Burundi: Over 2,511 companies were created last semester
RegionWeek Newsletter Vol VII, Issue #232 | Wednesday, January 18, 2023
Dear Readers,
In a meeting with the members of the Press, the Head of Burundi Development Agency (ADB in french abreviation) Mr. Didace Ngendakumana said that, in the last six months (July-December 2022), more than 2 511 companies have been created and over 156 800 jobs are projected. It was during the presentation of last semester achievements at Hotel Source du Nil in Bujumbura
Regarding the grants provided by the investment cod, the agency has issued 45 grants that are expected to use a capital of over 400 billion FBU with a projection of 3 902 jobs. The companies that have obtained subsidies and plan to use vover 400 billion of capital.
In addition, Burundi Development Agency (ADB) has issued 80 certificates of conformity that give the right to obtain a subsidy, having spent more than Bif 270 billion out of the projected 860 billion.
Why it matters
Created by Decree No. 100/255 of November 15, 2021 the Burundi Development Agency (ADB) has a mission to promote and facilitate local and foreign investment as well as exports. ADB work to improve the business climate in order to attract more investors to Burundi.
According to Didace Ngendakumana, ADB has faced various obstacles due to mistakes made by the API (the former entity that was replaced by ADB), and reasons for failure to accomplish all planned projects were insufficient funds compared to the planned activities.
During the year 2021-2022, ADB received 50 major projects, of which 44 (88%) were from Burundi while only 6 (12%) came from abroad.
Mr. Didace said that ADB has set the standards and objectives of activities to be carried out in the next 5 years, the focus will be on private sector development and especially foreign investment.
Focus on foreign direct investment
While responding to questions from journalists Didace Ngendakumana, , assured Burundians that soon, foreign investors, mainly from the United States of America, will come to invest in Burundi.
The response came as he was answering questions on the evident benefits that came after a meeting of the Head of State Evariste Ndayishimiye with over 200 Burundian and American investors which was held in the United States of America at the end of December 2022. The director of ADB also informed up to June 2023, over 10 groups of foreign investors who attended the meeting in the USA with President Evariste Ndayishimiye will be in Burundi.
Bottom line
According to the 2020 World Investment Report, foreign direct investment in Burundi amounted to USD 1 million in 2018 and USD 1 million in 2019. In 2020, these investments increased from USD 1 million in 2019 at $6 million. In addition, the total stock of these investments amounted to 231 million in 2017. This stock amounted to 226.7 million USD in 2018. In 2019, it amounted to 227.7 million and 233, 8 million USD in 2020. the energy and mining sector attracts many more investors. Along with processing, construction and infrastructure industries, other sectors like automotive, transport and tourism industries are also attracting foreign investment in the country.
Thanks for reading,
Fabrice Iranzi, Editor in Chief, RegionWeek