Burundi: Investing

FDI in Figures

Foreign direct investments into Burundi were non-existent until 2007. They have increased 4% in 2011 in relation to 2010. The government has made progress in improving the business atmosphere (adoption of a new investment law). The country ranks as one of the highest reformer country in the report of Doing Business 2012.

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

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

Country Comparison For the Protection of Investors

	Burundi	Sub-Saharan Africa	United States	Germany
Index of Transaction Transparency*	4.0	4.8	7.0	5.0
Index of Manager’s Responsibility**	1.0	3.4	9.0	5.0
Index of Shareholders’ Power***	5.0	5.0	9.0	5.0
Index of Investor Protection****	3.3	4.4	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** 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%.
Bilateral Agreement: Burundi and Lebanon are not bound by a Double Taxation Agreement.
Social Security Contributions Paid By Employers: 3.9%

Country Comparison For Corporate Taxation

	Burundi	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	32.0	37.3	11.0	16.0
Time Taken For Administrative Formalities (Hours)	211.0	315.1	187.0	215.0
Total Share of Taxes (% of Profit)	153.4	68.0	46.8	48.2

Source: Doing Business - Last Available Data.

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

Business Setup Procedures

Setting Up a Company	Burundi	Sub-Saharan Africa
Procedures (number)	11.00	8.90
Time (days)	32.00	45.20

Source: Doing Business.

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