| Burundi | Rwanda | Uganda | Tanzania | Kenya | |
|---|---|---|---|---|---|
| GDP (US$ bn) | 3.20 | 11.00 | 40.50 | 70.00 | 110.00 |
| Population (mn) | 12.20 | 13.30 | 45.80 | 61.50 | 53.00 |
| GDP per capita (US$) | ..... | ..... | 884 | 1 138 | 2 075 |
| GDP per capita PPP (US$) | 790 | 2 490 | 2 360 | 2 930 | 5 270 |
| HDI | 0.426 | 0.534 | 0.525 | 0.549 | 0.575 |
| IHDI | no data | 0.402 | 0.396 | 0.418 | 0.426 |
Burundi has made some progress in political stabilization and expanding access to primary education. However, despite these efforts, Burundi's economic growth and human development remain severely constrained compared to its larger East African Community (EAC) neighbours.
Burundi is a small, landlocked nation in the Great Lakes region, characterized by high population density and extreme vulnerability to external shocks, such as erratic weather patterns affecting agricultural yields and fluctuations in global commodity prices.
These structural challenges are exacerbated by an extremely narrow tax base. A dominant subsistence agriculture sector and substantial tax exemptions designed to attract foreign investment limit government tax revenue to approximately 10% of GDP. Consequently, this limits the state's fiscal space to finance critical public investments in infrastructure, health, and secondary education.
Coffee and tea account for more than 70% of Burundi’s total merchandise export earnings. This heavy primary-product dependence leaves the country highly vulnerable to global price fluctuations, which hinders foreign exchange accumulation and limits economic diversification.
| Destination | 2010 | 2015 | 2018 | 2021 |
|---|---|---|---|---|
| European Union | 2.5 | 3.2 | 3.8 | 4.5 |
| China | 0.8 | 1.4 | 1.9 | 2.4 |
| India | 0.6 | 1.1 | 1.5 | 1.9 |
| Rest of Africa | 1.2 | 1.8 | 2.3 | 2.9 |
| Within EAC | 1.0 | 1.6 | 2.2 | 3.1 |
The East African Community (EAC) was re-established to foster deep economic integration, aiming for a common market, a customs union, and eventually a monetary union. By lowering internal tariffs, the regional bloc aims to help member nations achieve scale and industrialise.
However, the benefits of this integration have been highly uneven. Kenya and Tanzania dominate intra-regional exports, accounting for over 75% of trade within the EAC.
In contrast, Burundi’s export trade within the regional market has remained extremely low. This stagnation is largely caused by profound infrastructure bottlenecks, including a lack of paved regional trade corridors, non-existent domestic railway networks connecting to major Indian Ocean ports (such as Dar es Salaam or Mombasa), and high trade-friction costs at border crossings, which significantly increase shipping delays and transport costs.
With reference to Extract A and Extract B, examine two factors that constrain economic growth in Burundi.