organic and 
ordinary), then the components of the regulatory bloc, namely, decrees, orders, ordinances, internal 
regulations, administrative regulations, circulars, instructions, directives, decisions and, finally, 
customs.  International treaties and agreements ar e signed by the President or by the minister to 
whom such powers have been delegated.  Once si gned, they must be brought before Parliament 
for ratification.  The Constitution establishes a m onist system that reaffirms the primacy of 
international instruments over Burundi's legal texts,  subject to their reciprocal implementation by 
the parties. 
40. Since Burundi's previous TPR in 2003, the country has la unched several programmes and 
reforms to update its legal framework, which ha d suffered greatly from the upheavals of war.  
All Burundi's legislation is bei ng generally updated and harmonized,  with improvements being made 
to certain key laws governing the business and invest ment environment, for example, the codes for 
investment, trade, business, taxation, customs,  development of the private agricultural and 
non-agricultural sector, reform of state-owned en terprises, government procurement and fiscality 
(Table II.1). 
41. Policies are formulated and implemented through laws, decrees or ordinances.  Each ministry 
is responsible for formulating policies within its  competence and for preparing the relevant draft 
legislation.  This is done in coordination with ot her ministries which may be affected by the measures 
under consideration. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-72 
  
  Table II.1 
Main trade laws and regulations, June 2012  
Area Instrument/Text Date of entry into 
force 
Business activities in Burundi (including unfair competition and 
consumer protection), competition Law No. 1/07 of 26 April 2010 on the Commercial Code 
Law No. 1/06 of 25 March 2010 on the legal regime for competition  26 April 2010 
25 March 2010 
 Investment guarantees;  rights and 
obligations;  investment regimes   
Law No. 1/24 of 10 September 2008 on Burundi's Investment Code 
Law No. 1/23 of 24 September 2009 on the fiscal incentives provided by Law No. 1/24 of 10 September 2008 on Burundi's Investment Code  
10 September 2008 
24 September 2009 
 Free-zone regime   
Law No 1/015 of 31 July 2001 revising Decree Law No. 1/3 of 31 August 1992 establishing a free-zone regime in Burundi.  In 2008, 
this law was incorporated in to the new Investment Code  
31 July 2001 
 Taxes, levies and duties   
Law No. 1/02 of 17 January 2009 establishing the value added 
tax (VAT) 
Ministerial Ordinance No. 540/708/2009 of 2 June 2009 implementing Law No. 1/02 of 17 January 2009 establishing the value added 
tax (VAT) 
General Code of Taxes and Duties Amendment of certain provisions relating to earned income tax or 
occupational tax 
Amendment of certain provisions relating to the tax on income from movable capital assets, or movable property tax Revision of Law No. 1/011 of 30 D ecember 1998 establishing a fixed 
levy on certain taxes  
17 January 2009 
 
2 June 2009  
 
 13 March 2001 
 
13 March 2001  
 Customs legislation  
Law No. 1/02 of 11 January 2007 establishing the Customs Code   
11 January 2007 
 Intellectual property (copyright)  
Law No. 1/021 of 30 December 2005 on protection of copyright and related rights 
Law No. 1/13 of 28 July 2009 on industrial property in Burundi  
30 December 2005  
28 July 2009 
 
Labour Code   
Decree Law No. 1-037 of 7 July 1993 revising Burundi's Labour Code  
7 July 1993 
 Phytosanitary legislation  
Decree Law No. 1/033 of 30 June 1993 on plant protection in Burundi   
30 June 1993 
 
State-owned enterprise privatization 
programme   
Law No. 1/09 of 30 May 2011 establishing the Code on private and 
state-invested enterprises Law No. 1/07 of 10 September 2002 re vising the law on the organization 
of privatization of state-owned enterprises 
Law No. 1/01 of 4 February 2008 on Burundi's Government Procurement Code 
Law on bankruptcy and companies in difficulty 
Law on court-approved arrangements  
30 May 2011 
 10 September 2002 
 
4 February 2008 
 
Source : Information provided by the Burundian authorities. 
 
42. Trade policy is formulated and implemented by the Ministry of Trade, Industry, Post and 
Tourism, whose responsibilities include fair a nd transparent conditions for competition.  
Other institutions are also involved in implementi ng trade policies, for example, the Ministry of 
Finance and Economic Development Planning (including the customs administration);  the Ministry 
of Agriculture and Livestock;  the Ministry of  Transport, Public Works and Infrastructure;  
the Ministry of Justice and Keeper of the Seals;  the State-owned Enterprises Service (SCEP);  and the 
Permanent Secretariat for following up economic and social reform (SP/REFES)16, which is part of 
the second Vice-President's Office. 
                                                      
16 The SP/REFES is responsible for supervising and coordinating all matters related to the economic 
reform and structural adjustment programme. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-73 
 
 
  43. The Economic and Social Council is an advisory  body with competence for all areas relating 
to economic and social developmen t and is consulted on any draft development plan or any regional 
or subregional integration project.  On its  own initiative, the Council may also make 
recommendations in order to draw the attention of  the Executive to economic and social reforms 
which it considers to be in, or contrary to, the general interest. 
44. Since it acceded to the East African Community (EAC), Burundi has had a Ministry, attached 
to the President's Office, responsible for East Afri can Community affairs, which also plays a key role 
in the process of strengthening regional trade integrati on.  This Ministry, together with the Ministry of 
Trade, Industry, Post and Tourism, play a cen tral role in the formulation, negotiation and 
implementation of Burundi's trade policies, with support from other state (ministries and dependent 
institutions) and non-state (private sector and ci vil society) stakeholders.  According to the 
Burundian authorities, the private sector is called upon to become a true partner of the public sector in 
taking economic decisions, including those concerning trade, boosting investment and creating jobs.  
Additional efforts are needed, however, to de velop more systematic consultation between 
the Government and the private sector, particularly on the formulation of trade policies. 
45. Trade liberalization and regional and global ec onomic integration are part of the Economic 
Growth and Poverty Reduction Strategy Paper for Burundi (PRSP II).  The Government has 
accordingly opted for a relatively open trade policy. 
46. The Government is pursuing the objectives of making local enterprises and key sectors of its 
economy such as agriculture and services more compe titive.  It has therefore chosen to liberalize 
economic activities still further and to strengthen di alogue between the State and the private sector.  
The major efforts made concern identification and di smantling of non-tariff barriers;  liberalization of 
the general pricing regime;  revision of the tax and customs regimes as a result of accession to the EAC;  liberalization of the mining sector, and of the main agricultural subsectors (coffee and tea);  
and privatization of the management of the port and airport in Bujumbura.  Burundi has also 
undertaken sectoral reforms in the monetary, tax, customs services, insurance, telecommunications 
and other basic infrastructure sectors. 
(2) T
RADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization (WTO) 
47. Burundi became an original Member of the WTO on 23 July 1995, having been a 
Contracting Party to the GATT since 13 March 1965.  It grants at least most-favoured-nation (MFN) 
treatment to all its trading partners.  Burundi is not a signatory to any plurilateral agreement 
negotiated within the WTO framework and did not  take part in the WTO negotiations on basic 
telecommunications or in those on financial services. 
48. In the Doha Round, Burundi belongs to  the ACP and G-90 negotiating groups, the 
African Group and the Group of Least Developed Countries (LDCs).  As an LDC, Burundi has 
benefited from a transitional period for implem enting a number of the provisions in various 
WTO Agreements, such as the Customs Valuati on Agreement, the TRIPS Agreement and the 
Agreement on Import Licensing Procedures.  Neverthe less, problems caused by lack of capacity have 
delayed Burundi's implementati on of some WTO Agreements. 
49. Burundi has difficulties as far as notifications to the WTO are concerned;  between 2004 and 
April 2012, it submitted only five notifi cations or communications (Table II.2). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-74 
  
  Table II.2 
Notifications to the WTO, 2003-12 
WTO Agreement Obligation Date of the document Symbol of the latest notification
Agriculture, Article 10/18.2 
DS:1 Domestic support commitments (Table DS:1) for 
the years 1996, 1998, 2000, 2002 and 2004 15 March 2005 G/AG/N/BDI/2 
Agriculture, Article 18.2 DS:1 Domestic support commitments (Table DS:1) for 
the years 2006 and 2008 6 May 2009 G/AG/N/BDI/4 
GATT 1994, Article VI;  
Anti-Dumping, Article 16.5 Burundi notified that it had not established an 
authority competent to initiate and conduct an 
investigation within the meaning of Article 16.5 16 April 2010 G/ADP/N/193/BDI 
Preshipment Inspection, 
Article 5 Notifications under Article 5 of the Agreement on 
Preshipment Inspection 19 July 2004 G/PSI/N/1/Add.10 
Subsidies and Countervailing 
Measures, Article 25.12 Burundi notified that it had not established an 
authority competent to initiate and conduct an 
investigation within the meaning of Article 25.12 18 January 2010 G/SCM/N/202/BDI 
 
Source:  World Trade Organization. 
50. In the Doha multilateral trade nego tiations, Burundi is of the view that special and differential 
treatment helps to sustain revival in production in LDCs so as to enhance and diversify their 
production capacity and infrastructure.  It attaches special importance to the agricultural negotiations, 
particularly market access for its exports through continued special and differential treatment and the 
establishment of measures to compensate for fluctuat ions in global commodity prices.  Burundi also 
considers that the WTO dispute settlement system  is too costly and di fficult to access for LDCs.  
It would like to receive targeted and appropriate  technical assistance in particular for implementing 
international legal standards and instruments. 
51. Burundi has not been involved in any dispute under the WTO dispute settlement mechanism, 
whether as a complainant, respondent or third party. 
(ii) Regional and bilateral agreements 
52. Burundi has signed many agreements on trad e, economic and technical cooperation with 
various partners.  The structure and content of th ese agreements highlight the common political will to 
promote trade. 
53. On 18 June 2007, Burundi acceded to the EAC Treaty and became a full member of the 
Community on 1 July 2007.  It also belongs to the Common Market for Eastern and Southern Africa (COMESA);  the Economic Communit y of Central African States (ECCAS);  and the 
Economic Community of the Great Lakes Countries (E CGLC).  Within the EAC, Burundi has been 
negotiating Economic Partnership Agreements (EPAs) since 2007 (joint report, Chapter II). 
(3) I
NVESTMENT REGIME17 
54. Since 1 January 2009, a new Investment Code has been in effect in Burundi.18  T h i s  C o d e  
defines the overall framework and the guarantee s given to investors in Burundi.  The Law 
of 24 September 2009 specifies the ta x concessions provided in the Code. 
55. The new Code marks the conclusion of the revi sion of the regulatory framework undertaken 
since 2003 in order to update the texts governing business law so as to boost investment and the 
                                                      
17 This section is based on UNCTAD (2010). 
18 Law No. 1/24 of 10 September 2008 on the Invest ment Code.  This Code  replaced that of 1987 
(Law No. 1/005 of 14 January 1987), as amended. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-75 
 
 
  private sector.  The Code applies to both foreig n and Burundian investors.  One of the major 
improvements has been to make a ll investment subject to ordinary law procedures and the guarantee 
and benefits criteria in the genera l regime instead of the complex system in the former Code, which 
provided for four approval regimes ( one basic regime and three special regimes).  The new Code also 
gives foreign investors more guarantees, particularly  as regards expropriation, guaranteed transfer of 
capital and access to international arbitration.  Foreign investors are free to choose the court if there is 
any dispute. 
56. The new Code guarantees freedom of investment  and establishment to any natural or legal 
person in connection with any activity, except for the production of arms and ammunition or 
investment in military and paramilitary production, which are governed by speci al laws.  The Code's 
aim is to promote investme nt, especially in infrastructure, export and the processing of raw materials, 
as well as micro-enterprises and sectors that create jobs, inter alia .  There is no economic sector 
specifically closed to foreign investment, whethe r by the Constitution, the Investment Code, the 
Commercial Code or other investment-related text s.  Moreover, the State monopolies still existing, 
such as those for fixed telephony and electricity, are part of a privatization programme open to foreign 
investment.  This programme provides for the possi bility of reserving shares in such enterprises to 
Burundian investors. 
57. Specific sectoral reforms such as those in  the telecommunications sector with the 
liberalization of mobile telephony and privatizati on of the fixed operator, liberalization in the 
electricity sector and that under way in the coffee subsector are along the same lines.  Prior to 2005, 
the State played a key role in the coffee sub sector, but following Decree No. 100/012 of 2005, 
all economic operators, whether Burundian or forei gn, have been free to become established and to 
operate in all components of the coffee subsector 's production, marketing, processing, export and 
financing chain.  The mining sector is also open to foreign investors, although Article 19 of the 
Mining and Petroleum Code provides that forei gn natural and legal pers ons holding mining rights 
must become domiciled in Burundi.  Services are of strategic importance to Burundi and are not 
subject to any restrictions or bans on foreign investment.  Burundi has, however, made very few 
commitments under the WTO General Agreement on Trade in Services (Chapter IV(5)). 
58. The Ministry of Finance and Economic Devel opment Planning is responsible for policy, 
including the promotion of private and public invest ment.  The aims of Burundi's investment policy 
include improving infrastructures, creating a sound i ndustrial base and developing natural resources.  
Under the authority of the Minister, the Investme nt Promotion Agency (API) was set up in 2009. 
59. The API's main objective is to promote investment and maximize its positive impact on 
Burundi's economic and social development.  The Agency's principal tasks relate to the image, 
targeting, facilitation, monitoring and encouragemen t of investment.  The API administers Burundi's 
Investment Code. 
60. To allow an enterprise to benefit from the incen tives in the Investment Code, a pre-investment 
study highlighting the legal, economic and technica l features of the project must be deposited with 
the API.  The latter undertakes a technical counter-e xpertise of the projects submitted to it and the 
Agency's Board of Directors either approves or reject s them.  The API also plays a role as a facilitator 
among the various government authorities for the pur pose of obtaining authorizations, certificates, 
work permits, and the land needed to carry out projects.  The API is responsible for making a 
recommendation, inter alia  on whether or not the investment pr oject is a priority , the regime under 
which the enterprise is eligible and the benefits to  be granted.  The Investment Code specifies the 
criteria that determine the regime applicable to an investment project and also the relevant incentives WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-76 
  
  according to the eligibility criteria (Chapter III(4)(i ) and Table AIII.4).  These incentives - which are 
usually of a fiscal nature - are intended to promote certain types of special industrial investment in 
the context of development policies, especially those which help to create jobs and promote 
non-traditional sectors and the decentralization of economic activities. 
61. The following tax concessions are provided by the various Codes:  exemption from 
conveyance duty on the purchase of real estate or land essential for making the investment and for its operation;  a 37% tax credit on the total amount of depreciable assets invested for any investment 
of FBu 100 million or more the first year and creati ng at least ten permanent jobs in Bujumbura or 
five permanent jobs outside the capital;  exemption from customs duty on all imports of capital goods;  
total exemption with no advance payment of VAT on imports for any investment amounting to over 
FBu 500 million;  a reduction in countervailing duties on imports, from 5% to 1.5% for all investment 
of over FBu 10 billion
19;  for investment projects "strategic" for Burundi, the possibility given to the 
API to propose to the Minister of Finance that  additional tax and customs concessions should be 
granted as an exception;  and a 2% reduction in pr ofits tax if the project employs between 50 and 
200 Burundian workers and 5% if it employs over 200 Burundian workers. 
62. In addition to the special incentives in the I nvestment Code, the Law of July 2001 on the 
creation of a free zone determines the benefits availa ble to enterprises that meet the eligibility criteria 
(Chapter III(3)(iv)).  The regime does not apply to any specific geographical area but is more a system 
of free points.  In 2008, the Law of July 2001 on the creation of a free zone was incorporated into the new Investment Code. 
63. Notwithstanding the provisions in the Code, the degree of openness of the investment regime 
is in practice limited by the existence of a st ate monopoly or state-owned enterprises in a dominant 
position in some sectors such as fixed telephony, th e sugar industry, electricity and water, postal 
services, marketing of tea, and road and air transport services.  Nevertheless, some 60 state-owned enterprises are due to be restructured and the Govern ment has begun to open up the capital of some of 
these enterprises to private investment (Chapter III(4)).
20 
64. The settlement of disputes (concerning appli cation of the Investment Code) between 
the Government and an investor complies with  the substantive laws and regulations, and 
administrative procedures in force.  An investor is free to choose between domestic or international 
institutional arbitration in order to settle a di spute.  The new Investment Code introduces the 
possibility of recourse to international arbitr ation for the settlement of disputes between 
the Government and investor, but only for disputes rela ting to application of the Code.  Where there is 
recourse to international arbitration, this must be a ccording to the arbitration rules of the International 
Centre for Settlement of Investment Disputes (ICSID), of which Burundi has been a member 
since 1969, although it has not been invo lved in any dispute settlement cases. 
65. Burundi is a member of the Convention Estab lishing the Multilateral Investment Guarantee 
Agency (MIGA), which allows foreign investors to in sure themselves against four  types of risk in the 
country where they are established:  (1) restrictions on transfer of foreign currency;  (2) expropriation;  
(3) war and public disturbances;  and (4) cancella tion of contracts.  In January 2009, the MIGA 
insured a project whose total risk exposure was US$0.91 million. 
                                                      
19 These duties no longer exist following introduction of the EAC's CET. 
20 Several laws from July 2008 (see Table II.1) concern the reform of state-owned enterprises and 
state withdrawal. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-77 
 
 
  66. Burundi has signed Investment Promotion and Protection Agreements (IPPAs) with 
Germany (1984), Belgium and Luxembourg (1989)  and the United Kingdom (1990).  Agreements 
have also been signed with Comoros (2001), Kenya (2009), Mauritius (2001) and the Netherlands (2007), although these have not yet b een ratified.  These agreements contain all the 
usual provisions to be found in IPPAs concerning th e eligibility regime;  protection, with fair and 
equitable treatment, and security and protection excl uding any unjustified or discriminatory measures, 
including treatment not less favourable than that give n to citizens of the country where the investment 
is made;  a ban on taking any measures on forfeiture or restriction of ownership rights, except for reasons of public necessity, security or national inte rest, with the payment of adequate and effective 
compensation;  guarantee of freedom to transfer assets;  and the possibility of recourse to conciliation 
or arbitration by the ICSID if there is a dispute w ith the State and the investor concerned so requests. 
67. The entry into force of the new Investment C ode denotes considerable progress for Burundi.  
The Code is a practical demonstration of the G overnment's aim to establish a central law to boost 
investment.  Following the changes made and the sp irit of reform in recent years, Burundi's legal 
framework does not contain any major obstacles to managing private economic activities or to foreign 
investment.  Despite the improvements made, how ever, administrative and regulatory bureaucracy 
hinders the establishment of enterprises and very limited information is available on the laws and 
regulatory measures. 
68. Although there has been progress in making reform s, one of the main causes of Burundi's 
poor trade performance remains an environmen t that is not very conducive to business.  
Doing Business 2012  places Burundi 169
th out of 183 countries as far as the global business 
environment is concerned, way behind the other EA C countries.  One reason for this is structural 
factors such as geographical isolation, weak infra structure and human capital in the country, but a 
large part is also a question of regulations.  Be tween 2005 and 2010, the Government certainly made 
five positive reforms with regard to building permit s, protection of investors, payment of taxes and 
insolvency procedures, but these efforts must conti nue in respect of the cost and time required for 
importing and exporting as measured in the Doing Business  report for Burundi, which are still higher 
than in other East African or sub-Saharan African  countries.  The Government should also ensure 
effective implementation of reforms by issuing th e implementing texts as soon as possible, without 
which these reforms will have no effect. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-78 
  
  III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
69. Since January 2007, the EAC common external tariff (CET) has been Burundi's main trade 
policy instrument.  The move from the national tariff to the CET resulted in an overall increase in 
average import duties, despite a sharp reduction fo r capital goods and vehicles.  Moreover, 5% of 
Burundi's tariff headings do not correspond to the EAC's eight-digit Harmonized System (HS) CET.  
The CET rates are higher than the former (national) tariff and the applied rate is above the bound rate 
for certain products.  According to the authorities, however, there has been a relative drop in fiscal 
revenue from import duties since the CET was adopted. 
70. All goods, imported or domestic, are subject to a value adde d tax (VAT) of 18%.  Goods 
subject to excise duties include fuel, sugar, tob acco products, alcoholic beverages, and carbonated 
beverages.  Customs valuation is based on the WT O Agreement on Implementation of Article VII of 
the General Agreement on Tariffs and Trade 199 4, as transposed into the EAC's community 
provisions.  Burundi has some difficulties in  implementing it and uses reference values. 
71. Burundi has ceased to impose export duty on a ll goods.  The major incentive programmes are 
a duty drawback scheme and a free-zone processing programme.  The new Customs Code, as well as 
the Tax Code, provide for various regimes allowing goods to be imported with suspension of duties 
and taxes.  Burundi does not have any export financ ing scheme or any export guarantee and insurance 
regime. 
72. As a general rule, imports of a value of  US$5,000 or more are required to undergo 
preshipment inspection by the company Société générale de surveillance  (SGS).  The corresponding 
inspection costs (fees) have to be paid by importers at the official rate of 1% of the f.o.b. value of the 
goods, with a minimum charge of FBu 250,000 (app roximately US$200), which may in fact amount 
to up to 20% of the said value.  Burundi has not a dopted any legislation on contingency measures.  It 
has not notified the WTO of any sanitary or phytosanitary measures or technical regulations.  It is experiencing serious difficulties in implementi ng standardization and introducing technical 
regulations and has no national accreditation body. 
73. The price of goods and services can generally be freely set in Burundi, although approval of 
prices by the Ministry responsible for the econo my is required for four categories of goods and 
services (water, electricity, hydrocarbons and transport) deemed to be strategic. 
74. Burundi has made efforts to update its regulator y framework for business.  New legislation on 
government procurement, introducing the principle of decentralization, came into force in 2008 and 
there has been a new competition law since March 2010.   The privatization of state-owned enterprises 
is continuing under a new law that has been in force since 2009. 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration and documentation 
75. Any properly registered natural or legal entit y may import goods for commercial or private 
purposes and have access to the foreign currency needed for such operations. 
76. All imports of goods require a declaration of  the intention to import (DII) endorsed by a 
commercial bank before the goods are shipped.  This declaration must be endorsed in advance by the EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-79 
 
 
  preshipment inspection company, namely, the SGS, following submission of five copies of the form 
showing details of the trader, the detailed pro fo rma invoices for the goods, the pro forma transport 
invoices, and certificates of insurance for th e goods to be paid using foreign currency.21  "Transport" 
insurance is mandatory and must be taken out w ith a local insurance company unless a waiver is 
obtained from the central bank (Bank of the Repub lic of Burundi (BRB)).  Based on the DII, 
commercial banks are then authorized to allocate an amount in cash determined in accordance with 
the exchange regulations. 
77. A DII is not required for imports whose f.o.b. value is US$3,000 or less in the case of 
chemicals, foodstuffs and pharmaceuticals, and an f. o.b. value of US$5,000 or less for other products. 
78. An approved customs broker must be used ex cept for minor cross-border trade.  Customs 
brokers' activities were governed by a law of 2001 on customs agents, as well as by the Customs Code 
of January 2007, until Burundi's accession to the EAC's Customs Union.  Since then, forwarding 
agents and customs agents have been governed by the Community Act (Part X of the Act and Part XII 
of the regulations).  A deposit that may be up to  FBu 100 million is required for accreditation at the 
national level:  FBu 50 million for customs cl earance alone and FBu 100 million for customs 
clearance and transit.  For all operations, forwardi ng agents must also post a bond to cover all the 
taxes and duties payable.  The customs broke r receives a commission for his services negotiated 
between him and the importer. 
79. The customs services require the following documents for clearing goods imported into 
Burundi:  bill of lading, commercial invoice, certificat e of origin solely in the case of goods entitled to 
preferential regimes, packing list, customs declara tion and consignment note.  A certificate issued by 
the preshipment inspection co mpany is also required. 
80. Preshipment inspection is mandatory for all impor ts of an f.o.b. value of over US$3,000 for 
foodstuffs, chemicals and pharmaceuticals, and of  over US$5,000 for other products.  There is no 
preshipment inspection for petroleum products.  Exem ptions may be authorized and importers must 
request these from the BRB in writing.  Exemption is  given automatically, however, for urgent orders 
of an f.o.b. value of less than FBu 1 million for medi cines and spare parts, usually transported by air. 
81. The Government has given the SGS responsib ility for preshipment inspection on behalf 
of Burundi.22  SGS inspection covers checking of the docum ents showing the quality, quantity, price, 
origin, tariff heading and customs value of the goods imported into Burundi.  The inspection is 
conducted at the production, storage, or loading si te and the importer is required to present the 
Burundi customs with a DII endorsed by  the preshipment inspection company. 
82. Preshipment inspection fees, borne by the importer, are fairly high.  An administrative fee 
corresponding to 1% of the f.o.b. value in any D II endorsed and subject to physical inspection by the 
SGS is levied, with a minimum (flat rate) fee of FB u 250,000.  Inspection on arrival is not allowed.  
Clearance of imported goods without (prior) inspec tion before loading and/or without the documents 
being checked is punishable by a fine of 2.5% of the c. i.f. value.  This figure rises to 5% if the offence 
is repeated and 10% if there is a nother occurrence.  Goods are also subject to physical inspection paid 
for by the importer. 
                                                      
21 Bank of the Republic of Burundi, Directive D1/1203/2010 of 29 October 2010 containing the 
Addendum to the exchange regulations and implementing rules. 
22 Ministry of Finance, Office of the Minister (2006). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-80 
  
  (ii) Customs procedures and customs valuation 
83. The Minister responsible for finance is in charge of the Burundi Revenue Office (OBR), 
including its customs and excise division.  Since Bu rundi's previous TPR, efforts have been made to 
computerize all the major customs posts. 
84. Burundi adopted the computerized custom s system ASYCUDA 2.7 in 1993 and then 
upgraded to ASYCUDA++ on 1 July 2005.  This sy stem has enabled the OBR to automate certain 
procedures, including the registration and risk-b ased processing of declarations submitted remotely 
and the control of removals  of bonded and transit cargo.23  As a first step, two customs offices out 
of five were automated, namely those at Bujumbur a port and international airport.  These two offices 
deal with more than 90% of customs clearance ope rations in Burundi.  Since 2011, the OBR has been 
migrating to ASYCUDA World, which paves the way for automation of most customs-related procedures and substantially improves accessibility.  All customs posts use computerized networks 
and are interconnected via VSAT and telephone, whic h has greatly shortened the time taken to clear 
goods. 
85. When goods arrive in Burundi, carriers must pr esent the manifests.  The importer contacts the 
consignee so that the latter can give him his cons ignment note and asks the cu stoms agent, which acts 
as the intermediary between the Customs and the im porter or exporter, to clear the goods.  Customs 
agents prepare the declaration an d go to the customs office to submit it.  With ASYCUDA 2.7, the 
declaration was entered by customs officers.  Since 2010, commercial  customs declarations (bills of 
entry) are recorded in the offi ces of the OBR equipped with ASYCUDA++ and may also be made by 
the agents themselves at the Customs or directly on line from their own offices;  it is no longer 
mandatory physically to submit a hard copy of the declaration and supporting documents, unless it 
proves necessary to check the documents or goods following a risk assessment .  Once the declaration 
has been entered, ASYCUDA++ automatica lly allocates a section and a controller. 
86. Customs declarations are processed according to a risk assessment method that provides for 
three lanes:  green (ready for clearance;  the d eclaration is approved automatically without any 
controls), yellow (inspection of documents), and red (inspection of goods;  the declaration undergoes 
both documentary and physical inspection befo re clearance).  The verification covers, inter alia , the 
consignee, the origin, the value, the tari ff headings, and the regime for the goods. 
87. The system is composed of layered risk profil es.  It provides for the setting of nationwide and 
border-post specific parameters for risk assessmen t and facilitates continuous review and timely 
updating of data.  The main factors taken into acc ount for the risk assessment are:  value rulings 
(goods are typically undervalued in declarations);  the type of goods imported;  the country of origin;  
tariff peaks (goods subject to high rates of duty);  and significant fluctuations in the quantities of 
goods imported.  This risk assessment method is be ing upgraded so it will be necessary to develop 
parameters for the system. 
88. In January 2007, Burundi's Customs Code provi ded for seven customs regimes:  release for 
consumption;  temporary admission;  definitive e xport;  temporary export;  warehousing;  free zone;  
                                                      
23 ASYCUDA++ is designed to function in difficult telecommunications environments and may be 
operated through GSM networks. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-81 
 
 
  and transit.24  Since Burundi joined the EAC Customs Uni on, its customs regimes have been governed 
by the Community's Customs Management  Act (joint report, Chapter III(1)). 
89. Since July 2007, customs valuation h as been based on the WTO Agreement on 
Implementation of Article VII of the Ge neral Agreement on Tariffs and Trade 199425, as transposed 
into the EAC's common provisions.  Burundi, however, fi nds it difficult to implement, particularly in 
the case of undervaluation.  The SGS valuation is u sed as a reference for comparison with the customs 
administration's data on similar imports and/or the administrative values. 
90. Although the value of the goods will have been  checked during preshipment inspection, 
customs legislation provides for two additional veri fication stages:  immediate verification while the 
merchandise is still under customs c ontrol;  and post-release audit.  If all the documentation is in 
order, the goods may be released, but if not, verifi cation is required.  Where the value established by 
customs officials pursuant to the customs legislation exceeds the declared value, the value is adjusted, 
together with the corresponding duties and taxes. 
91. Until Burundi joined the EAC, if any dispute ar ose, there was a special procedure for appeals 
against valuation and customs procedures.  With in a period of five days, the person making the 
declaration could bring the matter before the Custom s Commissioner.  The latter's decision could also 
be the subject of an appeal, within five days as well, to the Minister of Finance.  Appeals could 
always be made up to the ultimate stage to courts  and tribunals.  Disputes are now governed by the 
EAC's Customs Management Act (Part XX), which pr ovides that appeals to the Commissioner must 
be lodged within 30 days.  While awaiting the introduction of the fiscal jurisdiction envisaged in 
this Act, the OBR has a directorate responsible for legal affairs and disputes, which quite often has to 
intervene in order to avoid recourse to higher jurisdictions. 
92. The improvements introduced by the 2007 Cust oms Code and by the EAC's customs regime 
(the "Customs Management Act") are jeopardized  by Burundi's lengthy customs procedures.  
For example, numerous documents are required for imports.26  The time required for foreign trade 
transactions is still longer in Burundi than in  most other EAC countries.  The World Bank's 
Doing Business 2012  report indicates that, in 2011, 60 days were required to import goods and 35 to 
export them, whereas 24 days were required for im ports in Kenya and Tanzania, and 31 days in 
Rwanda;  for exports, 26 days were required in Kenya, 29 days in Rwanda and 18 days in Tanzania.  
Although the time required for processing and for pro cedures has declined to some extent, the report 
shows an increase of some US$800 per container for imports and exports between 2006 and 2012.27  
As a result, Burundi is 174th out of 183 countries according to the trading-across-borders indicator.  
The Burundian authorities, however, affirm that customs clearance takes from three to 72 hours 
depending on the customs regime and whet her or not the papers are in order. 
93. There is a pressing need to build the capacity of the customs administration (joint report, 
Chapter V).  In the absence of harmonized practic es and customs procedures at Community level, 
there is a risk of arbitrary valuation.  This in turn  could lead to distortions, undermine the transparency 
of the tariff regime and entail additional charg es for local enterprises and economic operators. 
                                                      
24 Republic of Burundi, Office of the President (2007), Law No. 1/02 of 11 January 2007 establishing 
the Customs Code, January 2007, Bujumbura. 
25 Articles 70 to 77 of the Customs Code, op. cit . 
26 These include, for example, the bill of lading, the commercial invoi ce, the certificate of origin, the 
packing list, the customs declaratio n form and the consignment note. 
27 World Bank (2012). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-82 
  
  94. Burundi is a member of the World Customs Organization. 
(iii) Rules of origin 
95. Burundi has both non-preferential and preferentia l rules of origin.  Under the non-preferential 
rules, the country of origin is deemed to be that where the goods are wholly produced.  
For manufactures, the country of origin is that where the last stage of processing took place, provided 
that the goods respect the labour or local origin content threshold.  The Ministry responsible for 
finance has determined the current minimum thr eshold for value-added at 35%, with no exceptions. 
96. Burundi applies preferential rules of origin as a member of COMESA (Chapter II) and the 
EAC (joint report, Chapter III(1)(iii)). 
(iv) Customs duty 
(a) Structure of applied MFN duties 
97. Burundi applies the EAC's CET, which is its main trade policy instrument (joint report, 
Chapter III(1)(iv)). 
98. Law No. 1/02 of 11 January 2007 establishing the Customs Code was again amended when 
Burundi acceded to the EAC, causing important chang es in its tariff structure.  Moreover, 5% of 
Burundian tariff headings do not correspond to those in the EAC's HS eight-digit CET.  Compared 
with the former (national) tariff, CET rates are somewhat higher (Chart III.1).  According to the 
authorities, however, fiscal revenue earned from import duties has shown a relative decline since 
the CET was adopted. 
 EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-83 
 
 
  0 1 02 03 04 05 06 0PetroleumOther manufacturesTransport equipmentElectrical machineryNon-electrical machineryLeather, footwear, etc.ClothingTextilesWood, paper, etc.ChemicalsMetals and mineralsFish and fishery productsNon-agricultural productsOther agricultural productsCottonBeverages and tabaccoSugars and confectioneryOilseeds, fats and oilsCereals and other preparationsCoffee, teaFruit, vegetables, plantsDairy productsProducts of animal originAgriculture
2009 simple average rate (%)
2011 simple average rate (%)Chart III.1
Simple average of applied MFN rates, 2009 vs. 2011
(Per cent)
WTO Secretariat calculations, based on data provided by the EAC Secretariat and the 
Burundian Government.Source :
 WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-84 
  
