Geneva, 12 April 2010 - Following a decade of conflict that has significantly affected the political, economic and social landscape of Burundi, the country is now engaged in an ambitious reform process and wants to attract foreign investors, national officials and investment experts said today at a meeting unveiling UNCTAD´s Investment Policy Review (IPR) of Burundi.
The IPR confirms that Burundi´s policy is to attract more beneficial foreign investment. It says consolidation of the peace process and ongoing reforms will allow the country to move towards this objective.
The review was presented at a forum in Geneva during which government representatives, development partners and the private sector of Burundi debated the legal, strategic and institutional recommendations proposed by UNCTAD in its report.
Opening the debate, UNCTAD Secretary-General Supachai Panitchpakdi highlighted the importance of the ongoing reform process and said "the recommendations of the review of UNCTAD, as well as the follow-up activities to implement them, would complement the ambitious actions of the Government of Burundi with the support of the international community."
The Burundian Minister of External Relations and International Cooperation, Augustin Nsanze, welcomed the recommendations of the report and UNCTAD´s work in support of least developed countries (LDCs). He expressed his government´s gratitude to the international community for its support for Burundi´s economic and social recovery. He also stressed that everything will be done to enable forthcoming elections to take place in full transparency and peace.
The study says consolidation of peace and political stability are prerequisites for attracting more foreign direct investment (FDI) to Burundi. Among other key measures identified in the IPR are improving competitiveness; modernizing the legal framework for investment; and harmonizing the investment framework with similar initiatives of the East African Community.
UNCTAD also encouraged Burundi to strengthen its institutions. "The creation of an investment promotion agency in late 2009 was an important step towards a systematic approach to promoting and facilitating FDI," said James Zhan, Director of UNCTAD´s Investment and Enterprise Division. In addition to improving the quality of information and its dissemination to potential investors, Burundi also should better exploit its potential in such economic sectors as services, tourism, mining, and agriculture, he said.
Burundi´s Minister of Planning and Reconstruction, Abdallah Tabu Manirakiza, endorsed the recommendations of UNCTAD´s IPR and presented the objectives of the government with respect to foreign investment. He stressed that numerous reforms have been realized in the past few years, including steps related to taxation, foreign exchange, and labour and business laws. He also noted the challenges that remain, including the consolidation of peace, the strengthening of physical and human infrastructure, and the realization of opportunities generated by the process of regional integration in East Africa. The Minister said Burundi wishes to continue to benefit from UNCTAD´s support in the years to come.
Senior representatives of the private sector said the country is on the right path for attracting more private investment, but must continue its reform process.
UNCTAD undertakes Investment Policy Reviews of developing and transition countries at the request of their governments. These reviews - 29 of which have been completed to date - assess a country´s policy, legal and institutional framework with a view to attracting and reaping the benefits of increased FDI. An assessment of the implementation of the recommendations is done about five years after the publication of the IPR, and leads to additional actions to improve the development impact of foreign investment.
