Country Snapshot
| Population (2019, millions)¹ | 18.62 |
| Population Projections (2030, millions)¹ | 24.84 |
| Economically active population in agriculture (as % of Economically active population)¹², 2019 | 90.6 |
| Capital | Lilongwe |
| Surface Area (km²)² | 118,480 |
| Weather¹¹ | In Lilongwe: Hottest month, November, 17-29°C (average daily minimum and maximum); coldest month, July, 7-23°C; driest months, June and July, 1 mm average rainfall; wettest month, February, 218 mm average rainfall |
| Languages³ | Official: English – Common: Chichewa – Others: Chinyanja, Chiyao, Chitumbuka, Chilomwe, Chinkhonde, Chingoni, Chisena, Chitonga, Chinyakyusa and Chilambya |
| Main Religions³ | Main: Christian – Others: Muslim, others and none |
| Time⁴ | Central Africa Time (CAT) +0200 UTC |
| Driving Orientation⁵ | Left Side |
| Internet Country Code⁶ | .mw |
| Country Calling Code | +265 |
| Plug, Socket and Voltage⁷ | Type G – 230V/50Hz |
| Currency | Kwacha (MWK) – 1/100 = Tambala |
| Exchange Rate (As of 2 February 2019 , per USD)⁸ | 728.00 (buy rate) |
| GDP at Market Prices (2018, current, billions of USD)⁹ | 7.06 |
| GDP Growth (2018, annual %)⁹ | 3.5 |
| Average GDP Growth (2014-2018, annual %)⁹ | 3.69 |
| GDP per Capita, PPP (2018, current international $)⁹ | 1,308 |
| Inflation, Consumer Prices (2018, annual %)⁹ | 12.42 |
| Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 18.26 |
| Total Reserves in Months of Imports (2017)⁹ | 3.46 |
Source:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Reserve Bank of Malawi.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
12AFDB Socio Economic Database
Reasons to Invest in Malawi
- Streamlined Investment Establishment Procedures as Malawi operates the One- Stop Service Centre through MITC, where investors get all necessary investment- processing requirements under one roof in just under five days.
- Political Stability and Security as Malawi has no history of civil war and has a vibrant democracy
- Government support towards private sector growth and development through reforms and strategic co-investments and turnkey projects.
- Large, highly educated, skilled, hardworking, trainable English-speaking workforce.
- Malawi is signatory to a number of multilateral and bilateral trade agreements as part of its trade policy. These provide preferential access to world markets under COMESA, SADC, EU and AGOA.
- Various untapped economic opportunities waiting to be explored in agriculture, energy, mining, manufacturing, infrastructure development/ICT, Tourism and finance among others.
- Malawi offers an increasingly attractive destination for foreign investors, with competitive investors› tax incentives package.
- Modern telecommunication infrastructure, and air connections that access to regional and international markets
- Malawi has seen infrastructure development in the last ten years in sectors such as transport, property development and ICT.
Source: Malawi Investment and Trade Center – MITC.
Youth Literacy Rates ( 2015, %)
| Youth Literacy Rate, Population 15-24 Years, Both Sexes | 72.93 |
| Youth Literacy Rate, Population 15-24 Years, Female | 73.38 |
| Youth Literacy Rate, Population 15-24 Years, Male | 72.49 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
| Unemployment, Total | 5.42 |
| Unemployment, Female | 6.44 |
| Unemployment, Male | 5.42 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2018, % of Ages 15+)
| Labour Force Participation Rate, Total | 77.33 |
| Labour Force Participation Rate, Female | 72.84 |
| Labour Force Participation Rate, Male | 82.04 |
| Labour Force, Total (number) | 7,871,450 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| GDP at Market Prices (current, billions of USD) | 6.04 | 6.37 | 5.43 | 6.3 | 7.06 |
| GDP Growth (annual %) | 5.7 | 2.79 | 2.48 | 4 | 3.5 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
| Indicator | 2018 | 2019 |
| Agriculture | 36.77 | 36.57 |
| Manufacturing | 12.04 | 12.05 |
| Industry | 18.37 | 18.34 |
| Services | 63.85 | 64.09 |
| Construction | 3.57 | 3.57 |
| Electricity, gas and water | 1.58 | 1.57 |
| Mining and quarrying | 1.17 | 1.15 |
| Education | 3.35 | 3.37 |
| Finance, real estate and business services | 16.78 | 16.77 |
| Public administration and Defense | 2.56 | 2.58 |
| Health and Social Work | 3.40 | 3.41 |
| Other services | 6.26 | 6.29 |
| Transport, storage and communication | 8.81 | 8.90 |
| Wholesale and retail trade, hotels and restaurants | 22.69 | 22.76 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| World | 2,944,184 | 2,272,583 | 2,244,811 | 2,566,824 | 2,535,495 |
| South Africa | 523,905 | 413,815 | 381,601 | 455,569 | 472,142 |
| China | 270,044 | 298,400 | 249,196 | 376,564 | 360,890 |
| India | 329,419 | 234,256 | 278,110 | 280,574 | 234,150 |
| United Arab Emirates | 151,319 | 248,064 | 192,172 | 174,865 | 221,331 |
| United Kingdom | 112,541 | 77,324 | 108,142 | 135,948 | 211,959 |
Source: COMTRADE Statistics.
