Doing Business in Burundi

Do you want to expand your business into Burundi or hire employees there? Find out the key things you need to know about Burundi expansion below.

Burundi Services

Content

11 minutes read

Burundi Economy Overview

Overview of the Burundi Economy

Taxes in Burundi

Overview of Burundi Business Regulations

What Are the Benefits of Doing Business in Burundi?

What Are the Downsides of Doing Business in Burundi?

International Expansion into Burundi

Business Opportunities in Burundi

Burundi Economy Overview

Currency

Burundian Franc (BIF)

Working hours

45 hours/week

Public/bank holidays

11 public holidays

Capital

Gitega

Languages

Kirundi, French, English

Population

~12.6 million

Minimum hourly salary

20 BIF

Tax year

1st Jan – 31st Dec

Date format

DD/MM/YYYY

Misclassification penalties

In Burundi, misclassifying employees as contractors can lead to penalties, including back taxes, fines, and legal action. Proper classification is crucial to avoid these risks.

Fun fact

Burundi is one of the few countries in the world where drumming holds official cultural status—its Royal Drummers are internationally celebrated and deeply rooted in national traditions.

Bordered by Rwanda to the North, Tanzania to the East, and the Democratic Republic of Congo to the West, the East African nation, Burundi, is home to an abundance of natural resources. Although previously driven by the services sector, the agricultural sector now dominates the Burundi economy, accounting for 80% of the country’s total employment.

Historically, Burundi’s weak infrastructure and persistent political instability have been a concern for foreign investors. However, whilst civil unrest remains, significant regulatory reforms and infrastructural developments, including the construction of photovoltaic power plants and the Bujumbura Port, have marked significant steps towards boosting the country’s economic resilience.

Prominent sectors that may be of interest to investors include the agriculture, mining, and financial sectors. This article explores the benefits of doing business in Burundi and the steps to setting up a legal entity in the country.

Overview of the Burundi Economy

Despite political unrest and instability, Burundi has shown impressive economic resilience, owing mainly to enhanced agricultural production driven by increases in rainfall and foreign investment. In 2023, Burundi’s economy expanded by 2.7% and is set to further grow by 3.9% in 2026. Since COVID-19, economic activity in Burundi has been dominated by the agriculture sector. In 2023, exported agricultural goods, including tea and coffee, accounted for 90% of the country’s foreign exchange earnings.

Industry	Importance to Economy
Agriculture	Agriculture is the backbone of Burundi’s economy, employing the majority of the population. Coffee and tea are the main exports, contributing significantly to foreign exchange earnings.
Mining	Burundi has untapped mineral resources, including nickel, gold, and rare earth minerals, which have potential for export-driven economic growth.
Energy	With minimal energy production, there is a growing need for renewable energy projects, particularly hydropower and solar energy solutions.
Tourism	Burundi’s scenic landscapes, wildlife, and cultural heritage have the potential to develop a robust tourism industry, though the sector remains underdeveloped.
Trade and Regional Integration	As a member of the EAC, Burundi benefits from regional trade opportunities. Improved transportation and logistics could further enhance its trade prospects.

The Government of Burundi (GoB) has identified expanding and robustifying the agricultural sector as key to facilitating long-term sustainable growth and decreasing the country’s dependence on foreign imports. Increased domestic production should support food self-sufficiency in addition to enhancing job creation within the agricultural sector.

In 2018, the GoB implemented the 2018 National Development Plan, which sought to address socio-economic challenges through economic diversification. This plan has since been updated and replaced by the Revised National Development Plan of Burundi 2018-2027 and the Priority Action Plan 2023-2027. The amended plan outlines necessary structural reforms, promotes improved financial governance, and prioritizes private sector job creation.

In addition to agribusinesses, the promotion of extractive businesses is key to economic diversification. Burundi is home to a wealth of mineral resources, including Columbian and tantalum ore, tin ore, and gold deposits. Burundi also has a large capacity for renewable energy.

