Economy of Burundi

Theeconomy of Burundiis $3.436 billion bygross domestic productas of 2018, being heavily dependent onagriculture, which accounts for 32.9% ofgross domestic productas of 2008.Burundiitself is alandlockedcountry lacking resources, and with almost nonexistent industrialization. Agriculture supports more than 70% of the labor force, the majority of whom aresubsistence farmers.
Although Burundi is potentially self-sufficient in food production, issues such ascivil unrest,overpopulation, andsoil erosionhave contributed to the contraction of thesubsistence economyby 25% in recent years. Large numbers ofinternally displaced personshave been unable to produce their own food and are largely dependent on international humanitarian assistance. Burundi is a net food importer, with food accounting for 17% of imports in 1997. Burundi is aleast developed countryaccording to theUnited Nations.
Burundi produced in 2022:
In addition to smaller productions of other agricultural products, likesorghum(25 thousand tons) andcoffee(17 thousand tons).
Little industry exists except for the processing of agricultural exports. Although potential wealth inpetroleum,nickel,copper, and other natural resources is being explored, the uncertain security situation has prevented meaningful investor interest. Industrial development also is hampered by Burundi's distance from the sea and high transport costs.Lake Tanganyikaremains an important trading point. The tradeembargo, lifted in 1999, negatively impacted trade and industry. Since October 1993 the nation has suffered from massive ethnic-based violence which has resulted in the death of perhaps 250,000 people and the displacement of about 800,000 others. Foods, medicines, and electricity remain in short supply.
Burundi is heavily dependent on bilateral and multilateral aid, with external debt totaling $1.247billion(1.247 G$) in 1997. A series of largely unsuccessful 5-year plans initiated in July 1986 in partnership with the World Bank and the International Monetary Fund attempted to reform the foreign exchange system, liberalize imports, reduce restrictions on international transactions, diversify exports, and reform the coffee industry.
IMF structural adjustmentprograms in Burundi were suspended following the outbreak of the crisis in 1993. The World Bank has identified key areas for potential growth, including the productivity of traditional crops and the introduction of new exports, light manufactures, industrial mining, and services. Other serious problems include the state's role in the economy, the question of governmental transparency, and debt reduction.
To protest the1996 coupby PresidentPierre Buyoya, neighboring countries imposed an economic embargo on Burundi. Although the embargo was never officially ratified by theUnited Nations Security Council, most countries refrained from official trade with Burundi. Following the coup, theUnited Statesalso suspended all but humanitarian aid to Burundi. The regional embargo was lifted on January 23, 1999, based on progress by the government in advancing national reconciliation through the Burundi peace process.
In an article titled "The Blood Cries Out,"Foreign Policy(FP)reported that the Burundianpopulation growth rateis 2.5 percent per year, more than double the average global pace, and that a Burundian woman has on average 6.3 children, nearly triple the internationalfertility rate.FPfurther reported that "The vast majority of Burundians rely on subsistence farming, but under the weight of a booming population and in the long-standing absence of coherent policies governing land ownership, many people barely have enough earth to sustain themselves." In 2014, the average size for a farm was about one acre.FPadded that "The consequence is remarkable scarcity: In the 2013Global Hunger Index, Burundi had the severest hunger and malnourishment rates of all 120 countries ranked."
Burundi is one of the least electrified countries in the world, only about 10% of the country's population has access to electricity.In 2022, the country produced a total of 565 GWh of electricity, 50% of which was generated viafossil fuelswhile the other 50% was generated viarenewables.Oilis the main fossil fuel in use, while the renewable energy is sourced primarily fromhydropowerand to a much lesser degree fromsolar energyas well asbioenergy. This domestic production however does not fulfil Burundi's demand and it imports sizeable amount of energy from neighbouring countries.
The opening of theRusumo Hydroelectric Power Stationin 2023 was a boon to the country as Burundi receives 27 MW of electricity generated in it. The power station combined with improved transmission cables allowed Burundi to provide the capital city ofGitegawith a more reliable and consistent power supply. At the same time it allowed the government to decommission the old oil-fired power station that supplied the city before and save over two million USD in costs. This project was a part of a wider international aid-assisted initiative in Burundi to pursue low-carbon electrification and improving access to electricity across the country.The government also pursues a much greater domestic hydropower project, a power station located in Rubrizi with the help of  extensive funding by theAfrican Development Bankand theEuropean Union. The power station, scheduled to be completed in December of 2024, is designed to generate 160 MW of electricity, making it the largest power station in Burundi. Together with associated improvements to transmission in infrastructure, it's predicted to provide electricity access to 7% of the country's population.
The following table shows the main economic indicators in 1980–2024.