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Economy of Burundi

Burundi's economy is based predominantly on agriculture, accounting for 45% of GDP in 2009. Agriculture supports more than 90% of the labor force, the majority of whom are subsistence farmers. Although Burundi is potentially self-sufficient in food production, the civil war, overpopulation, and soil erosion have contributed to the contraction of the subsistence economy by 30% in recent years. Large numbers of internally displaced persons have been unable to produce their own food and are dependent on international humanitarian assistance. Food imports accounted for 12.5% of total imports value in 2009.

The main cash crop is coffee, which accounted for 55.6% of exports in 2009. This dependence on coffee has increased Burundi's vulnerability to fluctuations in seasonal yields and international coffee prices. Coffee processing is the largest state-owned enterprise in terms of income. Although the government has tried to attract private investment to this sector, only a small number (12) of the 120 washing stations were sold to a foreign private company. Efforts to privatize other publicly held enterprises have likewise stalled. Other principal exports include tea and raw cotton.

Little industry exists except the processing of agricultural exports. There is potential wealth in petroleum, nickel, copper, gold, and other natural resources; however, these resources are not being exploited. Former studies reported evidence of offshore petroleum deposits in Lake Tanganyika as well as in the plain of Rusizi, although the uncertain security situation had prevented meaningful investor interest. Despite an improvement in the security situation, the lack of adequate infrastructure--transportation and energy--has limited industrial development, which is hampered by Burundi's distance from the sea and high transport costs. Lake Tanganyika remains an important regional trading point.

Burundi is heavily dependent on bilateral and multilateral aid. International Monetary Fund (IMF) structural adjustment programs in Burundi were suspended following the outbreak of violence in 1993; the IMF re-engaged Burundi in 2002 and 2003 with post-conflict credits, and in 2004 approved a $104 million Poverty Reduction and Growth Facility loan. In preparing a transition support strategy, the World Bank identified key areas for potential growth, including the productivity of traditional crops and the introduction of new exports, light manufactures, industrial mining, and services. Both the IMF and the World Bank assisted the Burundians in preparing a Poverty Reduction Strategy Paper, released in February 2007. More than 70% of Burundians live below the poverty line. Serious economic problems include the state's role in the economy and the question of governmental transparency, and debt reduction. In January 2009, the IMF and the World Bank decided that Burundi satisfied the requirements toward reaching its completion point under the Heavily Indebted Poor Countries Initiative (HIPC) and waived $424 million in debt.

Based on Burundi's successful transition from war to peace and the establishment of a democratically-elected government in Burundi in September 2005, the U.S. Government lifted all sanctions on assistance to Burundi on October 18, 2005. Burundi also became eligible for trade benefits under the African Growth and Opportunity Act (AGOA) in December 2005, but no Burundian industries have yet taken advantage of AGOA benefits. Burundi joined the East Africa Community in 2007.

GDP (2009, World Bank): $1.325 billion.
Real growth rate (2009): 3.4%.
Per capita GDP (2009): $151.
Population below poverty line (2009): 70%.
Inflation rate (2009): 10.5%.
Central government budget (2010): Revenues--$588.5 million (internal and foreign grants); expenditures--$699.2 million, including capital expenditures.
Natural resources: Nickel, uranium, rare earth oxides, peat, cobalt, copper, platinum, vanadium, arable land, hydropower, niobium, tantalum, gold, tin, tungsten, kaolin, limestone.
Primary sector (2009 est.; 46% of GDP, of which agriculture is 45% of GDP): Coffee, cotton, tea, corn, sorghum, sweet potatoes, bananas, manioc (tapioca), beef, milk, hides. Arable land (2009 est.)--35.57%.
Secondary sector (2009 est.; 19% of GDP): Types--beverage production, coffee and tea processing, cigarette production, sugar refining, pharmaceuticals, light food processing, chemicals (insecticides), public works construction, consumer goods, assembly of imported components, light consumer goods such as blankets, shoes, soap.
Services (2009 est.): 35% of GDP.
Mining: Commercial quantities of alluvial gold, nickel, phosphates, rare earth, vanadium and other; peat mining.
Trade (2009): Exports--$63.9 million f.o.b.: coffee (50% of export earnings), tea, sugar, cotton fabrics, hides. Major markets--U.K., Germany, Benelux, Switzerland. Imports--$402.3 million f.o.b.: food, beverages, tobacco, chemicals, road vehicles, petroleum products. Major suppliers--Benelux, France, Germany, Saudi Arabia, Japan.
Debt: In 2009, the country’s debt was erased through the International Monetary Fund’s (IMF) Heavily Indebted Poor Countries mechanism.