In 2021, the country inaugurated its first large utility-scale solar field, improving access to electricity nationwide. By developing the country’s infrastructure, Burundi will be able to leverage its potential for mineral exports and renewable energy.

Taxes in Burundi

Employer Tax: 13%

Social Security (INSS)

6% (capped at BIF 450,000 per month)

National Health Insurance

National Employment & Vocational Training Fund (FNEF)

Work Injury Insurance

3% (capped at BIF 80,000 per month)

Employee Tax: 5 - 8%

Social Security (INSS)

4% (capped at BIF 450,000 per month)

National Health Insurance Fund (CNAM)

National Pension Fund (CNAPS)

Income tax

Burundi imposes progressive personal income tax rates, often ranging from 0% to about 30%. While thresholds can vary year to year, an illustrative monthly scale could be:

Taxable Income (BIF)

0 – 150,000

150,001 – 300,000

Above 300,001

Tax Rate

20%

30%

Overview of Burundi Business Regulations

In an effort to promote foreign investment and increase private-sector employment, the government has reformed the business registration process, reinforcing the Burundi Development Agency as the country’s one-stop shop for business incorporation. Located in Bujumbura, the agency facilitates incorporation for small and medium enterprises.

The most common types of legal structures in Burundi include a Sole Owner Company (SU), Limited Liability Partnership (SPRL), Limited Company (SA), and Limited Liability Cooperative. Upon choosing a business structure, the owner/director of the business should prepare the necessary legal documents, including two passport-size photos and the shareholders/directors’ IDs. Companies will also be required to deposit their share capital into a local bank account.

The minimum share capital required will depend on the type of business. A registration fee of 40,000 BIF ($25) must also be paid to the ADB. Upon registering the business, the company will receive its tax identification number and certificate of registration. In an attempt to increase FDI, the GoB has implemented a range of tax incentives.

Under the law, businesses in the agricultural sector are eligible for exemptions on: property tax, duty on raw materials and specialized vehicles, and customs duty. Businesses may also apply for reductions on their corporate tax. The amount deducted will depend on the number of Burundian nationals employed.

As of 2024, with 50-200 Burundian employees can apply for a 2.0% deduction of CIT, whilst companies with over 200 Burundian employees can apply for a 5.0% CIT deduction.

What Are the Benefits of Doing Business in Burundi?

Situated in the Great Lakes Region, Burundi belongs to several prominent trading blocs, including the CEPGL (Economic Community of the Great Lakes Countries), the CEEAC (Economic Community of the States of Central Africa), and the AFCDTA (African Continental Free Trade Area).

Accelerating Burundi’s economic integration into regional trading blocs has been key to supporting sustainable economic growth and strengthening the country’s regulatory frameworks. Improved trade partnerships also offer investors access to a larger and more diverse regional market. Burundi’s abundance of natural resources also makes it a prime location for businesses in the agriculture and mining industries.

In addition to being a large exporter of tea and coffee, Burundi produces many horticultural products, including cotton, sugar, mushrooms, corn, rice, cassava, and sorghum, much of which remains unexploited due to limited infrastructure. Investment in food processing, waste management, and fertilizer production is crucial to increasing productivity and, by extension, meeting domestic and regional demand.

What Are the Downsides of Doing Business in Burundi?

Since claiming independence in 1962, Burundi’s political landscape has been colored by instability and conflict. Over the last 50 years, the country has seen seven coups d’etats and six episodes of civil war. Following Nkurunziza’s repressive regime, which saw targeted assassinations and arrests, the new president (appointed in 2020) has taken action to reform the nation and address socio-economic concerns.

However, despite improvements to regulatory frameworks, corruption persists, and foreign investors must be sensitive to ongoing national and geopolitical tensions.

International Expansion into Burundi

Burundi Employer of Record (EOR)

An alternative and more comprehensive solution to managing administrative and legal tasks is by using an EOR (Employer of Record). An EOR is also a third-party legal service, but differs from a PEO as an EOR assumes all liability, acting as the legal employer. As a result, having an established legal entity in Burundi is not a prerequisite for using an EOR.