  99. In addition to the common list of sensitive produc ts whose tariff rates range from 35 to 100%, 
Burundi would like to include in the CET a "Burundian" list of additional sensitive products 
(28 additional HS eight-digit headings):  crown cork s at 50%;  soap at 40%;  mineral waters, beer, 
paints and varnishes, glasses, bottles and glass articles, iron and steel tubing and pipes at 35%;  and 
PVC pipes at 10%. 
(b) Bound MFN duties 
100. Before and after the Uruguay Round, Burundi's ta riff bindings covered 21.6% of all its tariff 
lines.  All the tariff lines for agricultural products  (WTO definition) were bound at a ceiling of 100%, 
with the exception of around 6% of the lines bound previously at rates from 0 to 20%.28  Only 10% of 
tariff lines for non-agricultural products were bound at  24.2% for textiles and clothing;  20.2% for 
leather, rubber and footwear;  a nd 11.2% for transport equipment. 
101. The low percentage of bindings does not guarantee the tariff regime's predictability and raises 
the problem of transparency, which might make any partner hesitate, whether a trading partner or one 
seeking an environment conducive to investment.  Mo reover, for 362 lines the applied rates are higher 
than the bound rates (Table AIII.1). 
(c) Tariff preferences 
102. Pursuant to Article 10 of the Protocol on the Establishment of the East African Community 
Customs Union (joint report, Chapter II), customs du ties on internal trade within the Community have 
been eliminated in all member countries since 2010. 
103. Burundi grants tariff preferences on a reciprocal basis to members of COMESA (joint report, 
Chapter II(2)).  Preferences under the ECGL C are not applied (Chapter II(2)(ii)). 
(v) Other duties and levies 
104. Burundi has made wide-ranging fiscal reforms to stabilize its business environment since the 
previous TPR.  All taxes and levies on imports have been reorganized. 
105. For example, the 6% service tax, which applie d to imports irrespective of their source, has 
been abolished.  The same applies to the 20% surcharge on imports of certain textile products 
(HS 63.09), as well as other levies such as the 17% transaction tax. 
106. During the Uruguay Round, Burundi bound the other duties and charges on imports at 30%. 
(vi) Internal taxes 
107. Burundi's main sources of tax revenue come  from taxes on goods and services (47%), on 
income, profits and capital gains (29%), and on fore ign trade and international transactions (19%). 
108. As far as direct taxation is  concerned, there are two ma in taxes:  the tax on earned 
income (35% of the profit) and the occupational ta x on remuneration, paid by wage-earners according 
to a scale that has remained unchanged since 2005.  This tax is deducted at source and paid by 
enterprises on the 15th of each following month. 
                                                      
28 See Burundi's previous Schedule of tariff bindings (Schedule LV), established in 1967, which has 
still not been transposed into the HS. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-85 
 
 
  109. The value added tax (VAT) was introduced on 1 July 2009 to replace the transactions tax 
(TT).29  The VAT rate applied since 1 July 2009 has been 18%, payable on the selling price for all 
domestic goods and services, and on their customs value (c.i.f.) at the place where they are consumed for imports, plus all other entry duties and taxes a nd, where applicable, excise duty.  VAT applies on a 
national treatment basis to all products, whether local or imported.
30 
110. There is a zero VAT rate on exports and sim ilar transactions, for example, temporary export 
and re-export.  Moreover, exemptions are restricted to the strict minimum (section (vii)). 
111. Excise duty applies, inter  alia, to fuel, sugar, tobacco products, alcoholic beverages, and 
carbonated beverages.  The duty is ad valorem  and levied at the same rate on both imports and locally 
manufactured products. 
112. According to the authorities, the introduction of  VAT should enable Burundi to become more 
competitive by remedying the manifold distortions caused by the cumulative imposition of the TT.  It should also help to bring about more consistenc y with other partners in the EAC Customs Union, 
which also apply VAT. 
113. A flat-rate levy for the occupational tax and VAT  is also payable on the import, purchase or 
sale of certain goods and services in the form of an  advance.  If this amount exceeds the tax payable, 
the excess is not refunded, but counts as a tax credit.   This practice penalizes enterprises by depriving 
them of cash. 
114. The tax legislation is being revised with a vi ew to making important changes in terms of 
clarifying and streamlining so as to converge with  the EAC regime, update the legislation and apply 
good international practices.  The new tax legislation is expected to be  finalized in the first quarter 
of 2012 and includes a revision of rates (stream lined scales and lower rates, particularly for 
businesses, for which the rate should fall from 35 to 30% );  fewer exemptions;  elimination of the 1% 
turnover tax (minimum rate), paid even by enterp rises with a long-term deficit (a maximum of two 
years);  and revision of income tax. 
(vii) Duty and tax concessions and exemptions 
115. Customs duty and tax concessions and exemptions are specified, as the case may be, in the 
EAC customs legislation, the Tax Code, the new I nvestment Code, which also takes into account the 
special regime for investment in the free zone , the 1988 Export Promotion Law (section (3)(iv)), 
the Mining Code;  and the Law of August 2000 on mining companies (Chapter IV(3)).  The main concessions are designed to provide production incen tives in certain sectors (agriculture and mining 
in particular), to promote exports, create jobs and establish enterprises outside the Bujumbura area. 
116. Imports by the State are free of customs duty, as are those by foreign NGOs, diplomatic 
missions and international organizations, enterprise s eligible under the Investment Code, medicines, 
agricultural inputs, humanitarian aid, and en terprises operating under the free-zone regime 
(Chapter II(1)). 
117. The Law also deals with VAT exemptions (A rticles 6 and 7).  The following natural or 
legal persons are exempt from VAT:  internatio nal organizations;  embassies and consulates 
                                                      
29 Republic of Burundi, Office of the President (2009). 
30 Ministry of Finance (2009), Ministerial Ordinance No. 540/708/2009 of 2 June 2009 on measures to 
implement Law No. 1/02 of 17 February 2009 establishing the value added tax (VAT). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-86 
  
  (Article 6(a)), as well as other natural or le gal persons exempt as a result of organic laws 
(Article 6(b)).  Persons covere d by Article 6 nevertheless pay VAT in the form of an advance, 
which may be refunded to them pursuant to Article 19. 
118. The following operations are also exempt from VA T:  financial transactions (Article 7(a));  
certain real estate transactions (Article 7(b), (c ) and (d));  imports and deliveries of medicines, 
pharmaceutical products, specialized equipment and products for medical use (Article 7(e));  
deliveries of agricultural products not treated by thei r producers (Article 7(h));  deliveries of postage 
stamps, revenue stamps and the like (Article 7(i));  imports of duty-free goods (Article 7(j));  and 
travel costs imposed by international prices (Article 7(k)). 
119. Over the period 2010-2011, the total value of exemptions granted each year amounted to 15% 
and 16% of exports, respectively. 
120. Under the Burundian Customs Code of 2007 and the EAC Customs Management Act 
of 2004, goods in transit are exempt from impor t or exit duties, although a bond must be posted to 
guarantee the payment of any duties or fines due if  goods are released for consumption in Burundi.  
Imports entering warehouses are exempt from entry du ty until they leave for consumption in Burundi 
or are re-exported (temporary admission).  The goo ds are either stored in government warehouses 
established by decision of the Ministry of Finance or in a private warehouse made available by the Ministry.  The following may not be deposited in government warehouses:  live animals;  goods 
not authorized for import or transit;  goods exempt fr om import duties;  goods that are not safe or of 
marketable quality;  hazardous and insalubrious materials;  and any other goods prohibited by 
decision of the Ministry of Finance, which must be the subject of publication.  The duration of deposit 
in warehouses is restricted to six months as of the date of registration of the declaration of entry into 
the warehouse.  A three-month extension may be grante d subject to a substantiated request.  After this 
time-limit, duties and taxes and any penalties must be paid.  The law does not specify the operations to which the goods in warehouses may be subjected. 
121. Agricultural and livestock products and inputs (ex cept for agricultural m achinery) are exempt 
from VAT if they are sold by their producers and ha ve not received any additional element that could 
alter their essential character.  The products of agricultural enterprises (crops and livestock) are 
exempt from the occupational tax (Article 94.5).  Th ere are also exemptions to encourage investment 
in agriculture.  Thus, undeveloped land used exclus ively for agricultural (including livestock raising) 
purposes is exempt from property tax to the extent  that it is actually under crops or normally 
necessary for fattening or raising livest ock.  It should also be noted th at vehicle tax is not levied on 
animal-drawn vehicles or vehicles used in agriculture.
31 
122. During the period 2010-2011, the total value of exemptions granted each year was 
between 15 to 16% of imports.  In 2011, the am ount was FBu 20 billion (estimate) despite the 
strenuous efforts made recently under the aegis of the OBR - to limit the amount. 
(viii) Import prohibitions, quantitative restrictions, and licensing 
123. Since its previous TPR in 2003, Burundi has gr adually reduced its negative list of prohibited 
or controlled imports.  Some prohibitions  have been eliminated in stages. 
124. The import of firearms requires a firearms certificate and the import of live animals 
(both domestic and wild animals) requires a sanitary cer tificate.  The same applies to animal products.  
                                                      
31 Pursuant to Article 4.2 of the Law of 17 February 1964 on impersonal tax. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-87 
 
 
  As to endangered species, an authorization is  required from the national body responsible for 
implementing the Convention on International Trad e in Endangered Species of Wild Fauna and 
Flora (CITES). 
125. Burundi's customs administration may require a dditional documentation at the entry point for 
the import of certain products.  The import of expl osives must be authorized by the Ministry of 
the Interior.  A phytosanitary certificate is required to import seeds and plants.  A certificate from the Burundian Standardization and Quality Control Bureau (BBN) is required for the import of 
foodstuffs, agricultural chemicals, plants, pharma ceuticals, explosives, and articles subject to 
restrictions under international conventions. 
126. There is a ban on the import of certain products into Burundi pursuant to the second annex to 
the EAC Customs Management Act (joint report, Chapter III(2)(vii)).  This applies to packaging 
(plastic bags), liqueurs, drugs, mineral ores, ozone-depleting substa nces, and arms not imported by 
the State.  Import licences are now only required in Burundi for statistical purposes. 
(ix) Contingency measures 
127. The legal basis for contingency measur es in Burundi is the WTO Agreement, 
the COMESA Treaty and the Protocol on the Estab lishment of the East African Community Customs 
Union (joint report, Chapter III(4)). 
128. Burundi has never taken any contingency measures. 
(x) Standards and other technical requirements 
(a) Standards, tests and certification 
129. The BBN, created in 1992
32, is under the supervision of the Ministry responsible for trade, 
and manages and coordinates sta ndardization and quality control in Burundi.  It also acts as the 
enquiry point for the WTO Agreement on Technical Ba rriers to Trade and is the Codex contact point.  
The BBN represents Burundi in the African Regional Organisation for Standardisation (ARSO) and is 
a correspondent member of the International Organi zation for Standardization (ISO).  It is also 
Burundi's coordinating body for the harmoni zation of standards at the EAC level. 
130. The BBN belongs to the International Organi zation of Legal Metrology (OIML) and the 
International Electrotechnical Commission (IEC). 
131. Burundi has not submitted any notifications under the WTO Agreement on Technical Barriers 
to Trade since its previous TPR.  It has accepted th e WTO Code of Good Practice for the preparation, 
adoption and application of standards.33 
132. The BBN's main role in the standardization process is to prepare working documents, 
convene meetings of technical committees (TC), pr epare draft standards for public comment, publish 
standards, and monitor their application.  Draft standards are drawn up and approved by the National 
Standardization and Quality Control Council, on whic h all relevant interest groups are represented:  
three representatives of the Government;  four re presentatives of university or research institutes;  
one representative of the Chamber of Commerce, Indus try, Agriculture and Crafts;  one representative 
                                                      
32 Decree-Law of 17 May 1992 establishing the Standardization and Quality Control Bureau. 
33 WTO document G/TBT/CS/2/Rev.12 of 17 February 2006. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-88 
  
  of the business community;  one consumer represen tative;  two members appointed for their specific 
expertise;  and one representative of th e standardization a nd quality control body.34 
133. The BBN's budget is almost entirely state-s ubsidized and has multiplied almost tenfold 
from FBu 50,451,000 in 2006 to FBu 493,465,527 in 2 012.  This trend can be explained by the 
modernization of equipment and the recruitmen t of human resources.  Earnings from services 
provided (control and certifi cation) remain negligible. 
134. The BBN has already established technical committees composed of representatives of the 
country's various socio-economic sectors, especially  for fruit, vegetables, pulses, cereals and their 
products;  milk and milk products;  and fish, meat and their products.  Draft standards prepared by 
the BBN through the committees are published in ne wspapers or by means of press releases;  
anyone interested may send suggestions to the BBN in writing within a period of six months from the date of publication of the draft.  Draft sta ndards are submitted to the Minister responsible for 
industry, who decides on approval of the texts within a period of one month, on the advice of the National Standardization and Quality Control Council.  There are six main stages in the 
standardization procedure:  identification of needs;  preparation of a preliminary draft of the standard 
by the technical committee responsible for prepari ng standards;  holding of a public enquiry on the 
preliminary draft standard;  examination of the prel iminary draft standard by  the Council;  approval of 
the standard by the Minister of Trade;  and publication. 
135. Since 2003, Burundi has worked on and adopted a series of standards in conformity with 
those of COMESA and the EAC.  It has thus adopt ed 1,094 EAC standards out of a total of 5,000 as 
national standards, corresponding to 25% of the EAC standards.  The standards of the 
Codex Alimentarius, the IEC and ISO serve as a re ference in Burundi in areas where there are no 
national standards.  Burundi also uses standards a pplied in certain European countries - particularly 
Belgium - as a reference.  The only technical regulat ions in force in Burundi concern the import and 
marketing of iodized salt and medicines.  Bu rundi has not yet signed any mutual recognition 
agreement and does not yet have any accreditation system. 
136. Burundi's standards and technical regulations  do not differentiate between imported and 
locally manufactured goods. 
137. Any product whose manufacturer or producer complies with the applicable standards is 
eligible for a certification mark.  The law distinguishes between the "structured" and the 
"non-structured" sector without, however, providing a definition for either.  The structured sector is 
automatically subject to standardization and quality control standards.  Products of the non-structured 
sector may be subject to this regime by order of the Minister of Trade. 
138. Imports may be subject to quality control.  Products already inspected and certified by 
the countries of origin may also undergo inspection upon arrival in Burundi.  The decree of 13 December 1989 establishing a standardization a nd quality control system entrusts the BBN with 
this task, but to date there is no implementin g legislation for the aforementioned decree-law 
specifying control procedures (inspection and testin g procedures and related fees).  In practice, the 
BBN may test imports at the request of economic opera tors.  The parameters for analysis are based on 
international standards or, in their absence, on tho se of the supplier.  Analyses are performed with 
technical support from national laboratories and the re sults are interpreted by the BBN.  Moreover, the 
                                                      
34 The composition of the Council is determined by Article 3 of Decree No. 100/232 
of 13 December 1989 on the crea tion and organization of the Nati onal Standardization and Quality 
Control Council. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-89 
 
 
  BBN may undertake controls and refuse to allow certain  products to enter Burundi if they have been 
rejected in other EAC countries. 
(b) Sanitary and phytosanitary requirements (SPS) 
139. The Ministry responsible for agriculture, livestoc k and fisheries is the national enquiry point 
for all SPS matters.  The SPS focal point is located in the Ministry's plant protection department.  
The current legislation on sanitary measures is very old,  dating back to the colonial era.  It applies to 
products such as coffee, tea, rice and meat, but there are no implementing provisions.  There are no 
legal provisions on quarantine. 
140. Decree-Law No. 1/033 of 30 June 1993 establis hing plant protection in Burundi is the 
country's main phytosanitary law.  Its provisions cover pesticide control (70 pesticides have been 
approved, while the manufacture, marketing or import of  38 others is banned);  border control of plant 
imports and exports;  the issue of phytosanitary cer tificates to exporters or reshipment certificates 
consistent with international m odels determined in the Interna tional Plant Protection Convention 
and with the importing countries' requirements;  the Code of Conduct on pesticide management;  
and standardization and quality control of exports from and impor ts into Burundi.  Under the 
Phytosanitary Law, responsibility for control and inspection is entrusted to the plant protection 
department of the Ministry of Agriculture and Livestock.  Inspection and certification fees are imposed.  A phytosanitary certificate must be pa id and costs FBu 5,000 (less than US$4), while 
phytosanitary inspection is still free.  The first c ontrol takes place in the field and then before the 
products are shipped, but the means and the equipment used are still rudimentary. 
141. There are no prohibitions in place for SPS reasons.  Nevertheless, it is not permitted to 
deposit live animals.  Burundi has no quarantine ce ntres but there is a project to build quarantine 
centres at entry border posts.  Control is the responsibility of phytosanitary inspectors with support from the department's staff. 
(c) Marking, labelling and packaging 
142. Burundi does not have any national provision s on marking, labelling and packaging.  
For foodstuffs, it uses the Codex Al imentarius standard on labelling as the main reference.  According 
to the Commercial Code, however, the Minister r esponsible for trade may lay down requirements, 
inter alia , on the composition, quality and denomination of  goods intended for sale and the affixing of 
indications specifying their origin, composition, weight, volume, quantity or measurements.
35 
(xi) Other measures 
143. Counter-trade is not practised in Burundi.  There are no buffer stocks or requirements on 
national content. 
144. According to the authorities, Burundi has never applied trade sanctions other than those 
authorized by the United Nations Security Council or the regional organizations to which it belongs. 
                                                      
35 Republic of Burundi, Office of the President (2010), Law No. 1/07 of 26 April 2010 on the 
Commercial Code, April 2010, Bujumbura. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-90 
  
  (3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
145. Exports are subject to customs clearance proce dures similar to those a pplicable to imports 
(section (2)(i)) as the requirements include a custom s declaration, commercial invoice, packing list, 
consignment note, the export licence issued by th e client's commercial bank, the tax identification 
number (NIF), a certificate of non-acceptance issued  by the OBR, receipts for handling services at 
Bujumbura port, the certificate of origin prepared by  the Ministry responsible for trade and, in the 
case of certain food products, the hygiene certificate issued by the BBN.  As a general rule, no goods 
can be exported until all these documents ha ve been submitted to an OBR office. 
146. The export or re-export of goods requires a decl aration endorsed by a commercial bank prior 
to shipment of the goods in accordance with a pred etermined model.  Export declarations are made 
out in four copies for the exporter, the bank involved, the central bank and the customs administration. 
147. An export licence must be obtained for expor ts from Burundi for statistical purposes and 
exchange controls.  Exporters must open a fo reign currency account in a commercial bank and 
repatriate the foreign currency. 
148. A customs broker must be used, except for minor  cross-border trade.  The broker is paid a 
commission freely negotiated between him and the exporter for his services. 
(ii) Export prohibitions, restrictions and controls 
149. Coffee berry exports are banned.  Exports of  sugar are subject to a quota which varies 
depending on local demand.  The sugar quota is  managed through the SOSUMO company ( Société 
sucrière du Moso ), which has a production monopoly.  The State determines the quantity of sugar to 
be sold to distributors in each region according to  their estimates of demand and the market price for 
sugar. 
150. Burundi has not concluded any voluntary export restraint agreements.  As a party to CITES, it 
prohibits ivory exports. 
151. Burundi has no voluntary export restrictions a nd export controls are for statistical purposes. 
(iii) Subsidies and export duty and tax concessions 
152. The main instruments of export promotion ar e the incentives describ ed in the customs 
legislation (section (2) below), the 1988 Export Promotion Law, the Investment Code and the 
Free-Zone Law. 
153. The Export Promotion Law abolished all export taxes.  Furthermore, enterprises exporting 
non-traditional products are given a preferential rate equal to half the ordinary law rate applied on 
profits earned during a given financial year.  They ar e also eligible for drawback at 10% of turnover, 
which allows the refund of customs duties and ot her taxes on packaging items and inputs used to 
manufacture the goods exported. 
154. Importers may be eligible for drawback of cu stoms duties when re-exporting goods.  For that 
purpose, the importer is required to provide the decl aration of entry for consumption and the relevant 
invoices or statements containing a detailed descripti on of the goods and numbers of the packages.  EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-91 
 
 
  Duty refunds depend on identification of the goods  based on a detailed inspection at the customs 
office of exit, and on production of proof of import issued by the customs office in the country of destination.  Goods of Burundian origin may be re-imported duty free by decision of the Ministry of Finance and following a written request by the impor ter, who must specify the nature of the articles 
to be re-imported and the reason for their return. 
(iv) Free zones 
155. The Free-Zone Law provides for four types of fr ee-zone enterprise:  agricultural and livestock 
enterprises;  industrial and craft enterprises;  trading companies;  and services companies.  
Some activities do not qualify for the free-zone regime :  trade in precious metals and mineral ores;  
exploration, mining, enrichment, refining, buying and selling of mineral or es;  and coffee-related 
activities such as roasting.  One of the conditions of  eligibility is export of the entire output (in the 
case of commercial firms, import and re-export of imported goods in an unaltered state or after 
packaging), unless a waiver is granted.  The genera tion of "substantial" value-added (of at least 35%) 
is a condition applicable to agricultural and livestoc k, industrial and craft free-zone enterprises.  The 
services companies eligible for free-zone status ar e those intending to provide one or more of the 
following services:  assembly of computer equipmen t;  software manufacture;  packaging for export;  
printing and publishing;  production and distribution of  cinematographic films;  sound recording;  
and organized tourism services.  Both foreign and domestic investors may obtain free-zone status.  
An advisory commission set up by the Ministry res ponsible for trade and industry is in charge of 
free-zone enterprises.  The concessions granted are of a tax or customs nature. 
156. The tax concessions granted by Decree-Law  No. 1/015 of 31 July 2001 revising the 
Free-Zone Law are total exemption from existing or pr ospective indirect taxes, from registration fees 
and stamp duty, and total exemption from profits tax fo r the first ten years of operation, followed by a 
regime in which the taxation rate is reduced to 15%  instead of the standard 40% rate.  Any free-zone 
enterprise that has created more th an 100 permanent jobs for Burundian nationals is subject to a 10% 
profits tax and any free-zone enterprise which rein vests at least 25% of the profits earned over the 
previous ten years of its existence pays 10% less th an the standard rate.  Free-zone trading companies 
pay a 1% turnover tax, which is lo wered to 0.8% if the company creates more than 20 permanent jobs.  
The dividends distributed to shareholders are exempt from all taxes during the lifetime of the 
company.  Free-zone enterprises are also exempt from the 3% tax on the wages of foreign workers. 
157. The following customs concessions are granted to free-zone enterprises:  exemption from 
all present or future duties on imports of raw ma terials, intermediate products, ancillaries and 
capital goods;  outside-quota exports;  and exemp tion from any present or future export duties. 
158. The main obligations on free-zone enterprises are:  to train Burundian staff and, where 
qualifications are equivalent, to give priority to  recruiting Burundian nationals;  to produce goods or 
services exclusively for export;  and to submit to the Minister of Foreign Trade at the end of each year 
a report showing the implementation status of th e commitments undertaken.  Foreign investors are 
required to pay 2% tax on the total amount of thei r investments to the National Treasury.  Capital 
goods imported duty free may not be moved from the place approved by the Minister without written 
authorization.  Finished goods produced by the co mpany and raw materials, intermediate products and 
ancillaries imported duty free may only be moved for purposes of export, re-export or sale on the domestic market.  In the latter case, authoriza tion from the Minister of Trade and Industry is 
necessary and sales in the customs territory may not exceed 10% of output.  Such sales are subject to 
the normal customs regime, meaning that they are treated as imports. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-92 
  
  159. The overall performance of free-zone enterprises to date has been extremely uneven, largely 
on account of the crisis that affected Burundi.  Since the free zone was set up, 40 enterprises have 
been approved, mainly in the fruit, vegetables, flowers and ornamental plants subsectors (20);  
some companies have ceased their activities because  of the crisis and others because the law has 
excluded their fields of activity fr om the free-zone regime (coffee and mineral ores).  Currently, only 
five enterprises are operating under this regime a nd the overall value of their exports is modest. 
(v) Export promotion, financing and guarantees 
160. The main institutions and mechanisms provi ding export support are the drawback system, 
the industrial free zone and the API. 
161. The National Economic Development Bank (BNDE) grants long-term loans, notably to the 
agricultural sector (Chapter IV(2)(i)).  The project  selection criteria applied by the BNDE are those 
routinely used by commercial banks. 
162. The export support mechanism is experiencing di fficulties because of lack of financing and 
technical expertise, but also because of the cumbersome bureaucracy.  Drawback has existed 
since 1994 but is little used because of the red tape .  The National Guarantee Fund was established to 
promote agricultural enterprises and small and medium -sized craft, industrial, commercial or services 
enterprises unable to provide su fficient guarantees;  and the Investment Support Fund (FOSIP), 
which was meant to supplement small businesses' ow n resources, ceased operating because of lack 
of resources. 
163. Although the Government recognizes the importan ce of organizing fairs and exhibitions to 
promote exports, this type of activity is also hamp ered by lack of finance.  Burundi has no export 
guarantee or insurance mechanism. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives and other forms of support for enterprises 
164. Pursuant to the new Investment Code, enterpri ses are eligible for the following:  (i) the 
exemption from conveyance duty on purchase of the r eal estate and land necessary for the operation;  
(ii) a 37% tax credit on the amount of depreciable asset s invested in the enterprise, this credit taking 
effect when the investment is made;  and (iii) a 2%  reduction in profits tax if the enterprise employs 
between 50 and 200 Burundian workers and 5% if it employs over 200 workers.36 
165. Besides various duty rebates and suspensions ( section (2)(vii)), Burundi offers a number of 
fiscal incentives in the form of tax holidays, redu ced tax rates (Table AIII. 4), and zero-rated VAT for 
certain farming inputs (section (2)(vii)).  Tax incen tives may be granted by sector, type of activity or 
geographical location, as well as on a company- specific basis.  The range of socio-economic 
objectives targeted by these measur es includes encouraging local or fo reign investment in particular 
economic sectors or geographical areas;  boosting ex ports;  creating jobs;  and supporting small and 
medium-sized enterprises.  The main incentives are t hose described in the Investment Code.  They are 
mostly tax concessions, but there are also other incentives. 
                                                      
36 Republic of Burundi, Office of the President (2008), Law No. 1/24 of 10 September 2008 on the 
Investment Code, Bujumbura, February 2009, Articles 14 and 15. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-93 
 
 
  166. The main research activities are those conducted by the Institute of Agronomic Sciences 
of Burundi (ISABU), the Institute of Agronomic  and Zootechnic Research (IRAZ) and, to a 
lesser extent, the National Food Technology Centre (CNTA) and the Faculties of Agricultural Science 
and Economic and Administrative Sciences of the Univ ersity of Burundi.  Financial support for these 
institutions has crumbled over the years since the beginning of the crisis and, according to the 
authorities, their activities seem to have come to a standstill. 
167. There are also other forms of support in Buru ndi:  the Burundi Business Incubator (BBIN), 
the Enhanced Integrated Framework (EIF), and the pr oject to build the capacity of the IAA in the area 
of quality standards.  The BBIN is a sub-component of the Agribusiness Program, a project financed 
by USAID in support of those who want to set up an enterprise or upgrade the performance of an 
existing enterprise.  The BBIN offers services such as advice on management, training and administrative support.  To be eligible, the candidate  must prepare a business plan and submit it to the 
BBIN's selection committee, and once this is accep ted it will have access to the incubator against 
payment of a monthly service fee.  This progr amme also offers training to prepare future 
entrepreneurs to manage their business better.  Accord ing to the authorities, the first candidates joined 
this structure in the middle of the second quart er of 2011 and a second call for candidates has been 
launched. 
168. The project Trade and Capacity Building in Agro -Industry Products for the Establishment and 
Proof of Compliance with International Market Re quirements is financed by the Norwegian Agency 
for Development Cooperation (NOR AD) and implemented by UNIDO.  Originally this project 
was designed for the three founding EAC countries and then extended to Rwanda and Burundi.  
Its objectives are:  (i) to build industrial cap acity so that manufactures can meet the quality 
requirements for international trade;  and (ii) to strengthen the institutions responsible for verifying 
the conformity of products by enabling them to provi de adequate services;  the final goal being that 
these institutions may be accredited and so be able to issue internationally recognized certificates. 
169. State enterprises active in the coffee, tea and cotton subsector s make seeds, fertilizers and 
pesticides, inter alia , available to planters, and their cost is deducted from the income earned from the 
sale of their crops (Chapter IV).  Coffee pr ocessing activities are supported through a reduced 
refinancing rate accorded by the BRB to commercia l banks involved in the financing of washing and 
hulling firms.  The BRB requires the spread on the re financing rate applied by commercial banks not 
to exceed a prescribed maximum.  When the coffee market is weak, the treasury bonds issued by the 
State should serve as guarantees for the bank loans to the industry (Chapter IV). 
170. At present, action, notably by the API, is lim ited to matters directly related to enterprise 
creation.  In Burundi's case the services provided n eed to be supplemented.  As an illustration, the 
support structures are not sufficiently explicit on the assi stance they intend to give enterprises in areas 
such as marketing, production, taxation, personnel  management, transfer of technology, etc.  
Moreover, with the exception of the EIF, which provides for financing of enterprise creation, 
the various stakeholders do not provide any support for financing.  For example, there is no provision 
for support for loan applications to commercial banks, government programmes or any other source 
of financing;  nor do they offer any tr aining in aspects of interest to business. 
171. The performance level of Burundian enterprises  remains very low and the authorities do not 
propose any business support services to build the capacity of existing enterprises;  essentially, all that 
is proposed concerns the enterprise creation stage. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-94 
  
  172. With regard to promoting quality, although it is true that the EIF and the Trade and Capacity 
Building in Agro-Industry Products for Establishm ent and Proof of Compliance with International 
Markets requirements project did seek to give suppor t to the BBN, the support provided is insufficient 
and the measures do not appear very convincing because the full process that should lead to 
accreditation of this government body so that it could issue "quality" certificates in the short term is 
not spelled out.  The important role played by la bour and capital productivity, and also "excellence of 
production" in an enterprise's competitiveness37 is not properly taken into account in the upgrading of 
(Burundian) enterprises within the integration frame work (in the EAC for example).  Moreover, the 
structures proposed do not appear to take into accoun t the need to develop innovation in enterprises, 
even though this is a key factor for success and c ould make Burundian products more competitive. 
(ii) Local content requirements 
173. The Investment Code does not contain any such requirements. 
(iii) Government procurement 
174. Law No. 1/01 of 4 February 2008 on Burundi 's Government Procurement Code is the new 
main legal instrument covering go vernment procurement in Burundi. 
175. Article 1 of the Government Procurement Code determines the rules applicable to 
government procurement and public service concess ions, as well as implementation and control of 
government procurement by the legal persons indicated  in Article 3 of the Law.  These rules provide 
for freedom of access to government procurem ent, equal treatment of all candidates and 
transparent procedures.  They are mandatory fo r procuring authorities for government procurement 
procedures and public service concessions irrespective of the amount involved. 
176. Subject to the provisions in Article 65 of this  Law, procuring authorities are forbidden from 
taking any measure or provision based on the na tionality of candidates likely to constitute 
discrimination against citizens of member St ates of any regional organization to which 
the Republic of Burundi belongs or any country that  has ratified a treaty or international convention 
also ratified by the Republic of Burundi and concer ning the regulation of government procurement.  
177. The reform of the Government Procurement C ode introduced some innovations with a view 
to increasing competition.  For example, the Code makes open bidding procedures the rule.38  Use of 
any other procedure must be justified and re quires authorization.  Direct negotiation or 
private agreement is restricted to those cases covered by Articles 39 to 42 of the Government Procurement Code. 
178. The Code reaffirms and reinforces th e rules on publicity for government 
procurement procedures.  There is widespread pub licity at the various stages of the procedure, 
from the planning stage to award of the contract to the bidder who has met all the requirements.  
According to Article 15 of the Code, the procuri ng authorities must draw up annual forward plans for 
government procurement based on their programme of  work and ensure that they are publicized 
through generalized notification of the contract to be awarded.  This notification gives any bidders 
advance information on the contracts to be awar ded throughout the year and enables them to 
make preparations.  The publicit y given to the forward plans is intended to guarantee free access to 
government procurement. 
                                                      
37 Paranque, P. (undated). 
38 Article 20, Law No. 1/01 of 4 February 2008 on Burundi's Government Procurement Code. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-95 
 
 
  179. One of the main criticisms of the former government procurement regulations was the 
excessive centralization and, consequently, the lack  of any division of responsibilities for awarding, 
implementing, monitoring and regulating contracts.  Instead of a single Directorate-General of Government Procurement, the new Code has estab lished several bodies responsible for government 
procurement contracts:  (i) the procuring authorities;   (ii) the persons responsible for procurement;  
and (iii) government proc urement management units. 
180. The Code introduces decentralization of th e structures for controlling and regulating 
government procurement.  The National Directorat e for the Control of Government Procurement 
(DNCMP) is responsible for initial control of complian ce with the relevant regul ations.  It follows up 
the implementation of government procurement cont racts.  The Government Procurement Regulatory 
Authority has two basic tasks:  it undertakes an internal audit of compliance with government 
procurement regulations by procuring authorities at  the end of each financial year;  and it resolves 
disputes before any recourse to the courts. 
181. Article 4 of the Code determines the c onditions applicable to procurement with 
external financing.  Contracts awarded in impl ementation of internationa l financing agreements 
or treaties must comply with the provisions of the Code to the extent that these are not contradictory 
to the provisions in the internationa l agreements and treaties concerned. 
182. The DNCMP publishes directives specifying the thr esholds applicable to the various methods 
for awarding contracts (Table III.1).  The method most commonly used is an open call for bids, especially in the case of procurement involving larg e amounts.  The call for bids is published in the 
national press and, in certain cases, the internationa l press, and is put up on information boards.  
Bids are opened, registered and evaluated by th e Government Procurement Committee.  Local and 
regional authorities and state-owned enterprises follow the same procedure.  The DNCMP's staff or approved external firms are responsible for verification. 
183. The other authorized procedures, each with sp ecific conditions, are:  restricted bidding;  
direct procurement;  procurement by requests for pro posals;  and requests for quotations.  Restricted 
bidding may be authorized when the goods, work s or services are available only from a limited 
number of suppliers or when the time and cost required to examine and evaluate a large number 
of bids would be disproportionate to the time availa ble in an emergency situation or to the nature of 
the procurement, and not its value.  Direct procurem ent may be used in various situations including:  
the absence of competition for technical reasons;  when the goods, works or services can be supplied 
only by one prospective bidder;  when there is an ur gent need for the item;  when there is a need for 
additional items from the original supplier;  in cases of new works consisting of  repetition of previous 
works from a supplier;  for the purchase of perishable  items on market terms;  or when the contract 
price does not exceed 20% of the amount of the original procurement in Burundi francs.  The procuring entity may engage in  procurement by means of requests for proposals when it seeks to 
obtain consulting services or combinations of goods and services for which open or restricted bidding 
is not suitable because of the difficulty in defining the services.  Procurement by means of requests for 
quotations applies to the purchase of readily ava ilable goods or for the procurement of works or 
services for which there is an established market.  No  preferential margins are given to local suppliers.  
Procuring entities must provide the DNCMP with annual reports on use of procedures other than 
open bidding. 
 WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-96 
  
