TRALAC - Trade Law Centre

Country Info: Burundi ⋆

Economic Background

[Note: Burundi is currently suspended from AGOA]

Burundi is a landlocked, resource-poor country with an underdeveloped manufacturing sector. The economy is predominantly agricultural; agriculture accounts for just over 30% of GDP and employs more than 90% of the population. Burundi's primary exports are coffee and tea, which account for 90% of foreign exchange earnings, though exports are a relatively small share of GDP.

Burundi's export earnings rest primarily on weather conditions and international coffee and tea prices. Food, medicine, and electricity remain in short supply. Less than 2% of the population has electricity in its homes. Burundi's GDP grew around 4% annually in 2006-12. Political stability and the end of the civil war have improved aid flows and economic activity has increased, but underlying weaknesses - a high poverty rate, poor education rates, a weak legal system, a poor transportation network, overburdened utilities, and low administrative capacity - risk undermining planned economic reforms. The purchasing power of most Burundians has decreased as wage increases have not kept up with inflation.

Burundi will remain heavily dependent on aid from bilateral and multilateral donors - foreign aid represents 42% of Burundi's national income, the second highest rate in Sub-Saharan Africa. Burundi joined the East African Community in 2009, which should boost Burundi's regional trade ties, and also in 2009 received $700 million in debt relief.(Source: World Factbook, 2013)

Downloads

Burundi - National AGOA Strategy

Burundi - National AGOA Strategy

The preferential market access granted to Burundi and other African countries through the African Growth and Opportunity Act (AGOA) has yet to benefit to Burundi. In Sub Saharan African AGOA eligible countries, the textiles and apparel sector grew annually at an average rate of five percent since AGOA’s adoption and leading non-textile/apparel exports grew annually at as much as 23 percent between 2001-2006 and an overall rate of 12 percent...

Organisation USAID / East Africa Trade Hub
Publish Date 19 February 2014
View details D Size: 1 MB

Related News

East Africa: New AGOA rules on eligibility and suspension start to apply

East Africa: New AGOA rules on eligibility and suspension start to apply

Countries qualifying for duty-free access to US markets under the Africa Growth and Opportunity Act (Agoa) must adhere to US trade regulations as well as its foreign policy. This is a new rule enacted by the US Congress last year after the renewal of the US-Africa trade partnership for another 10 years. According to EAC Director General of Customs and Trade Peter Kiguta,...

23 January, 2016
US boots Burundi from Africa trade pact AGOA

US boots Burundi from Africa trade pact AGOA

US president Barack Obama announced Friday that Burundi will be ejected from a pact offering African nations much-desired US market access, after the country’s president grabbed a third term in office. In a notification to Congress, Obama said he had taken the step in response to a “continuing crackdown on opposition members, which has included assassinations,...

31 October, 2015
Text of notification to Congress on Burundi's suspension from AGOA from 2016

Text of notification to Congress on Burundi's suspension from AGOA from 2016

In accordance with section 506A(a)(3)(B) of the African Growth and Opportunity Act, as amended (AGOA) (19 U.S.C. 2466a(a)(3)(B)), I am providing notification of my intent to terminate the designation of the Republic of Burundi (Burundi) as a beneficiary sub-Saharan African country under AGOA. Message to the Congress -- Notification to the Congress on AGOA Program...

30 October, 2015
EAC push for long-term trade pact with US to replace AGOA

EAC push for long-term trade pact with US to replace AGOA

The East African Community is pushing for a long-term preferential trade agreement with the United States that will remove uncertainties surrounding the Africa Growth and Opportunity Act (AGOA). The five member states have submitted their request to the United States Trade Representative (USTR) on the modalities and the time to start negotiations on the pact. According to...

07 September, 2015
Burundi: United States urges dialogue, announces additional suspension of assistance

Burundi: United States urges dialogue, announces additional suspension of assistance

Burundian President Pierre Nkurunziza’s continued disregard for the Arusha Agreement has resulted in dozens of deaths, the exodus of over 144,000 Burundians to neighboring countries, and a freefall in the Burundian economy causing suffering to millions of Burundians. The Burundian Government’s decision to push forward with the June 29 parliamentary elections despite the...

02 July, 2015
East Africa: Technical officials discuss EAC-US trade and investment partnership in Bujumbura

East Africa: Technical officials discuss EAC-US trade and investment partnership in Bujumbura

Technical Officials from the East African Community (EAC) and the United States (U.S.) met 12 to 15 February 2014 in Bujumbura, Burundi to discuss Trade Africa and the EAC - U.S. Trade and Investment Partnership (TIP). In particular, the Technical Officials discussed among others, the Ministerial guidance provided in August 2013; AGOA; Regional Investment Treaty; Trade...

17 February, 2014