Burundi Eco Burundi: Industrialization is stalling

Burundi occupies the 51th place in terms of industrialization out of the 52 African countries ranked. This emerges from a 2022 report on the industrialization of African countries made public by the African Development Bank (AfDB). This ranking invites the government of Burundi to spare no effort to develop this fundamental sector in the fight once morest unemployment and poverty.

Burundi still records shortcomings in almost all sectors likely to boost industrialization.

Burundi has almost walked in place since 2010 when it comes to industrialization. According to the 2022 report on the industrialization of African countries made public by the African Development Bank (AfDB), since 2010 Burundi has been in the category of lower quintile countries in terms of industrialization. In 2016 and 2017, Burundi ranks 50th place out of 52 African countries ranked by the AfDB. In 2018, Burundi fell one place and occupied the penultimate place before Gambia, a place it has not left since.

According to Faustin Ndikumana, president of the Burundian organization Parole et Action pour le Réveil des Consciences et l’Evolution des Mentalités (PARCEM), this ranking invites the government of Burundi to spare no effort to develop this fundamental sector in the fight once morest unemployment and poverty. Moreover, according to this ADB report, the development of a productive industry is the most promising strategy for creating large-scale formal jobs and promoting growth whose benefits are widely shared.

If goodwill were enough…

The Government of Burundi has planned various initiatives to boost the industry sector. These include the adoption of the National Industrialization Policy of Burundi (PNIB) in 2020. This proposes that by 2027 Burundi will have a dynamic, diversified, competitive industrial fabric, engine of development and structural transformation of the economy. Burundi must be able to transform its natural resources so that the industrial sector can contribute at least 25% to GDP by 2027, according to this same policy. The sectors targeted by this policy are agro-industry, manufacturing (textile and clothing industry, assembly industry, chemical industry), mining, hotel industry and tourism. The development of production support infrastructure, financing mechanisms and the creation of an environment conducive to industrialization constitute the basis.

Industrialization is also one of the pillars of the structural transformation of Burundi’s economy in the National Development Plan (PND). The National Industrial and Commercial Development Strategy proposed in this document aims to diversify the national economy and make the industrial sector the engine of economic growth in Burundi.

A long road full of pitfalls

Despite the goodwill of the government to promote industrialization, Burundi still records shortcomings in almost all sectors likely to boost industrialization. There is a great deficit in basic infrastructure such as the railway, the poor state of most roads, etc. Burundi also suffers from insufficient drinking water to promote agro-industry. With regard to electricity, according to the PND 2018-2027, Burundi will need at least 400 MW for its industrialization. However, the current production of electricity is around 250 MW.

“In Africa, the path to prosperity is through industrial development,” reads this AfDB report. This means that it is difficult if not impossible for a country to develop without the contribution of this key sector. As this report suggests, African governments must actively promote industrial development not only by creating conditions conducive to industrialization, the provision of infrastructure, the qualification of the workforce and the improvement of investment climate, but also by identifying and supporting infant industries.

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