  Table III.1 
Thresholds for procurement methods in Burundi in 2012 
1.  Thresholds for internally financed procurement 2012 
1.1 Procurement thresholds 
Method of procurement Works Services Supplies 
Open bidding FBu 10,000,000 FBu 5,000,000 FBu 5,000,000 
Restricted bidding FBu 10,000,000 FBu 5,000,000 FBu 5,000,000 
Quotations procurement Less than FBu 10,000,0 00 FBu 5,000,000 or less FBu 5,000,000 or less 
Micro procurement Less than FBu 10,000,000 Less than FBu 5,000,000 Less than FBu 5,000,000 
1.2 Competence thresholds  
Method of procurement Works  Services  Supplies  
Open bidding FBu 20,000,000 FBu 15,000,000 FBu 15,000,000 
Restricted bidding FBu 20,000,000 FBu 15,000,000 FBu 15,000,000 
Quotations procurement Less than FBu 20,000,000 Less than FBu 15,000,000 Less than FBu 15,000,000 
Micro procurement Less than FBu 20,000,000 Less than FBu 15,000,000 Less than FBu 15,000,000 
1.3 Publication thresholds  
Method of procurement Works Services Supplies 
Open bidding FBu 1,000,000,000 FBu 50,000,000 FBu 700,000,000 
Restricted bidding FBu 1,000,000,000 FBu 50,000,000 FBu 700,000,000 
Quotations procurement Less than FBu 1,000,000,000 Less than FBu 50,000,000 Less than FBu 700,000,000 
Micro procurement Less than FBu 1,000,000,000 Less than FBu 50,000,000 Less than FBu 700,000,000 
2.  Thresholds for externally  financed procurement 2012 
2.1 Procurement thresholds 
Method of procurement Works Services Supplies 
Open bidding FBu 40,000,000 FBu 40,000,000 FBu 40,000,000 
Restricted bidding FBu 40,000,000 FBu 40,000,000, FBu 40,000,000 
Quotations procurement Less than FBu 40,000,000 Less than FBu 40,000,000 Less than FBu 40,000,000 
Micro procurement Less than FBu 40,000,000 Less than FBu 40,000,000 Less than FBu 40,000,000 
2.2 Competence thresholds  
Method of procurement Works Services Supplies 
Open bidding FBu 150,000,000 FBu 150,000,000 FBu 150,000,000 
Restricted bidding FBu 150,000,000 FBu 150,000,000 FBu 150,000,000 
Quotations procurement Less than FBu 150,000,000 Less than FBu 150,000,000 Less than FBu 150,000,000 
Micro procurement Less than FBu 150,000,000 Less than FBu 150,000,000 Less than FBu 150,000,000 
2.3 Publication thresholds  
Method of procurement Works Services Supplies 
Open bidding FBu 1,000,000,000 FBu 200,000,000 FBu 700,000,000 
Restricted bidding FBu 1,000,000,000 FBu 200,000,000 FBu 700,000,000 
Quotations procurement Less than FBu 1,000,000,000 Less than FBu 200,000,000 Less than FBu 700,000,000 
Micro procurement Less than FBu 1,000,000,000 Less than FBu 200,000,000 Less than FBu 700,000,000 
3.  Thresholds for procurement by state-ow ned enterprises of a commercial nature 2012 
3.1 Procurement thresholds 
Method of procurement Works Services Supplies 
Open bidding FBu 10,000,000 FBu 10,000,000 FBu 10,000,000 
Restricted bidding FBu 10,000,000 FBu 10,000,000 FBu 10,000,000 
Quotations procurement Less than FBu 10,000,000 Less than FBu 10,000,000 Less than FBu 10,000,000 
Micro procurement Less than FBu 10,000,000 Less than FBu 10,000,000 Less than FBu 10,000,000 
3.2 Competence thresholds  
Method of procurement Works Services Supplies 
Open bidding FBu 50,000,000 FBu 30,000,000 FBu 50,000,000 
Restricted bidding FBu 50,000,000 FBu 30,000,000 FBu 50,000,000 
Quotations procurement Less than FBu 50,000,000 Less than FBu 30,000,000 Less than FBu 50,000,000 
Micro procurement Less than FBu 50,000,000 Less than FBu 30,000,000 Less than FBu 50,000,000 
3.3 Publication thresholds  
Method of procurement Works Services Supplies 
Open bidding FBu 1,000,000,000 FBu 50,000,000 FBu 700,000,000 
Restricted bidding FBu 1,000,000,000 FBu 50,000,000 FBu 700,000,000 
Quotations procurement Less than FBu 1,000,000,000 Less than FBu 50,000,000 Less than FBu 700,000,000 
Micro procurement Less than FBu 1,000,000,000 Less than FBu 50,000,000 Less than FBu 700,000,000 
Note: Burundi's legislation does not determine the thresholds by  government procurement methods published.  Moreover, it does n ot 
differentiate between quotations pr ocurement and micro procurement. 
Source: WTO Secretariat, on the basis of information provide d by the Burundian authorities on the government 
procurement directives. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-97 
 
 
  184. At the request of one of the parties, any di sagreement between the Government and a bidder 
or contractor may, in the first instance, be subm itted for arbitration to senior officials in the DNCMP 
within five working days from the publication of aw ard of the contract.  If no amicable settlement can 
be reached within a period of 15 working days following the appeal, the dispute may be brought 
before the Dispute Settlement Committee of the Government Procurement Regulatory Authority, 
which must rule on the dispute within 15 working da ys of receiving the appeal.  The decision by the 
Dispute Settlement Committee is immediately enfor ceable.  Nevertheless, its decisions may be the 
subject of appeal to a court, although su ch an appeal has no suspensive effect. 
185. The number of government procurement contr acts awarded as a result of open bidding 
is growing in Burundi every year, a reflection of the positive reforms in this sector.  Nevertheless, 
some 10% of government procurement is still aw arded through direct agreement (Table III.2). 
Table III.2 
Statistics on the award of government procur ement contracts in Burundi, by type of pr ocurement and by mode/method of awarding 
contracts 
Year Total procurement Direct agreement Restricted consultation Open bidding 
Number Percentage Number Percentage Number Percentage 
2008 Supplies 122 12 9.84 19 15.60 91 74.60 
Works 31 4 12.90 4 12.90 23 74.20 
Services 12 0 0.00 2 17.00 10 83.00 
TOTAL 2008 165 16 9.70 25 15.15 124 75.15 
2009 Supplies 456 27 5.92 6 1.32 423 92.76 
Works 125 3 2.40 4 3.20 118 94.40 
Services 102 5 4.90 12 11.80 85 83.30 
TOTAL 2009 683 35 13.22 22 16.32 626 270.46 
Source:  Information provided by the Burundian authorities. 
186. Burundi has not signed the Plurilateral Agreemen t on Government Procurement and is not an 
observer at the Government Procurement Committee. 
(iv) State trading, state-owned enterprises and privatization 
187. Law No. 1/03 of 19 February 2009 revising the Law on the organization of privatization of 
state-owned enterprises, services and public works,  is the legal basis for privatization and the 
operation of state-owned enterprises in Burundi.  Th e Law authorizes the Government to assign all or 
some of the state's shares or financial interests in  any company or enterprise designated by it in which 
the State is a shareholder, to natural or legal persons under private law.39 
188. The Law specifies the bodies responsible for guiding and implementing the privatization 
process:  (i) the Interministerial Privatization Committee (CIP);  (ii) the Technical Valuation 
Commission (CTE);  and (iii) the department r esponsible for state-owned enterprises (SCEP). 
189. The programme for the privatization and refo rm of the public services sector is the 
responsibility of the Ministry in charge of priva tization, whose tasks include:  (i) preparing and 
following up the policy for privatization of state-owned enterprises;  and (ii) preparing and following up strategies for the privatization of stat e-owned enterprises.  The SCEP undertakes studies, 
examines the bids and makes recommendations  to the CIP, which takes a decision. 
                                                      
39 Article 1, Law No. 1/03 of 19 February 2009. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-98 
  
  190. Bids relating to privatization are evaluated in  two stages;  technical documents are opened 
first and are matched against the terms of refere nce.  An evaluation committee reviews the business 
development plans of bidders which submitted satis factory technical documents and decides whether 
each plan meets the requirements.  Financial bi ds from bidders who submitted acceptable technical 
documents and satisfactory business development pl ans are opened in the second stage.  The opening 
of technical documents and financial bids takes pl ace publicly.  The best priced bid wins.  For more 
important divestiture, there may be a pre-qualifi cation process prior to final bidding and only 
pre-qualified bidders may participate in the bidding process. 
191. The process is intended to be transparent and co mpetitive.  Publicizing the tender for the sale 
of all or some of the equity in an enterprise, priv atization of its management or of a public work or 
service is intended to ensure transparency.40  Publicity is also conducive to competition and 
guarantees access to government contracts.41  To ensure competition among bidders and thus 
enlighten the procuring authority on the real value of the future contractor, the contract is brought to the attention of the public.  Moreover, the Law makes it compulsory for the CIP, which is the 
decision-making body for privatization, to determin e the number and maximum percentage of shares 
that can be held by the public, whether Burundians or  foreigners, while at the same time allowing for 
the assignment of a fixed percentage of the shares put on sale to the enterprise's employees.
42 
192. In 2011, the State was still extensively i nvolved in economic activity and had shares 
in 40 companies (SPPs) covering several types of activity including:  agribusiness;  energy;  telecommunications;  mining and quarrying;  cons truction;  road and air transport;  hotels and 
restaurants;  finance and insurance;  and social services (Table III.3). 
193. Since the previous TPR in 2003, the situation of  SPPs in Burundi has changed, but is still 
fragile because some of them such as AIR Bu rundi, REGIDESO, SIP, SHNB/NOVOTEL, OTB, 
SOGESTAL MUMIRWA, RPP, etc. regularly record  highly negative performance.  Even companies 
that were previously prosperous such as SOSUMO have seen their performance decline year by year.  
For example, SOSUMO's balance sheet declined from FBu 2.8 billion in 2006 to FBu 0.6 billion, after 
falling to FBu 0.4 billion in 2008.  Only a few companies have seen stead y improvement in their 
performance;  these include the National Telecommunications Office (ONATEL), whose net earnings show a rise from FBu 0.37 billion in 2004 to FBu 6.1 billion in 2009, and the National Peat 
Office (ONATOUR), from FBu 0.08 billion to FBu 1.2 billion in 2009 following renewal of its production tools.  It should be noted that th e Burundian Tea Board (OTB) recorded positive 
performance in 2008 and 2009 not only thanks to the renewal of its production tools financed by the 
European Union but also because internat ional prices were particularly high. 
194. The financial situation of state-invested comp anies is still precarious, justifying continued 
privatization.  One of the lessons learned from th e SPPs' financial statements is that there is a 
generalized lack of control over wage bills.  In the e nd, the risk is that all value-added will go to pay 
wages, ignoring the need to have sufficient resources available to self-finance the company's 
development, remunerate the St ate (shareholder) and pay taxes. 
195. As far as privatization is concerned, efforts have mainly focused on liberalizing the coffee 
subsector, with 13 stations being sold.  The Bur undi New Hotel Company and the Bujumbura abattoir 
have been sold, and privatization is going ah ead for the Burundi Hotel and Tourism Company 
(Méridien Hotel) and ONATEL. 
                                                      
40 Article 12, Government Procurement Code. 
41 Idem.  
42 Article 13, Privatization Law. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-99 
 
 
  Table III.3 
List of state-invested companies and State's share, 2011  
Short name Name of company State's share
(%) Short name Name of company State's share
(%) 
BANCOBU Commercial Bank of Burundi 3.03 REGIDESO Water and Electricity 
Distribution Authority 100.00 
BCB Credit Bank of Bujumbura 10.65 SHELTER 
Afrique   
BBCI Burundian Trade and Investment 
Bank 3.30 SIP Public Real Estate Company 87.50 
BNDE National Economic Development 
Bank 40.10 SOBUGEA Burundi Airport Management 
Company 90.00 
SOCABU Burundi Insurance Company 25.00 SOGEMAC Bujumbura Central Market 
Management Committee 38.95 
FPHU Fund for the Promotion of Urban 
Housing 83.10 SODECO Hulling and Packaging 
Company 100.00 
AFRICARE  0.67 Sogestal Kaya nza Kayanza Wash ing Stations 
Management Company 14.24 
AIR Burundi AIR Burundi 100.00 Sogestal Kirimiro Kirimiro Washing Stations 
Management Company 68.80 
CAMEBU  100.00 Sogestal Ki rundo Kirundo Washing Stations 
Management Company 42.82 
COGERCO Cotton Management Company 100.00 Sogestal 
Mumirwa Mumirwa Washing Stations 
Management Company 81.00 
ECOSAT Control of Subsidized Housing 
Construction and Land Development 100.00 Sogestal 
Ngozi Ngozi Washing Stations 
Management Company 26.86 
EPB  Bujumbura Port Operating 
Company 40.58 SRD Imbo  100.00 
FNG National Guarantee Fund  SOSU MO Moso Sugar Company 99.00 
Hôtel Source du 
Nil Hôtel Source du Nil 54.90 BRARUDI  40.74 
LONA  100.00 ONATOUR National Peat Office 100.00 
ONATEL National Telecommunications 
Office 100.00 OTRACO Public Transport Board 100.00 
OTB Burundian Tea Board 100.00 RPP  100.00 
Source:  Information provided by the Burundian authorities. 
196. Frequent changes in the authorities responsible  for privatization, operational problems at 
the CIP, the lack of involvement of company heads and social bodies in the companies whose 
privatization is planned, as well as a certain lack of clarity in some cases of privatization of companies or public works have slowed down the process. 
197. The other problem for SPPs is that they are hi ghly indebted, especially those selling some of 
their goods or services to other government st ructures such as REGIDESO, ONATEL, ONATOUR, 
SRDI, etc.  As they can no longer finance their ope rations or development using their own funds, the 
majority of SPPs incur debts, which rose from FB u 66.5 billion to FBu 84 billion between 2004 and 
2009.
43  According to the authorities, some co mpanies such as SRDI, SODECO, SOGESTAL 
Mumirwa and the OTB would already have gone bankrupt if they had not been State-owned 
enterprises because their own funds had been negative for a long period of time. 
198. The new Law prohibits any manager of a st ate-owned enterprise convicted of fraudulent 
management in criminal proceedings from purchasing shares in a company slated for privatization.  
This prohibition is valid for five years from the da te of the conviction.  The Law also lays down the 
number and maximum percentage of shares to be sold to the general public so as to ensure there are as 
                                                      
43 REGIDESO is not taken into account because its debts fell from FBu 51.9 billion to FBu 7.8 billion 
as a result of debt transfer between the company and the State. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-100 
  
  many buyers as possible.  It provides for financi ng the privatization programme and related shares by 
means of a special fund financed by 5% of state dividends from the SPPs and the proceeds of liquidations and privatizations.  The proceeds of sal es are used to finance the privatization process.  
There are no provisions reserving a specific share for the State ("golden share"). 
199. Burundi has not notified the WTO of any state-trading enterprises within the meaning of 
Article XVII.4(a) of the GATT 1994 within Burundi. 
(v) Competition policy and price controls 
200. In Burundi, most economic units are micro or small enterprises in the agricultural sector, 
a reflection of the small scale of Burundi's economy and its lack of diversification.  There are few 
manufacturing or services companies, except for some food-processing plants and trading and 
transport companies.  Burundi is highly dependent on  imports, which are very costly because of high 
transport and customs charges.  Th ere is also a limited number of operators in the retail trade sector, 
which reduces competition.  In general, however, f ood prices are determined by market forces, except 
for the price of lake transport services, which are controlled.
44 
201. Until 2010, Burundi did not have any comprehe nsive and consistent legal and institutional 
framework governing competition matters.  Some pr ovisions on unfair competition can be found in 
Title 6 of the 1993 Commercial Code.  Decree-Law No. 1/45 of 9 July 1993 containing the general 
provisions for the Commercial Code did not cove r competition.  Only unfair competition was the 
subject of provisions in the aforementioned law.  Th e text was extremely brief and did not furnish any 
details concerning anti-competitive practices (unlawfu l price fixing;  abuse of a dominant position;  
false declarations of origin;  disparagement;  creating or maintaining misleading indications 
on products and services;  a nd suppression of commercial competition (imprisonment, fines, 
judicial orders)). 
202. Since March 2010, competition has been regulated by the new Law No. 1/06 
of 25 March 2010 on the legal regime  for competition.  In a separate section, this new legal text 
provides for protection of consumers, making refere nce to the obligation to provide information on a 
product's specifications, a ban on unfair terms in commercial contracts, as well as suppression of 
practices contrary to consumers' interests.  Th is text also introduces a competition council but only 
gives it an advisory role. 
203. The Law provides for the creation of a Competition Commission (independent administrative 
authority) and introduces provisions on anti-compe titive practices and mergers, the commercial court 
and a dominant position.  One point that warrants cl oser consideration is the possible waiver from the 
rules on abuse of a dominant position.  Article 45 allows for such a waiver in cases where the 
"objective or effect" of certain practices could be to  improve production, costs, quality, etc.  The Law 
does not give any details, however, on the shar ing of roles and responsibilities between the 
Competition Commission and the Ministry of Trade, Industry and Tourism.  For example, there needs 
to be better definition of responsibilities for iden tifying practices liable to hinder competition and 
for the submission of complaints. 
204. At the request of any interested party, th e Commercial Court may order the cessation of acts 
contrary to honest commercial practices.  The C ode also provides for fines and prison sentences for 
                                                      
44 The State still determines the producer price for a number of products such as coffee, tea, cotton, 
sugar and lubricants.  Following economic reforms and the privatization programme, these price controls could 
be abolished some time in the future. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-101 
 
 
  anyone who:  (i) brings about or maintains by mean s of threats, violence, flagrantly illegal acts or 
fraudulent practices, a concerted work stoppage with the aim of forcing an increase or decrease in 
wages, or of undermining the free exercise of industry or labour;  (ii) infringes manufacturing secrets;  (iii) uses unlawful means to interfere with freedom  of competition;  (iv) interferes with the free 
conduct of public auctions or awards  of government procurement contracts;  (v) enters into a contract 
with the State by taking advantage of the authorit y or influence of persons acting on behalf of the 
State;  or (vi) contributes to artificial price increases,  alters the status of data  for personal advantage or 
interferes with delivery deadlines. 
205. The Ministry responsible for trade and industry is the authority in charge of competition 
issues.  The number of complaints recorded is r estricted to disputes of a commercial nature alone. 
206. The State sets or administers prices for a cert ain number of products (Chapter IV).  Producer 
prices are set for coffee, tea, cotton and sugar.  Selling prices are fixed, inter alia , for petroleum 
products, non-alcoholic car bonated beverages, beer and sugar.  The State also sets the prices of 
certain services, including electricity, water, road passenger transport, fixed telephony and insurance 
premiums.  In the case of selling prices, the relevant  decisions are notified through an ordinance from 
the Minister of Trade or a decision by the boards of directors duly approved either tacitly or explicitly 
by the Minister responsible. 
207. Liberalization of the coffee subsector has led to liberalization of producer prices and the 
elimination of government guarantees, individual and free negotiation of loans, exposure of all 
participants to market forces, freedom to invest  in the subsector, free competition at all levels 
(farm-gate purchasing, operation of washing sta tions, processing and export of coffee) and the 
abolition of controlled export prices. 
(vi) Intellectual property 
208. Burundi has been a member of the World Intellectual Property Organization (WIPO) 
since 1977.  It has acceded to the Paris Conven tion and a 1977 government decree stipulates that 
Burundi is a party to that Convention in respect of  any subject-matter relating to patents, trademarks 
and industrial designs.  As a Member of the WTO,  it is party to the Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPS).  Burundi is an observer at the African Intellectual Property Organization. 
209. Intellectual property regulations are not well de veloped in Burundi.  They consist mainly 
of a 1964 law on industrial property, a 1977 decree-l aw which specifies that  the provisions of the 
Paris Convention apply to the protection of industr ial designs, and a 1978 law on copyright.  Both the 
Copyright Law and the Industrial Property Law ar e being revised.  The Ministries responsible for 
intellectual property matters are those of Culture, Youth and Sports (copyright) and of Trade and 
Industry (industrial property).  In the past, the Industrial Property Service of the latter 
Ministry concerned itself solely with the registra tion of patents and tradem arks.  In January 2002, 
an Industrial Property and Documentation Directorate was set up to deal with all matters relating to 
industrial property. 
210. The revision of the Copyright Law is supported by associations of performers and composers, 
as well as by music producers, who see in this Law a means of stimulating Burundi's music sector.  Enactment of the new Law is scheduled to go  hand in hand with Burundi's accession to the 
Berne Convention. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-102 
  
  211. The draft Law comprises two main parts:  copyri ght and related rights, t ogether with an annex 
on the regulation of translation and reproduction licences.  An illustrative list of protected works covers all major categories, including works cons idered an expression of folklore.  Both economic 
and moral rights are protected.  Compulsory licences may be granted for purposes of translation into 
and reproduction in Kirundi. 
212. The term of protection provided for under the draft Law comprises the entire lifetime of the 
author and 70 years from the end of the year of his death.  In the case of works of joint authorship, 
rights are protected during the lifetime of the last surviving author and for up to 50 years after his death.  In the case of a work belo nging to a legal person, the term of protection is 50 years from the 
date on which the work was lawfully made accessible to the public. 
213. The Law of August 1964 on industrial property regul ates the protection of patents, trademarks 
and industrial designs.  The implementing measures are contained in the Ministerial Ordinances of 
July 1965, the Ministerial Order of Septembe r 1964, and the Ministerial Order of June 1966, 
respectively.  The Law states that the term for pa tents for inventions is 20 years, but provides no 
definition of what is meant by "invention".  A tr ademark is considered to be any sign serving to 
distinguish the goods of an industry or the articles of a business, as well as the names of a person and 
the corporate name of a business or industry.  As far as industrial designs are concerned, the 
manufacturer must specify, at the time of filing, whether he intends to reserve for himself an exclusive right of use for one, three or five years, or in perpetuity. 
214. The draft Law amending the 1964 Law deals with the protection of patents for inventions, 
industrial designs, marks (including collective mark s), trade names and geographical indications, and 
acts of unfair competition.  Regarding patents, the draft Law clearly defines what is meant by an invention (following the definition contained in the Paris Convention), and provides for a term of protection of 20 years.  The draft Law also contai ns provisions concerning the working of the patent 
by the public authority or an authorized third pa rty, compulsory licences, and criminal proceedings 
and penalties.  Regarding industria l designs, the draft Law defines, inter alia , what subject-matter is 
eligible for registration and states that the term of protection shall be five years, renewable for 
two consecutive periods of five years each.  The te rm of protection for a mark shall be ten years 
from the date of filing of the registration and may be renewed for two consecutive periods of 
ten years each.  Trade names shall be protected fo r a period of ten years, renewable indefinitely.  
As regards geographical indications, the draft Law gives a definition and specifies the level of 
protection granted.  The draft Law provides that the Industrial Property and Documentation 
Directorate shall keep separate registers for pate nts, industrial designs and marks, and that all 
publications required by the Law shall be effected by means of an official journal. 
215. The 1989 Decree-Law establishing a standardiza tion and quality control system contains a 
provision to protect certain aspects of business conf identiality.  Article 12 specifies that anyone who 
discloses secrets relating to the design, manufacture or processing of a product otherwise than in the 
cases covered by the Law or cases where they are cal led upon to testify in legal proceedings, shall be 
liable to a term of imprisonment of one to six months and a fine of FBu 2,000-10,000, although no 
implementing regulations have ever been adopted for this Law. 
216. Burundi has not yet developed a national intellectual property policy.  It also needs to 
evaluate its technical cooperation and financial needs for implementation of the TRIPS Agreement, as 
provided by the TRIPS Council Decision of December 2005.  The contact point is the Ministry of 
Trade, Industry and Tourism. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-103 
 
 
  IV. TRADE POLICIES AND PRACTICES BY SECTOR 
(1) AGRICULTURE , LIVESTOCK , FISHING AND FORESTRY  
(i) Overview 
217. Agriculture's contribution to GDP, employment, and export earnings (Chapter I) makes it an 
important sector of the Burundian economy.  Agri culture in Burundi is essentially a subsistence 
farming activity.  The area with a potential for agriculture covers 2,350,000 hectares, almost 
one million of which consist of upland soils whose productivity depends heavily on the correction of 
their acidity and aluminous toxicity.  Almost 81% of the potential agricultural area is under 
cultivation.  Food crops occupy 90% of the cultivat ed land and are mostly consumed by the growers 
(80%).45  The rest of the land (about 10%) is occupied by export crops, the main source of foreign 
currency, with coffee in the forefront (Chapter I(1 )).  At the same time, the fishing subsector is 
steadily contracting and now makes only a marginal contribution to the economy.46 
218. The main food crops are legumes, particularly  beans, soya, peas, and green bananas;  
tubers and other root vegetables, in particular, cassava, potatoes, sweet potatoes and yams;  and cereals, including maize, sorghum, rice and whea t.  The Burundian livestock population consists 
of bovine cattle, goats, poultry, sh eep, rabbits and pigs.  The produc ts of food-crop and livestock 
farming are mainly intended for domestic consumpti on.  Apart from coffee and tea, the other export 
products, depending on the year, are cotton and sugar. 
219. The rural economy has two main categories of agricultural producers, namely, a large 
majority of individual producers spread over all the "collines" (administrative subdivisions) and a 
minority of producers grouped in variously structured  producer organizations within or outside the 
agricultural chains.  The members of the producer organizations also separately cultivate their own 
family plots.  Agriculture is practised in a r udimentary fashion by about 1.2 million rural families 
(90% of households) on very small pieces of land averaging about 0.5 hectare in size. 
220. Under the 1986 Code of Land Tenure, in fo rce until replaced by the new code in 
August 2011, foreign natural or legal persons benefit from the sa me rights and protection as 
Burundians.
47  In particular, they can benefit from the sale or concession of state-owned land as 
defined by the code.  Public state property is ina lienable, imprescriptible and unattachable.  Private 
state land can form the subject of a concession, w ith or without consideration.  Under the present 
code, land belonging to communes, public institu tions and public corporations includes public 
property and private property.  The public property consists of the land allocated to the intrinsic 
mission of the public institution or corporation.  Th e other land constitutes the private property.  The 
law classifies private state land by category and de termines competence (Table IV.1).  The private 
state land reserve may be located in any area of Burundi.  Private state land cannot be sold;  only a concession in the form of a long lease with a minimum term of 18 years, depending on the nature of the project, and a maximum term of 50 years is permitted. 
                                                      
45 Institute of Statistics and Economic  Studies of Burund i (ISTEEBU, 2010). 
46 Ministry of Agriculture, Livestock and Fisheries (2010a). 
47 Law No. 1/13 of 9 August 2011 revising the Burundi Code of Land Tenure. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-104 
  
  Table IV.1 
Classification of private state land 
Category Area Competence 
Category 1  Rural land, less than 25 hectares  The Minister responsible for land  
Category 2  Rural land, more than 25 hectares  By presidential decree only  
Category 3  Urban land, less than 1 hectare  The Minister responsible for town planning  
Category 4  Urban land, more than 1 hectare By presidential decree only  
Source : Law No. 1/13 of 9 August 2011 revising the Burundi Code of Land Tenure. 
221. Burundi's land tenure regime consisted of a dua l system of written and customary law.  
The Code of Land Tenure entitled landow ners to place their properties unde r one system or the other.  
Owners were discouraged from resorting to the fo rmal system because of material and technical 
obstacles and the cost of registration.  The Govern ment has reviewed the code to facilitate its 
application and help revitalize the agricultural sector through the consolidation of agricultural 
holdings and the establishment of a genuine land mark et.  The new code corrects and improves the old 
one in many respects.48  Greater respect for rights of tenure should also encourage rural lending. 
222. Burundi has huge agricultural potential, which enabled it to maintain, at least prior to 
the crisis, a relative balance between population in crease and growth in production.  The country's 
assets include:  a large farming population, the ability  to grow a wide range of crops (tropical and 
temperate);  abundant rainfall (six to nine months of rain during the year), which makes it possible to 
produce throughout the year if the flow of water can be controlled;  a very ex tensive network of lakes 
and rivers;  and the possible expansion of the import-export market within the context of the 
East African Community (EAC). 
223. Since the last review of Burundi's trade policy, there has been little sign of an increase in food 
production, especially considering the needs of a stea dily growing population.  Indeed, there has even 
been a sharp fall, from 3,606,000 tonnes in cereal equivalent in 2003 to 1,204,000 tonnes in 2010 
(Table IV.2). 
224. A downward trend can also be observed in the production of export crops, including coffee, 
production of which fell from 36,226 tonnes in 2002 to 24,130 tonnes in 2010, after dropping to 6,814 tonnes in 2009 (Table IV.3).  One of th e reasons why coffee production, the main cash crop, 
is generally in decline is the aging of the coffee tr ees.  Tea production is almost stagnant.  On the 
other hand, the livestock subsector grew by a cl ear four percentage points between 2001 and 2010, 
unlike food-crop growing, which lost ten points over the same period.
49 
225. Despite agriculture's importance for the economy , yields are very low compared with the 
average for Africa.  Fertilizer is beyond the reach of small farmers and mainly used for industrial 
crops (coffee, tea, cotton, sugarcane) and a fe w other crops such as rice, potatoes and beans.  
The productivity of the agricultural sector has declin ed over the last 20 years.  In 2005, the value 
added per worker was estimated at less than US$65 (i n adjusted 2000 dollars).  This figure should be 
compared with the average for sub-Saharan A frica, which amounted to about US$288 in the 
same year.  The economic crisis, which led to an increase in the cost of the factors of production 
                                                      
48 Law No. 1/13 of 9 August 2011 revising the Burundi Code of Land Tenure. 
49 Ministry of Agriculture, Livestock and Fisheries (2010b). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-105 
 
 
  (fertilizers, seed, fuel and transport), worsened th e situation of the farmers who are limiting their 
production since surpluses are very expensive to  market because of the high transport costs.50 
Table IV.2 
Food production by groups of crops, 2002-10 
(Thousands of tonnes in cereal equivalent) 
Year Cereals Legumes Roots and tubers Bananas Total 
2002 282 282 1,707 1,603 3,874 
2003 246 246 1,545 1,569 3,606 
2004 280 280 1,641 1,587 3,788 
2005 290 250 1,575 1,636 3,751 
2006 287 247 1,508 1,654 3,696 
2007 290 241 1,527 1,721 3,779 
2008 287 222 1,548 1,751 3,808 
2009 298 239 485 129 1,178 
2010 312 233 522 137 1,204 
Source:  Ministry of Agriculture and Livestock (2011). 
Table IV.3 
Production of main export crops, 2000-10 
(Tonnes) 
 Green coffee Dry tea Seed cotton 
Year Tonnage Variation Tonnage Variation Tonnage Variation 
2000 18,503 -36% 7,133 4% 2,585 0% 
2001 15,927 -14% 9,011 26% 2,901 12% 
2002 36,226 127% 6,643 -26% 3,063 6% 
2003 5,674 -84% 7,380 11% 3,512 15% 
2004 38,272 575% 7,702 4% 4,727 35% 
2005 6,167.0 -84% 7,823.0 2% 4,442.0 -6% 
2006 29,951 386% 6,338.0 -19% 3,037.0 -32% 
2007 8,088.9 -73% 6,825 8% 2,870 -5% 
2008 25,000 209% 6,684 -2% 2,887 1% 
2009 6,814 -73% 6,731 1% 2,577 -11% 
2010 24,130 254% 8,024 19% 1,688 -34% 
Source : ARFIC, OTB, COGERCO. 
226. Agriculture is subject to several constraint s which significantly reduce its performance.  
Thus, Burundi has a total area of 27,834 km², of which 23,500 km² (or about 84.5%) is agricultural or potentially agricultural (arable) land, while the general census of the population and housing in 
August 2008 recorded a total population of 8,053,574,  i.e. a density of 310 inhabitants per km², 
making Burundi one of Africa's most densely populated countries. 
227. In addition to the shortage of arable land, Bu rundian agriculture faces other major challenges, 
such as:  a lack of inputs (seeds,  fertilizers and phytosanitary products);  a low level of mechanization 
                                                      
50 Ministry of Agriculture and Livestock (2011). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-106 
  
  and high exposure to weather factors51;  attacks by plant pests and diseases (for example, cassava 
mosaic virus, banana wilt diseases, armyworm caterp illars);  the poor performance of the agricultural 
support system;  general poverty, restricting farmer s' access to inputs and other basic requirements;  
and soil degradation due to heavy exploitati on unaccompanied by measures to alleviate the 
adverse effects.  Moreover, the crop and livestock farming sector was one of the sectors hardest hit by 
the effects of the civil war.  Insecurity, the disp lacement of populations, the disorganization of 
agricultural research and extension services, fa lls in seed production and interruptions in the 
distribution of fertilizers have had dramatic e ffects on agricultural production and productivity. 
228. Demographic pressures on the land are accentuating the problems of land tenure, which, 
in their turn, are aggravating the decline in producti vity and the deterioration of the environment.  
The coexistence of customary and written law lead s to constant disputes be tween rural populations.  
These conflicts have adverse effects on agricultura l production since, while a piece of land is in 
dispute, it is difficult for the farmer to develop it and make the investments necessary to improve its productivity.  Appropriate land tenure legisl ation is in the process of being approved.  
The Government considers that every agricultural development project or action should include a 
security of tenure component.  Repatriation and rein tegration are accentuating the problem of access 
to land, and the mass arrival of repatriates has put the already very limited absorption capacity of 
Burundi's socio-economic infrastructure under further heavy pressure. 
229. According to the authorities, the agricultural sector has grown much less than the Government 
expected and food production is failing to meet th e needs of a growing population.  The sector's 
overall growth rate (estimated at 2.6%) is still less than the rate of increase in the population (2.9%).  
Rural communities are becoming more vulnerable and pauperization is accelerating.  The food deficit has increased in recent years.  The country is now in a catastrophic situation with nearly 75% of the 
population in a state of food insecurity.  The food de ficit for 2010 is estimated at 471,884 tonnes in 
cereal equivalent (CE) out of total needs estimat ed at 817,000 tonnes CE nationally, which represents 
a level of non-satisfaction of basic needs of near ly 58%.  Where nutritional balance is concerned, 
energy is 75% covered, protein 40% and lipids 22%.  In fact, the daily diet of a Burundian is more 
than 90% dominated by food that is bulky but poor in essential elem ents (roots and tubers, bananas) 
with few or no sources of protein, lipids and micronutrients.
52 
(ii) Agricultural policy 
230. The Ministry of Agriculture and Livestock (M INAGRIE) is responsible for the formulation 
and implementation of agricultural policy.53  This policy is aimed at stimulating and strengthening the 
modernization of the agricultural sector and improvi ng the living conditions of farmers and the rural 
                                                      
