RELATIONS WITH THE EU
The European Union and Burundi
Relations between Burundi and the European Union (EU) are based on three complementary pillars: the political dimension, economic and trade cooperation and development cooperation.
Political Relations
The EU has been present in Burundi since 1978 and, as a partner of Burundi, is fully committed to accompany the country's development. In collaboration with Burundian authorities and in line with the country's priorities, the EU initiates various actions in line with the priorities of the National Development Plan's axes (2018-2027). In February 2022, the EU officially lifted the appropriate measures of Article 96 of the Cotonou Agreement and normalised its relations with Burundi. This decision followed the intense political dialogue undertaken after the general elections in May 2020, and the reforms initiated by the authorities in terms of good governance.
The EU attaches great importance to regional stability and supports Burundi in its role as a factor for stability in the Great Lakes region, through the Renewed EU Great Lakes Strategy and within the East African Community (EAC). Furthermore, the EU continues to support peacekeeping and stability operations in Somalia through the AMISOM mission, in which Burundi is participating with a contingent of soldiers.Through ongoing dialogue with authorities, the EU promotes actions that are sustainable in the long term and align with a shared strategic vision with Burundi. This includes essential sectors such as rural development and nutrition, health, energy, environment, justice, education and good governance.
This partnership between the EU and Burundi enables continuous exchanges on shared values, including the preservation of political space, respect for human rights and environmental protection. In this regard, the recent EU Regulation on Deforestation (adopted in April 2023) aims to reduce the EU's impact, including imports into the European market, on global deforestation and forest degradation.
Economic Relations
Burundi's economy is characterized as "resilient" by the International Monetary Fund (IMF). It has experienced several periods of growth after setbacks caused by significant instability (political crisis in 2015, GDP contraction at -3.9%) or the COVID-19 pandemic (reduced growth to +0.3% in 2020). The annual GDP growth is currently at +1.8% in 2022 (according to the World Bank). However, the effects of the war in Ukraine are felt through soaring inflation (18.9% in 2022 according to the Central Bank of Burundi, compared to a forecast of 8% at the beginning of the year), exacerbated by the rise in oil prices.
Key macroeconomic challenges include a significant imbalance in the external balance (deficit of 15.5% of GDP in 2022), a persistent and even growing gap between official and parallel exchange rates (80% in December 2022) due to a scarcity of currencies, high public debt (estimated at 67.5% of GDP in 2022 according to the World Bank), double-digit inflation (see above), and the monetization of the budget deficit.
The structure of the economy has remained unchanged for years, with limited diversification of the productive sector. Agriculture represents the foundation of the Burundian economy. The informal sector remains the primary source of employment in Burundi.
Since 2022, the country has benefited from the positive effects of restoring dialogue with the international community, including the resumption of economic cooperation with the IMF. The government is currently negotiating a new credit program for $260 million starting in July 2023.
In July 2022, the EU established a "Roadmap for the Return to Eligibility for Budget Support in Burundi." Several actions stem from this, some of which are already in progress, such as the PEFA (Public Expenditure and Financial Accountability) assessment in 2023. Support is also provided to specialized civil society organizations to enhance citizen participation and vigilance in economic affairs and transparency of public finances. An economic governance support program is being defined to assist Public Financial Management reforms. It is expected to be implemented from 2024.
Trade Relations
Given its geographical positioning, Burundi considers regional integration a priority to increase and diversify its economy within its National Development Plan.
Burundi is a member of more than fifty sub-regional, regional, and international organizations, including four regional organizations with an economic focus: (i) the Economic Community of the Great Lakes Countries (CEPGL since 1976), (ii) the Economic Community of Central African States (CEEAC, since 1984), (iii) the Common Market for Eastern and Southern Africa (COMESA since 1994), and (iv) the East African Community (EAC).