Export Partners (Exported Value, thousands, USD)
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| World | 1,877,596 | 1,045,205 | 1,047,075 | 845,089 | 972,481 |
| Congo DR | 1,489 | 1,574 | 13,803 | 516 | 152,067 |
| Belgium | 164,108 | 103,755 | 165,029 | 191,051 | 127,779 |
| South Africa | 100,805 | 73,874 | 82,466 | 65,950 | 57,333 |
| Egypt | 61,053 | 56,273 | 27,839 | 49,327 | 45,249 |
| United States of America | 55,650 | 42,492 | 55,630 | 38,772 | 45,098 |
Source: COMTRADE Statistics.
Malawi’s Top Import Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 2,944,184 | 2,272,583 | 2,244,811 | 2,566,824 | 2,535,495 | |
| 27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 374,588 | 244,113 | 270,897 | 252,298 | 279,555 |
| 84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 244,976 | 159,802 | 171,179 | 245,847 | 231,201 |
| 49 | Books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans | 89,983 | 71,891 | 113,207 | 205,813 | 220,959 |
| 87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 160,063 | 145,317 | 127,676 | 158,883 | 203,614 |
| 85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 176,092 | 151,527 | 117,154 | 235,482 | 178,180 |
Source: COMSTAT database
Malawi’s Top Export Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 1,877,596 | 1,045,205 | 1,047,075 | 845,089 | 972,481 | |
| 24 | Tobacco and manufactured tobacco substitutes | 639,330 | 477,940 | 524,409 | 532,320 | 484,968 |
| 93 | Arms and ammunition; parts and accessories thereof | 228 | 0 | 151,865 | ||
| 09 | Coffee, tea, mate and spices | 82,968 | 69,906 | 67,555 | 75,690 | 80,730 |
| 17 | Sugars and sugar confectionery | 125,268 | 94,062 | 101,754 | 41,012 | 36,977 |
| 12 | Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medical plants; straw and fodder | 144,378 | 17,507 | 23,474 | 41,916 | 36,358 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inflows | 116.1 | 90.2 | 959.4 | 822.5 | 98.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outflows | 42.2 | 3.4 | 0.5 | 0.2 | 7.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inward Stock | 1,082.1 | 1,342.2 | 1,469.5 | 1,563.8 | 1,589.5 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outflows Stock | 108.6 | 5.4 | 6.7 | 6.7 | 13.2 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
Kenya, Tanzania, Uganda, Netherlands, South Africa, Switzerland, UK, United States, Vietnam and Egypt.
Source: Financial Times, fDi Markets, 2018.
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Communications, Business Services, Building and Construction Materials, Metals, Rubber, Renewable Energy, Food and Tobacco, Healthcare, Tourism.
Source: Financial Times, fDi Markets, 2018.
FDI Inflows Main Companies (in terms of number of projects)
Diamond Trust Bank, Kenya Commercial Bank (KCB), Rainbow Rare Earths, Viettel Burundi, CityBlue Hotels, PriceWaterhouseCoopers (PwC), Ecobank Transnational, Viettel, SEW-Eurodrive, Equity Bank.
Source: Financial Times, fDi Markets, 2018.