51 Burundi has three growing seasons.  Season A (Agatasi) extends from mid-September to the end of 
January and combines the little rainy season with the little dry season.  The crops grown during this period are:  
maize, taro root, cassava, sweet potatoes, potatoes, sorghum, rice and bananas.  This season's production 
accounts, on average, for one third of annual produc tion.  Season B (Impeshi), wh ich corresponds to the main 
rainy season, covers the period from February to May.  It is the most productive season and accounts for around 50% of total production.  The crops grown during this period are:  beans, taro root, cassava, sweet potatoes, 
wheat, and potatoes.  Season C (Ici) is the least productive (about 15% of annual production) and runs from 
mid-June to mid-September.  The crops grown during this period are:  market garden produce, beans, sweet potatoes, potatoes, and rice.  For several years, the ra infall in Burundi has no longer followed a regular and 
predictable pattern.  Sometimes drought may set in during a normally rainy period, whereas at other times 
torrential rain may fall in a normally dry season.  Irrigation is still uncommon. 
52 Ministry of Agriculture and Livestock (2011). 
53 Its organization and operation are governed by a 2006 decree establishing the responsibilities of 
ministries, Official Journal of the Republic of Burundi. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-107 
 
 
  population.  MINAGRIE had a staff of 1,901 in 2006 and 4,510 in 2010.  MINAGRIE oversees 
three public entities:  the Institute of Agronomic Sc iences of Burundi (ISABU), which is in charge of 
agricultural research, the National Food Technolog y Centre (CNTA), responsible for promoting 
technological innovation in the agricultural sector, and the Coffee Chain Regulatory Authority 
(ARFIC), a newly created body responsible for exer cising the prerogatives of the State in the coffee 
subsector following the abolition of the Burundian Coffee Board (OCIBU).  After being privatized, 
the Public Abattoir of Bujumbura became SO GEAB (the Bujumbura Abattoir Management 
Company).  The following are five of the othe r entities set up as mixed (semi-public) enterprises:  
SOGESTAL (Washing Stations Management Company (coffee));  SODECO (Hulling and Packaging 
Company (coffee));  COGERCO (Cotton Management Company);  the OTB (Burundian Tea Board);  
the SRDI (Regional Company for the Development of the Imbo) for supporting rice growers in the 
plain of the Imbo;  and the OHP (Burundian Palm  Oil Board) for supporting oil palm growers. 
231. The Government's commitment to decentraliza tion has made it possible for new players to 
emerge in the area of agricultural development alongside the state bodies, namely, decentralized 
groupings organized in Commune Community Deve lopment Committees (CCDC) at the level of 
the country's 129 communes, and in Colline Devel opment Committees (CDC) at "colline" level.  
These committees act as the contracting authorit ies for local projects within the framework 
of a decentralized planning system headed by the Provincial Community Development 
Committees (CPDC). 
232. Apart from MINAGRIE, a number of other departments also intervene in the 
agricultural sector:  the Ministry of Rural Developm ent (MDR);  the Ministry of Trade (in connection 
with trade regulations);  the Ministry of Finance (i n matters of taxation);  the Ministry of the Economy 
(price setting);  the Ministry of Health (sanitary and phytosanitary aspects);  the Ministry of the 
Environment, and certain services attached to the Offices of the President and the Vice-President.  The multiplicity of institutions leads to certain  functions being split up and undermines the 
effectiveness of government action by giving  rise to numerous jurisdictional disputes and 
substantial additional costs.  Moreover, according to  the authorities, the producers' associations and 
the Technical and Financial Part ners (TFPs), MINAGRIE is not currently in a position to support 
the development of the sector.  Its organizati on and functioning are such as to prevent it from 
performing, with the necessary efficiency, the ne w responsibilities entrusted to it under the poverty 
reduction strategy and the sectoral strategy for agriculture. 
233. The objective of Burundian agricultural policy is food security (in quantity and quality).  
To achieve this objective, Burundi plans to switch from subsistence farming to family and commercial 
farming that offers a decent income for households  and shows respect for the environment and the 
proper management of resources.  The task involves maximizing the use of arable land and developing the productivity and competitiveness of  agriculture, thereby increasing food production 
while creating jobs in the sector.  Agriculture will be  carried out on farms with an average size of one 
hectare as compared with the current  0.5 hectare and in soil which has recovered sufficient fertility to 
produce yields comparable with the best African pe rformance.  The farmers who participate in these 
far-reaching changes will be well organized and possess the necessary technical qualifications.
54 
234. Like other members of NEPAD, Burundi has unde rtaken:  (i) to create an environment that 
will help to improve the competitiveness of the agri cultural and rural sector;  (ii) to achieve the 
objective of 6% growth in the agricultural sector and to mobilize the resources needed to make the 
corresponding investments;  (iii) to allocate 10% of national budgetary resources to the agricultural 
                                                      
54 Ministry of Agriculture and Livestock (2011). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-108 
  
  sector, in accordance with the Maputo Declaration commitments;  and (iv) to create a coordinated 
frame of reference for the bilateral and multilateral financing of the sector.55 
235. In 2008, the Government drew up a National Agricultural Strategy (SAN), but this has not 
yet become operational despite the formulation of an SAN Action Programme and a series of 
subsectoral strategies.  Within NEPAD, the Government has also drawn up a Detailed Programme for 
Agricultural Development in Africa (PDDAA).  In 201 1, in consultation with all the partners in 
the sector, the Government introduced a coherent National Agricultural Investment Plan (PNIA) 
to meet the need to ensure the efficient manage ment and coordination of the agricultural sector.  
To give the national strategic thinking concrete form, the Government approved various subsectoral 
strategy documents, in particular, the National Food Security Programme (PNSA);  the Livestock 
Strategy Paper (DOS-Elevage);  the National Strategy for Aquaculture;  and the strategic Master Plan 
for watershed and swampland research and management. 
236. The revitalization of crop and livestock farming is  at the heart of Burundi's Economic Growth 
and Poverty Reduction Strategy Pape r (PRSP) and Vision 2025.  The aim is to return to and then 
surpass pre-crisis production levels and encourage cash crop diversification.  Priority is being given to 
the promotion of micro-enterprises and crafts. 
237. A first series of measures, planned for the short and medium term, involves irrigating the 
great plains;  improving access to agricultural inputs,  particularly to adequate and timely supplies 
of fertilizer;  providing farmers with quality seed , partly through the revitalization of the seed 
production centres;  training the rural population in the use of modern farming methods;  rebuilding 
herds decimated during the crisis;  rehabilitati ng farm equipment;  pr oviding better support for 
producers by disseminating new technologies and the results of applied research;  and rehabilitating 
and developing the infrastructure and the storage and transport facilities for inputs and products. 
238. The Government has promised to devote an increasingly large proportion of its annual budget 
to the implementation of the PNIA, with a view to  reaching the 10% level as quickly as possible.  
Thus, government intervention is aimed at improving the relevance, effectiven ess and sustainability of 
the actions taken in the agricultural sector.  Four  programmes have been identified in the PNIA, 
namely, a sustainable increase in food production and security;  the professionalization of producers and the promotion of innovation;  subsector a nd agribusiness development;  and public institution 
building.  These four programmes are themselves s ubdivided into 15 subprogrammes (Table IV.4). 
Table IV.4 
Programmes and subprogrammes of the PNIA 
P1. 
Sustainable increase in food production and security P2. 
Professionalization of producers and promotion of 
innovation P3. 
Subsector and agribusiness 
development P4. 
Public institution building 
1. Protection of productive capital 
2. Development and rehabilitation of 
irrigated areas 
3. Intensification of agricultural production 
4. Development of fishing and fish farming 
5. Food security, nutrition and vulnerability 
management  1. Organization of producers 
and capacity building 
2. Development of proximity 
and innovation services 
3. Rural financing 
4. Research/development 1. Export subsectors 
2. Food-growing and 
animal subsectors 
3. Rural infrastructure 1. Reform of MINAGRIE 
2. Improvement of working 
environment and conditions
3. Support for implementation 
of the PNIA  
Source:  Ministry of Agriculture and Livestock (2011), Na tional Agricultural Investment Plan (PNIA) 2012-2017. 
                                                      
55 Idem . EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-109 
 
 
  239. The agricultural sector benefits from high nominal tariff protection, as well as from certain 
tax exemptions and reliefs (Chapter III(2)).  In 2 011, the simple average customs duty in the sector 
was 17.5% with rates ranging from 0 to 75%.  Relative ly high rates applied, in particular, to imports 
of meat, fish and most fishery products, coffee,  tea, cocoa and some vegetables (for example, 
tomatoes and beans).  Imports of vegetable products  are subject to phytosanitary measures, while, in 
principle, meat imports are subject to health regulations (Chapter III(2)).  The levies imposed 
specifically on agricultu re are relatively low. 
240. Agricultural (including livestock) products are exempt from VAT if they are sold by their 
producers and have not received an y additional element that could alter their essential character.  
The food-crop and livestock products of agricultura l enterprises are exempt from occupational tax 
(Chapter III(2)).  Exemptions are also provide d to encourage investment in agriculture.  
Thus, undeveloped land used exclusively for agri cultural purposes (including livestock raising) is 
exempt from property tax to the extent that it is  actually under crops or normally necessary for 
fattening or raising livestock.  Vehicle tax is not levied on animal-drawn vehicles or vehicles used 
in agriculture.56  Other forms of support for the agricultu ral sector include the Burundi Business 
Incubator (BBIN) and the project to build th e capacity of the IAA in the area of quality 
standards (Chapter III(4)(i)).  Support is also pr ovided via the Enhanced Integrated Framework 
(joint report, Chapter V). 
241. The main research activities are those conducte d by the Burundi Institute of Agronomic 
Sciences (ISABU), the Institute of Agronomic and Zootechnic Research (IRAZ) and, to a lesser 
extent, the National Food Technology Centre (CNT A) and the Faculties of Agricultural Science and 
Economic and Administrative Sciences of the Univ ersity of Burundi.  Financial support for these 
institutions has crumbled over the years since the beginning of the crisis and, according to the 
authorities, their activities seem to have come to a standstill. 
242. State enterprises active in the coffee, tea and co tton subsectors subsidize the inputs they make 
available to planters, particularly seeds, fertili zers and pesticides.  Coffee processing activities are 
supported through a reduced refinancing rate accord ed by the BRB to commercial banks involved in 
the financing of washing and hulling firms.  Th e BRB requires the spread on the refinancing rate 
applied by commercial banks not to exceed a prescrib ed maximum.  When the coffee market is weak, 
treasury bonds issued by the State should serve as guarantees for bank loans to the industry. 
243. Cash crops (coffee, tea, cotton, oil palm, suga rcane, tobacco, rice, cinchona) are an important 
source of growth for the agricultural sector.  The hi gh quality of Burundian coffee, tea and cotton is 
widely recognized.  These subsectors provide the co untry with its main export products and much of 
its foreign currency, which means that they play  a strategic role in national economic policy.  
Ongoing structural reforms will enable these products, and others such as milk, fruit and vegetables, 
to make a more significant contribution to the developm ent of the sector and, above all, to job creation 
in connection with the valorizati on and marketing of the products. 
(iii) Trade policy by main product category 
(a) Coffee 
244. Coffee is grown almost everywhere in the country, mainly on family plots not more than 
one hectare in size.  According to the Burundi an Coffee Board (OCIBU), about 800,000 households 
work in the coffee subsector.  An area of about 60 ,000 hectares is devoted to coffee growing, mainly 
                                                      
56 Article 4.2 of the Law of 17 February 1964 on impersonal tax. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-110 
  
  to the production of Arabica, which acc ounts for 96% of total national production57, the rest being 
Robusta.  The income from coffee marketing repr esents between 80% and 90% of export earnings. 
245. Production (0.5% of world production) varies from year to year, good seasons alternating 
with mediocre ones with big variations, sometime s exceeding 30,000 tonnes (Table IV.3).  This can 
be attributed to the weather, soil erosion r esulting from overexploitation of the land without the 
possibility of its being left fallow, the aging of th e coffee trees, and disputes.  Moreover, the growers 
are too poor to afford chemical fertilizers to improve their productivity. 
246. Starting in 1990, in the course of a series of specific reforms implemented under the various 
structural adjustment programmes, the Government adopted a more participatory approach, showing a 
greater readiness to consult with the planters.  Ho wever, state intervention in the coffee subsector 
remained considerable, in connection with produ cer price setting, processing and marketing, and the 
financing of production and processing activities.  This continued until 2009 when the subsector 
began to be privatized. 
247. The Burundian coffee subsector has a chain struct ure.  Formerly regarded as strategic by the 
authorities who tapped into all the productivity ga ins of the rural producers through their producer 
price policy, privatization has now placed the Bur undian coffee grower at the heart of the system, 
thereby ensuring that he is fairly remunerated. 
248. The management of the subsector, previously  always provided by OCIBU, has been 
privatized.  The former OCIBU has been converted into a light supervisory and regulatory structure 
and 13 washing stations have been sold to privat e investors.  Thus, OCIBU has been replaced by two 
complementary regulatory bodies, namely:  the Coffee Chain Regulatory Authority of Burundi 
(ARFIC), an administrative public establishment (EPA), created by Presidential Decree No. 100/99 
of 1 June 2009 with responsibility for coordinati ng and monitoring the activities of all the professions 
in the coffee chain;  and INTERCAFE Burundi, an association of all those who participate in the 
Burundian coffee chain, with responsibility for supporting the various fa milies operating within 
the chain, from the producer to the coffee trad er, via the processors.  The coffee producers are 
grouped in associations, from "colline" level to national level (National Confederation of Coffee 
Growers (CNAC)). 
249. At present, the chain consists of the following main components:  (i) the producers, who for 
the most part are now grouped in associations.  The General Census of Coffee Growers, 2007 edition, 
showed that coffee is grown by some 600,000 househol ds;  (ii) the organization of the industrial link 
of the chain, which mainly comprises first and sec ond-stage processing, has been entrusted to washing 
station management companies (SOGESTALs) and milling companies, including SODECO, 
SONICOFF, SIVCA, CBC and BUCAFE.  A large majority of the SOGESTALs and milling companies were set up by the State, which still holds a variable proportion of their capital;  
and (iii) the Burundian Associa tion of Coffee Exporters (ABEC). 
250. The processing is done by the washing companies or SOGESTALs, which convert the 
cherries into parchment, and by companies that conv ert the parchment into green coffee, respectively.  
The five SOGESTALs are mixed (semi-public) enterpri ses.  State participation in their capital varies 
from 14% to 81%.  These companies own 133 modern washing stations spread out over the country's various regions.  The SOGESTALs purchase the coff ee cherries from the planters at a provisional 
price fixed in consultation with representatives of all the sectors involved in the chain.  The 
                                                      
57 The yield of the Arabica plantations is around 300 to 1,000 kg per hectare, depending on the region.  
There are two grades of Ar abica:  "fully washed", of higher qu ality, and "washed", of lower quality. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-111 
 
 
  provisional price is submitted to the Council of Mini sters for approval.  Even after adoption by the 
Council, the price remains subject to upward (not  downward) adjustment if the estimates are 
exceeded, whereas deficits are not passed on to the pl anters.  Payment is made in three instalments, 
so that the SOGESTALs contract a short-term debt vis-à-vis  the planters.  The SOGESTALs deduct 
the cost of the inputs supplied on credit from the sum paid to the planters. 
251. The SOGESTALs deliver the parchment to the millers who remove the parchment skin.  
There are four of these companies, of which two are public (SODECOs) and two private (SONICOFF and SIVCA).  The millers are paid by the SOGEST ALs for the services rendered, the green coffee 
they produce remaining the property of the S OGESTALs.  The SOGESTALs bear the parchment 
transport and storage costs.  The planters may al so pulp and dry the cherries and turn them into 
parchment, which is then sold to traders, without  passing through the washing stations.  The traders 
then sell the parchment to the millers.  The coff ee thus produced is of inferior quality ("washed"). 
252. Up until the 2006-2007 coffee season, the sale of green coffee was in the hands of private 
exporters grouped within the ABEC.  However, as a result of progress with the privatization and 
liberalization of the subsector, producers who own th e coffee are now authorized to sell their coffee 
directly to foreign buyers.  Up until November 2009,  the State, which maintains a strong presence in 
the subsector, was represented by the Burundian Coffee Board (OCIBU), which was responsible for 
coordination and regulation;  support for coffe e production, guidance and research and coffee 
marketing;  and the management (leasing) of the subsector infrastructure belonging to the State. 
253. The Burundian coffee subsector currently h as a chain structure with two branches:  
"fully washed" (FW) coffee and "washed" coffee, th e organization of which is characterized by the 
presence of a number of participants (chain entities)  tightly linked through the different services 
they provide at chain level.  These are prin cipally the coffee growers, ARFIC, INTERCAFE, 
the SOGESTALs, and the processors, namely, SODECO. 
254. The crop is financed by a banking consortiu m, with the intervention of the BRB which 
is responsible for refinancing;  the refinanc ing rates and, hence, the bank lending rates are 
relatively low.  The State guarantees the payment of  these crop loans.  The system of payment of the 
various coffee chain operators (planters, washers and millers and the various  entities) has undergone a 
series of reforms since 1990.  The aim of this system is to guarantee the planters a minimum nominal income by reducing their exposure to market fluctua tions and to encourage the processors to produce 
high-quality coffee efficiently by obl iging them to bear the risks asso ciated with failure to control 
costs and quality.  Thus, since 1992, the nominal pric e for the planters, established at the beginning of 
the season, has never been lower th an that for the previous season. 
255. In the 2007-2008 coffee season, Burundian coff ee growers were remunerated with 72% (for 
FW) of turnover and remunerated the rest of th e participants, as service providers, with 28% of 
turnover.  Distributing the 28% of turnover among the r est of the participants is not an easy task since 
it requires negotiations between them at the start of each season to establish a new remuneration table 
based on the entities' respective costs. 
256. Calculated on the basis of the structures and the real costs of the entities, the remuneration for 
the 2010/2011 coffee season breaks down as follows:  coffee growers 72%;  ARFIC 1.68%;  INTERCAFE 3.5%;  processors (SODECO) 4.9%;  SOGESTAL 16.32%;  coffee promotion 0.4%;  
and State Property Service 1.2%.  For 2012, the remuneration price is fixed by the joint-trade 
association.  Moreover, the remuneration of the Coffee Chain Regulatory Authority (ARFIC), like WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-112 
  
  that of all the other coffee chain entities, is based on its activities or the services it provides within the 
coffee chain. 
257. Because of the exorbitant costs of the entiti es, associated with th e specific features of 
the coffee chain in general and of the tasks assi gned to them in particular, this remuneration 
is insufficient.  Moreover, because of the fluctua tions in coffee production due to the alternation of 
good and bad seasons, the financing of the coffee sub sector regularly experiences deficits in all the 
links in the chain.  Furthermore, the costs genera ted by frequent intermediation also contribute to its 
heavy losses. 
258. Imports of unprocessed coffee, other than bean s, are subject to an average tariff of 25%, 
which is low compared with the 100% rate applied to all coffee imports prior to January 2003 and the 
40% applied between 2003 and the date on which Burundi joined the East African Community.  However, to these customs duties must be added various other levies and taxes, as well as controls with their associated costs (Chapter III(2)).  These measures are discouraging the development of 
coffee processing in Burund i as they offer no incentive to improve competitiveness. 
(b) Tea 
259. Unlike the coffee subsector with its many sma ll producers, the tea subsector consists of 
two blocks of plantations:  the i ndustrial block belonging to the publ ic processing plant and the village 
block belonging to households in the neighbourhood  of the country's tea factories (Ijenda, Tora, 
TEZA, Rwegura and Buhoro).  A private operator h as just opened up a tea factory in Mwaro and is 
counting on the support of tea-growing households in  Mwaro to make its project pay off.  This 
operator is  PROTHEM (Mwaro Province Tea Growing Project).  It should be noted that there are also 
other private operators such as Caspian (Rutongo:  Bujumbura Rural Sud), Camelia (Ndava-Kiganda), 
CTBH (Matana), and Complexe théicole de Taba  (Songa, Bururi). 
260. Tea growing in a village environment is the only path open to operators in the tea subsector.  
Against a background of one of the highest populat ion densities in Africa, there is no state-owned 
land to make available to the operators themselv es.  However, as the population is really very 
enthusiastic about growing tea, there is an op portunity to increase national tea production by 
promoting synergy between operators  and tea-growing villagers.  Even the existing factories, built at 
a time when the scarcity of land was not so acut e, operate largely on the basis of village production 
(75% of total production).  The factories produce pl ants and make them available to the village 
smallholders.  These village growers also receive technical support from the factories.  In return, 
they sell their production to the factory that provides the support. 
261. However, according to the authorities, PROTHE M's approach could lead to an undesirable 
fall in production.  Thus, (i) producing the plants is a very expensive operation.  No factory could 
undertake it if once the crop matured it was sold to so meone who had not invested anything in it;  the 
other private operators might then be discouraged from cultivating new areas;  (ii) providing support 
is also expensive and no operator could keep on s upporting a grower who was able to sell his product 
wherever he wanted.  Without such support, there would certainly be a sharp fall in production;  tea growing is very demanding and the technical kno whow is not available to uneducated farmers. 
262. Tea is grown in an area of about 8,000 hectares, with a yield of about 7,500 tonnes.  Almost 
three-quarters of production comes from family hold ings and the rest from plantations belonging, in 
part, to industrial units of the Burundi Tea Board (OTB), a wholly public enterprise.  The OTB has a 
monopoly on the processing of green leaf into dry tea in  its five factories, which have a total capacity EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-113 
 
 
  of 10,000 tonnes per year.  The OTB is also responsible for supporting the tea planters to whom it 
supplies seed free of charge and sells inputs such as fertilizer and herbicides on credit and at cost price.  The OTB is also in charge of traini ng the planters in plucking techniques and ensuring a 
fine pluck (in accordance with the Pekoe standard of two leaves and a bud).  The OTB buys the tea 
leaves from the planters at a price determined  on the basis of its technical performance and 
projections of the price of dry tea on the international market, operating on the assumption that 4.8 kg of tea leaves is needed to produce 1 kg of dry tea.   The cost of the inputs is deducted from the price 
paid to the planters;  this price is, on average, 30% to 35% of the market price for the dry tea. 
263. Almost 95% of the tea produced in the OTB' s factories is exported, mainly through 
the Mombasa auction market (on average, 60% of production).  The sales are made, for the account of 
the OTB, by international brokers with which the Board negotiates annual contracts.  The commission 
paid is 1% of the sales turnover.  The other costs in curred by the OTB relate to the transport of the dry 
tea by road to Mombasa and its storage.  Almost 35%  of production is exported through direct sales to 
foreign customers at a price at least equal to that  on the Mombasa market (f.o.b. Dar es Salaam).  The 
quantity per direct sale contract does not normally ex ceed 100 tonnes.  Direct sales, organized one day 
after the auction sales, have the advantage of elimina ting transport and storage costs.  The rest of the 
tea produced (about 5%) is consumed locally. 
264. Tea is the country's second-ranking export produc t;  in 2010 production reached 8,024 tonnes 
(Table IV.3) compared with a target of 7,600 tonnes.  This increase was the result of improved 
weather conditions relative to the previous year  and efforts to intensify production by close 
supervision of the fertilizer utilization campaigns to  prevent misuse in the production units.  Out of 
these 8,024 tonnes, the Tea Board sold a total of 7,561 tonnes of dry tea, including 7,188 tonnes for 
export and 373 tonnes on the local market.  The improved results for 2011 (8,816 tonnes) earned bonuses for the planters. 
265. Prior to January 2003, tea imports were subj ect to a customs duty of 100%.  Following the 
tariff reforms introduced on 1 January 2003, the duty rate fell to 40%.  Since Burundi joined the EAC, 
tea has been protected by a 25% tariff.  There ar e plans to reform the sector, in particular by 
privatizing the processing plants.  This would i nvolve, among other things, the redirecting of the 
OTB's activities towards support services rather than production. 
(c) Cotton 
266. Cotton used to be the third-ranking export product, behind coffee and tea.  However, 
since 1996, hardly any cotton has been exported.  Pr oduction is in sharp decline due to the combined 
effect of a downward trend in the areas plante d and a decrease in crop yields.  Between 1993 
and 2007, the area fell from 8,500 ha to 4,000 ha an d yields from 1,038 kg/ha to 719 kg/ha, while seed 
cotton production collapsed from nearly 9,000 t onnes in 1993 to less than 3,000 tonnes in 2007 
(Table IV.3).  The fall in production is mainly a ttributable to the producer price which the farmers 
consider inadequate and unattractive compared wi th prices for other crops.  Faced with a falling 
income from cotton, the producers turned away from th is crop or adopted risk-minimization strategies 
by reducing inputs or diverting them to uses other than cotton growing.  According to the authorities, the number of cotton producers, which exceeded 27, 000 in 1993, fell to below 10,000 in 2010, 
with an average cotton-growing area pe r planter of only 0.35 hectare. 
267. The level of producer prices for seed cotton do es not seem to be providing any stimulus for 
the development of production.  The producer pri ce trend is disconnected from the trend in the world 
price, and its contribution to the latter is tending to  diminish.  At first glance lower than in other WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-114 
  
  African countries, the nominal purchase price for seed cotton (US$0.21 per kg) is actually higher 
when the costs incurred by the Cotton Management Company (COGERCO) for inputs, which are not 
generally subsidized in other countries, are taken into account. 
268. The equipment used by the cotton growers is  rudimentary.  Hand-tilling is the commonest 
method of preparing the soil, far ahead of mechanized methods which are very expensive for 
COGERCO.  Ploughing with ox-drawn ploughs is very marginal.  The mineral fertilizer doses applied 
per hectare vary with the region.  Weeding is done manually.  The insecticide treatment programme 
uses various products made up in the form of a "concentrated emulsion" in accordance with the 
"targeted staged control" method.  Cotton plays a very small part in the cultivation and production 
systems and is rarely included in crop rotations. 
269. COGERCO provides the producers with inputs and support.  Seed and phytosanitary products 
are supplied to cotton growers free of charge and th e selling price for fertilizer is well below the cost 
of production.  Input costs represent a substantial pr oportion of the cost of producing seed cotton, both 
at producer level and for COGERCO.  The whole of the recent sharp increase in the cost of inputs is 
being borne by COGERCO.  The level of fertilizer  subsidization is not encouraging cotton growing 
since it is financially more attractive for the producer to re-sell the fertilizer received on credit than to 
use it for cotton. 
270. Extension services are poorly organized.  COGE RCO's advisers have no training programme 
and are seeking to have their skills improved.  Supp ort fluctuates sharply from one region to another.  
In Moso, the cost of support services exceeds 200 FB u/kg of seed cotton.  Thus, the level of 
association of the producers is very low.  Th ere is little cooperation among the cotton growers and 
they are very ill-informed about what is  being done elsewhere in the country. 
271. The last cotton research programme at ISABU ended in 1993.  The programmes organized by 
COGERCO are very basic.  Where varietal research is  concerned, the situation is critical.  The variety 
distributed for the last 14 seasons is show ing worrying signs of genetic erosion. 
272. The problems of the subsector were instrumental in the total cessation of operations 
by COTEBU on 31 January 2007.  There has been a regrettable series of untimely decisions, 
for example, the extension of the existing unit whose production capacity was increased from 
11 million to 14 million metres of fabric per year (whi ch corresponds to an annual consumption of the 
order of 2,800 tonnes of cotton fibre) with already outdated plant and equipment. 
273. Up until 2007, cottonseed was sold to the national extraction company RAFINA at an 
administered price well below the market price.  Since 2007, COGERCO has invited tenders for the 
sale of seed and forced RAFINA to align on the best  offer.  The customs duty applied to imports of 
raw cotton and cotton waste is 10%.  Products obtai ned by processing raw cotton, such as cotton yarn 
and fabrics and cotton clothing, are more heavily pr otected, by a 40% tariff.  COGERCO also offers 
cotton growers short and medium-term loans repayable when the seed cotton is marketed, in particular 
to finance fertilizers and mechanized services. 
274. The cotton subsector is in steady decline for several reasons:  high operating costs, the low 
price of cotton, the closure of COTEBU, which absorbed the whole of domestic cotton production, inadequate support for the cotton producers, etc.  In  the meantime, there have been various studies and 
analyses of the cotton subsector with a view to, amon g other things, its restructuring, the extension of 
the planted areas to new regions (Moso), and the pr ivatization of COGERCO.  The recommendations 
of these studies have not always been implemented. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-115 
 
 
  275. The Burundian authorities consider that the subsidies which some countries continue to 
maintain on exports of cotton fibre and seed are injuring Burundi and are calling for a favourable 
conclusion of the Doha Round to solve this problem. 
(d) Sugar 
276. The area planted with sugarcane is estimated at  3,000 hectares.  Nearly 90% of the cane sugar 
is produced by industrial units belonging to th e Moso Sugar Company (SOSUMO).  SOSUMO is a 
semi-public company with a state-appointed board , which owns the only factory for converting raw 
cane sugar into white sugar.  The remaining 10% is  produced by small plantations, mostly situated 
within a 15 km radius of the factory.  SOSUMO pr ovides the small plantations with inputs, such as 
fertilizer and pesticides, on credit. 
277. Since 2007, the price of sugar has no longer been controlled.  Article 1 of Order 
No. 124/VP/12 of 7 August 2007 on sugar marketing stipulates that the marketing of sugar is 
liberalized and the prices are, in principle, en tirely free, for both imports and exports.  SOSUMO 
decided to increase the retail price to FBu 1,50 0/kg. Consequently, there are currently fewer 
wholesalers buying from SOSUMO, sugar consumpti on has definitely decreased and sugar is now 
available more or less everywhere, at retail prices that fluctuate around FBu 1,000/kg on the markets 
and in the shops.  Eventually, competition from impo rted sugar will force SOSUMO to rationalize its 
production and marketing system to exert bette r control over its costs and seek more new 
opportunities to ensure its survival or indeed an increase in its turnover. 
278. The customs duty applied to sugar imports is 39.5%, with a standard deviation of 37.1%. 
(e) Non-traditional products 
279. "Non-traditional products" include flowers,  some fruit (bananas, mangoes, papayas, 
passion fruit), nuts, some vegetables (in particular , French beans, courgettes, spinach, cabbages 
and salads), cereals (rice), and herbs (thyme, pars ley).  These products are mostly consumed on the 
domestic market, the export market being still undevel oped.  The Government is of the opinion that 
export promotion in these areas could help to divers ify the structure of Burundi's exports.  It is 
recognized that development of non-traditional e xports will require investment in the road and 
transport infrastructure and in storage facilities, particul arly at the airport.  The lack of air links with 
the principal western markets is a serious constrai nt on the promotion of exports of perishables. 
280. Apart from questions of infrastructure and intern al stability, the experience of other countries 
in the subregion shows the importance of economic  and trade policy reform for the promotion of 
non-traditional products.58  Firstly, as has already been pointed out, the high level of tariff protection 
in the agricultural sector does nothing to enco urage production efficiency and hence greater 
competitiveness where exports are concerned.  The h eavy protection accorded to other, "traditional" 
agricultural products provides little incentive to obtain  higher yields in areas such as fruit and flower 
production.  In the case of products such as vegetables,  which are subject to high customs duties, the 
heavy protection appears to be encouraging pro duction for the domestic market.  Thus, protection 
operates like an implicit export tax, which has to be paid in addition to any taxes explicitly imposed.  
Secondly, the policy on inputs should be reviewed.  The classic problems associ ated with the current 
system based on exemptions for agricultural activ ities range from difficulties in completing all the 
steps necessary to obtain exemptions  on inputs to ignorance (on the part of the producers) of the 
                                                      
58 Dijkstra, T. (2001). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-116 
  
  availability of exemptions or drawback.  It might be more advantageous to  consider applying lower 
rates, including a zero rate, to essential input s, as is already the case with fertilizers. 
(f) Livestock 
281. At present, Burundi has about 1,200,000 farms,  of which 700,000 raise livestock.  Among the 
latter, 20% raise bovine animals, 45% small ruminants,  5% pigs and 3% poultry.  The rest engage in 
mixed livestock farming.  Livestock raising accounts fo r almost one fifth of agricultural production.  
All livestock production is intended fo r domestic consumption.  Livest ock raising also provides inputs 
for crop production, in particular manure, as well as draught animals.  The principal cattle markets are 
in Gitega, Ngozi, Kayanza, Rwibaga, Ratana and Bujumbura, the latter being the most important. 
282. In principle, all cattle must be taken to an appr oved abattoir before the meat can be marketed.  
The Bujumbura abattoir, a public enterprise under the Mi nistry of Livestock, is the main destination 
for the cattle.  On average, nearly 40% of the cattle slaughtered are bovine animals;  60 bovine 
animals, 70 small ruminants and 8 pigs are slau ghtered daily.  Traders pay a slaughter tax of 
FBu 5,000 per head for bovine animals, FBu 550 per head for sheep and goats, and FBu 2,500 per 
head for pigs.  Livestock raising also suffered the ravages of civil war.  From 1993 to 1998, 
production of bovine, sheep and goat meat (measured in numbers of head of cattle) fell sharply.  Milk, 
the output of which is also down, is mainly produ ced by private dairy farmers mostly located in the 
region of Bujumbura, the principal market.  However,  this situation has since improved (Table IV.5). 
Table IV.5 
Trends in the animal herd, 2002-10 
Period Bovine animals Goats Sheep Pigs Poultry 
2002 376,346 974,543 242,086 115,835 771,260 
2003 355,222 960,288 239,505 105,753 704,254 
2004 374,475 1,108,952 235,611 136,360 852,954 
2005 395,741 1,194,780 242,933 169,572 945,318 
2006 433,800 1,438,713 266, 510 178,737 1,142,102 
2007 479,106 1,606,717 292,916 189,505 1,315,788 
2008 471,614 1,616,873 281,190 166,721 1,524,007 
2009 554,236 1,782,227 295,147 207,181 1,610,565 
2010 596,412 2,162,800 295,739 244,791 1,719,296 
Variation 2010/2009  7.6% 21.4%  0.2%   18.2% 6.8% 
Source:  Directorate-General for Livestock, Annual Report 2010 . 
283. Significant progress has been made in the livestoc k subsector.  To tackle the shortage of 
animal protein, on the one hand, and to increase the production of organic manure, on the other, the 
Government, with the support of its technical and financial partners (World Bank, IFAD, FAO and a 
number of NGOs), launched a programme to restoc k the herd in every province in the country.  
The main intervention by the Government was to  distribute animals (improved breeding stock) 
among the rural communities.  This programme, which gave priority to communities in need, included training for the beneficiaries, who had to provide improved shelter for the animals and 
plant fodder crops.  It was supported by the recr uitment of community animal health officers.  
Thus, in 2010, the bovine animal herd rose by 8% as compared with the previous year, the goat herd 
by 21%, pigs by 18%, poultry by 7% and sheep by 0.2% (Table IV.5).  The restocking programme has grown and made possible a general increase in the herd and in milk and meat production. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-117 
 
