Burundi: Investing

FDI in Figures

Foreign direct investments into Burundi, non-existant untile 2007, are showing a certain albeit slow degree of revival. The adoption of the new Investment Law and the reduction of the country's debt in accordance with the HIPC Initiative is expected to improve the business climate and create investment opportunities.

Political instability, the high cost of public services, the ambiguous trade policies, the poor condition of infrastructures, low-skilled workforce, limited privatization program and the lack of foreign currency are all factors limiting the influx of FDI into the country.

The mining sector attracts most of the investments. France and Japan are the two main investor countries.

	Burundi	Sub-Saharan Africa	الولايات المتحدة	Germany
Index of Investor Protection	3.3	4.4	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	14	10	14
FDI Stock (million USD)	61.6	71.5	85.6
Number of Greenfield Investments***	1.0	5.0	-
FDI Inwards (in % of GFCF****)	9.3	1.2	-
FDI Stock (in % of GDP)	5.5	5.7	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

Value Added Tax (VAT) since July 2009.: 18%
Company Tax: 35%
Withholding Taxes: Dividends: 15%, Interests: 15%, Royalties: 35%.
Social Security Contributions Paid By Employers: 3.9%

Investment Opportunities

Tenders, Projects and Public Procurement: Tradeinvest Africa, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Burundi.
Useful Resources: Economic Developments and Prospects in Burundi - African Economic Outlook

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