Doing Business
Overall Doing Business Ranking
| 2020 | 166/190 |
| 2019 | 168/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
| 2020 Rank | 44/190 |
| Procedures (number) | 4 |
| Time (days) | 5 |
| Cost (% of income per capita*) | 12.3 |
| Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 280
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
| 2020 Rank | 140/190 |
| Payments (number per year) | 24 |
| Time (hours per year) | 232 |
| Total Tax Rate (% of profit) | 41.2 |
| Profit Tax (% of profit) | 28.5 |
| Labour Tax and Contributions (% of profit) | 10.2 |
| Other Taxes (% of profit) | 2.5 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
| 2020 Rank | 169/190 |
| Time to Export: Border Compliance (hours) | 59 |
| Cost to Export: Border Compliance (USD) | 109 |
| Time to Export: Documentary Compliance (hours) | 120 |
| Cost to Export: Documentary Compliance (USD) | 150 |
| Time to Import: Border Compliance (hours) | 154 |
| Cost to Import: Border Compliance (USD) | 444 |
| Time to Import: Documentary Compliance (hours) | 180 |
| Cost to Import: Documentary Compliance (USD) | 1025 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – Law N. 1/24 of the 10th of September 2008
Key guarantees in terms of investment protection include:
- Protection against expropriation or nationalization of investments
- Free transfer of foreign capital and income after taxes as well as the return on capital as dividends of companies with foreign or mixed capital
- For dispute settlement, investors can choose between using an internal institutional arbitrage or institutional arbitration under the rules established by the ICSID
Source: United Nations Conference on Trade and Development, iGuide Burundi.
Investment Incentives
- Acquisition of buildings and plots, essential for the achievement of the exploitation is exempted from transfer taxes.
- A quota of 37% of the amount of depreciable assets invested in the enterprise is deductible as tax credit. The assets have to be used for at least 5 years in the enterprise.
- If the business profit results in a loss in a tax period, the loss may be deducted from the business profit in the next five (5) tax periods, earlier losses being deducted before later losses.
- Tax discount and exemption – A registered investment entity that operates in a Free Trade Zone (FTZ), and foreign companies that have their headquarters in Burundi, that fulfil the requirements stipulated in the Burundian Law on Investment Promotion, is entitled to:
- Exemption from CIT for 10 years of business.
- 15% CIT from year-11 and upwards.
- 10% CIT if the investor employs more than 100
- Burundians.
- Exemption from 15% WHT on dividends.
- Tax-free repatriation of profits.
- Free transfer on purchase or sale of buildings
- A registered investor shall be entitled to a profit tax discount of:
- (2%) if the investor employs between 50 and 200 Burundians; and
- (5%) if the investor employs more than 200 Burundians.
- The workers taken into account are those having a taxable remuneration.
Source: KPMG, Burundi Fiscal Guide 2018 and Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018
Country Snapshot
| Population (2019, millions)¹ | 18.62 |
| Population Projections (2030, millions)¹ | 24.84 |
| Economically active population in agriculture (as % of Economically active population)¹², 2019 | 90.6 |
| Capital | Lilongwe |
| Surface Area (km²)² | 118,480 |
| Weather¹¹ | In Lilongwe: Hottest month, November, 17-29°C (average daily minimum and maximum); coldest month, July, 7-23°C; driest months, June and July, 1 mm average rainfall; wettest month, February, 218 mm average rainfall |
| Languages³ | Official: English – Common: Chichewa – Others: Chinyanja, Chiyao, Chitumbuka, Chilomwe, Chinkhonde, Chingoni, Chisena, Chitonga, Chinyakyusa and Chilambya |
| Main Religions³ | Main: Christian – Others: Muslim, others and none |
| Time⁴ | Central Africa Time (CAT) +0200 UTC |
| Driving Orientation⁵ | Left Side |
| Internet Country Code⁶ | .mw |
| Country Calling Code | +265 |
| Plug, Socket and Voltage⁷ | Type G – 230V/50Hz |
| Currency | Kwacha (MWK) – 1/100 = Tambala |
| Exchange Rate (As of 2 February 2019 , per USD)⁸ | 728.00 (buy rate) |
| GDP at Market Prices (2018, current, billions of USD)⁹ | 7.06 |
| GDP Growth (2018, annual %)⁹ | 3.5 |
| Average GDP Growth (2014-2018, annual %)⁹ | 3.69 |
| GDP per Capita, PPP (2018, current international $)⁹ | 1,308 |
| Inflation, Consumer Prices (2018, annual %)⁹ | 12.42 |
| Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 18.26 |
| Total Reserves in Months of Imports (2017)⁹ | 3.46 |
Source:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Reserve Bank of Malawi.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
12AFDB Socio Economic Database
Reasons to Invest in Malawi
- Streamlined Investment Establishment Procedures as Malawi operates the One- Stop Service Centre through MITC, where investors get all necessary investment- processing requirements under one roof in just under five days.
- Political Stability and Security as Malawi has no history of civil war and has a vibrant democracy
- Government support towards private sector growth and development through reforms and strategic co-investments and turnkey projects.
- Large, highly educated, skilled, hardworking, trainable English-speaking workforce.