 
  284. Prior to January 2003, the livestock subsector  was heavily protected with customs duties 
of 100% on all meat and meat-based products an d 40% on dairy products.  The tariff reforms of 
January 2003 resulted in the maximum rate of 100% being reduced to 40%.  Since Burundi joined the 
EAC the rate has been 25% for meat and m eat-based products and 40.8% for dairy products, 
respectively.  The local authorities levy a cattle ta x of FBu 200 per head.  Grazing land is exempt 
from property tax.  The other exemptions enjoyed by the livestock subsector are the same as those granted to agricultural activities in general. 
285. According to the authorities, the main problems facing poultry production include the high 
price, or the lack, of inputs, and competing cheap  imports.  Despite an average tariff rate of 25% 
(HS Chapter 02:  Meat and edible meat offal, including meat of poultry, fresh or frozen) and a 
multitude of other levies and taxes as well as various controls and associated costs (Chapter III(2)), imported frozen poultry is sold at one quarter of  the price of live birds on the local markets. 
286. There are other constraints on the development of livestock production, such as the 
shortcomings of technical support services for livestoc k breeders, especially in terms of veterinary 
care and balanced feeding;  the poor state of the production plant and basic infrastructure;  and the 
cost of getting products to market.  This partly e xplains the difference in price between local products 
and imports. 
(g) Fishing 
287. The bodies of water where fishing is done consist mainly of Lake Tanganyika (8% of the total 
area of the lake or 2,280 km², and 9% of the length of the shoreline or 159 km), the southern parts of 
Lakes Cohoha and Rweru in the north-west (about 140 km²), the waters of the eight other natural 
lakes in the north and the rivers draining Burundi , and the waters of its ponds and artificial lakes. 
288. Fishing constitutes a very small part (around 2% ) of total agricultural production.  It is 
nevertheless an important activity because of its c ontribution to the food supply.  Catches depend 
heavily on the state of security.  Production is all for the domestic market.  Three types of fishing are 
practised in Burundi:  industrial, traditional and arti sanal.  Traditional fishing is a form of inshore 
subsistence fishing practised in the northern part  of Lake Tanganyika, as we ll as in Lakes Cohoha 
and Rweru.  Artisanal fishing is a small-scale comm ercial activity practised close to the shores of 
Lake Tanganyika and in the south of the count ry and accounts for most of the catch.  There 
are 54 landing sites along the shores of Lake Tanganyik a, at which the fish is first sold.  Transport 
costs and the lack of storage facilities make it diff icult to distribute the fish within the country.  
Industrial fishing represents only a very small pr oportion of fishing activity, but has nevertheless 
grown rapidly since 1998.  According to the authorities, this type of fishing is practised mainly by Greek entrepreneurs.  Processing is confined to sm oking or drying the fish using artisanal methods. 
289. Catches rose from 14,871.5 tonnes in 2009 to 17, 491.4 tonnes in 2010, an increase of 18%.  
This increase in production is primarily attributab le to improvements in support services for the 
fishermen.  Burundi has also taken useful steps to improve quality by introducing freezing to preserve 
the fish and installing movable non-corroding and easy-to-clean drying racks;  and by introducing insulated containers, made almost entirely from local materials, for storing and transporting iced fish. 
290. Prior to 2003, the maximum customs duty of 100% a pplied to all imports of fish and fish oils.  
Fish waste unsuitable for human consumption received less protection.  Starting in January 2003, this 
maximum rate was reduced to 40%.  Since Burundi's  accession to the EAC the rate has been 25% for 
fish and fish products.  The Government levies a spec ific tax of FBu 5 per kg of fish sold (whether WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-118 
  
  domestic or imported).  The cost of a fishing licence varies according to the type  of fishing practised:  
FBu 2,500 per year for traditional fishing, FBu 5,000 per year for artisanal fishing and FBu 400,000 per year for industrial fishing.  The fishermen must  also obtain a registration certificate (FBu 3,500), a 
certificate of seaworthiness (FBu 5,000) and a sailing permit (FBu 500 per trip).  Industrial fishermen 
must also pay a tax of FBu 3,000 per cubic metre on their vessels. 
291. The Government considers that the developmen t of artisanal fishing could be a means of 
combating poverty.  However, there are many factors that are impeding the development of these activities.  The various duties and charges levied  by the State are inflating costs, reducing the 
income of the artisanal fishermen and making co mmercial fishing less attractive than subsistence 
fishing.  The development of fishing as a commercia l activity is also being hindered by the lack of 
storage and freezing facilities, which makes it diffi cult to preserve the fish for local distribution 
or export.  Between 10% and 15% of national produc tion (i.e. 2,000 to 3,000 tonnes per year) is being 
lost as a result of these shortcomings.  It is pr oposed to establish a micro-credit system designed, 
among other things, to enable fishermen to purchase modern equipment, but for lack of resources no 
action has been taken. 
(h) Forestry 
292. Forestry and forest development could result in greater optimization of Burundi's natural 
resources.  In fact, the forestry and agro-forestry  subsector contributes about 2% of GDP and provides 
6% of jobs.  It also plays an important role in water and soil conservation and ensures the maintenance 
of biodiversity and the environmen tal water balance.  Wood and w ood products meet 95.4% of the 
country's energy requirements, the rural areas ab sorbing more than 76% of total firewood 
consumption. 
293. Government policy consists, firstly, in increasi ng the forest cover, following a period of 
accelerated deforestation between 1993 and 1997.   The trade in wood and wood products is 
unstructured.  In the rural areas transactions ar e completed directly between buyers and sellers, 
about 30% of these transactions taking the form of ba rter.  A felling permit must be obtained, together 
with authorization to transport the wood or wood products.  A local commune tax has to be paid and 
the municipality of Bujumbura imposes a tax on sales in the capital.  Transaction tax is levied at a rate 
of 7% on the local wood trade. 
294. According to the authorities, with the participation of the population, the regulations on 
cutting wood have been updated in order to disc ourage premature felling and facilitate forest 
maintenance and expansion.  About 9,700 hectares of watersheds and 2,787 hectares of swampland 
were developed in 2007.  There was a sharp in crease in swamp rehabilitation in 2008 with more 
than 900 additional hectares. 
295. Exports are few, the principal product being ci nchona bark, which is sometimes used for 
making cosmetics.  The average customs duty on forestry products was 38.4% up until January 2003 
when, as a result of tariff reductions, it fell to 21.6%.   Since Burundi joined the EAC, the average has 
been 3.1%.  The tariff protection structure for wood and wood products shows mixed escalation:  it is 
negative from the first to the second stage of pro cessing (3.1% as against 1.9%) and sharply positive 
from the second stage to the third (1.9 % as against 19.5 %).  Burundi does not export wood or wood products. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-119 
 
 
  (2) MINING AND ENERGY  
(i) Mining 
(a) Overview 
296. Burundi has an important and varied mining po tential, mainly involving nickel and its 
associated minerals, namely, copper, cobalt and th e elements of the platinum group, vanadium, 
cassiterite, colombo-tantalite, wolframite, rare eart hs, gold, peat, and various  industrial minerals, as 
well as signs of hydrocarbons.  The nickel deposits at Musongati represent about 6 % of the world's 
known nickel reserves.  Following the conclusion of various agreements between the Government and 
the mining companies, gold, nickel, rare earths a nd hydrocarbons are all currently being explored. 
297. The extractive industries are underdeveloped.  Wa r, lack of electricity and the absence of a 
railway are factors that have held back investment  in both prospecting and exploitation.  At present, 
not much is known about the extent of the country's mineral resources.59  Development activities have 
mainly involved deposits of gold, va nadium, carbonated phosphates and nickel. 
298. The sector's contribution to GDP and exports was almost zero up until 2001.  Since then, 
the extraction of colombo-tantalite (coltan)60 has helped to raise the sect or's share of total Burundian 
exports (Chapter I(3)).61  Coltan mining can cope relatively well with the lack of infrastructure as the 
ore is mined manually with shovels and sieves and sometimes bulldozers.  The company most active 
in this area is the Burundi Mining Agency (COM EBU S.A.), a private corporation with seven 
shareholders, including a Belgian company. 
299. Mining is more or less artisanal, and consequent ly highly labour-intensive.  It involves more 
than 50,000 artisanal miners spread over a number of sites throughout the coun try and is believed to 
provide a livelihood for more than 250,000 people.  The minerals mined by artisanal means are gold, cassiterite, colombo-tantalite and wolframite.  These ores are exploited by approved agencies 
(comptoirs ).  There are also agencies approved for the purchase and export of minerals. 
300. Between 2003 and 2009, mining production in Bu rundi generally tended to increase, although 
peaks in gold and wolframite production were ob served in 2006 (Table IV.6).  This trend was 
confirmed, in particular, by an increase in roya lties and other mining revenue.  The fall in output 
in 2009, which can be attributed to the global fina ncial and economic crisis, was also responsible for 
a weak foreign-currency inflow.  In 2009, artisanal mining contributed FBu 476.7 million to the public coffers, compared with FBu 752.2 million in 2008, by way of mining royalties, ad valorem  tax 
and export duties. 
301. The main reasons for the underdevelopment of mining and quarrying in Burundi include the 
remoteness of the deposits from the ports of e xportation, the lack of energy and transport 
infrastructure, and political instability, together w ith the adverse effects of the global financial and 
economic crisis. 
                                                      
59 The Government granted licences to prospect for ni ckel in the north-east of the country in 2007, for 
uranium in the north-west in 2008, and for oil in Lake Tanganyika and the plain of the Imbo in the same year. 
60 Once refined, coltan becomes metallic tantalum, an element indispensable for making the capacitors 
found in electronic products such as mobile telephones and laptops. 
61 Although there is an inventory of coltan deposits in Burundi, it is difficult to explain the sudden 
increase in production/exports.  One plausible explanation is that imports are being smuggled in and then being 
re-exported. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-120 
  
  Table IV.6 
Trends in mining output, 2003-09 
Year Gold Cassiterite Colo mbo-tantalite Wolframite 
2003 2,854.8 8,767 24,382 32,788 
2004 3,229.2  18,612  23,356  23,857  
2005 3,924.6  8,100  42,592  294,505  
2006 4,312.6  78,898  56,177  668,184  
2007 2,422.8  50,600  51,550  443,400  
2008 2,170.2  96,384  116,586  560,136  
2009 979.6  14,400  24,423  23,434  
Source:  Ministry of Energy and Mining (MEM ), Mines and Quarries Directorate. 
302. There is little importation of mining products.  Imports of mining a nd quarrying products 
(ISIC, Rev. 2) are subject to MFN duties averaging 4. 8 % with rates that vary from 0 to 25%.  Imports 
of metal ores are subject to MFN duties at the zero rate, but other duties and taxes are applied 
(Chapter III(2)). 
(b) Regulatory framework 
303. The Ministry of Water, Energy and Mining is r esponsible for the sector.  It is entrusted with 
formulating mining policy and having it implemen ted (Chapter II).  Activities upstream from the 
energy subsector also fall within the competence of the Ministry in charge of mining, which is 
responsible for exploration and extraction activities.  The Ministry responsible for hydrocarbons 
regulates oil refining, distribution and storage.  The Ministry responsible for energy is also involved in 
the production, transport and distribution of electricity and gas, as well as in water production, transport and distribution and water quality control.   Burundi depends mainly on imports to meet its 
needs for gas and petroleum products. 
304. According to the authorities, the general objectives of mining policy are to support the 
development of the country's mineral resources a nd to create jobs through the profitable and 
sustainable exploitation of Burundi's natural resources and advantages, so as to ensure its 
socio-economic development. 
305. The 1976 Mining and Petroleum Code (Decree-Law No. 1/138) is the principal legislative 
instrument governing mining in Burundi.  Howeve r, the Government is planning to draw up new 
regulations.  The reforms are aimed, in particul ar, at separating the mining and petroleum sectors, 
which could result in the legal provisions being simp lified and each type of ac tivity being dealt with 
more specifically.  Reforms are al so needed to align the mining re gulations on other more recent 
provisions, particularly the new Investment Code, the Environmental Code and the recently revised 
Companies Law. 
306. To obtain a mining licence, a person, whether natural or legal, Burundian or foreign, 
must comply with the provisions of the Companies Code and must have a registered place of business 
in Burundi.  The Code lays down the rules on the granting and use of exploration, prospecting and 
development permits and concessions.
62  Where rights are concerned, it draws a distinction between 
hydrocarbons and all other minerals. 
                                                      
62 According to Article 68, the development permit is an indivisible, non-mortgageable right relating to 
a movable.  A concession is a right of limited duration relating to an immovable, distinct from the ownership of 
the land and capable of being mortgaged. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-121 
 
 
  307. Exploration permits are exclusive and transfer able and are granted (except in the case of 
hydrocarbons) for:  (i) three years (twice renewable, for two years on each occasion);  or (ii) two years (twice renewable, for one year on each occasion).  A prospecting permit is a non-exclusive right granted for a period of two years, once renewable.   It cannot simultaneously apply to hydrocarbons 
and to other minerals for which concessions can be obtained.  Explorati on permits for hydrocarbons 
(H permits), valid for three years twice renewable, for three years on each occasion, are issued after being advertised and after invitati ons to tender have been published in  the Official Journal at least 
three months in advance.  To be entitled to obtain  a development permit on the basis of an exploration 
permit, the investor must furnish evidence of the ex istence of a deposit, befo re the exploration permit 
expires, and submit an application accompanied by a work schedule. 
308. The development permit is an exclusive right  (transferable subject to authorization), 
unlike the right to prospect for hydrocarbons.  Development permits are valid for five years, 
twice renewable, for five years on each occasion, prov ided that the holder has maintained production.  
When the deposit appears to be "extensive enough" to be mined for more than 15 years, the permit 
holder may ask for the development permit to be co nverted into a concession.  However, the term 
"extensive enough" is not defined in the law.  Concessions are valid for 25 years and may be 
renewed twice for a period of 10 years on each renewal, including those for hydrocarbons.  
Mining development permits confer the right to prospect and explore for, as well as develop, 
the mineral eligible for the concession for which they ha ve been issued.  They also confer the right to 
carry out industrial, processing, marketing and export operations.  The conditions under which 
permits can be transferred are not defined and this remains a major source of uncertainty for investors. 
309. The Mining Code provides for certain taxes, in particular the following:  (i) a charge 
(proportional to the area) in connection with various  procedures relating to applications for and the 
issuing and granting of prospecting, explor ation and development permits and concessions 
(Table IV.7);  (ii) an annual (ordinary) royalty proportional to the area c overed and dependent on the 
nature and importance of the deposits  to be developed.  There is also a supplementary royalty for 
permits that are not exploited or are insufficiently ex ploited, fixed at twice the usual rate to encourage 
development;  and (iii) an ad valorem  tax based on production value.  The basic rate is not less 
than 7% for each mineral eligible for concession, 12.5% for liquid hydrocarbon s, and 5% for gaseous 
hydrocarbons (Table IV.8).  Developers are also s ubject to industrial and commercial profits tax.  In 
the case of hydrocarbons, the tax rate is fixed in th e agreement which must be negotiated between the 
developer and the Government. 
Table IV.7 
Issuing and renewal costs for mining permits 
(FBu) 
Operation (issuing/renewal) Cost 
Issuing and renewal of prospecting permits FBu 30,000 
Issuing of exploration permit A, B, or H FBu 4 per hectare;  minimum of FBu 20,000 per permit 
First renewal of exploration permit FBu 6 pe r hectare;  minimum of FBu 30,000 per permit 
Second renewal of exploration pe rmit FBu 8 per hectare;  minimum of FBu 40,000 per permit 
Issuing and renewal of development permit FBu 10 per hectare, minimum of FBu 50,000 per permit 
Issuing, extension, reduction, rene wal, merger and division of mining 
concessions (hydrocarbons and non-hydrocarbons)  FBu 40 per hectare;  minimum of FBu 200,000 per 
concession  
Quarry exploration permit  FBu 500/area 
Quarry and mine development pe rmit By ministerial decision 
Authorization for the transport of hydrocarbons by  pipeline FBu 10,000 per kilometre;  minimum of 
FBu 200,000 per authorization  
Source:  Order implementing the Mining and Petroleum Code. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-122 
  
  Table IV.8 
Ordinary mining royalty rates 
Mining authorization  Up to 400 ha 400 to 10,000 ha Over 10,000 ha 
Development permit Initial period FBu 5 per ha FBu 8 FBu 10 
 Subsequent period FBu 10 FBu 15 FBu 20 
Mineral concession 
(non-hydrocarbons)  First three years FBu 20 FBu 30 FBu 50 
 Subsequent years FBu 100 FBu 300 FBu 500 
Hydrocarbons concession First three years FBu 20 FBu 30 FBu 50 
 Subsequent years FBu 100 FBu 300 FBu 500 
Source: Information provided by the Burundian authorities. 
310. The Code provides for an investor also to ha ve the opportunity to apply for the incentives 
contained in the Investment Code.  Thus, there is provision for certain tax reliefs:  developers may set 
aside, with temporary exemption from profits tax, a "provision for the regeneration of the deposit".  
This provision may be reinvested in a prospecting operation, in the exploration and development of 
deposits of minerals for which concessions can be obtained, or in building or extending a plant to 
process and refine such minerals.  The amount of the provision may not exceed 50% of the net 
accounting profit after depreciation;  15% of the tu rnover for minerals other than liquid or gaseous 
hydrocarbons;  and 27.5% of the turnover for liquid or gaseous hydrocarbons. 
311. Objections concerning the application of th e provisions of the Code come under the 
jurisdiction of the courts of first instance.  Ob jections concerning the application of agreements 
attached to exploration permits and those that supplement hydrocarbons concessions may be settled 
under an arbitration procedure.  However, the C ode does not define the characteristics of such a 
procedure and there is no reference to the possi bility of submitting disputes to an international 
arbitration tribunal. 
312. A law adopted in August 2000 regulates the e xploitation, purchase and export of minerals 
extracted on an artisanal basis or imported into Bu rundi and requires these activities to be carried out 
by agencies ( comptoirs ) approved by the Ministry of Energy and Mining.  This law reflects the 
increase in artisanal activities, especially in connection with coltan mining.  It does not apply to gold buying and selling activities conducted by the Central Bank.  The law stipulates that any natural or legal person with the necessary material and fina ncial resources may open an agency with the 
approval of the Ministry of Energy and Mining. 
313. The law establishes an annual royalty for the ag encies (the amount of the royalty varies with 
the mineral concerned), an ad valorem tax, and exit duties on export.  The law also determines the 
percentage of freely convertible foreign-currency ex port earnings that must be surrendered to the BRB 
(Table IV.9).  The complete repatriation of foreig n currency is compulsory for agencies incorporated 
under Burundian law.  Agencies governed by fore ign law must operate in freely convertible 
currencies and may not obtain them from domestic banks. 
314. The approved agencies are exempt from prof its tax and property tax for a period 
of three years, renewable by joint decision of the ministers responsible for mines and finance.
 
315. The Government of Burundi has launched a two-stage programme to reform, firstly, the 
Mining Code and, subsequently, the Petroleum Co de.  In the meantime, the 1976 Code remains in 
force for the provisions concerning only the hydrocarbons sector, pending the advent of new 
legislation in this field. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-123 
 
 
  Table IV.9 
Taxes, royalties, duties, and percentages of foreign-currency earnings to be surrendered 
Mineral Annual royalty Ad valorem  tax Exit duty Percentage currency 
transfer 
Local gold  US$5,000 0.3% 0.2% 1% 
Imported gold US$10,000 0.3% 0.2% 0.5% 
Local precious stones US$1,000 0.5% 0.5% 1% 
Imported precious stones US$5,000 0.5% 0.5% 0.5% 
Local semi-precious stones FBu 500,000 0.5% 0.5% 1% 
Imported semi-precious stones FBu 500,000 0.5% 0.5% 0.5% 
Local cassiterite FBu 100,000  3% 1% 2% 
Imported cassiterite FBu 300,000 1% 1% 2% 
Local colombo-tantalite FBu 200,000 3% 2% 2% 
Imported colombo-tantalite FBu 300,000 1% 1% 2% 
Local rare earths FBu 100,000 3% 1% 2% 
Imported rare earths FBu 100,000 1% 1% 2% 
Local wolframite FBu 100,000 3% 1% 2% 
Imported wolframite FBu 100,000 1% 1% 2% 
Mica FBu 100,000 3% 1% 2% 
Imported mica FBu 100,000 1% 1% 2% 
Freestone for export FBu 100,000 1% 1% 2% 
Source: Ministerial Order (2000) on agencies for the exploitation, purchase or export of minerals. 
316. The new Mining Code of the Republic of Bu rundi contains, within a single document, 
a legislative part, a regulatory part and a model mining agreement.  The new Code was primarily 
designed as a tool that could be used in practice, so that the primary objective was clarity.  The Code 
is much simpler than before;  fo r example, the three contractual instruments of the old 1976 Code 
are reduced to a single mining development agre ement, which also serves as specifications.  
Permits, formerly issued by presidential decree, are now granted by order of the Minister responsible 
for mines after discussion in the Council of Minister s, with a view to simplifying and speeding up the 
granting procedures. 
317. The new Code aims to be effective in the sense that it should not be possible to waive 
by contractual agreement the legislative provisions of the Code.  For the State, one of the goals is to 
have a uniform mining regime and to ensure the effective collection of what is owed.  It is essential, for example, to ensure the actual payment of the ad valorem tax.  The new Code also contains 
provisions which will facilitate the settlement of  disputes by establishing simple and inexpensive 
preliminary procedures. 
318. The Code also aims to be attractive.  Thus, it must meet the expectations of the State but also 
those of investors and ensure a high degree of competitiveness, in conformity with the best 
international practice and in the interests of comm unity development.  The Code is attractive for 
artisanal miners, thanks to a simple and effective system, accompanied by tax concessions, but also for investors, particularly foreign investors, in view of the various opportunities for tax and customs 
relief, together with the provision of guarantees against changes in the law and mining agreements. 
319. Another attraction is the very important automatic right for the finder to obtain a 
development permit.  For the same reason, the C ode incorporates the principle of indemnification 
of the holder in the event of a permit being cancelled and provides for mining security intended 
to facilitate the financing of mining activities. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-124 
  
  320. The new Code includes a more precise definition of artisanal mining;  specifies the exact 
conditions for obtaining an artisanal mining permit;  makes sure that artisanal miners undertake to 
comply with environmental regulations;  entrusts  the relevant responsibilities and missions to the 
Mines Administration (rather than the local authoriti es);  and obliges the miners to form associations. 
321. The new Code also defines quarries, disti nguishing between artisanal quarries and those 
regarded as industrial.  It reiterates and reaffirms that the Mines Administratio n is responsible for the 
supervision of the quarry sector and, in particular , for the granting of quarry development permits;  
affirms the principles of rational quarry exploitatio n in compliance with environmental regulations;  
establishes cohabitation and indemnification mech anisms for quarry operators, farmers and land 
owners;  and establishes areas in which quarrying is prohibited. 
322. The authorities are hoping that with these innovations, the sector will develop further and 
attract many private investors. 
(ii) Energy 
(a) Electricity 
323. Almost 95% of the energy consumed comes fro m wood, charcoal or peat and only 1% from 
electricity and almost all the electricity (about 95% ) is consumed in Bujumbura.  The total proportion 
of Burundi's population with access to electricity  is less than 2%.  The energy sources for the 
industrial sector are distributed as follows:  29. 7% comes from wood, 51% from petroleum products, 
and 19% from electricity. 
324. Electricity consumption in Burundi is 25 kWh per inhabitant per year, whereas the African 
average is over 500 kWh, and electricity's share of  the energy balance is 4%;  this shows that 
electrical energy is making only a very small c ontribution to economic growth and improvements 
in living standards, insofar as less than 3% of households are connected to electricity (about 47,500 households in 2009) and much public-interest infr astructure in the rural areas lacks electricity. 
325. The limited access to electricity means that mo st rural households rely on oil and candles for 
illumination and spend more on energy than those that are connected to the electricity grid. 
326. Peat is another source of energy and in 2008/2009 production was 11,520 tonnes compared 
with 9,764 tonnes for the previous year, i.e. an  increase of 16%.  Thanks to this production, 
all consumed, 64 hectares of natural forest could be pr eserved.  The exploitation of peat also brings in 
revenue for the State.  In 2009, a total of near ly FBu 500 million was collected, FBu 221,179,306 in 
profits tax and a state dividend of FBu 265,306,152. 
327. Between 2001 and 2007, electri city production increased steadily, except in 2006.  
Consumption followed a similar but always lower curve, with a high loss rate ranging from 21% to 
29% (Table IV.10).  Moreover, according to the authorities, between 2008 and 2009, total electricity 
production (domestic and imported)  fell by 1.4%, from 207.1 GWh in 2008 to 204.2 GWh in 2009.  
Over this two-year period, electricity imports fell from 95.2 GWh in 2008 to 81.6 GWh in 2009.  
According to the annual reports of the Water and Electricity Distribution Authority (REGIDESO), the 
number of electricity connections completed by its  services increased by 8%, rising from 40,513 to 
43,873 consumers. 
328. The Directorate-General of Water Engineeri ng and Rural Electrification (DGHER) delivered 
electricity to 236 new consumers, bringing its total number of customers to 3,174 at the end of 2008.  EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-125 
 
 
  Its contribution to the electricity supply is very smal l, a reflection of the low rate of consumption of 
electricity as an energy source in Burundi's rura l areas.  However, the DGHER has provided a basic 
service by bringing grid electricity to the Musiga ti, Ciya and Kivyuka centres from Bubanza province;  
the Ruseseka centres in Mabayi commune;  the Gata bo centre in Muramvya;  and the Kaniga health 
centre.  It has also renovated the Mugongo- Ryarusera-Kayenzi and Muramvya-Shombo lines. 
Table IV.10 
Electricity production and consumption, 2001-07 
(in MWh) 
Year Total production Total cons umption Energy invoiced Losses (%) 
2001 154,670 123,069 122,154 21.0 
2002 167,359 119,961 118,877 29.0 
2003 160,794 125,393 124,094 22.8 
2004 163,829 126,092 125,769 23.8 
2005 171,359 121,265 123,708 28.0 
2006 152,057 113,042 112,606 25.9 
2007 188,804 142,824 142,824 24.4 
Source:  Observatory of Government Action (OAG), Analysis of Government Energy Policy in Burundi, Bujumbura, 2010.  
329. The subsector is under state control and the Minister of Energy and Mining oversees the 
company REGIDESO.  The latter generates electricity  in eight hydroelectric power stations, the most 
important of which are those at Mugere and Rwegura,  and is also responsible for its distribution and 
marketing.  Between 50 and 60% of the electricity  consumed comes from the Ruzizi I and II power 
stations, which belong jointly to Burundi, Rwanda and the Democratic Republic of the Congo (DRC).  
These three countries established the company SINELAC to manage the project.  Although the power 
stations are on Burundian territory, the electricity is  considered to have been imported and the DRC is 
responsible for their operation.  In 2011, the Gove rnments of Burundi, Rwanda and the DRC decided 
to revive the project to build a dam on the River Ruzizi (Ruzizi III) with an estimated capacity of 
147 MW using public-private financing. 
330. Electricity is imported duty free. 
331. REGIDESO is heavily indebted.  Its long-term debt is owed mostly to the State and its 
short-term debt to its suppliers.  The company's fina ncial difficulties are partly due to the fact that it 
imports some of the electricity generated by SINE LAC and has to contend with the additional costs 
linked to the gradual depreciation of the Burundi fra nc.  They also reflect the fact that REGIDESO 
establishes its tariffs on the basis of the average household income in Bujumbura rather than on 
production costs, in order to support household electri city consumption.  The price of a kilowatt-hour 
consumed by households is, in most cases, less than  that for the electricity supplied to commercial and 
industrial operators, often by a factor of 1.5 to 3.  Moreover, the tariff for commercial consumers, that 
is to say essentially service enterprises and small manufacturers, increases progressively with the level of consumption.  Medium -voltage electricity consumers, mainly  the larger manufacturing industries, 
must pay a fixed premium based on estimated consumption and a surcharge in the event of 
excess demand.  In general, up until 2010, the tariff structure was designed to ensure that household 
consumption was subsidized by the other u sers (i.e. trade, industry and government). 
332. The Government has undertaken to apply an elect ricity tariff policy intended to ensure the 
sustainable operation of this public service.  This  tariff structure will make it possible to cover both 
the operating costs and the costs of investment in the upgrading, extension, and renewal of 
the equipment. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-126 
  
  333. During the second half of 2011 and the first quarter of 2012, Burundi implemented a 
revision of the tariff system that allows investors to recoup the costs of investing in electricity infrastructure (Table IV.11). 
Table IV.11 
Electricity rates 
Old tiers New tiers Old tariff 
(FBu) Rental Tariff 
(FBu) 
1st stage Fixed 
charges 
1 Tariff 
(FBu) 
2nd stage Fixed 
charges 
2 
A.  Low-voltage customers 
1.1 Low-voltage, households  
  0 to 75 kWh 
 76 to 150 kWh  151 to 375 kWh 
 376 kWh and over 0 to 50 kWh 
51 to 150 kWh 151 and over 
.. 41 
46 85 
127 157 
157 157 
157 57 
92 
172 
.. 0.00 
0.00 
1,703 
.. 73 
138 260 
.. 0.00 
0.00 
3,249 
.. 
1.2 Low-voltage, commercial  
  0 to 150 kWh 
 151 to 500 kWh 
 501 kWh 0 to 100 kWh 
101 to 250 kWh 
251 and over 116 
127 
137 221 
221 
221 93 
138 
164 1,108 
2,111 
3,111 93 
149 
190 1,995 
4,000 
6,000 
1.3 Government  
  Single tier Single tier 127 490 138 0.00 149 0.00 
1.4 Public lighting  
  Single tier Single tier 127 604 139 0.00 151 0.00 
1.5 ABER 
(Burundian Rural Electrification 
Agency)         
  Single tariff Single tariff 53 1,241 97 0.00 141 0.00 
B.  Medium-voltage customers 
1.6.1 Medium-voltage with subscribed power (SP) and peak 
SP premium 
(FBu/kW/month) 
 
SP surcharge (FBu/kW/month) 
 0 to 150 h 
  151 h to 450 h  
 451 h and over 
 SP premium 
(FBu/kW/month) 
 
PS surcharge (FBu/kW/month) 
Peak hours (first 
150 h) Off-peak hours (151 h and over) 
 3,231 
 
 
6,462 
 
122 
 
77 
 
52 
  
 
 
1,194 
 
1,194 
 
1,194 3,824 
 
 
7,647 
 
128 
 
85 
 
  
 
 
  
0.00 
 
0.00 4,416 
 
 
8,832 
 
134 
 
93 
 
  
 
 
  
0.00 
 
0.00 
1.6.2 Medium-voltage without subscribed power (SP) and peak 
SP premium (FBu/kW/month) PS surcharge 
(FBu/kW/month) 
 Single tier 
 SP premium 
(FBu/kW/month) SP surcharge 
(FBu/kW/month) 
 Single tier 
 3,231 
 
3,231 
 
 
122 
  
  
 
 
1,194 5,407 
 
5,407 
 
 
113 
  
  
 
 
0.00 7,754 
 
7,754 
 
 
104 
  
  
 
 
0.00 
1.6.3 Medium-voltage without subscribed power (SP) and without peak 
Single tier Single tier 138 806 145 0.00 152 0.00 
Note:  Electricity prices.  New monthly tariff applicable in  two stages:  Stage 1:  1 September 2011 and Stage 2:  
1 March 2012. 
Source: Information provided by the Burundian authorities. 
334. The privatization of REGIDESO was formally be gun in 1994;  however, due to the country's 
political and economic situation little progress has been made.  The regulatory framework was 
reformed in July 2000, with the adoption of a la w liberalizing and regulati ng the public drinking water 
supply and electric power services.  The aim was to enable the priv ate sector to invest in these 
subsectors and to end REGIDESO's monopoly.  As  this report was being written, the implementing 
regulations for this law were still in preparati on.  Certain aspects of the tariff structure are 
under review. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-127 
 
 
  335. Despite the efforts of various successive governme nts, only 46,858 households (2.93% of the 
Burundian population) were bei ng supplied with grid electric ity in 2009.  The authorities 
acknowledge that much remains to be done to impr ove the supply of electricity and access to it, 
on which all development depends. 
336. Overall, the Government does not have a c oherent national energy policy or a legal 
framework for exchanges be tween the institutions responsible for en ergy and the main participants in 
the sector to improve coordination of the measures o fficially taken to promote the sector.  Similarly, 
there is not enough linkage and complementarity between the sectoral policies of the institutions 
responsible for the various forms of energy.63 
(b) Petroleum products 
337. Burundi has neither oil nor gas;  prelimin ary explorations in collaboration with the 
Democratic Republic of the Congo along Lake Tanganyika were unsuccessful.  Accordingly, 
all petroleum products are imported, via Mombas a (Kenya) or Dar es Salaam (Tanzania), and 
transported by land or by lake.  Imports of these products account for 15% to 20% of total Burundian 
imports, depending on the year.  Premium grade petr ol and diesel fuel respectively account for about 
43% and 48% of total consumption of petroleum products.  The poor state of the roads has 
contributed to the increase in the price of petrol eum products as the Government has been forced to 
reduce the upper limit on the amount of petrol tr ansported by lorry from 60,000 litres to 30,000 litres 
to prevent deterioration of the road surface. 
338. The main distributors are Engen, Interpetrol, Cobil, Petrobu, and Sicopp.  The functioning 
storage depots are those operated by the Petroleu m Storage Company (SEP), which is 90% owned by 
Engen and responsible for the storage facilities ne ar Bujumbura, and the Gitega tank farm, which 
belongs to the State but is managed by Interpetrol.  Moreover, Interpetrol and Cobil are in the process 
of building their own storage facilities, wh ich will soon be operational.  Prices are  fixed by ministerial 
order using a single formula. 
339. The tariff structure for petroleum products is fixed by order and adjusted periodically to 
reflect international market prices.  In a ddition, there are various specific taxes and ad valorem duties.  
These specific taxes are channelled into a national road  fund.  Petroleum products are also subject to 
VAT and service tax.  On the basis of the price structures established by Order No. 750/666 of 11 May 2012, these taxes constitute about 40% of  the price at the pump and nearly 80% of the 
difference between the price at the point of importation and the price at the pump. 
(3) M
ANUFACTURING  
340. The Burundian manufacturing sector is underdevel oped and, like the agricultural sector, has 
suffered badly from the crisis.  Industrial production consists mainly of beer , lemonade, cigarettes, 
soap and building materials, while textile production has largely collapsed due to the closing down of 
the main textile factories, including COTEBU.  The industrial sector is uncompetitive and the State 
still has a very strong presence. 
341. The private sector is evolving in a difficult co mpetitive environment.  The isolation resulting 
from the political crisis has made businesses more vul nerable.  In addition to being landlocked, 
Burundi was also isolated by an international emba rgo during the long socio-political crisis that lasted 
from 1993 to 2005.  This embargo had harmful cons equences for the Burundian economy in general, 
                                                      
