IMF paints bleak picture for struggling Burundi

PUBLISHED: Thu, 20 Apr 2017 08:21:14 GMT

Elias Biryabarema | NAIROBI

The International Monetary Fund has slashed its projection for Burundi’s economic growth this year to nil and projected just 0.1 percent in 2018.

It gave no specific reason for the 2017 revision from 2 percent, but Burundi has been suffering from a severe drought like much of the wider region.

The poor, central African nation’s economy has also been battered by almost two years of political instability triggered by President Pierre Nkurunziza’s decision to seek a third term.

He secured re-election in July 2015 but some of his opponents who insist extension of his rule violated the country’s constitution

The government has said it expects the economy to expand by 2.9 percent this year after shrinking in 2016.

But continuing instability has forced Burundi to rely on modest revenues from coffee and tea exports for foreign exchange after some western donors who blame the government for not acting to end the violence suspended aid.

(Writing by Elias Biryabarema; editing by Duncan Miriri/Jeremy Gaunt)

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.