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Foreign Direct Investment Analysis In Burundi

FDI in Figures

Foreign direct investment flows into Burundi, which were non-existent until 2007, significantly increased in 2013, reaching USD 6.8 million. In recent years, the Government has made progress in improving the business climate (notably with the adoption of a new investment law). The country ranks 152nd out of 189 economies in the 2016 Doing Business report, a loss of two places compared to the previous year. In 2015, Burundi introduced a number of measures (in French) to improve the business climate. It has also received Russian and Indian investors, who are interested in the country's investment potential. The country has also benefited from loans: USD 11 million from OPEC and USD 42 million from IFAD (to strengthen the country's agricultural policy). 

Political instability, the high cost of public services, ambiguous trade policies, the poor condition of infrastructure, corruption, a low-skilled workforce, a limited privatisation programme and the lack of foreign currency are many of the factors that limit the influx of FDI into the country. Hydroelectric dams are planned to be constructed, namely with the aid of the World Bank and the Netherlands. This should attract foreign investment, while also improving the country's attractiveness in terms of infrastructure.

The mining and agricultural sectors attract most of the investment. France and Japan are the two main investing countries.

Foreign Direct Investment Analysis In Burundi

Foreign Direct Investment Analysis In Burundi

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