V.

Economy

One of the world’s poorest nations, Burundi has a predominantly agricultural economy. The country’s estimated gross domestic product (GDP) was $800 million in 2005. Export earnings are dominated by a single crop: coffee. National budget figures for 1999 showed a large deficit, with $128 million in revenues and $167 million in expenditures. The government and foreign companies dominate the export sector of the economy. Burundi is heavily dependent on foreign aid, principally from Western Europe. Past austerity measures have added to ethnic tensions. In turn, ethnic and political instability has severely affected Burundi’s production capacity. Burundi’s labor force numbers 3.8 million people, of which 15 percent are engaged in agriculture, 22 percent in industry, and 59 percent in services.

A.

Agriculture and Fishing

Subsistence agriculture is the main means of livelihood. Chief food crops are sweet potatoes, cassava, bananas, beans, and maize. The most important cash crop is coffee. Cotton and tea are also grown for export. In 2005 livestock numbered 395,741 cattle, 750,000 goats, and 242,933 sheep. Social and cultural importance is attached to the ownership of large cattle herds. They are, however, economically underutilized and overgrazing has contributed to soil erosion. Commercial fisheries and subsistence fishing around Lake Tanganyika supply domestic demand.

B.

Mining

Mining includes the small-scale exploitation of gold and peat. Important reserves of uranium and nickel (estimated at 5 percent of the world’s reserves) remain to be exploited. Tin and bastnasite ores have been mined sporadically in the past. Test drilling has indicated the presence of oil under Lake Tanganyika, but petroleum exploitation has not yet proved significant.

C.

Manufacturing and Services

Manufacturing is limited to processing agricultural products, particularly coffee, and producing consumer goods intended to decrease reliance on imports. These consumer goods include cigarettes, soap, glass, blankets, cement, shoes, beer, and insecticides. Almost all banking, insurance, transportation, communication, technical, and trading services are located in Bujumbura. Despite official efforts, tourism has not proved to be significant.

D.

Energy

Burundi has two small coal-fired generating plants and two small hydroelectric dams, which in 2003 produced 141 million kilowatt-hours of electricity, or 80 percent of the country’s needs. A portion of the country’s electricity is now supplied by hydroelectric facilities in Bukavu, the DRC. However, for most Burundians, wood and other traditional fuels remain the primary source of energy for heating and cooking, providing 94 percent of all the energy used.

E.

Transportation and Communications

Burundi has no railroads but possesses a road network of about 14,500 km (about 9,000 mi), of which 640 km (400 mi) are paved, and about 1,950 km (about 1,210 mi) are classified as national roads. Most trade is shipped by way of Tanzania through the port of Bujumbura at the head of Lake Tanganyika. Bujumbura has the only international airport. Air Burundi, the national airline, has a limited schedule. The government controls radio and television broadcasting. The country has 1 daily newspaper in French and two weeklies, one in French and one in Kirundi.

F.

Foreign Trade

In 2002 annual exports were $27 million and imports $129 million. In the early 1990s coffee accounted for 81 percent of the value of exports. Cotton, hides, and tea are the only other important exports, with tea increasing to nearly 10 percent of export value in the early 1990s. Principal trading partners for exports were the United Kingdom, Germany, Belgium and Luxembourg, and Switzerland. Textiles, motor vehicles, flour, and petroleum products are imported, principally from Belgium and Luxembourg, France, Germany, and Japan.

G.

Currency and Banking

The unit of currency is the Burundi franc (1,081.60 francs equal U.S.$1; 2005 average). The Banque de la République de Burundi (1967) is the national bank of issue. Other banks include a half dozen commercial banks and a post office savings bank system.