Leveraging Private Investment for Inclusive Growth
Burundi’s new government put in place in June 2020 by the newly elected president offers an opportunity for a new growth model, fueled by the private sector. Burundi needs to tackle the causes of its fragility and build private sector fundamentals for sustained and inclusive growth. The country has shown in the past that it is capable of advancing reforms for economic transformation.
Recognizing the unrealized potential for Burundi’s private sector, the Burundi Country Private Sector Diagnostic (CPSD) examines challenges in infrastructure, skills, land management, and trade, and then pinpoints short- and medium-term opportunities in four key areas: agribusiness; digital financial services; finance for micro, small, and medium enterprises; and capital markets. The report outlines structural reforms — in the areas of macro-fiscal stability, governance, and enabling framework conditions — that can stimulate and activate Burundi’s three sources of private sector growth: well-performing state-owned enterprises; foreign direct investment in the local economy, particularly agribusiness; and dynamic startups and small and medium enterprises. By identifying sector-specific areas for joint action, the Burundi CPSD hopes to guide the development of high-value added and competitive sectors.