EXPLORING BUSINESS OPPORTUNITIES IN BURUNDI

INTRODUCTION

Burundi, a country located in East Africa, is one of those nations that do not capture the attention of foreign investors, but which still has unrealized potential for business. The nation has its own set of economic problems; however, its position, young population and resources make it a reason for concern for entrepreneurs and investors. In this blog, we will discuss the most promising sectors of BUSINESSES IN BURUNDI and why it can be a prime target for investments in the future.

AGRICULTURE AND AGRIBUSINESS

More than 30 % of the GDP comes from agriculture, which is the key sector in the economy with about 90% of the population engaged in it. The climate in the country is good for the growing of coffee, tea, maize, and bananas. The arabica coffee grown in Burundi is well sought after in the international market, thus putting money in coffee growing or even coffee processing can be very lucrative.

Opportunities also exist in the areas of agro-processing and export. With political will and foreign orientation focused on climate smart agriculture, this sector is one of the many investors looking to bring in funds from sources to boost the agricultural value chain, from farm production to selling the product.

ENERGY AND RENEWABLES

Energy is still one of the biggest bottlenecks for Burundi as only about 11% of the population has access to electricity. This gap provides a business opportunity for many investors, especially in renewable energy sources such as hydropower, solar power, and wind power. The rivers and mountains of Burundi provide good conditions for the construction of small and medium run hydroelectric power stations while solar energy could be used as nob grid alternative for the hinterlands.

To add more, considering the environmental issues and the increasing need for cost-effective power, it is not only advisable but equally important for the country for every energy investment to prop up its economy.

INFRASTRUCTURE AND CONSTRUCTION

The country lacks all the basic democratic infrastructures, be it roads or railways, houses, or communication facilities. It is believed that the country can become a transit centre fusing together East and Central Africa if proper facilities are erected because of the country’s strategic location. Non-national companies whose specialty entails construction, transport services or public – private partnerships can benefit from health care reforms geared towards improving road and other city facilities.

Aside from road networks, development of properties in cities like Bujumbura and Gitega also shows promise. Rapid urbanization and population growth has created a huge market for cheap dwellings, business, and commercial properties as well as commercial offices.

MINING AND NATURAL RESOURCES

Burundi is rich in natural resources, including nickel, gold, and rare earth elements. The country has not fully exploited its mining resources but is seeking international investors to expand its mines and assist in extraction. Recent efforts by the Burundian government focused on the strengthening of the regulatory framework aim at promoting more investment into the sector. Investors in the field including the mining sector are inclusive investors as the country’s economy grows and such investors specifically in the sustainable extraction methods will make returns.

TOURISM

Burundi has political and security problems, but looking at it as a tourist, it has a lot to offer. The country has superb sceneries, national parks, rich cultural heritage including the Lake Tanganyika. There are investment opportunities in eco-tourism and adventure tourism which centres on the nations’ amazing sights and fresh ideas.

If only marketing and conversion of hospitality services is employed suitably, Burundi has a chance of becoming a treasure that is hidden in the tourism sector of East Africa as well as attracting tourists from other areas within East African region.

ICT AND DIGITAL ECONOMY

As the global economy becomes more digitized, there are opportunities to leverage Information and Communication Technologies (ICT) to drive innovation and economic growth in Burundi. There is an increasing mobile penetration rate, and there is increasing craving for internet and the usage of technology in sectors such as education, banking, and agriculture.

Fintech as well as mobile based banking services have begun to pick up in other east African countries and this can be no different in Burundi. The growing adoption of mobile technology, e-commerce, and mobile payment could bridge the gap between consumers and businesses thus augmenting the regional market.

HEALTHCARE AND PHARMACEUTICALS

An improvement is needed in this sector particularly in terms of modernizing healthcare facilities, increasing the availability of basic medicines as well as enhancing the quality of medical education in Burundi’s health sector. There is scope to collaborate with local authorities as well as multinational agencies for building up of healthcare facilities, provision of medical equipment, or creation of pharmaceutical firms.

As the attention of the international community is directed towards facilitation of the healthcare systems development in developing countries, for instance, private enterprises and non-governmental agencies can join efforts for creating health systems which are both socially responsible as well as profitable.

CONCLUSION

There are many business opportunities that are yet to be tapped in the sectors of agriculture, energy, infrastructure, and ICT as Burundi is still considered an emerging market. However, challenges such as political instability and basic weak infrastructures are still a hindrance, the strategic economic policies pursued by the government and the interest shown by international investors are encouraging. They further argue that by adopting a medium to long term investment approach, investors do not only make returns but also support the development of the country.

There might be challenges in the development of the economy of Burundi, but once this is achieved, it may pay off for the risks one is willing to take. There are a perfect meeting of the business needs of the investors and the needs of the country as well as creating synergies that advance growth for both parties.