African Development Bank’s Country Strategy Paper For The Republic Of Burundi
In June this year, the African Development Bank (AfDB) released its Country Strategy Paper (CSP) for the Republic of Burundi, outlining plans for the 2024-2029 period. As of 31 March 2024, the AfDB’s active portfolio for Burundi comprised 17 public sector projects and one non-sovereign operation in the financial sector, with total commitments amounting to UA 343.4 million. The overall disbursement rate for the portfolio stands at 32.81%, and the portfolio has seen a 26.5% increase with the inclusion of a newly approved railway project, over 4.2 years.
The AfDB’s operations in Burundi aim to enhance national and regional road infrastructure, reducing transport travel time and costs to boost trade, including regional trade, and stimulate economic activity. As a landlocked country, Burundi stands to benefit significantly from reduced regional transport costs, which could increase exports and decrease the value of imports. This, in turn, could bolster foreign exchange reserves, support the national currency, and improve the country’s current account balance, ultimately enhancing the overall competitiveness of Burundi’s economy.
To achieve these goals, the AfDB is committed to supporting the construction and rehabilitation of resilient multimodal transport infrastructure. This includes a significant investment in a 283 km electric railway and a 45-kilometre cross-border road. The anticipated outcomes of these operations are substantial: a reduction in the cost of transporting imported goods from USD 160/tonne to USD 70/tonne, and an improvement in the quality of commercial and transport infrastructure, reflected in an increase in the infrastructure quality score from 1.95 to 2.5.
One of the key projects under the AfDB’s strategy is the Joint Standard Gauge Railway Phase 1, which covers the Tanzania/Burundi section. This project falls under Pillar 2 of the CSP, which focuses on the improvement of transport and energy infrastructure. The Tanzania-Burundi Railway investment project includes capacity building and technical assistance for the Burundi rail transport regulatory authority, with an estimated cost of USD 12 million.
Burundi relies on three main corridors for its external trade: the Northern Corridor (Bujumbura-Rwanda-Uganda-Kenya), primarily by road; the Central Corridor, which includes routes by road (Bujumbura-Kobero-Dodoma-Dar-es-Salaam) or a combination of lake and rail or lake and road (Bujumbura-Kigoma-Tabora-Dar es Salaam); and the Southern Corridor (Bujumbura-Mpulungu-Durban) using lake, railway or road. Additionally, there is an alternative supply route across the Atlantic Ocean, known as the Western Corridor (Bujumbura-Kasai-Matadi-Atlantic Ocean), which, although currently underutilised could become a viable long-term option, especially for trade with the Americas. Presently, 80% of Burundi’s international trade utilises the Central Corridor via Dar es Salaam.
Read the full report here: https://www.afdb.org/sites/default/files/documents/projects-and-operations/burundi_-_country_strategy_paper_csp_2024-2029.pdf