63 Republic of Burundi (2011). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-128 
  
  but particularly for the manufacturing sector which w as deprived of supplies of all kinds.  This led to 
a contraction in industrial activity and even the cl osing of some industrial units, especially in the 
textiles subsector.64  The output of most industries in the manufacturing sector has declined almost 
continuously since 1996.  The lifting of sanctions has not had a significant effect on production, still 
adversely affected by the weakness of domestic  demand, although since 2007 there has been a 
perceptible recovery (Table IV.12). 
342. The State intervenes in the manufacturing sector  through its participation in the capital 
of beverage, coffee, tea and sugar enterprises.  Th e State also fixes the prices of certain products, 
in particular, beverages and sugar.  The Govern ment's intention in formulating its manufacturing 
policy is to promote import substitution, on the one hand, and industries with export potential, on the 
other.  Thus, the 1998 Export Promotion Law a nd the Free-Zone Law provide for various export 
incentives (Chapter III(3)). 
Table IV.12 
Production of the main industries, 2007-11 
Product 2007 2008 2009 2010 2011
Products of the food industry .. .. .. .. ..
 Beer, Primus (hl)  975,699 1,039,179 970,199 1,193,312 1,253,305
  Beer, Amstel (hl) 313,732 329,518 396,268 471,927 494,959
  Carbonated beverages (hl) 294,213 284,977 287,063 319,937 331,899
  Milk (l) .. .. .. .. ..
  Sugar (t) 20,213 18,233 14,314 18,937 20,688
  Cottonseed oil (l) 51,220 33,550 31,528 26,501 43,555
  Cattle feed (t) .. .. .. .. ..
  Cigarettes (1,000 units) 472,455. 436,055 514,240 457,825 510,350
Products of the chemical industry .. .. .. .. ..
  Paint (t) 498 505 450 543 613
  Insecticides (t) .. .. .. .. ..
  Oxygen (m3) 46,278 16,100 37,103 33,481 1,875
  Polyethylene film (kg) 53,482 23,778 17,546 1,588 ..
  Toilet soap (kg) 144,923 202,128 195,495 217,921 235,314
  Household soap (kg) 2,688,590 5,469,222 5,805,328 5,200,956 851,600
  Bottles (t) .. .. .. .. ..
  Foam  25,284 16,820 20,070 16,974 32,646
  Matches (boxes) .. .. .. .. ..
  Pharmaceutical products (FBu million) .. 142 .. .. ..
  Plastic crates (units) 184,348 3,367,649 361,107 393,235 322,447
Products of the textile and leather industries .. .. .. .. ..
  Blankets (units) .. .. .. .. ..
  Finished fabrics (m) .. .. .. .. ..
Building materials .. .. .. .. ..
  PVC pipe (kg) 176,541 104,419 139,945 143,162 174,179
  Fibre cement sheets (t) 79 .. .. .. ..
  Profiles (kg)a 8,508 26,044 26,741 30,120 27,697
  Steel pipe (kg) 100,223 68,485 .. .. ..
Miscellaneous products .. .. .. .. ..
  Crown corks (1,000 units) .. .. .. .. ..
.. Not available. 
a This item also includes self-supporting alu- zinc tanks and "Estetic" suspended ceilings. 
Source:  Information provided by the Burundian authorities. 
343. The principal semi-public company is Burundi Breweries and Soft Drink Manufacturers 
(BRARUDI), which is 59%-owned by Heineken.  Prices are fixed by the State, which also levies 
excise duties on various beverages sold by the co mpany (Chapter III(2)).  Although production has 
                                                      
64 OTF Group (2008). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-129 
 
 
  declined, exports have increased significantly, mark eting opportunities having been identified in the 
subregion.  The export of an increasing proportion of  output can be attributed to a combination of 
weak domestic demand and the progressive depreciation of the Burundi franc. 
344. Prior to January 2003, the average tariff protection (MFN rate) was 29% for the 
manufacturing sector as a whole;  tariff reductions a pplied after that date brought the average down 
to 23.2%.  Since Burundi joined the EAC, the sector 's average protection has been 12.5%, with rates 
that vary from 0 to 100%.  However, with a few ra re exceptions and subject  to certain duty and tax 
concessions, the tariff structure does not encour age investment in industry (Chapter III(2)). 
345. There are enormous challenges facing the development of Burundi's manufacturing sector, at 
least in the short term.  The combination of competition from the EAC countries, transport and 
electricity constraints, high operating costs, the r estricted nature of the market, the lack of skilled 
labour and the weakness of the local private sector  means that Burundi is not in a position to 
attract many foreign investors in the highly competitive sector of manufactured products.  
Despite preferential access to markets in the United States (AGOA) and the European Union 
(Everything but Arms), Burundi's manufacturi ng export potential is mainly subregional. 
(4) SERVICES  
(i) Overview 
346. The services sector is an important one for Burundi (Chapter I).  Burundi is a net importer of 
services.  Service exports are dominated by travel (tourism), which illustrates the country's considerable advantages as a tour ist destination, whereas transport has been the main import item 
because of the remoteness of key markets. 
347. Despite a major export potential and the progressi ve liberalization of trade in services, this 
sector is experiencing difficulties linked with the s hortcomings of the infrastructure, the obsolescence 
of the regulations and heavy taxation.  By way of solutions, the main pillars of Government services 
trade policy are institutional reform, improved access to services and the strengthening of exports and 
regional integration.  One of the Government's priorities is to make the delivery of services 
more effective.  However, there is still a high degree of state intervention, which tends to make 
essential services inefficient and expensive.  Service- providing companies are subject to several taxes 
and various controls (Chapter III(2)). 
348. So far, Burundi has no known sectoral policy for the promotion of trade in services.  
However, there have been attempts to design sector al policies that trace out a few guidelines based on 
the Government's global policy as expressed in  the poverty reduction strategy paper. 
349. Aware of the importance of trade in servi ces for the national economy and the various 
challenges it faces, the Government has engaged in a series of negotiated reforms, including services 
in particular, within the WTO, the East African  Community, COMESA and the Economic Partnership 
Agreement with the European Union (in process of being negotiated). 
350. Burundi has undertaken commitments with resp ect to a number of services under the General 
Agreement on Trade in Services (GATS), name ly, business services, construction and related 
engineering services, distribution services, health-related services, and social services.
65  For these 
services, Burundi has bound, without limitations on market access and national treatment, all the 
                                                      
65 WTO document GATS/SC/116, 15 April 1994. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-130 
  
  measures affecting their cross-border supply, their consumption abroad and commercial presence with 
a view to supplying those services.  With the exception of medical specialists, managers and 
specialized senior management (through horizontal concessions), measures affecting the presence of 
natural persons have not been bound.   Burundi did not participate either in the WTO negotiations on 
basic telecommunications or in those on financial services. 
(ii) Financial services 
(a) Banking services 
Overview 
351. Burundi's banking system is characterized by its relatively small scale, compared with the size 
of the country and its population, which tends to rest rict its ability to contribute to the financing of the 
country's development.  Although the number of bank accounts has increased sharply during the last 
two years, in December 2011, with around 169,391  bank accounts for a population of 8.5 million, it 
was still clearly too low.  At present, in 2012, Burundi has nine commercial banks:  the Commercial 
Bank of Burundi (BANCOBU);  the Credit Bank of Bujumbura (BCB);  the Burundian Trade and Investment Bank (BBCI);  the Management and Finance Bank (BGF);  ECOBANK;  FINBANK;  
Interbank Burundi (IBB);  the Diamond Trust Bank , Burundi (DTBB);  and the Kenya Commercial 
Bank (KCB).  Burundi also has two non-banking financial institutions, namely, the National 
Economic Development Bank (BNDE) and the Fund fo r the Promotion of Urban Housing (FPHU);  
24 micro-finance institutions;  42 foreign-exchange  offices;  11 credit cooperatives;  and a few 
financial messaging institutions.  Given the embryo nic state of the system, the banks operating in 
Burundi are relatively unsophisticated and were not directly exposed to the international financial 
crisis. 
352. As far as the level of activity is concerned,  the banking sector is largely dominated by 
three banks that share 68.7% of the market
66, namely, the Credit Bank of Bujumbura (BCB), the 
Commercial Bank of Burundi (BANCOBU) and Interb ank Burundi (IBB).  The liberalization of these 
services since the 1990s has led to an increase in th e number of banks and othe r financial institutions.  
Six banks - Interbank Burundi, the Management and Finance Bank (BGF), FINBANK, the Diamond 
Trust Bank (DTB), ECOBANK, and the Kenya Commercial Bank (KCB) - are wholly privately owned. 
353. Today, state participation in the sector is much reduced.  However, the State remains 
a shareholder in five banking and other fina ncial institutions:  the Commercial Bank of 
Burundi (BANCOBU), the Credit Bank of Bujumbura (BCB), the Burundian Trade and Investment 
Bank (BBCI), the National Economic Development Bank, and the Fund for the Promotion of 
Urban Housing (FPHU).  Some semi-public enterprises, in particular COGERCO, hold shares in commercial banks.  The extent of state participati on in the financial subsector does not reflect any 
clear economic logic, considering the extensive overlap between the activities and practices of the 
various institutions.  Foreign investors are al so present, especially those established since the 
colonial period.  In 2008, the Pan-African banking group Bank of Africa and two Belgian companies, 
BIO and Bank Degroof, bought Belgolaise's shares in  the Credit Bank of Bujumbura, which today 
has about 300 employees.  The same applies to other groups, such as the very recently established 
ECOBANK, FINBANK and Diamond Trust Bank, Burundi (DTBB). 
                                                      
66 Bank of the Republic of Burundi (BRB, 2009). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-131 
 
 
  354. During the last four years, outstanding loans to the economy grew by 53%;  however, it 
should be noted that the proportion of long-term lo ans barely increased, varying only from 2.4% in 
2006 to 2.8% in 2009.  This shows that most loans (74.3% on average over the period) are being channelled into short-term activities, although there has been some shift towa rds medium-term loans, 
which have seen their share increase from 18.2% to 29.4% in the course of the last four years. 
355. Even though the interest rate level has decreased  in the last five years, falling from 20.6% to 
16.5%, it still remains very high for investment in productive projects.  As a result, most of the financing provided by the financial system is largely going into commerce, 54.3% and 58.8% of 
lending in 2009 and 2011, whereas fi nancing for the productive sectors, such as industry, agriculture 
and the hotel trade, for example, amounted to only 4.2%, 0.3% and 2.0%, respectively, in 2011 
(Table IV.13). 
Table IV.13 
Lending by branch of activity, 2009 and 2011 
Branch of activity 2009 
FBu million % 2011 
FBu million % 
Commerce 180,877.50 54.3 337,131.7 58.8 
Light equipment 76,193.10 22.9 127,908.0 22.3 
Housing and other building 30,488.00 9.1 50,277.8 8.8 
Industry 20,850.00 6.3 23,974.1 4.2 
Agriculture 3,607.40 1.1 1,999.1 0.3 
Hotel trade and tourism 3,762.30 1.1 11,349.1 2.0 
Handicrafts 2.70 0.0 2.7 0.0 
Miscellaneous 17,526.90 5.3 20,572.0 3.6 
Source:  Annual reports of the BRB, 2009 and 2011. 
Regulatory framework 
356. The Bank of the Republic of Burundi ( BRB) is responsible for the regulation 
and supervision of the commercial banks.  Law No. 1/017 of 23 October 2003 amending 
Decree-Law No. 1/038 of 7 July 1993 regulating the banks and other fi nancial institutions;  
Decree No. 100/203 of 22 July 2006 regulating micro-finance activities in Burundi;  and Law 
No. 1/34 of 2 December 2008 concerning the statut es of the BRB are the main legal instruments 
organizing and regulating the financial sector in Burundi.  The BRB s ubscribes to the best 
international practice in the area of bank regul ation, for example, that recommended by the 
Basel Committee on Banking Supervision. 
357. In Burundi, the legislator distinguishes between three kinds of principal financial institutions.  
The commercial banks (Article 3);  credit operators  (Article 7);  and micr o-finance and financial 
messaging institutions (Article 2).  Credit instit utions must be established as a legal person.  
Subject to specific legal provisions, they must take the form of a private limited company (SARL) and meet a local and general economic need. 
358. Under the Law of 7 July 1993 concerning th e statutes of the BRB, as amended by Law 
No. 1/34 of 2 December 2008, supe rvision of the banks and other financial institutions is the 
responsibility of the BRB.  These laws regulate th e activities of the banks and other financial 
institutions, which must all be approved by the BRB.  The minimum capital required is FBu 10 billion 
for banks and FBu 6 billion for other financial ins titutions.  A chart of accounts has been drawn up 
specifically for micro-finance and fi nancial messaging institutions (IMF). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-132 
  
  359. Other approval criteria are:  the good reputa tion and banking sector experience of future 
managers;  incorporation as a joint stock company;  registration of the shares;  everyday management of the activities by at least two persons;  and th e obligation to produce a profitability analysis.  
The BRB does not impose additional conditions on th e establishment of foreign banks;  however, 
the agreement of the country of origin is required.   The prior authorization of the BRB is required by 
anyone of Burundian nationality wishing to set up a bank abroad. 
360. The BRB relies on the international standards of the Basel Committee for determining the 
prudential rules for commercial banks.  The rules of prudential management in force require the 
equity capital to be greater than or equal to the mi nimum capital;  the solvency ratio to be greater than 
or equal to 10%;  a ratio of stable resources to fi xed uses greater than or equal to 60%, and a liquidity 
ratio greater than or equal to 100%.  Without the authorization of the BRB, no bank or other financial 
institution may grant the same natural or legal pe rson a loan or enter into any commitment in his 
favour for an amount greater than 20% of the equity capital.  Access to foreign credit is subject to the 
approval of the BRB which, in taking its decision, will take into account the nature of the loan, the 
sector concerned, and the viability of the project  to be financed.  The BRB does not impose any 
special conditions on foreigners wishing to obtai n access to credit through Bu rundian institutions. 
361. The BRB is continuing to tighten the supervis ion of banks and institutions that provide 
micro-finance.  This supervision has benefited fro m capacity building in relation to the auditing of 
financial statements and prudential rules establis hed in accordance with international financial 
reporting standards (IFRS).  According to the authoriti es, efforts are continuing to be made to carry 
out in situ inspections entirely in accordance with risk-based superv ision procedures (Table IV.14).  
This table also indicates the apparent solvency of  the system as a whole (15.8% on average for a 
regulatory minimum of 10%).  The low rate of non-pe rforming loans, together with the high level of 
provisions for these loans, could explain this appare nt solvency.  Moreover, the proportion of large 
risk positions relative to equity has diminished w ith time, evidence of the soundness and quality of the 
Burundian banking system during the last five years.  However, in the absence of a detailed 
examination of the banks' credit portfolio, it is difficu lt to judge its true quality.  The fact that the 
overdraft is the main form of assistance granted to enterprises in Burundi makes it difficult to assess 
the real risks.  However, from the information gath ered it appears that some banks are restructuring 
overdrafts in advance so as not to have to treat them as a non-performing asset, while others are not 
classifying commitments according to the risks they represent. 
Table IV.14 
Indicators of the soundness of the Burundian banking system, 2006-11 
(%, unless otherwise indicated) 
 December 
2006 December 
2007 December 
2008 December 
2009 September 
2010 December
2011 
Equity requirements  
Equity capital/weighted assets (sol vency ratio) 13.5 13.5 15.2 19.1 18.0 .. 
Core capital (tier 1)/weighted assets 7.5 10.9 12.7 15.5 15.1 ..
Asset quality  
Non-performing loans (% total gross loans granted) 18.6 18.8 14.6 13.0 10.6 ..
Provisions (% non-performing loans) 92.4 91.4 90.2 88.7 82.5 ..
Non-performing loans. net of provisions (% equity 
capital) 7.5 7.4 7.4 5.4 7.5 ..
Large risk positions (% equity capital) 48.6 41.6 39.3 28.2 27.6 ..
Table IV.14 cont'dEAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-133 
 
 
   December 
2006 December 
2007 December 
2008 December 
2009 September 
2010 December
2011 
Rate of return  
Return on assets 1.7 2.3 2.3 2.6 1.6 ..
Return on equity 17.5 26.4 29.7 22.8 13.3 ..
Net interest (% gross product) 177.4 167.6 171.8 207.0 194.5 ..
Costs excluding interest (% gross product) 188.9 156.6 155.8 172.4 150.1 ..
Liquidity  
Liquid assets (% total loans granted) 68.1 83.5 86.9 91.4 74.4 ..
Liquid assets (% short-term lia bilities) 106.8 135.2 137.9 168.8 124.4 ..
.. Not available. 
Source:  Information provided by the Burundian authorities. 
(b) Insurance 
362. The insurance sector can play an important ro le in risk intermediation and help to make 
long-term resources available.  Unfortunately, its performance has not been su ch as to enable it to 
play its part in full.  The sector is underdevelope d and offers very few products, most centred on 
motor vehicle insurance (63%).  It also lacks human resources, especially in the fields specific to the 
insurance profession, which is one of the majo r constraints on insurance company management. 
363. The financial health, including the solvency, of  insurance companies in Burundi falls below 
the recognized international standards for the sector.  A recent report notes that although the 
profitability of the companies someti mes appears satisfactory, that is the result of the non-payment of 
claims.  Their profitability is al so suffering from lack of investment opportunities, especially long 
term. 
364. Insurance services are regulat ed by a specialized body, the Insurance Regulation and 
Control Agency, under the Ministry of Finance.  The Agency needs immediate capacity building in 
order to be genuinely capable of carrying out its  mission.  In consultation with the Agency, the 
Ministry approves companies wishing to enter th e insurance market.  Five insurance companies 
operate on the Burundian market, of which thre e are private and two semi-public.  The two 
semi-public companies are the Burundi Insurance Company (SOCABU), which is 45% state-owned, 
and the Commercial Insurance and Reinsurance Uni on, which is 12% state-owned.  These companies 
offer a traditional range of insurance products. 
365. Insurance activities are governed by the Insurance Law adopted in August 2002.  The aim of 
the 2002 Law was to initiate the liberalization of insurance services.  Any application for a licence 
must be accompanied by the following:  (i) the memorandum of association of the company;  (ii) the full names, addresses and domicile of the company's dir ect and indirect shareholders and directors and 
the latters' resumes;  (iii) a list of the activities or groups of activities in which the company proposes 
to engage;  (iv) its business plan, including tec hnical and financial aspects, the general terms and 
conditions of its policies, the technical basis for calculating premiums and provisions against risks, 
the tariffs which the company intends to apply in each of the branches of activity for which approval 
is requested, the guiding principles selected for re insurance, estimated administrative and formation 
costs, and the resources available for meeting those costs;  (v) evidence of the deposit (in a blocked 
account with a bank approved in Burundi) of a sum equal to 20% of the share capital, representing the 
minimum guarantee fund;  and (vi) evidence that  the minimum capital of FBu 300 million has been 
fully subscribed.  The Law specifies that the maximu m percentage of the share capital or voting rights 
that can be held by one na tural or legal person is 33%. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-134 
  
  366. In Burundi, insurance business may be conduc ted only by legal persons incorporated in 
Burundi in the form of a joint-stock or semi-pub lic company.  A distinction is made between life 
insurance activities (where the risk is linked with  the length of a human life) and non-life activities 
relating to other events affecting the individual or involving his liability with respect to third parties 
or property.  Companies are required to keep sep arate accounts showing the results for each group 
of activities ("life" and "non-life") and each of its branches.  There are no special conditions imposed on foreigners wishing to access Burundian insuran ce services.  Access for Burundians to foreign 
insurance services is subject to the approval of  the Minister responsible for insurance. 
(iii) Postal and telecommunications services 
(a) Overview 
367. With a coverage of 3% of the population, the density of the telecommunications networks in 
Burundi is still low and over 90% of subscribers ar e concentrated in the urban areas, especially 
Bujumbura, while 1% of the population has Intern et access, which makes Burundi the country with 
the lowest rate of Internet penetration in the worl d.  The same applies to fixed telephony penetration 
(Table IV.15).  Where mobile telephony services ar e concerned, although in recent years Africa has 
experienced the strongest growth in the world in terms of new mobile phones with about 14% of the 
population now having access to these services, in Bur undi, the corresponding figure is less than 2%.  
Out of a population of eight million, only 30,000 peopl e, many of whom live in Bujumbura, have 
access to fixed telephone services. 
368. The National Telecommunications Office (ONATEL), a public corporation, has a monopoly 
on the fixed telephony network a nd offers about 30,000 lines, which places Burundi among the 
countries with the lowest (fixed) tele-density in the world.  The enterprise was audited in 1999 with a 
view to its privatization, but the sale process has since been broken off. 
369. Six mobile telephony services operators are currently providing services in Burundi:  
ONATEL, UCOM, Africell, ECONET Wireless, Lace ll SU, and Hits Telecoms;  there is only 
one provider of fixed telephony services (ONATEL),  while another has obtained a licence to start 
offering them (UCOM);  and there is no wholesale market for network capacity.  Likewise, there is 
still no national interconnec tion network.  Each operator has its own network (which fragments 
the wholesale market) and is responsible for the na tional and international traffic that uses it.  
The operators continue to use very expensive satellite links for international communications.  
Today, Burundi has seven Internet service pr oviders:  CBINET, ONATEL, SPIDNET, OSA, UCOM, 
Africell-Tempo, and ECONET Wireless;  some 20 national radio stations;  and a national postal 
authority, a public company with a monopoly on the operation of postal services. 
370. U-Com (formerly Telecel) is the largest of the mobile operators with 
about 160,000 subscribers.  Then comes Onam ob, which is held by ONATEL, with Africell 
and Econet far behind.  The number of Internet user s is estimated at five per 1,000 inhabitants, 
or altogether about 14,000. 
371. Despite the liberalization of the telecommunications sector, services remain expensive and 
inefficient.  The high cost of communications is ha ving a direct impact on international business costs, 
since it has repercussions on, for example, marketi ng costs, trade facilitation, and trade financing.  
Although the cost of mobile telephony services is comp arable with that in other sub-Saharan African 
countries, the cost of Internet acc ess is almost three tim es as great.  Because of Government tariff 
policy the cost of international fixed telephony is  low relative to some other sub-Saharan African EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-135 
 
 
  countries.  Increased competition and the expansion of national networks shou ld make it possible to 
reduce prices further (Table IV.15). 
Table IV.15 
Selected indicators for the telecommunications sector, 2008 
Indicator Burundi Sub-Saharan Africa Low-income 
countries 
Access    
  Fixed telephone lines (per 10 inhabitants) 0.4 1.0 2.5 
  Mobile cellular telephone subscripti ons (per 100 inhabitants) 1.9 13.5 14.3 
  Number of Internet users (per 100 inhabitants) 0.7 3.8 4.2 
  Number of personal computers (per 100 inhabitants) 0.7 1.8 1.4 
  Households with a television set (%) 14.0 14.0 16.0 
Quality    
  International Internet bandwidth  (bits per inhabitant) 1.0 5.0 22.0 
  Secure Internet server s (per million inhabitants.  December 2007) 0.2 2.5 0.6 
Cost    
  International fixed price bask et (US$ per month) 2.6 11.6 6.1 
  Mobile cellular price basket (US$ per month) 12.2 12.3 10.0 
  Internet price basket (US$ per month) 40.0 15.9 12.0 
  Price of a call to the United States (US$ for 3 minutes) 2.45 2.43 1.99 
Efficiency and institutional sustainability    
  Telecommunications revenue (as a percentage of GDP) .. 3.2 4.0 
  Number of telephone subscribers per employee 234 586 141 
.. Not available. 
Source:  World Bank, ICT at a Glance ;  and African Development Bank (2009), An Infrastructure Action Plan for Burundi:  
Accelerating Regional Integration , September, AfDB. 
(b) Institutional and regulatory framework67 
372. Telecommunications services are governed by the Decree-Law of 4 September 1997, which 
opened up the subsector to private investment.68  Under the new law, the State may grant to third 
parties, under concession or licence, all or part of the establishment, operation or management 
of telecommunications networks and installations .  By virtue of this law, ONATEL is required 
to accept the participation of private shareholders .  A very positive aspect of this Decree-Law is 
the separation of the operating and regulatory func tions.  It allocates to the Telecommunications 
Regulation and Control Agency (ARCT), establis hed soon afterwards, major responsibilities for 
the regulation of the sector.  The ARCT operates under the authority of the Ministry of Transport and Telecommunications.  In addition to the ARCT, th e National Commission for the Information Society 
(CNSI) and the Executive Secretariat for Info rmation and Communication Technologies (SETIC) 
also have responsibility for matters  relating to telecommunications. 
373. The ARCT's main functions are:  to provide  for the surveillance of telecommunications 
services;  to participate in the negotiation of in ternational treaties, conve ntions and regulations 
relating to telecommunications and in regional and international telecommunications conferences;  
to enforce tariff policy;  to define the rules for the use of circuits and networks leased to private users;  
to allocate frequencies and manage the frequency spectrum;  to issue permits to operate links, 
                                                      
67 African Development Bank (2009). 
68 The sector's main legal provisions are:  Decree-Law No. 1/011 of 1997 (organizational provisions 
on telecommunications);  Decree No. 100/182 of 1997 (statutes of the Regulation and Control Agency);  
Ministerial Order No. 520/730/540/231 of 1999 (ope rating conditions);  Decree No. 100/286 of 2007 
(ministerial reorganization);  Decree No. 100/287 of 2007 (CNSI);  and Decree No. 100/288 of 2007 (SETIC). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-136 
  
  independent private networks a nd value-added services provided by public and private operators;  
to give the Government technical advice on mark et services' operating permits;  to grant approved 
private entrepreneurs subscriber installation a nd network, and equipmen t construction permits;  
to support subscriber terminal equipment, and author ize its sale and connection to the public network;  
to determine with the operators, on behalf of  the Government, the conditions on which operating 
concessions are granted and the fees for operating li cences;  to pay contributions to the regional and 
international telecommunications bodies;  to ensure  that public network interconnection agreements 
are non-discriminatory, fair and reasonable, and pr ovide the maximum benefits for all users;  to 
ensure that interconnection agreements comply with  technical standards, quality requirements, and the 
conditions of security and confidentiality of the c onversations or data tran smitted;  to establish 
procedures for settling disputes between service providers  and users and to intervene in court cases;  
and to limit, where necessary, the number of private radio stations or prohibit them from operating in the neighbourhood of government or  concession radio installations (suc h decisions must be reasoned). 
374. The Agency has limited autonomy, since it operates under the authority of the Ministry of 
Telecommunications, Information, Communication and Relations with Parliament.  Its board includes 
representatives of the Ministries with responsibilit y for national defence, telecommunications, 
finance, and communication;  a representative of the telecommunications sector operators;  a person 
chosen for his specialized knowledge;  and the Agen cy's Director-General.  The Agency's resources 
consist, in particular, of state appropriations, operating charges, and fees collected for issuing 
various licences. 
375. The National Communication Council (CNC) is governed by Law No. 1/18 
of 25 September 2007, which established it as an i ndependent administrative authority responsible 
for overseeing the freedom of written and audiovisual  communication in compliance with the law, 
public policy and morality.  All media operating on Burundian territory come within its scope, 
whatever their legal status.  Its main mission is generally to ensure respect for the pluralistic expression of points of view in the press and other media. 
376. In the strict sense of the governing legal texts,  the sector is open.  However, there are still 
barriers to entry linked with the high cost of li cences (US$40,000), computers and accessories, as well 
as with the low level of computerization and the saturation of switching a nd local networks.  The 
terms, including the charges for interconnection between operators, are regulated by a commercial 
agreement concluded between them and approved by the ARCT.  These agreements are often the 
subject of disputes between operators, leading to arbitration by the ARCT. 
377. Licences are granted by the Ministry responsible for telecommunications, on the 
recommendation of the ARCT.  The price of a lice nce is US$200,000 for the basic telephone and 
mobile cellular networks and US$100,000 for the fixe d cellular network.  Operators must also pay a 
US$1,000 administrative tax, a US$500 equipment approval tax and an annual fee of 0.5% of 
turnover.  The tariffs of the fixed operator, ONATEL, vary from FBu 6 to 85 per minute for 
national calls, depending on the type of call (local, re gional or long-distance).  The tariffs applied to 
international calls vary between FBu 312 and FB u 416 for Rwanda, Tanzania and Uganda;  FBu 624 
and FBu 1,400 per minute for Europe, according to  the country;  FBu 312 and FBu 1,800 per minute 
for Africa;  FBu 780 and FBu 1,800 per minute for America;  FBu 624 to FBu 1,800 per minute for Asia;  and FBu 780 and FBu 1,440 per minute fo r Oceania.  Discounts of 15% to 25% are granted 
on calls made during off-peak hours, at night, at weekends and on holidays. 
378. Ministerial Order No. 520/730/540/231 of 199 9, establishing operating conditions, makes a 
distinction between market and non-market services.  For market services, Article 17 stipulates that EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-137 
 
 
  any natural or legal person wishing to operate a telecommunications service open to the public must 
conclude a concession contract with the Govern ment.  Applications, addressed to the ARCT, 
are granted by the Ministers responsible for natio nal defence, transport and telecommunications, 
after consulting the ARCT. 
379. To revitalize the sector, the authorities are planning:   (i) to review the mandates of and divide 
up responsibilities between the ARCT, the CNSI and SETIC to ensure greater coherence 
and efficiency;  (ii) to complete the privatization of ONATEL;  (iii) to strengthen the independence of 
the ARCT as a regulatory authority;  (iv) to dr aw up a plan for cooperation with the bodies in the 
EAC countries responsible for telecommunications' ma tters and to share info rmation to facilitate 
subregional comparisons of prices and competition;  and (v) to consider the pricing mechanisms and 
the range of telecommunications services for th e laws on competition and consumer protection. 
(c) Postal services 
380. The postal system in Burundi is run by the National Postal Authority (RNP) established 
in 1991.  The supervisory ministry is the Ministry of Trade, Industry, Post and Tourism.  The RNP manages a functional network of seven post offices in the Commune of Bujumbura and 21 others 
scattered throughout the interior of the country.  The RNP also manages current accounts, almost 
43,000 at the end of 2002, totalling nearly FBu 2 b illion.  Not being a bank, the RNP does not make 
loans. 
381. Under a 1962 law on the administration of postal services, the RNP has a monopoly on the 
distribution of letters and other missives, sealed or  open, postcards, and advertisements, circulars and 
prospectuses when they bear the address of the in tended recipient.  However, the Government has 
opened up certain segments of the market – in pa rticular the express collection and distribution of 
letters and small packages sent by international mail – to private operators, including foreign 
operators, which must sign an agreement with th e RNP laying down the conditions under which they 
are approved to carry on their activities in Burundi.  Under the universal service obligation, operators 
are required to provide such services, including in areas in which they are not commercially viable, 
which gives Burundians equal access to basic letter delivery services. 
(iv) Transport 
(a) Overview 
382. As a small landlocked country some 2,000 km  from the Indian Ocean, Burundi depends on 
its neighbours for access to seaports.  About 80% of its trade is at international level as compared with 
only 20% at subregional level (Chapter I).  Burundi  depends on its pipeline system and its road, rail, 
air and lake (Lake Tanganyika) networks for access  to regional and international markets.  The 
country is served by three land corridors and an oil pipeline.  This infrastructure provides for the transport of passengers and goods in general. 
383. The civil aviation services transport mainly p assengers and play only a minor role in the 
transport of freight.  The roads are the main means of transport used in Burundi, given the high cost of 
air transport and the current unreliability of the Ta nzanian railway line to Kigoma.  Transport inside 
Burundi is totally dependent on the road network.   There is no domestic rail network and still only 
very limited air coverage. 
384. The main route for exports is that linking Bujumbura with Dar es Salaam, via Kigoma, 
which combines lake and rail transport.  An alternative route, entirely by road, is WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-138 
  
  Muyinga-Kobero-Dodoma-Dar es Salaam .  The total distance between Dar es Salaam and Bujumbura 
by this route is 1,670 km. The Bujumbura- Dar es Salaam axis, generally known as the 
central corridor, is the route used for 75% to 80% of Burundian trade.  The total distance between 
Dar es Salaam and Bujumbura by this route is  about 1,650 km. Another possibility is the 
Bujumbura-Kigali-Kampala-Nairobi-Mombasa route, generally known as the northern corridor, 
which is also entirely by road.  The total di stance between Mombasa and Bujumbura, via Kigali, 
is about 2,040 km. 
385. The distances to be covered and the trans port conditions function as an export tax by 
increasing the transport costs for exports, as well as  the cost of imported inputs.  The World Bank 
estimates this additional cost at betw een 30% and 40% of normal export costs.69  It can be traced to 
many sources:  the dilapidation of the rail a nd port infrastructure at both Kigoma and Mombasa, 
the slowness of customs procedures, security on the roads (for example, inside Kenyan territory police 
escorts slow down the traffic), and the state of the ro ads.  The prices and high costs of road transport 
are a major obstacle to increased trade and economic grow th in East Africa.  In the particular case of 
Burundi, the high cost of a new transport infrastru cture, coupled with the equally high cost of 
transport, is seriously curbing the developm ent of the country's essentially rural economy. 
386. The Minister responsible for transport is in  charge of framing transport sector policy.  
The long-term objective is to eliminate the country's  internal and external isolation.  The measures 
contemplated will affect road, lake and air tran sport and concern both the infrastructure and the 
regulatory framework. 
(b) Road transport 
387. Burundi has some 12,300 km of roads divided into two categories:  a classified network and 
an unclassified network.  The classified network is  the responsibility of the Ministry responsible for 
public works and infrastructure and is managed by the Burundi Highway Board (ODR).  This network 
(some 4,800 km in length) has 1,950 km of nationa l (main) roads, 2,523 km of provincial roads 
linking the provinces, 282 km of commune roads, and 49 km of roads in Bujumbura.  Almost 64% of 
the national (main) roads network is paved, as ag ainst only 11% for the country's road network as a 
whole. 
388. The unclassified network has about 7,520 km of roads and is managed by the local authorities 
and local councils;  it is divided up on the basi s of geographical borders.  The respective local 
councils and local authorities provide the operationa l and financial planning for the maintenance of 
these roads.  The resources available for maintenanc e are minimal.  Moreover, the use of the national 
funds allocated to these works is subject to only lim ited scrutiny.  The unclassified network is entirely 
unpaved (apart from the 88 km of the network located in Bujumbura). 
389. Freight is transported by fleets of goods vehicles serving the north and central corridors.  
The growth of the sector can be attributed to a period of strong economic e xpansion within the EAC, 
to the reconstruction that followed the end of th e conflict in the neighbouring countries and to the 
decline in the role previously play ed by rail transport.  One of the advantages of road freight is the 
fact that it is not necessary to tranship the goods at the various frontiers, even though they cross 
several countries. 
                                                      
