9 november 2022

Aan het eind van het jaar is het goed om weer eens een overzicht te hebben van de Burundese economie. The Exchange Africa voorzag recent in een overzichtsartikel over Burundi business governance, dat we gespreid over drie dagen overnemen. Het is geschreven door June Njoroge.

Deel 1: Historie
Deel 2: Status quo, landbouw en klimaat
Deel 3: ICT, industrie, energie, toerisme

Burundi: New Dawn – Reforms Chart Fresh Economic Path for Burundi

Vandaag Deel 3, dat de volgende key priority sectors aangeeft na landbouw

Information Communication Technology
Information Communication Technology (ICT) is another key sector that could revolutionize Burundi’s economy. A plethora of opportunities exist in this sector, as Africa on the whole is in the age of digital disruption. The market for high-speed broadband internet is largely untapped and other opportunities lie in fiber optics installations which includes e-administration and e-banking, and database management centers, ICT for energy, tele-health and tele-education sectors. With perspective to its high population density and low internet connectivity rates, Burundi wields a massive telecom market potential that, should the government deploy effective strategies to seal the gap, could reap largely.

In addition, the government in early 2018 kick-started the Burundi Broadband project, which aims to deliver national connectivity by 2025. Based on this improved infrastructure the government and ITU have developed an ICT strategy to make use of telecoms to promote the country’s socio-economic development through to 2028.

Processing and Manufacturing Industry
The processing and manufacturing sector is another critical sector that could greatly contribute to Burundi’s economic rebound. The country imports almost all manufactured consumer goods therefore opportunities abound in almost every industry. For example, in 2019 the value of pharmaceutical products imports cost $62million, fertilizers cost $27million, textiles was valued at $52 million iron and steel cost $55 million.

Albeit relatively nascent, existing gaps in the industry include the need for food products processing industry, chemical industry especially for fertilizers as agriculture is a mainstay activity, pharmaceutical industry, because very few drugs are produced locally as well biodegradable packing industry. Further, there is need for additional shoe and textile industries as the country has one with very limited technology. Moreover, industrial production of building materials such as cement, metals sheets, tiles and glass is also needed.

Being a member of both the EAC and Central African Economic and Monetary Community, Burundi is a link between East and Central Africa which offers a market for the country’s exports. The ZES Burundi (Zone Economique Speciale Burundi) offers numerous opportunities for local, regional and international investors in manufacturing plants and commercial agriculture.

Energy Sector
Burundi’s energy sector holds much promise that could greatly benefit the economy. Deficits in commercial hydroelectric power production exist, and so does the robust potential for generating renewables such as solar and wind energy. Burundi’s main sources of energy include biomass, petroleum products, HEP and peat.

According to the World Bank, Burundi currently has one of the lowest levels of electrification on the African continent, with a rate of only 11 percent. AfDB estimates Burundi’s installed electrical capacity at 39MW. Burundi’s hydroelectric field was evaluated at 1700MW in the 1980s, of which about 300MW was economically exploitable. Furthermore, the country has a 10MW geothermal energy potential.

Burundi faces an access to energy problem. With a growing population and rampant urbanization, renewable energies are an alternative to managing the energy crisis. Hydropower, the primary source of electricity production in Burundi, is still largely under-exploited and could be the way forward for the growth of electricity supply in the years to come. Well-managed forest resources can also be a valuable renewable energy source.

Over and above, the country’s solar and wind resources wield massive potential, given that the average sunshine received annually is close to 2000 kWh/m²/, which is similar to the southern Mediterranean regions in Europe. In light of this, high levels of sunshine make off-grid solar energy a viable option to meet the energy demands of the country’s high population density. Burundi needs to optimize the potential of the energy sector to foster growth and socio-economic development.

Tourism and Hotel Industry
Boasting more than 120 tourist attraction sites, Burundi’s tourism sector possesses huge potential to make significant contributions to the country’s economy. Just recently, President Ndayishimiye started a domestic tourism circuit to promote tourism in the country, in cognizance of its role in rebuilding the economy of Burundi.

To boot, in an effort to boost tourism and investment in Burundi, the government waived visa processing through its embassies in December last year, and introduced visa on arrival for all foreign nationals willing to visit or invest in the country. Untapped potential in this sector exists in improving beach tourism and water sports on Lake Tanganyika, construction of hotels and attracting major international hotel chains, lodges in national parks, fast food restaurants, eco villages, conference centres, and introduction of ecotourism.