The EOR will be responsible for managing the company’s payroll, ensuring tax compliance, hiring talent, and administering benefits, relieving companies of their administrative duties, and affording them the freedom to prioritize their core activities.

Recruitment Agencies

Companies looking solely to hire talent in Burundi may benefit from using a Burundi recruitment agency. Different agencies will cater to different hiring needs, providing a range of staffing solutions and services. The chosen agency should have a strong understanding of Burundi’s labor market and the roles and requirements of the position the company is looking to fill.

Recruitment agencies will help connect companies with individuals capable of supporting their long-term goals.

Burundi Professional Employer Organization (PEO)

Companies looking to lessen their administrative burdens and gain legal support may benefit from contracting a PEO (Professional Employer Organization). A PEO is a third-party legal service that acts as a co-employer, sharing the liability with the company. The PEO will shoulder important administrative duties, including payroll processing and ensuring tax compliance.

In order to use a PEO in Burundi, the client company must have an established legal entity in the country.

Subsidiary Incorporation

Known locally as a SARL, establishing an LLC is a common method of expanding in Burundi. To incorporate an LLC, the company will need to appoint a minimum of one director and one shareholder of any nationality and deposit a minimum share capital of $1.0 in a local bank account. All legal documents, including shareholders’ IDs and the registration form, should be submitted to the ABD.

Additionally, all LLCs are required to submit annual financial statements to the ABD in compliance with Burundi taxation laws.

Branch Registration

If a company wishes to expand its existing operations in Burundi, it may also choose to register a branch office. The method for incorporating a branch office is very similar to establishing an LLC. The business will need to register with and submit their documents to the ABD.

As the branch office is seen as an extension of the parent company, the parent company will be liable for the branch, and the branch will need to comply with the parent company’s statutes and regulations.

Staffing Agency

Alternatively, employers can use a local staffing agency to find employees suitable for temporary or project-based placements. By providing more flexible workforce solutions, staffing agencies can help companies meet their short-term objectives.

Business Opportunities in Burundi

Burundi’s growing agriculture sector, strategic location, and untapped market potential make it a prime location for businesses looking to expand in East Africa. However, owing to regulatory challenges, navigating Burundi’s legal environment can be a daunting and time-consuming task.

Business Opportunity	Reason for Opportunity
Agricultural Modernization	With agriculture dominating the economy, there are opportunities to invest in modern farming techniques, irrigation systems, and value-added crop processing, especially for coffee and tea.
Renewable Energy Development	Burundi faces significant energy shortages. Investments in hydropower, solar, and wind energy could meet growing demand and support industrialization.
Mining and Mineral Processing	The country has rich reserves of nickel, gold, and rare earth minerals. Formalizing and industrializing the mining sector presents significant opportunities.
Infrastructure and Construction	Burundi’s infrastructure, including roads, bridges, and housing, needs substantial development, creating demand for construction services and materials.
Tourism Development	Burundi’s cultural heritage, Lake Tanganyika, and national parks provide opportunities for eco-tourism, hospitality, and adventure tourism projects.
Telecommunications and ICT	Limited telecom infrastructure creates opportunities for investments in mobile networks, internet access, and digital services, particularly for rural areas.
Trade and Logistics Solutions	As part of the EAC, Burundi requires better logistics, transportation, and warehousing solutions to capitalize on regional trade opportunities.

Despite its challenges, Burundi offers unique opportunities for forward-thinking investors willing to navigate its emerging market dynamics. Sectors such as agriculture, energy, and mining hold immense potential, while investments in infrastructure and tourism can drive long-term growth. Businesses that prioritize sustainability and regional integration stand to benefit significantly from Burundi’s untapped resources and strategic location in East Africa.

Fortunately, Remote People streamlines and simplifies the expansion process. Providing comprehensive expert legal support and workforce management solutions, Remote People helps you optimize the benefits of expanding in Burundi.

Are you interested in doing business in Burundi? Remote People can help.

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