69 Transport costs already constitute a natural protection whose level de pends on the amount of 
those costs. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-139 
 
 
  390. Most road freight services are provided by private operators which transport food products, 
agricultural products, cattle, manufac tured consumer products and ot her industrial products along 
the two main corridors.  The north corridor is the route most used for transporting fuel imports (over 80%) and tea and coffee exports to the EAC.  The largest freight haulage enterprises of the EAC 
account for about 20% of the market, a figure comparab le with road transport markets in Europe and 
North America.  There are about 20 large companies,  each with more than 100 vehicles.  The largest 
Kenyan company, for example, owns a fleet of 60 0 goods vehicles, more or less equivalent to the 
whole of Burundi's registered fleet.  These large companies operate on the basis of direct long-term contracts (from one to three years).  A single vehicle on the Kampala route can clock up more than 
100,000 km a year.  According to the Burundian aut horities, 63 transport companies were registered 
between 2000 and 2008, and a certa in number of these companies were providing road freight 
services. 
391. Passenger transport is provided by private mi nibus operators or by the Public Transport 
Board (OTRACO), a public enterprise.  Inter-city tr ansport has been liberalized and is dominated by 
private operators.  Nevertheless, as part of its st rategy, the Government is planning to increase the 
subsidies granted to OTRACO in order to improve  rural services.  OTRACO fixes the fares for 
transport inside Bujumbura and the private operators  in the capital align their fares on those charged 
by OTRACO.  Where freight transport is concerned,  the State is planning to encourage the increased 
participation of the private sector.  There are no freight transport subsidies.  Foreign carriers from neighbouring countries may operate in Burundi if th eir country has concluded a reciprocal bilateral 
agreement with Burundi.  As a result of the re duction in the fleet of goods vehicles operating in 
Burundi due to the crisis, road transport is domi nated by foreign operators  offering lower tariffs.  
Cabotage is prohibited, which increases the cost of freight transport. 
392. Road transport policy is formulated and implemen ted by the transport ministry.  The Ministry 
of Public Works and Infrastructure (MTPE) and the Ministry of Rural Development (MDR) share responsibility for road infrastructure.  The former is charged with the development and management 
of the classified road infrastructur e.  The rural road infrastructure,  consisting of unclassified commune 
roads and service roads, is the responsibility of the MDR, backed by the local authorities and 
municipalities.  In big cities such as Bujumbura a nd Gitega, the roads are managed by the municipal 
council.  An independent entity, the Burundian Agency for Public Interest Works (AGETIP), was created in 2000 to implement various donor-supported projects, including projects in the road sector, 
by concluding construction contracts. 
393. The civil war and the accompanying social unr est had a serious effect on Burundi's road 
infrastructure, which deteriorated as a result of pr olonged neglect and the damage inflicted by armed 
factions.  In the last ten years, government policy has stressed the rehabilitation of the road 
infrastructure network.  One of the main objectiv es of the Government programme is to accelerate 
and complete the rehabilitation of the entire netw ork over the next ten years and, in particular, 
to modernize and asphalt the 700 km of national roads that still remain unpaved.  The choice of roads 
for rehabilitation under this programme is based on three criteria:  (i) economic:  all sections of 
the road network whose internal economic rate of return  is greater than 12%;  (ii) social:  all sections 
of the road network that serve the poorest regions of  the country;  and (iii) connectivity:  all sections 
of the road network whose rehabilitation under th e programme proposed would contribute to the 
physical integration of the country as a whole. 
394. The maintenance of the existing road netw ork calls for considerable investment.  
The planning, supervision and coor dination of road network construc tion and maintenance activities is 
the responsibility of the Highway Board, under the authority of the Ministry of Public Works WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-140 
  
  and Infrastructure.  The Government has also set  up a National Road Fund whose aim is to mobilize 
financial resources for the maintenance of the road  network, on the basis of the annual programme 
prepared by the Highway Board and the annual programmes prepared by the local authorities 
responsible for managing the road infrastructure.  The Fund is administered by a board consisting of 
representatives of the State (Ministries of Public  Works, Finance, and Trade and Industry), a 
representative of the Association of Importers of Petroleum Products, a representative of the Chamber 
of Commerce, a representative of the Employers' Association of Burundi, a representative of the 
Freight Hauliers' Association, and a representa tive of the Passenger Carriers' Association. 
395. The National Road Fund (FNR) is an autonomous entity financed by revenue from fuel taxes, 
driving licence fees, road tolls and vehicle import taxes.  Each year, a proportion of the Fund's 
resources is allocated to the national budget for routine maintenance of the network.  The ODR 
considers that the funds raised by the FNR now ma ke it possible to finance two thirds of the annual 
expenditure on the routine maintenance of the national road network.  The Fund's income has increased sharply as a result of a series of rises in fu el tax.  In 2001, this tax was FBu 20 per litre 
(equivalent to US$0.24 per litre.) After a series of increases in 2005, 2006, 2007 and, more recently, 
November 2008, it is now FBu 80 (or US$0.67 per litre).  Thus, the Fund's income has risen from 
US$2.3 million in 2005 to US$4.1 million last year.  On e of the problems with fuel tax is that it could 
have an adverse effect on the international competitiveness of Burundi's commercial activities, 
in particular because fuel prices and taxes are lower in other EAC member states. 
396. Incoming and outgoing freight traffic must be so regulated that the
 Bujumbura Port Operating 
Company (EPB) can do the weighing and recording for freight transiting via the north or the central 
corridor.  The freight can then be unloaded either in the port or at the destination.  Freight arriving by 
boat is unloaded using cranes.  Where road trans port agreements are concerned, Burundi has already 
signed central corridor transit transport facilitation a nd north corridor transit and transport agreements.  
Tariffs are fixed on a day-to-day basis by the EPB and the relevant data are available from the EPB. 
(c) Lake transport 
397. Until recently, most goods traffic between Burundi  and the port of Dar es Salaam was carried 
by rail to and from Kigoma or Mpulungu, and by vessel from these ports to the port of Bujumbura.  The port of Kigoma suffers from a lack of suita ble rolling stock and the obsolescence of the cargo 
handling equipment, which slows down loading and unloading.  The port of Bujumbura, with a capacity of 500,000 tonnes, has five berthing docks, of which four are used for various types 
of merchandise, the fifth being reserved for petrol eum products.  The port equipment is dilapidated 
and needs modernizing to speed up loading and unloa ding operations.  The deteriorating performance 
has had a considerable impact on activity in the port  of Bujumbura, with the result that much of the 
freight traffic has migrated to road transport.  According to the authorities, the volume of trade 
entering and leaving Burundi through the port of Buju mbura has declined sharply and now stands at 
only a quarter of its 2000 level. 
398. Operators from lakeside countries and Rwanda  are permitted to engage in cabotage.  
Lake transport freight tariffs are fixed by decree of  the Ministry responsible for trade and industry.  
The tariff schedule also covers administrative co sts and other expenses (in particular, cleaning) 
associated with the transport of goods.  The tariffs charged vary according to the chosen route and the 
nature of the goods.  Thus, on both the Bujumbura-Kigoma and Bujumbura-Mpulungu routes, the 
tariff for coffee is lower than that for other goods.  Burundi's merchant fleet is generally dilapidated, 
consisting mainly of barges inherited from the former colonial company Compagnie fluviale des EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-141 
 
 
  grands lacs .  The Bujumbura-Kigoma and Bujumbura-Mpulungu routes provide access to the central 
corridor leading to Dar es Salaam and the southern corridor leading to Southern Africa, respectively. 
(d) Air transport 
399. Burundi has one international airport, namely , Bujumbura International Airport, which is 
controlled and operated by the Aviation Services Authority (RSA).  In addition, there are 
four aerodromes, at Gitega, Kirundo, Ngozi a nd Gihofi, all four with unpaved runways.  
These four airports are recognized by ICAO and should therefore comply with its rules, standards and recommended practices. 
400. The country has a national carrier, Air Burundi, which used to provide scheduled flights to 
Rwanda and Tanzania, but ceased operating in the spring of 2007.  The authorities point out that 
eight international carriers provide international air transport services to and from Bujumbura under 
bilateral air services agreements, namely, Kenya Ai rways, SN Brussels Airlines, Ethiopian Airlines, 
Rwandair Express, Uganda Air, South African Ai rways and the company TMK (Democratic Republic 
of the Congo).  Because it does not comply with  ICAO requirements and in the absence of 
"aerodrome certification" by that body, it is difficult for Burundi to attract large foreign airlines. 
401. Passenger transport at Bujumbura Internationa l Airport increased on average by 13.3% per 
year between 2002 and 2008.  The number of internati onal flight departures and arrivals now stands at 
142,000 per year.  Domestic air traffic is negligible .  Only a limited amount of freight passes through 
the airport, mainly baggage and a small volume of mail, which varies from year to year but is relatively stable at about 3,000 tonnes per year .  The quantity of freight per passenger was 70 kg 
in 2000, but has gradually declined to 20 kg pe r passenger in the last two years (Table IV.16).
70 
Table IV.16 
Annual number of arrivals and departures of passengers  and goods at Bujumbura International Airport, 2000-08 
Category 2000 2001 2002 2003 2004 2005 2006 2007 2008 Growth 
2000-2008 
(% per year)
Passengers (number)      
International       
Scheduled 
flights 52,323 51,815 58,438 61,022 75,249 88,469 101,402 129,531 141,814 13.3 
Charter flights .. .. .. .. .. .. .. .. .. .. 
  In transit 13,149 9,472 10,604 7,881 9,763 8,352 14,364 29,912 25,526 8.6 
  Subtotal 65,472 61,287 69,042 68,903 85,012 96,821 115,766 159,443 167,340 12.4 
Domestic flights .. 121 828 83 72 .. .. .. ..  
Total 65,472 61,408 69,870 68,986 85,084 96,821 115,766 159,443 167,340 12.4 
Freight (t)       
Imports 3,392 3,116 2,251 2,054 3,066 3,120 2,632 2,271 2,549 -3.5 
Exports 225 270 297 236 228 210 227 360 329 4.9 
Total 3,616 3,385 2,547 2,290 3,295 3,330 2,860 2,631 2,878 -2.8 
Freight per passenger (kg) 69 65 44 38 44 38 28 20 20 .. 
.. Not available. 
Source:  Aviation Services Authority and the Bur undi Airport Management Company (SOBUGEA). 
                                                      
70 Assuming that the average weight per passenger is 90 kg, including baggage, the annual number of 
arrivals and departures of passengers and goods at Bujumbura International Airport could be transported by 
two flights a day on an Airbus A320 or Boeing 737-800 type aircraft, both of which can carry loads of up 
to 20 tonnes. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-142 
  
  402. The regulation of air transport is the responsib ility of the Transport Ministry.  The national 
carrier is Air Burundi which has almost ceased opera ting, maintaining only irregular links inside the 
country and with Rwanda.  The company has two airc raft with a maximum capacity of 40 passengers 
and belongs to the State. 
403. The Aviation Services Authority (RSA) provides ai rport services.  Its main responsibility is to 
promote security, regularity, the compliance and e fficiency of flight operations, air communications, 
and navigation and transport services relating to Burundi 's national and international routes.  It is an 
autonomous public entity under the authority of the Ministry of Transport, Post and Telecommunications.  The RSA is both a regulatory bo dy and an operator, since it is the airport 
authority as well as the authority responsible for ci vil aviation.  Its main functions are the issuing 
of air transport licences;  the provision of ai r navigation and aviation assistance and information 
services;  airport management and operation;  aircra ft registration and the safety of air navigation and 
of aircraft, in particular, airworthiness;  the re gulation of air transport services;  and advising the 
Government on civil aviation matters.  The RSA also  issues licences to professional and private pilots, 
air traffic controllers, flight and ground mechanics, and cabin crew and authorizes aircraft 
maintenance organizations.  Airport services are provi ded by the RSA, while maintenance is jointly 
provided by SOBGEA and Air Burundi. 
404. The main airport is at Bujumbura.  Management (including handling) is provided by the 
Burundi Airport Management Company (SOBUGEA).  Formerly, the Belgian airline Sabena held 5% 
of SOBUGEA's capital, but since Sabena ceased  operating SOBUGEA has belonged entirely to the 
Burundian Government.  SOBUGEA fixes landing fees, and the freight storage and loading charges.  
Five broad categories of taxes and charges are app lied:  (i) a landing fee, which increases with the 
weight of the aircraft;  (ii) an overflight fee, whic h increases with the weight of the aircraft;  (iii) a 
parking tax of US$0.1 multiplied by the number of hour s of parking and the weight;  (iv) a passenger 
tax of US$25 per person;  and (v) a lighti ng charge of US$200 per landing or take-off. 
405. Burundi is a member of the International Civ il Aviation Organization (ICAO).  It has ratified 
the Chicago Convention and hence undertaken to en sure the safety of civil aviation by complying 
with the rules and standards and recommended practi ces of the ICAO.  In addition, as a member of 
the EAC, it is also committed to strengthening safet y standards and other requirements and to raising 
its own standards to the level requi red of all EAC member countries. 
406. Burundi has signed bilateral agreements with 18 countries
71;  these agreements define the 
frequency of the services and the number of passengers .  Of these agreements, 11 are being or have 
been implemented since being signed.  No agre ement gives carriers fifth-freedom rights.  All 
international flights operated by the airlines use Bujumbura airport. 
(v) Tourism 
407. The main tourist attractions in Burundi ar e its cultural heritage, its national parks, 
numerous lakes such as Lake Tanganyika, and it s nature reserves.  The principal parks and 
reserves are:  the national parks of the Ruvubu an d the Kibira;  and the nature reserves of the 
Rusizi, Lake Rwihinda, the Forest of Kigwena, Nyakazu and Karera.  Most parks are accessible 
by road.  Lake Tanganyika, the northern lakes (Coh oha, Kanzigiri, Rwihinda, Rweru, etc.), the hot 
springs and the observation points in the mountainous re gions are other natural attractions.  Historical 
                                                      
71 Belgium, Cameroon, Democratic Republic of th e Congo, Djibouti, Egypt, Ethiopia, France, Gabon, 
Kenya, Republic of the Congo, Romania, Russia, Rwanda, South Africa, Switzerland, Tanzania, Uganda, 
and Zambia. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-143 
 
 
  attractions consist, among other thi ngs, of monuments, historical sites and tourist sites ("source of the 
Nile", hot springs, etc.), while cultural attracti ons include traditional dances and the museums of 
Gitega and Bujumbura.  Finally, Burundi offers an interesting additional destination for tourists 
exploring the immense potential of Kenya and Tanzania. 
408. Hotel capacity is very limited;  concentrated in Bujumbura, it comprises 68 as yet unclassified 
hotels with a total of 1,387 rooms.  The infr astructure for welcoming international congresses and 
conferences is underdeveloped or even non-existent.  In addition, there are no international hotel 
chains on which to base a broad network of collaboration with travel agencies and other 
related services.  The country does not have an e ffective system for compiling tourism statistics.  
The underfinancing of the sector complicates marke ting and publicity operations aimed at foreign 
tourists.  Finally, the sector suffers from a lack of  qualified personnel, which is acting as a drag on 
current and future investment.  The State intervened  in this subsector by participating in the capital 
of Novotel, now known as the Water Front Hotel, a nd the Lake Tanganyika Club, which have been 
privatized.  The Government has signed an agreemen t with the hotel chain Accor for the management 
of Novotel.  Outside Bujumbura, there are hotels at Kayanza, Ngozi, Gitega, Muyinga, Cankuzo and 
Kirundo.  The national park of Ruvubu has its own eco-tourism camp.  A restaurant and a hotel are 
being built on this site with UNDP support.  Prices can be set freely.  The Government is not systematically evaluating the performance of hotels and has not yet developed a hotel classification 
system. 
409. The tourism industry is underdeveloped in Burundi whereas it is flourishing in the 
neighbouring countries of the region, particularly in Kenya, Tanzania, Uganda, and even Rwanda, 
which recently entered the tourism market.  The fe w visitors seem to consist mainly of regional 
business travellers, international human itarian workers and local NGO staff. 
410. The sector has not escaped the effects of the so cio-political instability which the country has 
known.  A period of fairly moderate growth fro m 1996 to 2001 was followed by a more sustained 
increase in demand starting in 2004, thanks mainly  to improvements in security.  According to the 
authorities, the number of international traveller arrivals, estimated at 27,000 in 1996, reached 85,206 
in 2003 and 167,340 in 2008 (Table IV.16).  However, these figures are still very low relative to those 
for neighbouring countries such as Kenya and Tanzania .  Nearly half the tourists in Burundi are from 
African countries, while 40% come from Europe.
72 
411. After years of internal unrest, Burundi h as a negative image on the tourism market.  
There does not seem to have been any effective promotion aimed at remedying this situation, 
although security is improving and stabilizing th roughout the country.  There are many tourist 
attractions but they mostly remain undeveloped.  However, there are signs that Burundi's tourism 
industry is emerging from a long period of stagnation.   The Government is fully committed to the 
development of the sector, as evidenced by a budge t appropriation in 2010 for the rehabilitation of 
tourist sites and by the finalization of the nationa l strategy paper on the sustainable development of 
tourism for the period 2011-2020.  Moreover, numerous  investments, such as the proliferation of 
hotels in Bujumbura and leisure areas along the shore of Lake Tanganyika, point to a growing interest 
on the part of the private sector. 
412. The Ministry of Trade, Industry, Post and Tourism is responsible for the regulation and 
development of tourism in Burundi.  The Ministry oversees four sectors, three of which have stable 
structures comprising directorates-general, directorates and services.  Only the tourism sector still 
                                                      
72 The figures indicate only the number of arrivals with a tourist visa. WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-144 
  
  awaits the establishment of a specific administra tive structure.  The National Tourist Office (ONT) 
was created in 1972 as an administrative public en tity with legal personality , financial autonomy and 
its own assets.  It combines administrative and pr omotional functions, sometimes in competition with 
the private sector.  Lacking adequate material, financial and human resources and decentralized 
services, the ONT is unable to meet the devel opment needs of the sector.  According to the 
authorities, a new operational framework should be identified and put in place. 
413. On 9 April 2011, the Government adopted a nati onal strategy for the sustainable development 
of tourism during the period 2011-2020.  The touris m master plan for Burundi offers a development 
framework for the planning, improvement, promotion and management of the tourism sector.  
The document proposes a sound and diversified strate gy, based on the existing potentials, resources 
and opportunities for developing a tourism distinguish able from that of the competing subregional and 
global destinations.73 
414. Government strategy is aimed at achieving a sharp increase in the number of tourists by 
structuring the supply, stimulating demand and improving the tourist information system.  
The strategy envisages the identification and developm ent of tourist areas, the effective organization 
of the tourist circuits, stronger incentives for attracting and securing investment, and training to 
improve the quality of services offered, and know ledge of marketing techniques, as well as the 
development of congress tourism and the adaptation of  craft products to meet tourist expectations. 
415. The sector is governed by the provisions of the Commercial Code, Law No. 1/10 
of 11 July 2008 on the reintroduction of the hotel and tourism tax, and Order No. 750/753 
of 6 May 2010 revising the conditions for obtaining  licences to operate hotels, restaurants and bars, 
pending the introduction of the Tourism Framework La w and its implementing texts, which are in the 
process of being finalized.  The rules on classificati on of hotels, restaurants and other tourist facilities 
adopted by the member countries of the EAC have already been published in Burundi and 
preparations are being made to train hotel classification assessors. 
416. Because of its socio-political instability, Burundi has been unable to develop a flourishing 
tourism industry.  The country is also handicapped by the limited number of air links with the main 
tourism markets and problems with its communications infrastructure.  The strategy therefore recommends an in-depth investigation of the opport unities, with better targeting of the local and 
regional market and better organized  exploration of the international market, thanks to an active 
partnership with the tour operators and supporti ng measures such as recourse to the Internet. 
417. The Government intervenes in the subsector  by providing tax incentives, granted under 
the Investment Code (with priority for tourism) or under the Free-Zone Law, with enterprises that 
provide tour-operator services being eligible for free enterprise status.  The Government has decided 
to progressively privatize certain public enterpri ses involved in tourism, in particular Novotel, 
which has been known as the Water Front Hotel since 2010. 
418. Burundi is a signatory to the Tourism Char ter, the Tourist Code of 26 September 1985, 
and the Global Code of Ethics for Tourism of 1 October 1999 drawn up by the World Tourism 
Organization (UNWTO), of which it is a member. 
                                                      
73 Ministry of Trade, Industry, Post and Tourism (2011). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-145 
 
 
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Sommaire.pdf  African Development Bank (ADB) (2009), An Infrastructure Action Plan for Burundi, Accelerating 
Regional Integration , September. 
 
Bank of the Republic of Burundi (BRB) (2009), Rapport Annuel de la BRB (BRB annual report), 
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www.brb.bi/se/raportanu10.html 
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 World Bank (2011), Republic of Burundi, Country Economic  Memorandum:  The Challenges of 
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Dijkstra, T. (2001), Export Diversification in Uganda:  Devel opment of Non-Traditional Agricultural 
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 East African Community Secretariat (2010), Trade Report 2008 , EAC Secretariat, Arusha. 
 
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IMF (undated), Balance of Payments Manual , paragraph 266.  Viewed at: 
www.imf.org/external/np/sta/bop/bopman.pdf  Economic Development Institute  of Burundi (IDEC) (2008), Flambée des prix au Burundi:  Défis et 
ajustement de politiques (Price surges in Burundi:  Challenges and policy adjustment), Volume 3, 
No. 1, July, Bujumbura.  Institute of Statistics and Economic  Studies of Burundi (ISTEEBU) (2010), Rapport Annuel 2011 
(Annual report 2011), Bujumbura. 
 
Ministry of Agriculture and Livestock (2008a), Stratégie agricole nationale:  2008-2018 (National 
agricultural strategy, 2008-2018), p.1, Bujumbura.  WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
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  Ministry of Agriculture and Livestock (2008b), Stratégie agricole nationale 2008-2015 (National 
agricultural strategy, 2008-2015) , July, Bujumbura. 
 Ministry of Agriculture and Livestock (2011), Plan national d'investissement agricole (PNIA) 
2012-2017 (National agricultural investment plan, 2012-2017), June, Bujumbura. 
 Ministry of Agriculture, Livestock and Fisheries (2010a), Programme national de sécurité 
alimentaire (PNSA) (National food security programme) . 
 
Ministry of Agriculture, Livestock and Fisheries (2010b), Document d'orientation stratégique pour 
l'élevage (DOS-Élevage) (Strategic policy paper for livestock) . 
 
Ministry of Finance, Office of the Minister (2006), Règlement spécifique sur le contrôle des 
importations (Specific import control regulations), 3 April, Bujumbura. 
 
Ministry of Trade, Industry, Post and Tourism (2011), Stratégie nationale pour le développement 
durable du tourisme pour la période 2011-2020 (National strategy for the sustainable development of 
tourism, 2011-2020) , July,  Bujumbura. 
 World Trade Organization (WTO) (2003a), Trade Policy Review - Burundi , Geneva. 
 
WTO (2003b), Trade Policy Review - Uganda , Geneva. 
 OTF Group (2008), Economic management support project, Vision et stratégie industrielles et 
commerciales du Burundi , (Burundi's industrial and commercial vi sion and strategy), Final report, 
p.12, February, Bujumbura. 
 
Paranque, P. (undated), Compétitivité et rentabilité d es entreprises industrielles (Competitiveness and 
profitability of industrial enterprises), Observatoire des entreprises de la Banque de France (Bank of 
France Business Observatory), p.3.  
Public Expenditure and Financial Accountability (PEFA) (2012) , Burundi - Mesure de la performance 
de la gestion des finances publiques (Burundi - Public financia l management performance 
assessment) , Final report, March 2012 . 
 United Nations Development Programme (UNDP) (2010), Human Development Report . 
 
Republic of Burundi, Office of the President (2009), Loi n° 1/02 du 17 février 2009 portant institution 
de la taxe sur la valeur ajoutée "TVA"  (Law No. 1/02 of 17 February 2009 establishing value-added 
tax (VAT)), February, Bujumbura.  Republic of Burundi (2011), Consultations sectorielles en vue de l'élaboration du cadre stratégique 
de croissance et de lutte contre la pauvreté de deuxième génération CSLP II- Secteur énergie et 
mines, Note d'orientation et résultats  des consultations proprement dites  (Sectoral consultations with 
a view to the development of the second generation growth and poverty reduc tion strategy framework 
(PRSP II) for the energy and mining sector, Guidance note and outcome of the consultations), p. 8, 
19-21 April, King's Conference Center, Bujumbura.   
  APPENDIX TABLES EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-149 
 
 
  Table AI.1 
Structure of imports, 2004-10 
(US$ million and %) 
 2004 2005 2006 2007 2008 2009 2010 
Total imports (US$ million) 172.7 258.2 433.6 423. 0 315.0 344.8 404.1 
 Percentage share 
Total primary products 27.8 17.1 28.7 42.2 16.6 16.8 17.9 
 Agriculture 10.1 7.8 23.2 13.3 12.8 13.9 15.1 
 Food 9.0 6.5 22.2 12.4 11.2 12.5 13.7 
0482 Malt, whether or not roasted (including 
malt flour) 1.8 2.0 1.9 2.4 3.9 3.7 2.5 
0612 Other beet or cane sugar and chemically pure 
sucrose, in solid form 0.0 0.2 0.9 1.0 0.1 0.2 2.4 
0422 Rice, husked but not further prepared (cargo rice 
or brown rice) 0.0 0.1 0.3 0.4 0.0 1.9 1.8 
 Agricultural raw materials 1.1 1.4 1.0 0.9 1.6 1.4 1.4 
2690 Worn clothing and other worn textile articles;  
rags 0.5 0.9 0.8 0.5 1.0 0.8 0.8 
 Mining 17.6 9.2 5.5 28.9 3.8 2.9 2.8 
 Ores and other minerals 0.9 0.5 0.3 0.3 0.2 0.2 0.5 
 Non-ferrous metals 0.2 0.3 4.2 0.6 0.3 0.4 0.1 
 Fuels 16.5 8.4 0.9 28.0 3.3 2.3 2.1 
        
Manufactures 72.2 82.3 66.6 57.6 82.9 81.0 81.6 
 Iron and steel 4.3 12.4 2.9 6.4 5.7 3.4 7.2 
6741 Flat-rolled products of iron or non-alloy steel, 
plated or coated with zinc 1.5 1.4 0.9 2.8 2.2 0.9 1.6 
 Chemicals 15.3 12.4 10.5 10.2 16.7 16.0 17.1 
5429 Medicaments  (including veterinary 
medicaments), n.e.s. 6.5 4.6 3.9 4.8 6.3 7.4 8.3 
5812 Tubes, pipes and hoses, rigid 0.0 0.2 0.1 0.2 0.2 0.2 0.9 
5514 Mixtures of odoriferous substances, of a kind 
used in industry 0.1 0.2 0.4 0.7 0.7 1.3 0.8 
5629 Fertilizers, n.e.s. 0.7 0.7 0.5 0.3 0.4 0.3 0.8 
 Other semi-manufactures 13.7 14.0 8.5 10.4 15.5 17.6 16.2 
6612 Portland cement, aluminous cement, slag 
cement, supersulphate cement and similar 
hydraulic cements, whether or not coloured or in 
the form of clinkers 5.2 4.5 2.7 4.9 6.7 0.1 8.6 
6911 Structures and parts of structures, of iron or steel 0.2 1.3 0.1 0.1 0.5 2.1 0.8 
 Machinery and transport equipment 31.9 34.5 34.1 24.5 34.1 32.5 30.0 
 Power-generating machinery 0.6 1.2 1.1 0.9 0.8 2.6 1.3 
7165 Generating sets 0.4 0.8 0.9 0.6 0.4 1.0 0.8 
 Other non-electrical machinery 5.3 7.1 3.2 4.0 12.2 5.5 5.7 
Agricultural machinery and tractors 0.2 0.4 0.2 0.5 0.9 0.2 0.3 
 Office machines and telecommunications equipment 5.4 6.4 3.1 2.1 7.6 10.4 6.6 
7643 Transmission apparatus for television, 
radio-telephony, etc. 0.6 1.3 0.7 0.3 0.8 1.8 1.1 
 Other electrical machinery 2.1 4.7 3.1 1.6 2.6 2.9 4.0 
 Automotive products 16.9 13.2 17.5 14.5 9.4 9.7 11.1 
7812 Motor vehicles for the transport of persons, 
n.e.s. 10.2 5.2 8.2 4.3 3.2 4.9 5.0 
Table AI.1 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-150 
  
   2004 2005 2006 2007 2008 2009 2010 
7831 Motor vehicles for the transport of ten or more 
persons, including the driver 1.5 1.2 0.7 1.5 0.6 0.3 1.9 
7843 Other parts and accessories of the motor 
vehicles of groups 722, 781, 782 and 783 0.9 1.3 0.5 0.9 1.8 1.6 1.8 
7821 Motor vehicles for the transport of goods 4.2 4.3 5.2 5.9 2.6 2.5 1.8 
 Other transport equipment 1.6 2.0 6.1 1.4 1.6 1.4 1.5 
 Textiles 1.8 1.6 1. 6 1.4 2.8 3.9 2.9 
6585 Curtains and other furnishing articles, n.e.s., of 
textile materials 0.4 0. 8 0.6 0.5 1. 2 2.2 1.1 
 Clothing 0.4 0.3 0.6 0.7 0.3 0.8 0.9 
 Other consumer goods 4.8 7.1 8.4 4.0 7.9 6.8 7.3 
8722 Instruments and appliances used in medical, 
surgical or veterinary sciences 0.6 0.4 1.0 0.7 0.9 0.5 1.4 
Other 0.0 0.6 4.7 0.2 0.5 2.2 0.5 
Source:  WTO Secretariat calculations based on data from the UNSD Comt rade database (SITC Rev.3). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-151 
 
 
  Table AI.2 
Structure of exports, 2004-10 
(US$ million and %) 
Description 2004 2005 2006 2007 2008 2009 2010 
Total exports (US$ million) 82.7 113.8 228.5 156. 2 141.8 112.9 118.2 
 Percentage share 
Total primary products 45.4 48.7 21.4 45.1 46.3 58.8 83.5 
 Agriculture 44.6 47.3 19.7 39.3 40.2 53.8 76.8 
 Food 44.1 45.1 18.3 35.0 36.9 50.2 72.4 
0711 Coffee, not roasted, whet her or not decaffeinated;  
coffee husks and skins 35.3 40.9 16.1 24.6 27.8 35.1 59.3 
0741 Tea, whether or not flavoured 0.7 0.7 1.2 4.2 4.8 6.7 8.5 
1123 Beer made from malt (including ale, stout  and porter) 2.3 1.1 0.2 0.5 1.1 1.3 1.5 
1222 Cigarettes containing tobacco 0.9 0.7 0.4 0. 6 1.1 1.3 1.2 
0471 Flours of wheat or meslin 0.0 0.0 0.0 0.0 0.0 0.0 0.5 
0612 Other beet or cane sugar and chemically pure sucrose, 
in solid form 0.0 0.0 0.0 0.0 0.1 0.0 0.4 
0713 Extracts, essences and concentrates of coffee and 
preparations 0.0 0.0 0.0 0.0 0.0 0.1 0.3 
 Agricultural raw materials 0.6 2.2 1.5 4.2 3.3 3.6 4.4 
2119 Hides and skins, n.e.s.;  waste and us ed leather 0.0 0.0 0.0 0.0 0.0 0.1 1.6 
2634 Cotton, carded or combed 0.0 1.0 0.5 0.9 0.8 0.7 1.3 
2112 Whole hides and skins of bovine animals, weighing 
per skin not more than 8 kg when simply dried, not 
more than 10 kg when dry-salted and not more than 
14 kg when fresh, wet-salted or otherwis e preserved 0.0 0.0 0.2 1.3 1.4 0.5 1.0 
 Mining 0.7 1.4 1.7 5.8 6.1 5.0 6.7 
 Ores and other minerals 0.7 1.3 1.5 2.1 5.3 3.6 4.6 
2879 Ores and concentrates of other non-ferrous  base metals 0.0 0.5 0.8 0.5 2.6 1.6 2.6 
2822 Waste and scrap of alloy steel 0.0 0.2 0.2 0.8 1.2 1.7 1.7 
2876 Tin ores and concentrates 0.4 0.1 0.1 0.0 0.2 0.2 0.3 
 Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Fuels 0.0 0.0 0.2 3.8 0.8 1.4 2.1 
Manufactures 2.5 3.2 33.7 20.3 10.3 15.3 5.3 
 Iron and steel 0.0 0.1 0.0 0.1 0.0 0.1 0.0 
 Chemicals 0.1 0.1 0.2 0.6 0.8 1.3 1.3 
5541 Soap;  paper, wadding, et c., impregnated with soap 
or detergent 0.0 0.0 0.0 0.0 0.6 1.1 1.1 
 Other semi-manufactures 0.8 0.1 0.7 0.9 0.8 0.7 0.7 
 Machinery and transport equipment 1.0 2.3 30.3 13.2 8.0 11.5 2.3 
 Power-generating machinery 0.0 0.0 0.6 0.8 0.0 0.1 0.1 
 Other non-electrical machinery 0.1 0.6 2.1 2.3 1.1 1.7 0.2 
Agricultural machinery and tractors 0.0 0.4 0.9 0.0 0.1 0.2 0.0 
 Office machines and telecommunications equipment 0.3 0.1 0.3 0.5 1.0 0.8 0.5 
 Other electrical machinery 0.2 0.0 0.3 0.1 0.3 0.2 0.2 
 Automotive products 0.3 1.5 17.5 7.6 5.2 8.1 1.0 
7812 Motor vehicles for the transport of persons, n.e.s. 0.2 0.1 3.7 4.6 2.7 1.3 0.5 
7821 Motor vehicles for the transport of goods 0.0 0.6 8.4 2.0 0.5 4.6 0.3 
Table AI.2 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-152 
  