- Malawi is signatory to a number of multilateral and bilateral trade agreements as part of its trade policy. These provide preferential access to world markets under COMESA, SADC, EU and AGOA.
- Various untapped economic opportunities waiting to be explored in agriculture, energy, mining, manufacturing, infrastructure development/ICT, Tourism and finance among others.
- Malawi offers an increasingly attractive destination for foreign investors, with competitive investors› tax incentives package.
- Modern telecommunication infrastructure, and air connections that access to regional and international markets
- Malawi has seen infrastructure development in the last ten years in sectors such as transport, property development and ICT.
Source: Malawi Investment and Trade Center – MITC.
Youth Literacy Rates ( 2015, %)
| Youth Literacy Rate, Population 15-24 Years, Both Sexes | 72.93 |
| Youth Literacy Rate, Population 15-24 Years, Female | 73.38 |
| Youth Literacy Rate, Population 15-24 Years, Male | 72.49 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
| Unemployment, Total | 5.42 |
| Unemployment, Female | 6.44 |
| Unemployment, Male | 5.42 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2018, % of Ages 15+)
| Labour Force Participation Rate, Total | 77.33 |
| Labour Force Participation Rate, Female | 72.84 |
| Labour Force Participation Rate, Male | 82.04 |
| Labour Force, Total (number) | 7,871,450 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| GDP at Market Prices (current, billions of USD) | 6.04 | 6.37 | 5.43 | 6.3 | 7.06 |
| GDP Growth (annual %) | 5.7 | 2.79 | 2.48 | 4 | 3.5 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
| Indicator | 2018 | 2019 |
| Agriculture | 36.77 | 36.57 |
| Manufacturing | 12.04 | 12.05 |
| Industry | 18.37 | 18.34 |
| Services | 63.85 | 64.09 |
| Construction | 3.57 | 3.57 |
| Electricity, gas and water | 1.58 | 1.57 |
| Mining and quarrying | 1.17 | 1.15 |
| Education | 3.35 | 3.37 |
| Finance, real estate and business services | 16.78 | 16.77 |
| Public administration and Defense | 2.56 | 2.58 |
| Health and Social Work | 3.40 | 3.41 |
| Other services | 6.26 | 6.29 |
| Transport, storage and communication | 8.81 | 8.90 |
| Wholesale and retail trade, hotels and restaurants | 22.69 | 22.76 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| World | 2,944,184 | 2,272,583 | 2,244,811 | 2,566,824 | 2,535,495 |
| South Africa | 523,905 | 413,815 | 381,601 | 455,569 | 472,142 |
| China | 270,044 | 298,400 | 249,196 | 376,564 | 360,890 |
| India | 329,419 | 234,256 | 278,110 | 280,574 | 234,150 |
| United Arab Emirates | 151,319 | 248,064 | 192,172 | 174,865 | 221,331 |
| United Kingdom | 112,541 | 77,324 | 108,142 | 135,948 | 211,959 |
Source: COMTRADE Statistics.
Export Partners (Exported Value, thousands, USD)
| 2014 | 2015 | 2016 | 2017 | 2018 | |
| World | 1,877,596 | 1,045,205 | 1,047,075 | 845,089 | 972,481 |
| Congo DR | 1,489 | 1,574 | 13,803 | 516 | 152,067 |
| Belgium | 164,108 | 103,755 | 165,029 | 191,051 | 127,779 |
| South Africa | 100,805 | 73,874 | 82,466 | 65,950 | 57,333 |
| Egypt | 61,053 | 56,273 | 27,839 | 49,327 | 45,249 |
| United States of America | 55,650 | 42,492 | 55,630 | 38,772 | 45,098 |
Source: COMTRADE Statistics.