Geography of Burundi

Location: Central Africa, east of Democratic Republic of the Congo Geographic coordinates: 3 30 S, 30 00 E Map references: Africa Area: total: 27,830 sq km land: 25,650 sq km water: 2,180 sq km Area-comparative: slightly smaller than Maryland Land boundaries: total: 974 km border countries: Democratic Republic of the Congo 233 km, Rwanda 290 km, Tanzania 451 km
0 km (landlocked) Maritime claims: none (landlocked) Climate: equatorial; high plateau with considerable altitude variation (772 m to 2,760 m); average annual temperature varies with altitude from 23 to 17 degrees centigrade but is generally moderate as the average altitude is about 1,700 m; average annual rainfall is about 150 cm; wet seasons from February to May and September to November, and dry seasons from June to August and December to January Terrain: hilly and mountainous, dropping to a plateau in east, some plains Elevation extremes: lowest point: Lake Tanganyika 772 m highest point: Mount Heha 2,670 m Natural resources: nickel, uranium, rare earth oxides, peat, cobalt, copper, platinum (not yet exploited), vanadium Land use: arable land: 44% permanent crops: 9% permanent pastures: 36% forests and woodland: 3% other: 8% (1993 est.) Irrigated land: 140 sq km (1993 est.) Natural hazards: flooding, landslides Environment-current issues: soil erosion as a result of overgrazing and the expansion of agriculture into marginal lands; deforestation (little forested land remains because of uncontrolled cutting of trees for fuel); habitat loss threatens wildlife populations
Environment-international agreements:
party to: Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection signed, but not ratified: Law of the Sea, Nuclear Test Ban Geography-note: landlocked; straddles crest of the Nile-Congo watershed

Government of Burundi

In November 1995, the presidents of Burundi, Rwanda, Uganda, and Zaire (now Democratic Republic of the Congo) announced a regional initiative for a negotiated peace in Burundi facilitated by former Tanzanian President Julius Nyerere. In July 1996, former Burundian President Buyoya returned to power in a bloodless coup. He declared himself president of a transitional republic, even as he suspended the National Assembly, banned opposition groups, and imposed a nationwide curfew. Widespread condemnation of the coup ensued, and regional countries imposed economic sanctions pending a return to a constitutional government. Buyoya agreed in 1996 to liberalize political parties. Nonetheless, fighting between the army and Hutu militias continued. In June 1998, Buyoya promulgated a transitional constitution and announced a partnership between the government and the opposition-led National Assembly. After Facilitator Julius Nyerere's death in October 1999, the regional leaders appointed Nelson Mandela as Facilitator of the Arusha peace process. Under Mandela the faltering peace process was revived, leading to the signing of the Arusha Accords in August 2000 by representatives of the principal Hutu (G-7) and Tutsi (G-10) political parties, the government, and the National Assembly. However, the FDD and FNL armed factions of the CNDD and Palipehutu G-7 parties refused to accept the Arusha Accords, and the armed rebellion continued.

In November 2001, a 3-year transitional government was established under the leadership of Pierre Buyoya (representing the G-10) as transitional president and Domitien Ndayizeye (representing the G-7) as transitional vice president for an initial period of 18 months. In May 2003, Ndayizeye assumed the presidency for 18 months with Alphonse Marie Kadege as vice president. In October and November 2003 the Burundian Government and the former rebel group the CNDD-FDD signed cease-fire and power-sharing agreements, and in March 2004 members of the CNDD-FDD took offices in the government and parliament. The World Bank and other bilateral donors provided financing for Burundi's disarmament, demobilization, and reintegration program for former rebel combatants.

National and regional mediation efforts failed to reach a compromise on post-transition power-sharing arrangements between the predominantly Hutu and Tutsi political parties, and in September 2004 over two-thirds of the parliament--despite a boycott by the Tutsi parties--approved a post-transition constitution. The Arusha Peace Agreement called for local and national elections to be held before the conclusion of the transitional period on October 31, 2004. On October 20, 2004, however, a joint session of the National Assembly and Senate adopted a previously approved draft constitution as an interim constitution that provided for an extension of transitional institutions until elections were held. On February 28, 2005, Burundians overwhelmingly approved a post-transitional constitution in a popular referendum, setting the stage for local and national elections. In April 2005, Burundi's transitional government was again extended and an electoral calendar was established at a regional summit held in Uganda.

In accordance with the new electoral calendar, the Burundian people voted for Communal Council members and National Assembly deputies through direct elections in June and July 2005. An electoral college of Communal Councils indirectly elected Senate members in July 2005. A joint session of the parliament elected Pierre Nkurunziza as President of Burundi on August 19, 2005 in a vote of 151 to 9 with one abstention, establishing the post-transition Hutu majority government. Finally, the Burundian people established Colline (hill) councils through direct elections in September 2005.