Burundi has also joined Specific Regional Organizations for sectoral cooperation such as (v) the Nile Basin Initiative (1999), (vi) the Lake Tanganyika Authority (2003), and (vii) the International Conference on the Great Lakes Region (2004). In recent years, particularly since the adoption of the National Development Plan, the focus has been on the East African Community.
According to the World Bank, the current account deficit reached -15.5% in 2022, notably due to oil prices. According to the National Institute of Statistics in Burundi, the coverage rate of imports by exports in 2022 was 10.4%..
The main trading partners within the African continent are, in order of priority, the EAC, the COMESA and the SADC. The European Union represents less than 10% of trade. Agricultural products constitute the primary Burundian exports to the EU (86% of total exports to the EU), while chemicals (32.5%) and machinery and transport equipment (29.9%) are the main imports.
The European Union finances trade integration programs with the East African Community, the Economic Community of Central African States (CEEAC), the Common Market for Eastern and Southern Africa (COMESA), and the progressive establishment of the African Continental Free Trade Area (AfCFTA).
Development Cooperation
Between 2015 and 2021, the Team Europe (the European Union and its member states in Burundi, namely Belgium, Germany, France, and the Netherlands, plus Switzerland, and the European Investment Bank) financed projects totalling around $ 908.2 million. This represents over 33% of the total financial support from development partners, making Europe collectively the largest public funder in Burundi.
Between 2014 and 2020, the European Union's aid (through the 11th European Development Fund (EDF)) to Burundi focused on the following sectors, with a financial envelope of 332 million euros:
- Infrastructure and rural development
- Health
- Energy
- Good governance
- Technical cooperation facility
- Support to non-state actors
Several regional projects were also funded during the previous programmatic phase (2014-2020), with a financial envelope of around 73 million euros. The main projects include electrical interconnection projects with neighbouring countries (Rwanda and the Democratic Republic of the Congo), projects for the management and protection of water and fishery resources in Lake Tanganyika, and projects to enhance trade and stability in the sub-region.
With the expiration of the Cotonou Agreement in 2020, a new partnership agreement between the EU and the Organisation of African, Caribbean and Pacific States (OEACP), known as Samoa Agreement, was signed in November 15th, 2023, and came into force in January 1st, 2024.
In 2021, the European Union launched a new multiannual programmatic phase for its cooperation in Burundi, covering the period 2021-2027. For the first segment of this period (2021-2024), the European Union has allocated a financial envelope of 194 million euros under its Multiannual Indicative Programme (MIP). The EU's MIP in Burundi targets three priority areas of intervention:
- Inclusive, green, sustainable, and job-creating growth, focusing on key development sectors such as sustainable and equitable value-chains in the agricultural sector and food security, renewable and clean energy, protection and management of natural resources and biodiversity, with a cross-cutting dimension aiming to support the governance of these sectors.
- Human development and basic services, covering priority sectors such as public health, drinking water, hygiene and sanitation services, fundamental education, socio-professional training, and the promotion of good governance in these sectors.
- Good governance and the rule of law, contributing to the strengthening of democratic culture and reconciliation, human rights, justice, economic governance, and the business climate.
In addition to these three pillars, measures in favour of local civil society organisations (CSOs) are included, supporting Burundian CSOs in technical, financial, and advocacy aspects, structuring networks, federations, or groupings of CSOs, creating dialogue spaces between civil society and authorities, and sectoral governance.
To further increase its means of action beyond this national IMP envelope, the EU Delegation to Burundi has managed to mobilise around 83 million euros for regional projects specifically targeting Burundi. These include the NaturAfrica programme, to contribute to the biodiversity protection and conservation of the Kibira-Nyungwe transboundary ecological corridor (Burundi-Rwanda), the TAKIWAMA programme (Tanganyika and Kivu Water Management), aimed at protecting and managing the transboundary water resources of lakes Tanganyika and Kivu, the Forced Displacement programme, to provide sustainable solutions for Burundian refugees in the Great Lakes region, and the Peace and Security programme, to support the consolidation of peace and security in the Great Lakes region.
