Burundi Overhauls Investment Framework and Establishes New Development Agency
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GITEGA, June 2021 – Burundi has undertaken a sweeping reform of its investment landscape, enacting a comprehensive amendment to its Investment Code and launching a new centralized body, the Burundi Development Agency (ADB), aimed at facilitating and promoting foreign and domestic investment.
Stricter Entry Thresholds for Investors
The revised Investment Code introduces significantly higher minimum investment thresholds for eligibility to incentives. In the capital, Bujumbura, investors are now required to commit at least USD 500,000, while projects elsewhere in the country must meet a USD 250,000 threshold. This marks a shift toward prioritizing larger-scale investments with the potential for broader economic impact, though some analysts caution that smaller ventures and local entrepreneurs could face challenges accessing new incentives under the stricter requirements.
Investor Benefits and Protections
Burundi’s updated investment regime promises a package of benefits to qualifying investors. These include exemptions from transfer taxes on the purchase of land and buildings, and potential exemptions from VAT or customs duties for imported construction materials, equipment, and necessary inputs. Graduated reductions in corporate tax are now available for the first five years of a project, easing the burden from the country’s standard 30% rate. Investors also benefit from guarantees of capital and profit repatriation, the ability to own land, and legal assurances against expropriation without fair compensation.
A New Investment Gateway: Burundi Development Agency (ADB)
At the heart of these reforms is the newly created Burundi Development Agency. The ADB is tasked with handling project certification, investor support, and the management of incentive schemes. By consolidating several investment-related functions under one roof, the agency aims to streamline administrative processes, offering what is promised as a “one-stop shop” for business registration, licensing, taxation, and other essential permits. This model draws on successful practices elsewhere in East Africa and is designed to make investment in Burundi as seamless as possible.
Sustainability and Local Impact Requirements
In line with regional and global trends, Burundi’s new Investment Code places greater emphasis on sustainability and local integration. To qualify for incentives, projects must comply with national environmental and labor regulations, secure environmental compliance certificates, and report annually on job creation, training, and local content integration. These requirements reflect the government’s commitment to ensuring that investment supports not only economic growth but also sustainable development and social responsibility.
Priority Sectors and Strategic Support
The government continues to focus its efforts on attracting investment into key sectors such as agriculture, agro-processing, fisheries, energy, mining, manufacturing, tourism, ICT, health, and education. Special attention is given to investments that create jobs for youth, women, and members of the diaspora, with the possibility of enhanced incentives for projects that make a substantial social impact.
A New Climate for Doing Business
Burundi’s reforms are part of a broader effort to improve its standing as an investment destination within the East African Community and globally. The transformation of the investment agency and the streamlining of procedures are already showing signs of progress. Investors can now obtain essential business documentation in a matter of days, with business registration fees kept minimal to encourage formalization. The country’s legal environment has also been strengthened by adherence to international arbitration treaties, providing investors with clearer avenues for dispute resolution.
Challenges Remain
Despite the legal and administrative advances, Burundi continues to face significant challenges. Access to land, for example, can be complicated by bureaucratic procedures and reciprocity requirements. The cost of electricity remains higher than in many neighboring countries, and infrastructure limitations—such as transport and logistics—persist as major hurdles for investors. While the government’s commitment to reform is evident, the effectiveness of these changes will depend on ongoing improvements in infrastructure, regulatory transparency, and administrative efficiency.
Looking Forward
Burundi’s 2021 Investment Code signals a new era for the country’s investment climate. By modernizing its legal framework, centralizing investor services, and prioritizing sustainable, high-impact sectors, the government has laid important groundwork for growth. The real test, however, will be in translating policy into tangible improvements for investors and the broader economy. Continued attention to infrastructure, access to resources, and efficient public services will be essential for realizing Burundi’s vision of inclusive and sustainable development.