In September 2006, the last remaining rebel group in Burundi, the PALIPEHUTU-FNL, signed a peace agreement. Implementation obstacles and spurts of violence from the group slowed the process. In May 2008, the leaders of the PALIPEHUTU-FNL returned to Burundi to address the impasse and negotiate with the Government of Burundi. The two entities agreed upon a durable solution on December 4, 2008. In 2009, the PALIPEHUTU-FNL disarmed and demobilized in accordance with the terms of the agreement. Also in 2009, the FNL agreed to drop its ethnic derivative, “Palipehutu,” and the government agreed to integrate the FNL into the Burundian political system by allowing it to register and act as a full-fledged political party.

With its Communal Council elections on May 26, 2010, Burundi launched the first of five elections in 2010. The direct election of Communal Council members was followed by a direct election for President on June 28, in which Pierre Nkurunziza ran uncontested, and direct elections for National Assembly deputies on July 23. Electoral colleges of Communal Council members in each province indirectly elected Senate members on July 28, 2010. Colline (hill) Council elections were held September 7, 2010. The 2010 elections are widely considered to be the culmination of the peace process and mark the first direct presidential elections since 1993.

Principal Government Officials
President--Pierre Nkurunziza
First Vice President--Therence Sinunguruza
Second Vice President--Gervais Rufyikiri
Speaker of the National Assembly--Pie Ntavyohanyuma
President of the Senate--Gabriel Ntisezerana
Minister of Defense--Pontien Gaciyubwenge
Minister of External Relations and Cooperation (Foreign Minister)--Augustin Nsanze
Minister of Interior--Edouard Nduwimana
Minister of Public Security--Alain Guillaume Bunyoni
Ambassador to the United States--Angele Niyuhire

Burundi maintains an embassy in the United States at Suite 212, 2233 Wisconsin Ave. NW, Washington, DC 20007 (tel. 202-342-2574).

Type: Republic. Democratically elected, post-transition government established August 26, 2005.
Independence: July 1, 1962 (from Belgium).
Constitution: A transitional constitution was adopted October 18, 2001. The parliament adopted a post-transition constitution on September 17, 2004, which was approved in a nationwide referendum held February 28, 2005.
Branches: Executive--President, First Vice President in charge of political and administrative affairs, Second Vice President in charge of social and economic affairs, 26-member Council of Ministers. Legislative--A 100-member directly elected National Assembly plus additional deputies appointed as necessary (currently 18 appointed) to ensure an ethnic and gender composition of 60% Hutu, 40% Tutsi, 30% female, and 3 Batwa members. A 54-member Senate (3 seats reserved for former presidents; 3 seats reserved for the ethnic Twa minority; 2 Senators, one Hutu and one Tutsi, from each of the 16 provinces plus the city of Bujumbura appointed by an electoral college comprised of members of locally elected communal and provincial councils; 14 Senators appointed by the president according to the president's own criteria. Women must comprise 30% of the Senate.) Judicial--constitutional and subsidiary courts.
Administrative subdivisions: 17 provinces including Bujumbura, 117 communes.
Political parties: Multi-party system consisting of 21 registered political parties, of which CNDD (the National Council for the Defense of Democracy, Hutu), FRODEBU (the Front for Democracy in Burundi, predominantly Hutu with some Tutsi membership), and UPRONA (the National Unity and Progress Party, predominantly Tutsi with some Hutu membership) are national, mainstream parties. Other Tutsi and Hutu opposition parties and groups include, among others, PARENA (the Party for National Redress, Tutsi), ABASA (the Burundi African Alliance for the Salvation, Tutsi), PRP (the People's Reconciliation Party, Tutsi), FNL (the National Forces of Liberation, Hutu) and FROLINA/FAP (the Front for the National Liberation of Burundi/Popular Armed Forces, Hutu).
Suffrage: Universal adult.

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History of Burundi

In the 16th century, Burundi was a kingdom characterized by a hierarchical political authority and tributary economic exchange. A king (mwani) headed a princely aristocracy (gwana) which owned most of the land and required a tribute, or tax, from local farmers and herders. In the mid-18th century, this Tutsi royalty consolidated authority over land, production, and distribution with the development of the ubugabire--a patron-client relationship in which the populace received royal protection in exchange for tribute and land tenure.