The sectors supported by the European Union in Burundi align perfectly with the goals and strategic orientations of Burundi National Development Plan 2018-2027.
The Team Europe in Burundi supports concrete projects in critical sectors such as health, energy, environment, vocational training, education, and justice. In particular, the main "Team Europe Initiatives" (TEI) in Burundi cover the Health and Energy sectors. These TEIs focus on common objectives at all levels (national, multinational, or regional). They constitute the flagship element of the "Team Europe" approach by bringing together the best possible combination of tools, modalities, sources of funding, and partners to produce visible and sustainable effects on the ground. These two TEIs align perfectly with the EU "Global Gateway" strategy, which aims to mobilise major investments in infrastructure development for sustainable and equitable development in five priority areas: 1) digital technologies; 2) climate and energy; 3) transportation; 4) health; 5) education and research.
Global Gateway
Global Gateway is the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world.
Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement.
Global Gateway aims to mobilise up to €300 billion in investments.
Through a ''Team Europe approach'', Global Gateway will bring together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.
In Burundi the interests of the EU are multiple, justifying an engagement of the EU with and for Burundi both politically and in terms of cooperation.
The proposed priority areas are the following:
Inclusive, green, sustainable, and job-creating growth
This area provides for the following specific objectives:
- The improvement of the income of the population in rural areas and the sustainable use of natural resources.
- The development of sustainable and fair value chains in the agricultural sector.
- The development of the energy sector by favoring equitable access for all to clean energy.
- The improvement of the management of natural resources, protection of the environment, the conservation of biodiversity, and the fight against climate change.
- National-level operations to be strengthened and complemented through actions at the regional level.
Human development and basic services
This area is structured around three sectors:
- Health
- Water, hygiene, and sanitation
- Basic Education and Vocational Training
A number of aspects and approaches will be taken into account in future interventions with the specific objective of improving the living conditions of the Burundian population, in particular the most vulnerable groups and young people.
Good governance and rule of law
This area revolves around three sectors:
- Democratic culture and reconciliation
- Human rights and access to justice
- Economic governance and climate Business
Our programmes
The Multiannual Indicative Programme (MIP) for Burundi for 2021-2024 amounts to €194 million.
Priority area 1: ‘’Inclusive, green, sustainable, and job-creating growth’’ facilitates the improvement of food and nutritional security, the strengthening of sustainable agricultural value chains, territorial planning, and land management, and access to reliable, modern, and sustainable energy services in rural areas. Part of the agenda is also the governance of forest heritage, protected areas and national parks, biodiversity, water, and fisheries resources.
Priority area 2: ‘’Human development and basic services’’ promotes Universal health coverage, drinking water distribution and wastewater collection and infrastructure, and good hygiene in urban areas. Furthermore, it improves education facilities and services in primary schools, structures, equipment, and human resources necessary for training professionals and vocational training in line with labor market needs.
Priority area 3: ‘’Good governance and rule of law’’ offers mechanisms for conflict prevention, resolution, and peaceful transmission of memory while supporting the dialogue between civil society actors and authorities within the framework of the democratic process. Finally, it encourages the capacities of the media to contribute to the development of a free environment, pluralistic, independent, and conducive to national reconciliation with monitoring and protecting human rights.
Support measures
In recent years, the legal and regulatory environment has become increasingly binding on national and international civil society organizations. As a result, international NGOs suffer from increasingly strict controls which limit their room for action, while Burundian CSOs have been left out of any discussion or consultation on development policies and have seen their operational capacities sharply decrease. In this context, it is essential to provide specific measures in favor of CSOs aimed at:
Strengthening Burundian CSOs technically, financially, and in terms of management and advocacy.
Focusing on the improvement of the legal and regulatory framework concerning CSOs.
Supporting the creation of spaces for dialogue between civil society and the authorities.
This support will be complementary to the involvement of CSOs in the implementation of actions in the priority sectors of the MIP and within the framework of sector dialogue.