Burundi is destroying its business and needs a change, according to Healy Consultants
Healy Consultants Group PLC
29 February, 2016
Following Pierre Nkurunziza's decision to opt for a third presidential term, the situation in Burundi is escalating which proves devastating for both the people and businesses alike. The death toll spiked to 400 this February following two bombing in the capital Bujumbura and now almost 230,000 have fled the country. Business in Burundi is slowing down at unprecedented rates.
The economy today is in a free fall, resulting in decrease of revenues of 70% and significantly lowered purchasing power. One of the reasons for the lowered purchasing power is the number of refugees who fled the country over the past year.
"A father who was buying two kilos of rice and two kilos of beans every day to feed his five children and his wife is now buying only half a kilo because his domestic helper, his wife and his children have fled into exile," explained a local business man Alexandre Nyabenda to the Guardian Africa. Safety is also an issue as escalating bombings make workers prefer to stay at home than risk exposing themselves. Annual GDP growth for 2015 was -7.2%, and it is set to fall further with the continued mayhem.
The only business taking advantage of the situation is real estate and renting, as "calm" areas have doubled in price for purchase and lease. For example, on one such area called Gasenyi, the rent of a two-bedroom apartment has doubled from 150,000 francs to 300,000.
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