Although European explorers and missionaries made brief visits to the area as early as 1856, it was not until 1899 that Burundi came under German East African administration. In 1916 Belgian troops occupied the area. In 1923, the League of Nations mandated to Belgium the territory of Ruanda-Urundi, encompassing modern-day Rwanda and Burundi. The Belgians administered the territory through indirect rule, building on the Tutsi-dominated aristocratic hierarchy. Following World War II, Ruanda-Urundi became a United Nations Trust Territory under Belgian administrative authority. After 1948, Belgium permitted the emergence of competing political parties. Two political parties emerged: the Union for National Progress (UPRONA), a multi-ethnic party led by Tutsi Prince Louis Rwagasore and the Christian Democratic Party (PDC) supported by Belgium. In 1961, Prince Rwagasore was assassinated following an UPRONA victory in legislative elections.

Full independence was achieved on July 1, 1962. In the context of weak democratic institutions at independence, Tutsi King Mwambutsa IV established a constitutional monarchy comprising equal numbers of Hutus and Tutsis. The 1965 assassination of the Hutu prime minister set in motion a series of destabilizing Hutu revolts and subsequent governmental repression. In 1966, King Mwambutsa was deposed by his son, Prince Ntare IV, who himself was deposed by his prime minister Capt. Michel Micombero in the same year. Micombero abolished the monarchy and declared a republic, although a de facto military regime emerged. In 1972, an aborted Hutu rebellion triggered the flight of hundreds of thousands of Burundians. Civil unrest continued throughout the late 1960s and early 1970s.

In 1976, Col. Jean-Baptiste Bagaza took power in a bloodless coup. Although Bagaza led a Tutsi-dominated military regime, he encouraged land reform, electoral reform, and national reconciliation. In 1981, a new constitution was promulgated. In 1984, Bagaza was elected head of state, as the sole candidate. After his election, Bagaza's human rights record deteriorated as he suppressed religious activities and detained political opposition members.

In 1987, Maj. Pierre Buyoya overthrew Colonel Bagaza. He dissolved opposition parties, suspended the 1981 constitution, and instituted his ruling Military Committee for National Salvation (CSMN). During 1988, increasing tensions between the ruling Tutsis and the majority Hutus resulted in violent confrontations between the army, the Hutu opposition, and Tutsi hardliners. During this period, an estimated 150,000 people were killed, with tens of thousands of refugees flowing to neighboring countries. Buyoya formed a commission to investigate the causes of the 1988 unrest and to develop a charter for democratic reform.

In 1991, Buyoya approved a constitution that provided for a president, nonethnic government, and a parliament. Burundi's first Hutu president, Melchior Ndadaye, of the Hutu-dominated FRODEBU Party, was elected in 1993. He was assassinated by factions of the Tutsi-dominated armed forces in October 1993. The country then plunged into civil war, which killed tens of thousands of people and displaced hundreds of thousands by the time the FRODEBU government regained control and elected Cyprien Ntaryamira president in January 1994. Nonetheless, the security situation continued to deteriorate. In April 1994, President Ntayamira and Rwandan President Juvenal Habyarimana died in a plane crash. This act marked the beginning of the Rwandan genocide, while in Burundi, the death of Ntaryamira exacerbated the violence and unrest. Sylvestre Ntibantunganya was installed to a 4-year presidency on April 8, but the security situation further declined. The influx of hundreds of thousands of Rwandan refugees and the activities of armed Hutu and Tutsi groups further destabilized the regime.

People of Burundi

At about 300 persons per sq. km., Burundi has the second-largest population density in Sub-Saharan Africa. Most people live on subsistence farms near areas of fertile volcanic soil. The population is made up of three major ethnic groups--Hutu, Tutsi, and Twa. Kirundi is the most widely spoken language; French and Kiswahili also are widely spoken. Intermarriage takes place frequently between the Hutus and Tutsis. Although Hutus encompass the majority of the population, historically Tutsis have been politically and economically dominant.

Nationality: Noun and adjective--Burundian(s).
Population (2009): 8,303,330.
Annual population growth rate (2009): 2.8%.
Ethnic groups: Hutu (Bantu) 85%; Tutsi (Hamitic) 14%; Twa (Pygmy) 1.0%.
Religions: Christian 80% (Roman Catholic 65%-70%, Protestant 10%-15%, indigenous beliefs, Muslim less than 5%.
Languages: Kirundi (official), French (official), Swahili (along Lake Tanganyika and in the Bujumbura area), English.
Education: Years compulsory--6. Attendance--84.05% male, 62.8% female. Literacy (2009)--66.6% of total population over the age of 15 can read and write.
Health (2009): Life expectancy--total population 50.9 years; male 49.4 years; female 52.4 years. Infant mortality rate--101.3/1,000.