  Description 2004 2005 2006 2007 2008 2009 2010 
 Other transport equipment 0.0 0.1 9.6 1.9 0.4 0.6 0.4 
7851 Motor cycles and cycles fitte d with an auxiliary motor;  
side-cars 0.0 0.0 0.0 0.0 0.1 0.2 0.2 
 Textiles 0.1 0.3 0. 3 0.6 0.0 0.0 0.0 
 Clothing 0.0 0.0 0.0 0.2 0.0 0.0 0.3 
8412 Suits and ensembles 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
 Other consumer goods 0.4 0.3 2.3 4.6 0.6 1.7 0.6 
Other 52.2 48.1 44.9 34.6 43.4 25.9 11.2 
 Gold 52.2 48.0 37.4 34.0 43.0 25.7 11.0 
Source : WTO Secretariat calculations based on data from the UNSD Comt rade database (SITC Rev.3). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-153 
 
 
  Table AI.3 
Destination of exports, 2004-10 
(US$ million and %) 
 2004 2005 2006 2007 2008 2009 2010 
World (US$ million) 82.7 113.8 228.5 156.2 141.8 112.9 118.2 
 Percentage share 
  America 0.8 0.2 0.3 0.8 0.8 1.3 0.1 
    United States 0.5 0.1 0.1 0.6 0.7 1.2 0.0 
    Other America 0.2 0.1 0.2 0.2 0.1 0.1 0.1 
        
  Europe 77.7 56.4 15.4 25.8 27.3 34.3 57.9 
    EU (27) 21.4 20.2 8.5 12.9 11.7 15.8 31.0 
      United Kingdom 4.9 8.0 1.7 4.9 0.1 0.5 13.4 
      Belgium 10.2 6.2 4.1 2.4 6.1 5.6 13.0 
      Germany 2.3 1.6 0.6 2.2 4.0 7.4 2.1 
      Italy 0.1 0.0 0.5 0.7 0.2 0.5 1.0 
      France 1.3 2.1 0.7 2.3 0.4 0.9 0.7 
      Netherlands 2.5 2.1 0.9 0.3 0.9 0.9 0.6 
      Austria 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
    EFTA 56.2 36.2 6.9 10.9 15.3 18.3 26.9 
      Switzerland and Liechtenstein 56.0 36.2 6.9 10.9 15.3 18.3 26.9 
    Other Europe 0.0 0.0 0.1 2.0 0.3 0.2 0.0 
        
  CIS (Commonwealth of Independent States) 0.5 0.6 0.6 0.8 0.0 0.8 0.1 
        
  Africa 11.1 15.4 24.4 33.0 23.0 32.7 22.8 
      Kenya 2.0 7.1 14.1 7.2 5.3 6.4 8.7 
      Democratic Republic of the Congo 0.5 0.9 1.6 9.4 4.2 6.2 6.2 
      Rwanda 6.2 3.6 1.6 6.6 3.1 4.2 2.6 
      Uganda 0.9 1.6 0.8 2.4 2.2 5.7 2.4 
      Tanzania 0.3 0.1 0.6 1.3 1.5 8.4 1.5 
      Swaziland 0.4 0.7 0.4 1.0 1.5 1.2 1.1 
      South Africa 0.8 1.3 0.0 1.9 0.1 0.1 0.1 
        
  Middle East 7.5 25.4 33.2 34.9 44.9 26.9 10.6 
      United Arab Emirates 7.4 25.3 32.1 34.2 43.6 25.6 8.8 
      Oman 0.0 0.1 0.1 0.5 0.9 1.3 1.5 
      Saudi Arabia 0.0 0.1 0.3 0.2 0.1 0.0 0.3 
        
  Asia 1.6 1.6 26.0 4.6 3.9 4.0 8.4 
    China 0.1 0.1 0.0 0.0 1.5 0.4 0.2 
    Japan 0.5 0.3 7.5 2.4 0.1 0.2 0.0 
    Six East Asian Traders 1.0 1.1 1.6 1.6 2.2 3.3 8.0 
      Singapore 0.9 0.9 0.0 0.3 1.1 2.2 6.1 
      Hong Kong, China 0.0 0.2 0.0 0.0 1.1 1.1 1.9 
    Other Asia 0.0 0.1 16.9 0.6 0.2 0.2 0.2 
        
  Other 0.9 0.3 0.0 0.0 0.0 0.0 0.0 
Source: WTO Secretariat calculations based on data from the UNSD Comt rade database (SITC Rev.3). WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-154 
  
  Table AI.4 
Origin of imports, 2004-10 
(US$ million and %) 
 2004 2005 2006 2007 2008 2009 2010 
World (US$ million) 172.7 258.2 433.6 423.0 315.0 344.8 404.1 
 Percentage share 
  America 1.7 3.8 3.1 1.6 2.3 4.2 1.9 
    United States 0.9 2.6 2.2 1.0 0.9 2.7 1.5 
    Other America 0.8 1.1 0.8 0.6 1.4 1.5 0.4 
        
  Europe 32.8 43.4 31.4 22.6 41.3 32.2 28.2 
    EU (27) 31.8 34.2 30.5 21.9 40.5 30.9 26.8 
      Belgium 11.6 11.7 11.3 11.3 17.3 13.5 12.0 
      France 6.0 5.4 4.4 3.7 9.1 5.3 7.2 
      Denmark 2.2 1.8 2.1 0.9 1.2 2.4 1.6 
      Germany 5.7 4.0 2.6 2.2 6.7 1.8 1.6 
      Italy 3.0 5.4 3.2 1.5 2.1 3.7 1.3 
      United Kingdom 0.9 2.4 4.6 0.8 1.3 1.2 1.3 
      Netherlands 2.1 1.4 1.2 1.1 1.6 1.1 1.1 
    EFTA 0.6 1.0 0.7 0.4 0.5 0.7 0.9 
      Switzerland and Liechtenstein 0.5 0.7 0.4 0.4 0.5 0.7 0.8 
    Other Europe 0.4 8.2 0.2 0.3 0.3 0.6 0.5 
      Turkey 0.1 8.1 0.2 0.2 0.3 0.6 0.5 
        
  CIS (Commonwealth of Independent States) 0.2 0.6 4.6 0.3 0.1 0.5 0.6 
      Russian Federation 0.0 0.2 4.5 0.2 0.1 0.2 0.5 
        
  Africa 38.1 29.2 19.2 27.7 32.4 32.4 34.5 
      Zambia 3.3 3.4 2.7 1.5 0.9 3.4 8.4 
      Kenya 14.9 12.2 7.1 7.9 8.8 9.3 7.3 
      Uganda 5.7 3.9 3.3 10.7 9.6 8.6 6.8 
      Tanzania 8.4 4.9 1.5 2.4 5.0 4.4 6.0 
      Egypt 0.9 0.8 0.8 1.2 2.7 4.1 2.8 
      South Africa 2.3 2.8 2.1 2.5 3.2 1.3 1.6 
      Rwanda 0.4 0.3 0.2 0.5 1.1 0.5 0.6 
        
  Middle East 2.9 3.9 4.6 30.5 5.3 7.6 5.5 
      United Arab Emirates 2.5 3.1 3.7 2.9 4.4 4.8 4.6 
      Saudi Arabia 0.1 0.3 0.4 27.4 0.5 1.3 0.6 
        
  Asia 23.9 19.1 23.2 17.3 18.6 23.1 29.3 
    China 3.3 4.2 4.0 3.9 7.3 9.4 12.0 
    Japan 14.0 8.8 10.8 7.0 4.8 5.0 9.4 
    Six East Asian Traders 1.6 1.2 0.6 1.7 1.0 1.8 1.2 
    Other Asia 4.9 4.9 7.8 4.7 5.4 6.9 6.7 
      India 4.6 4.1 3.2 3.4 5.0 5.6 6.0 
        
  Other 0.4 0.1 13.9 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat calculations based on data from the UNSD Comt rade database (SITC Rev.3). EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-155 
 
 
  Table AIII.1 
Products for which the applied tariff may exceed the bound tariff 
HS Code Applied tariff (%) Bound rate (%) 
03054100 25.0 0.0 
03054900 25.0 0.0 
03054200 25.0 0.0 
04012000 60.0 0.0 
04021000 60.0 0.0 
04022110 60.0 0.0 
04022190 60.0 0.0 
04022910 60.0 0.0 
04029110 60.0 0.0 
04029910 60.0 0.0 
04029990 60.0 0.0 
04059000 25.0 0.0 
04061000 25.0 0.0 
04063000 25.0 0.0 
04069000 25.0 0.0 
04011000 60.0 0.0 
04013000 60.0 0.0 
04022990 60.0 0.0 
04029190 60.0 0.0 
04051000 25.0 0.0 
04062000 25.0 0.0 
04064000 25.0 0.0 
11010000 60.0 50.0 
16041100 25.0 15.0 
16042000 25.0 15.0 
17041000 25.0 12.0 
19011000 25.0 0.0 
17049000 25.0 12.0 
30069200 25.0 5.0 
32099000 25.0 18.0 
32100090 25.0 18.0 
32089000 25.0 18.0 
33061000 25.0 20.0 
34029000 25.0 20.0 
39079900 10.0 5.0 
39091000 10.0 5.0 
39075000 10.0 5.0 
39079100 10.0 5.0 
39092000 10.0 5.0 
39095000 10.0 5.0 
39172900 25.0 5.0 
39189000 25.0 5.0 
39199010 10.0 5.0 
39206110 10.0 5.0 
39206190 25.0 5.0 
Table AIII.1 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-156 
  
  HS Code Applied tariff (%) Bound rate (%) 
39206210 10.0 5.0 
39206390 25.0 5.0 
39206910 10.0 5.0 
39206990 25.0 5.0 
39209210 10.0 5.0 
39209310 10.0 5.0 
39209410 10.0 5.0 
39209490 25.0 5.0 
39209990 25.0 5.0 
39211310 10.0 5.0 
39219000 25.0 5.0 
39232900 25.0 5.0 
39234000 10.0 5.0 
39235010 10.0 5.0 
39239090 25.0 5.0 
39173100 25.0 5.0 
39173200 25.0 5.0 
39173900 25.0 12.5 
39191000 10.0 5.0 
39199090 25.0 5.0 
39206290 25.0 5.0 
39206310 10.0 5.0 
39209290 25.0 5.0 
39209390 25.0 5.0 
39209910 10.0 5.0 
39211390 25.0 5.0 
39211910 10.0 5.0 
39211990 25.0 5.0 
39231000 25.0 5.0 
39232100 25.0 5.0 
39233000 25.0 5.0 
39235090 25.0 5.0 
39239020 10.0 5.0 
50079000 25.0 20.0 
48142000 25.0 5.0 
50071000 25.0 20.0 
51111100 25.0 20.0 
51111900 25.0 20.0 
51113000 25.0 20.0 
51129000 25.0 20.0 
51130000 25.0 20.0 
51112000 25.0 20.0 
51119000 25.0 20.0 
51121100 25.0 20.0 
51121900 25.0 20.0 
51122000 25.0 20.0 
51123000 25.0 20.0 
Table AIII.1 (cont'd) EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-157 
 
 
  HS Code Applied tariff (%) Bound rate (%) 
52084100 25.0 20.0 
52084300 25.0 20.0 
52084900 25.0 20.0 
52084200 25.0 20.0 
52085900 25.0 20.0 
52095900 25.0 20.0 
52105900 25.0 20.0 
52115900 25.0 20.0 
52122590 25.0 20.0 
53091900 25.0 20.0 
52122510 50.0 20.0 
53091100 25.0 20.0 
53092100 25.0 20.0 
53092900 25.0 20.0 
53109000 25.0 20.0 
53110000 25.0 20.0 
54075200 25.0 20.0 
54075400 25.0 20.0 
54076900 25.0 20.0 
54077400 25.0 20.0 
54078100 25.0 20.0 
54074100 25.0 20.0 
54074200 25.0 20.0 
54074400 25.0 20.0 
54075100 25.0 20.0 
54077100 25.0 20.0 
54077200 25.0 20.0 
54078200 25.0 20.0 
54078400 25.0 20.0 
54079100 25.0 20.0 
54079200 25.0 20.0 
54082100 25.0 20.0 
54082200 25.0 20.0 
54079400 25.0 20.0 
54082400 25.0 20.0 
54083100 25.0 20.0 
54083200 25.0 20.0 
54083400 25.0 20.0 
55121900 25.0 20.0 
55122900 25.0 20.0 
55129100 25.0 20.0 
55129900 25.0 20.0 
55131200 25.0 20.0 
55132900 25.0 20.0 
55134190 25.0 20.0 
55134900 25.0 20.0 
55141100 25.0 20.0 
Table AIII.1 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-158 
  
  HS Code Applied tariff (%) Bound rate (%) 
55141200 25.0 20.0 
55142100 25.0 20.0 
55142300 25.0 20.0 
55142900 25.0 20.0 
55144110 50.0 20.0 
55121100 25.0 20.0 
55122100 25.0 20.0 
55131100 25.0 20.0 
55131900 25.0 20.0 
55132100 25.0 20.0 
55132300 25.0 20.0 
55134110 50.0 20.0 
55141900 25.0 20.0 
55142200 25.0 20.0 
55161100 25.0 20.0 
55163200 25.0 20.0 
55163400 25.0 20.0 
55164400 25.0 20.0 
55169100 25.0 20.0 
55169200 25.0 20.0 
55169400 25.0 20.0 
55144190 25.0 20.0 
55144200 25.0 20.0 
55144300 25.0 20.0 
55144900 25.0 20.0 
55161200 25.0 20.0 
55161400 25.0 20.0 
55162200 25.0 20.0 
55162400 25.0 20.0 
55164200 25.0 20.0 
56021000 25.0 20.0 
57019000 25.0 20.0 
57021000 25.0 20.0 
57023100 25.0 20.0 
57024100 25.0 20.0 
57024200 25.0 20.0 
57025000 25.0 20.0 
57029100 25.0 20.0 
57029900 25.0 20.0 
57041000 25.0 20.0 
57049000 25.0 20.0 
58011000 25.0 20.0 
58012600 25.0 20.0 
58013200 25.0 20.0 
58013400 25.0 20.0 
57011000 25.0 20.0 
57022000 25.0 20.0 
Table AIII.1 (cont'd) EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-159 
 
 
  HS Code Applied tariff (%) Bound rate (%) 
57023200 25.0 20.0 
57023900 25.0 20.0 
57024900 25.0 20.0 
57029200 25.0 20.0 
58012100 25.0 20.0 
58012200 25.0 20.0 
58012300 25.0 20.0 
58012400 25.0 20.0 
58012500 25.0 20.0 
58013100 25.0 20.0 
58013300 25.0 20.0 
58013600 25.0 20.0 
58021100 25.0 20.0 
58021900 25.0 20.0 
58022000 25.0 20.0 
58041000 25.0 20.0 
58042100 25.0 20.0 
58042900 25.0 20.0 
58050000 25.0 20.0 
58061000 25.0 20.0 
58063100 25.0 20.0 
58063200 25.0 20.0 
58063900 25.0 20.0 
58071000 25.0 20.0 
58090000 25.0 20.0 
59041000 25.0 20.0 
59049000 25.0 20.0 
59050000 25.0 20.0 
58013500 25.0 20.0 
58019000 25.0 20.0 
58023000 25.0 20.0 
58030000 25.0 20.0 
58043000 25.0 20.0 
58062000 25.0 20.0 
58064000 25.0 20.0 
58110000 25.0 20.0 
59070000 25.0 20.0 
59090000 25.0 20.0 
60011000 25.0 20.0 
60012200 25.0 20.0 
60019100 25.0 20.0 
60019200 25.0 20.0 
60019900 25.0 20.0 
60024000 25.0 20.0 
60029000 25.0 20.0 
60032000 25.0 20.0 
60039000 25.0 20.0 
Table AIII.1 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-160 
  
  HS Code Applied tariff (%) Bound rate (%) 
60041000 25.0 20.0 
60049000 25.0 20.0 
60052100 25.0 20.0 
60053300 25.0 20.0 
60053400 25.0 20.0 
60054100 25.0 20.0 
60054400 25.0 20.0 
60059000 25.0 20.0 
60062100 25.0 20.0 
60062400 25.0 20.0 
60063100 25.0 20.0 
60063200 25.0 20.0 
59061000 25.0 20.0 
59069100 25.0 20.0 
59069900 25.0 20.0 
59100000 25.0 20.0 
60012100 25.0 20.0 
60012900 25.0 20.0 
60031000 25.0 20.0 
60033000 25.0 20.0 
60034000 25.0 20.0 
60052200 25.0 20.0 
60052300 25.0 20.0 
60052400 25.0 20.0 
60053100 25.0 20.0 
60053200 25.0 20.0 
60054200 25.0 20.0 
60054300 25.0 20.0 
60061000 25.0 20.0 
60062200 25.0 20.0 
60062300 25.0 20.0 
60063300 25.0 20.0 
60063400 25.0 20.0 
60064100 25.0 20.0 
60064200 25.0 20.0 
60064300 25.0 20.0 
60064400 25.0 20.0 
60069000 25.0 20.0 
61123900 25.0 20.0 
61124100 25.0 20.0 
61123100 25.0 20.0 
61130000 25.0 20.0 
61153000 25.0 19.0 
61159400 25.0 19.0 
61159500 25.0 19.0 
61161000 25.0 20.0 
61124900 25.0 20.0 
61151000 25.0 19.0 
Table AIII.1 (cont'd)  EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-161 
 
 
  HS Code Applied tariff (%) Bound rate (%) 
61152100 25.0 20.0 
61152200 25.0 20.0 
61152900 25.0 19.0 
61159600 25.0 20.0 
61159900 25.0 20.0 
61178000 25.0 20.0 
61179000 25.0 20.0 
63079000 25.0 20.0 
64019200 25.0 12.0 
64021200 25.0 12.0 
64021900 25.0 12.0 
64029100 25.0 12.0 
64031900 25.0 12.0 
64011000 25.0 12.0 
64019900 25.0 12.0 
64022000 25.0 12.0 
64029900 25.0 12.0 
68129100 10.0 5.0 
68129200 25.0 5.0 
68129300 25.0 5.0 
68132090 10.0 5.0 
68138990 10.0 5.0 
68138100 10.0 5.0 
70109000 25.0 12.0 
70181000 25.0 10.0 
71171900 25.0 18.0 
71179000 25.0 15.0 
73144900 25.0 10.0 
76151100 25.0 10.0 
76151900 25.0 10.0 
76152000 25.0 10.0 
84151000 25.0 6.0 
84158300 25.0 6.0 
84159000 10.0 6.0 
84184000 25.0 6.0 
84189900 10.0 6.0 
84152000 25.0 6.0 
84158100 25.0 6.0 
84158200 25.0 6.0 
84182100 25.0 6.0 
84182900 25.0 6.0 
84183000 25.0 6.0 
84185000 10.0 6.0 
84186190 25.0 6.0 
84186990 25.0 6.0 
84189100 10.0 6.0 
85139000 10.0 0.0 
87012090 10.0 5.0 
Table AIII.1 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-162 
  
  HS Code Applied tariff (%) Bound rate (%) 
91139000 25.0 18.0 
94012000 25.0 20.0 
94015100 25.0 20.0 
94015900 25.0 20.0 
94017100 25.0 20.0 
94017900 25.0 20.0 
94018000 25.0 20.0 
94031000 25.0 20.0 
94034000 25.0 20.0 
94035000 25.0 20.0 
94041000 25.0 20.0 
94042100 25.0 20.0 
94011000 25.0 20.0 
94013000 25.0 20.0 
94014000 25.0 20.0 
94016100 25.0 20.0 
94016900 25.0 20.0 
94032000 25.0 20.0 
94033000 25.0 20.0 
94036000 25.0 20.0 
94037000 25.0 20.0 
94038100 25.0 20.0 
94038900 25.0 20.0 
94042900 25.0 20.0 
94051000 25.0 15.0 
94052000 25.0 15.0 
95030000 25.0 8.0 
95049000 25.0 20.0 
94053000 25.0 15.0 
94054000 25.0 15.0 
94055000 25.0 8.3 
94056000 25.0 15.0 
95043000 25.0 20.0 
Note: The italicized tariff lines, taken from the schedule of co ncessions (bindings), correspond to rates different from the ap plied tariff.  
In this case, simple av erages have been used. 
Source : WTO Secretariat estimates based on data from the EAC Secretariat and the WTO CTS database. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-163 
 
 
  Table AIII.2 
Fiscal incentives and aid for enterprises 
Type of incentive, description, and eligibility requirements 
(i) Fiscal incentives 
These can be found in various tax laws, the Investment Code, and the free-zone regime. 
 (a) Incentives provided for in  texts governing taxation. 
Law of 17 February 1964 on property tax 
- The real estate sector With a view to encouraging investment in the real estate sector, the legislator exem pts new buildings (or parts of buildings) f rom property 
tax for at least two calendar years (four years maximum) follo wing the year of their completion (Article 3, paragraph 5). 
 - Agriculture Exemptions are also provided to encourage investment in agricultu re.  Under Article 4, paragraph 2, of the Law of 17 February 1 964, land 
used exclusively for agricu ltural or livestock purposes is exempt from prope rty tax when cultivated or  when normally required f or 
livestock fattening or rearing.  It should also be noted that ve hicle tax does not apply to animal -drawn vehicles used in agric ulture 
(Article 39, paragraph 3). 
 
Law of 21 September 1963 on income tax - The real estate sector 
New buildings are exempt from tax on rental income for four cal endar years following the year of their completion and may remai n 
exempt for up to seven years (Article 12, paragraph 5).  Property loan financing is also encouraged .  Revenue earned and reserv es set 
aside by financial institutions within the framework of their ac tivities in favour of social housing are exempt from income tax  (Article 39, 
paragraph 5). 
 - The agro-pastoral sector 
Revenue earned by agricultural enterprises (food and livestock produc tion) is exempt from business tax (Article 94, paragraph 5 ). 
 - Other sectors 
The legislator has not overlooked certain potential growth sectors.   Measures have been introduced  to encourage the development  of 
activities such as leasing and hire-purchase.   Leasing and hire-purchase companies ar e fully exempt from business tax for the 
first three years of activity a nd benefit from a reduced partial exemption from  taxation of 20% for the following four years un til the 
ordinary law regime is applied as of the seventh year of activ ity (Article 39, paragraph 7).  Other sectors are also encouraged  by the 
legislator, not through exemptions, but through depreciation.  Certain fixed assets used  for scientific, technical or medical r esearch, or in 
the tourism and production sectors, may benefit from special depreciation (Artic le 43, paragraph 8(a)). 
 
- Incentives for companies to change form The legislator encourages the merging or tr ansformation of companies.  Normally, the sh aring of assets, even partially, gives r ise to the 
moveable property tax (Article 17).  However, the merging of co mpanies or the transformation of one company with legal personal ity into 
another company with legal personality is not considered to be a case of asset sharing, and ther efore the moveable property tax  does not 
apply.  
Law No. 1/02 of 17 February 2009 establishing value-added tax (VAT) 
- The neutral nature of the tax At the fiscal level, VAT is neutral.  The tax burden is iden tical regardless of the length of the production or marketing cycle .  Exports are 
exempt from VAT (Article 14), while imports are not (Article 3(c)), which means that imported products bear the same tax burden  as 
domestically manufactured products.  
- VAT and income 
VAT is totally neutral for the determination of a taxpayer's taxa ble income.  VAT is paid by the consumer and costs the trader nothing. 
 
- Economic operations exempt from VAT 
The following are exempt from VAT:  financia l operations (Article 7(a));  certain real estate transactions (Article 7 (b), (c) and (d));  
imports and deliveries of medicines, pharm aceutical products, and specialized equipmen t and products for medical use (Article 7
(e));  
deliveries of agricultural products that have not been processed by their producers (Article 7(h ));  deliveries of postage stam ps, revenue 
stamps and the like (Article 7(i));  imports  of goods benefiting from relief from custom s duty (Article 7(j));  journey prices resulting from 
international tariffs (Article 7(k)). 
 
- Tax credit:  measure designed to rebalance an enterprise's cash situation The tax credit takes the form of the excess VAT (for fixed asse ts and other goods and services) deductible from gross VAT.  In principle, 
the credit obtained by an enterprise is normally reduced gradually  in line with the imputation pr inciple.  The credit is progre ssively 
reduced by being charged to subsequent tax declarations.  If the credit is substantial, this sy stem of imputation has a detrime ntal effect on 
the enterprise's cash situation.  The legi slator has therefore provided for credit re stitution measures (Article 20 et seq.). 
 
Table AIII.2 (cont'd) WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-164 
  
  Type of incentive, description, and eligibility requirements 
Decree-Law No. 1/13 of 24 November 1986 estab lishing real estate registration fees 
Article 6 of Decree-Law No. 1/13 set the proportional fee at 6% for any real estate transfer.  In order to encourage real estat e transactions, 
this fee has been reduced to 3% wi th the possibility of further reduction.1  For example, in the case of a transfer made following the 
transformation of a commercial or civil co mpany into one of a differen t nature, where both have legal personality, the 3% fee i s reduced 
to 2%.2  For transfers made during the merger of companies with lega l personality, the 3% fee is reduced  to 2.5%, regardless of whethe r 
the merger takes place through the creation of  a new company or by means of a takeover.3 
 
Benefits provided by the Investment Code Tax credit 
Under Article 14 of the Investment Code, i nvestments made by new enterprises are elig ible for a tax credit.  The credit is a fo rm of state 
financial aid granted to investors in the goods and services production sector and enables investors to recover a certain quota  of the 
amount of depreciable property invested, excl uding any vehicles used by the enterprise  for transporting managerial staff and ot her 
personnel.
4 
 
The tax credit may also be granted to  an enterprise for the extension or  rehabilitation of an existing activity.5 
 
Other fiscal benefits 
As determined by Law No. 1/23 of 24 September 2009.  
- Exemption from transfer duties 
 The acquisition of the buildings and land needed to establish a c oncern is exempt from transfer duties (Article 4, paragraph 1,  Law 
No. 1/23 of 24 September 2009). 
 - Reduced corporate income tax 
Investors benefit from reduced rates of corporate income tax as follows:  (i) 2% if they employ between 50 and 200 Burundian wo rkers;  
and (ii) 5% if they employ more than 200 Burundian worker s (Article 4, paragraph 6, Law No. 1/23 of 24 September 2009). 
 
Integration of free-zone regime provisions 
Article 16 of the Investment Code provide s that the provisions of Law No. 1/015 of 31 July 2001 revising Decree-Law No. 1/3 of 
31 August 1992 establishing a free-zone regime in Burundi shall form an integral part of the current Investment Code. 
 
Benefits of the free-zone regime Total exemption for dividends 
Dividends distributed to company sharehol ders are exempt from all tax for the lif etime of the enterprise (Article 14). 
 Total exemption from corporate income tax All free-zone enterprises are fully exempt from corporate income  tax for the first ten years of activity (Article 12, paragraph  1). 
 
Corporate income tax reduction - Non-commercial free-zone enterprises 
From an enterprise's eleventh year of ac tivity and for the rest of its lifetime, the corporate income tax rate is 15% (Article 12, paragraph 
1).  Corporate income tax is reduced to 10% for all enterprises that have created more than 100 permanent jobs for Burundian na tionals 
(Article 12, paragraph 2).  Enterprises rei nvesting at least 25% of corporate income from their last ten years of activity pay 10% less than 
the corporate income tax rate normall y applied (Article 12, paragraph 3). 
 Commercial free-zone enterprises 
From the time of establishment and for thei r entire lifetime, commercial free-zone en terprises pay a tax of 1% of their turnove r.  This tax 
is reduced to 0.80% of turnover  for any commercial free-zone enterprise that ha s created more than 20 permanent jobs for Burund ian 
nationals (Article 13). 
 
Exemption from indirect taxes Free-zone enterprises are fully exempt from the payment of any existing or future indirect taxes and registration fees and stam p duties.  
This exemption includes value-added tax (VAT), transfer dutie s and registration duties on increases in a company's capital (Art icle 15). 
 
Table AIII.2 (cont'd)  
                                                      
 1 Law No. 1/21 of 30 December 2007  establishing the general budget of the Republic of Burundi for 
the 2008 financial year. 
2 Article 9, Decree-Law No. 1/13 of 24 November 1986. 
3 Article 10, Decree-Law No. 1/13 of 24 November 1986. 
4 Article 2, Law No. 1/23 of 24 September 2009 determining the fiscal benefits provided by Law 
No. 1/24 of 10 September 2008 establishing Burundi's Investment Code. 
5 Article 15, Law No. 1/24 of 10 September 2008 establishing Burundi's Investment Code. EAC-Burundi WT/TPR /S/271/BDI/Rev.1 
 Page A1-165 
 
 
  Type of incentive, description, and eligibility requirements 
Exemption from import duties 
Raw materials, intermediate products, ancillaries and capital goods  imported by free-zone enterprises, a list of which accompan ies the 
free-zone enterprise certificate, are exempt from all existing and future direct and indirect  duties and taxes (Article 18). 
 
Exemption from export duties Good exported by free-zone enterprises are ex empt from all existing and future direct and indirect duties and taxes (Article 20 ). 
 
Other guarantees and benefits The Investment Code 
Legal regime 
The Investment Code provides for a single or dinary law regime for all enterprises whic h applies without distinction (Article 3) .  This 
regime grants the same benefits and guara ntees to all investors without discriminati on, whereas the previous Code provided for four 
approval regimes. 
 
Freedom of establishment and investment Law No. 1/24 of 10 September 2008 establishi ng Burundi's Investment Code introduces a liberal policy for the entry and establis hment of 
investors;  it contains no conditions or rest rictions (Article 7, paragraph 1).  Freed om of establishment and investment exists  for any 
natural or legal person wishing to set up a company in Burundi , but does not exist for the produc tion of weapons and ammunition , and 
other investments in the military and paramilitary field whic h require special authorizati on (Article 7, paragraph 2). 
 
Entry and stay of foreign investors in Burundi The procedures for granting establishment visas have been simplif ied.  Expatriates are guaranteed  the freedom to establish and move 
residence, in accordance with immigration laws and re gulations and to the extent required by investments. 
 Recognition and guarantee of the right to property 
Article 39, paragraph 1, of th e Constitution of the Republic of Burundi recogni ses the right to property of all persons.  Artic le 9 of the 
Investment Code reflects this principle and provides that the Republic of Burundi shall recognise and guarantee the right to pr operty of all 
natural and legal persons, w ithout any discrimination. 
 
Guarantee against discriminatory treatment The Investment Code guarantees non-discrimi natory treatment with regard to nationality  in respect of real estate acquisition or  rental 
(Article 10, paragraph 1). 
 Administrative facilities 
To meet their installation needs, enterpri ses may benefit from the special expropria tion procedure for reasons of public intere st 
(Article 10, paragraph 2).  Such enterprise s may acquire as property, by renting or in the form of contributions, land or build ings 
belonging to the State (Article 10, paragraph 3).  These same enterprises may benefit from the development of industrial zones or land by 
the State, local authorities, and public or se mi-public bodies (Artic le 10, paragraph 4). 
 
Freedom to transfer foreign capital and capital gains The Investment Code guarantees foreign investors the freedom to  transfer capital and capital gain s in the currency and to the c ountry they 
choose.  The only requirement is the payment of taxes (Article 11). 
 The transfer of salaries and return on capital (Article 12) 
The unused professional income of foreign employees is transferred.   The same applies to dividends, which are transferred in fu ll for 
foreign capital enterprises and in proportion to foreign capital for mixed capital enterprises. 
 
Investment security 
- Guarantee against nationalization and expropriation Article 13, paragraph 1, of the Investment Code prohibits th e nationalization and expropriation of investments and any similar measures.  
 
- Compliance with procedures For certain disputes, the Investment Code guarantees a procedur e in accordance with the law.  In exceptional cases of expropria
tion for 
reasons of public interest, this procedure is accompanied by  fair and prior compensation (Article 13, paragraph 2). 
 - Dispute settlement 
The Investment Code establishes a number of methods for settling disputes relating to the implementation of the Code.  The norm al 
method is mutual agreement.  Legal proceedings conducted in acco rdance with the laws and regulati ons in force in Burundi are op en.  
Investors may choose whether disputes are to be settled by inte rnal institutional arbitration or by international arbitration. 
Burundi is a member of the Convention es tablishing the Multilateral Investment Guaran tee Agency (MIGA), wh ich enables foreign 
investors to cover themselves against four types of risk linked to the country of es tablishment:  (i) restrictions relating to currency 
transfer;  (ii) expropriation;  (iii) war and ci vil disturbance;  and (i v) breach of contract. 
 
Table AIII.2 (cont'd)WT/TPR/S/271/BDI/Rev.1 Trade Policy Review 
Page A1-166 
  
  Type of incentive, description, and eligibility requirements 
 
Conclusion of Investment Promotion and Protection Agreements (IPPAs) and other bilateral agreements. 
Burundi has concluded Investment Promoti on and Protection Agreements with German y (1984), Belgium and Luxembourg (1989), and 
the United Kingdom (1990). 
Agreements have also been signed with the Comoros (2001), Kenya (2009),  Mauritius (2001) and the Neth erlands (2007), but have y et to 
be ratified.  These agreements contain all the classic provisions  of IPPAs under the admission regime:  protection with fair an d equitable 
treatment, and security and protection against any unjustified or discriminatory measure, with treatment no less favourable tha n that 
enjoyed by nationals of the State hosting th e investment;  a ban on measures entailing deprivation or limita tion of ownership u nless taken 
for reasons of public interest, security or national interest, w ith the payment of appropriate compensation;  and the guarantee d free transfer 
of assets and, in the event of a dispute with the State, the possibility of taking rec ourse, at the request of the investor con cerned and 
through conciliation or arbitrati on, to the International Centre for the Se ttlement of Investment Disputes (ICSID). 
Source:  WTO Secretariat, based on information from the authorities.