Burundi is embarking on an ambitious journey to address its rising public debt, which surged by 18% to BIF 6,150.8 billion in 2023. Sweeping reforms have been launched to tackle fiscal imbalances, revitalize the economy, and secure a sustainable financial trajectory. At the heart of these efforts are a revised state budget, the digitization of revenue collection systems, and a pivotal collaboration with the International Monetary Fund (IMF).
The new budget emphasizes fiscal discipline by prioritizing essential expenditures, deferring foreign currency-dependent projects to the next fiscal year, and suspending non-salary activities for several agencies in the latter half of the year. Simultaneously, the government is modernizing the Burundian Revenue Authority (OBR) with digital tools to boost tax collection, close revenue gaps, and strengthen the fiscal framework.
A key element of these reforms is a 38-month Extended Credit Facility (ECF) from the IMF, valued at $271 million, which aims to reduce debt, recalibrate monetary policy, and drive governance reforms. An initial disbursement of $62 million is already earmarked to address balance-of-payment challenges and reinforce external financial buffers.
While agriculture still contributes nearly 40% of GDP, and challenges such as a 70% poverty rate, political instability, and limited industrial development persist, Burundi is prioritizing economic diversification. The government is focusing on sectors like mining, renewable energy, and regional trade through its East African Community (EAC) membership, while seeking to unlock its natural resource wealth. Despite hurdles such as weak infrastructure and climate risks, these comprehensive reforms mark a determined effort to build a more resilient and inclusive economy for long-term prosperity.
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