Malawi’s Top Import Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 2,944,184 | 2,272,583 | 2,244,811 | 2,566,824 | 2,535,495 | |
| 27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 374,588 | 244,113 | 270,897 | 252,298 | 279,555 |
| 84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 244,976 | 159,802 | 171,179 | 245,847 | 231,201 |
| 49 | Books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans | 89,983 | 71,891 | 113,207 | 205,813 | 220,959 |
| 87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 160,063 | 145,317 | 127,676 | 158,883 | 203,614 |
| 85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 176,092 | 151,527 | 117,154 | 235,482 | 178,180 |
Source: COMSTAT database
Malawi’s Top Export Products (USD ‘000)
| Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
| All products | 1,877,596 | 1,045,205 | 1,047,075 | 845,089 | 972,481 | |
| 24 | Tobacco and manufactured tobacco substitutes | 639,330 | 477,940 | 524,409 | 532,320 | 484,968 |
| 93 | Arms and ammunition; parts and accessories thereof | 228 | 0 | 151,865 | ||
| 09 | Coffee, tea, mate and spices | 82,968 | 69,906 | 67,555 | 75,690 | 80,730 |
| 17 | Sugars and sugar confectionery | 125,268 | 94,062 | 101,754 | 41,012 | 36,977 |
| 12 | Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medical plants; straw and fodder | 144,378 | 17,507 | 23,474 | 41,916 | 36,358 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inflows | 116.1 | 90.2 | 959.4 | 822.5 | 98.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outflows | 42.2 | 3.4 | 0.5 | 0.2 | 7.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Inward Stock | 1,082.1 | 1,342.2 | 1,469.5 | 1,563.8 | 1,589.5 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows Stock (millions of USD)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 |
| FDI Outflows Stock | 108.6 | 5.4 | 6.7 | 6.7 | 13.2 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
Kenya, Tanzania, Uganda, Netherlands, South Africa, Switzerland, UK, United States, Vietnam and Egypt.
Source: Financial Times, fDi Markets, 2018.
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Communications, Business Services, Building and Construction Materials, Metals, Rubber, Renewable Energy, Food and Tobacco, Healthcare, Tourism.
Source: Financial Times, fDi Markets, 2018.
FDI Inflows Main Companies (in terms of number of projects)
Diamond Trust Bank, Kenya Commercial Bank (KCB), Rainbow Rare Earths, Viettel Burundi, CityBlue Hotels, PriceWaterhouseCoopers (PwC), Ecobank Transnational, Viettel, SEW-Eurodrive, Equity Bank.
Source: Financial Times, fDi Markets, 2018.
Doing Business
Overall Doing Business Ranking
| 2020 | 166/190 |
| 2019 | 168/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
| 2020 Rank | 44/190 |
| Procedures (number) | 4 |
| Time (days) | 5 |
| Cost (% of income per capita*) | 12.3 |
| Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 280
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
| 2020 Rank | 140/190 |
| Payments (number per year) | 24 |
| Time (hours per year) | 232 |
| Total Tax Rate (% of profit) | 41.2 |
| Profit Tax (% of profit) | 28.5 |
| Labour Tax and Contributions (% of profit) | 10.2 |
| Other Taxes (% of profit) | 2.5 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
| 2020 Rank | 169/190 |
| Time to Export: Border Compliance (hours) | 59 |
| Cost to Export: Border Compliance (USD) | 109 |
| Time to Export: Documentary Compliance (hours) | 120 |
| Cost to Export: Documentary Compliance (USD) | 150 |
| Time to Import: Border Compliance (hours) | 154 |
| Cost to Import: Border Compliance (USD) | 444 |
| Time to Import: Documentary Compliance (hours) | 180 |
| Cost to Import: Documentary Compliance (USD) | 1025 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – Law N. 1/24 of the 10th of September 2008
Key guarantees in terms of investment protection include:
- Protection against expropriation or nationalization of investments
- Free transfer of foreign capital and income after taxes as well as the return on capital as dividends of companies with foreign or mixed capital
- For dispute settlement, investors can choose between using an internal institutional arbitrage or institutional arbitration under the rules established by the ICSID
Source: United Nations Conference on Trade and Development, iGuide Burundi.
Investment Incentives
- Acquisition of buildings and plots, essential for the achievement of the exploitation is exempted from transfer taxes.
- A quota of 37% of the amount of depreciable assets invested in the enterprise is deductible as tax credit. The assets have to be used for at least 5 years in the enterprise.
- If the business profit results in a loss in a tax period, the loss may be deducted from the business profit in the next five (5) tax periods, earlier losses being deducted before later losses.
- Tax discount and exemption – A registered investment entity that operates in a Free Trade Zone (FTZ), and foreign companies that have their headquarters in Burundi, that fulfil the requirements stipulated in the Burundian Law on Investment Promotion, is entitled to:
- Exemption from CIT for 10 years of business.
- 15% CIT from year-11 and upwards.
- 10% CIT if the investor employs more than 100
- Burundians.
- Exemption from 15% WHT on dividends.
- Tax-free repatriation of profits.
- Free transfer on purchase or sale of buildings
- A registered investor shall be entitled to a profit tax discount of:
- (2%) if the investor employs between 50 and 200 Burundians; and
- (5%) if the investor employs more than 200 Burundians.
- The workers taken into account are those having a taxable remuneration.
Source: KPMG, Burundi Fiscal Guide 2018 and Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018