AfDB Supports Economic Reforms in Burundi with USD 18 million
The African Development Bank (AfDB) Board of Directors has approved a USD 18 million grant from the Fragile States Facility resources to finance Burundi’s Fifth Economic Reform Support Programme (ERSP V).
This contribution is backed by a program of reforms aiming the promotion of accelerated economic growth by enhancing Government efficiency in the management of public resources, promoting private sector development, and creating jobs. In this context, PARE-V’s main operational objectives are to: (i) enhance Government efficiency in the management of public resources (Component 1); and (ii) promote private sector development and job creation (Component 2). PARE-V’s expected outputs are: (i) increased tax revenue; (ii) a more efficient procurement system underpinned by a Public Procurement Code, which will guarantee greater transparence, fairness and competition; (iii) an improved and more efficient internal and external control system which will contribute to sounder management of Government’s financial resources; (iv) an increase in the level of private investment; and (v) the creation of more youth employment opportunities.
PARE-V is aligned on the Poverty Reduction Strategy Paper, Phase II (PRSP-II), adopted in January 2012 for the 2012-2016 period. PRSP II seeks to create an environment that will foster Burundi’s sustainable development and allow for achievement of the Millennium Development Goals (MDG). It is also aligned on the country’s long-term vision ‘Burundi 2025’. PARE-V, will support the ongoing reform programme in Burundi, consolidate the achievements, and deepen reforms supported by the Bank in its previous Programmes (PARE I-IV). The programme will be implemented over 2012 and 2013 and the grant will contribute to fund the Budget of 2012 and 2013.
Burundi is a fragile State, one of the poorest in Africa. The Human Development Index (HDI) ranked the country 185th of 187 countries in 2011 and about 67% of the population lives below the poverty threshold. This programme addresses the Burundi Government need for public finance stabilization. By financing part of the budget deficit, the Programme will contribute to easing social tension and reinforcing the country’s stability. It will therefore, like the other four previous operations, continue to support the country in its modernization process aimed at achieving strong, inclusive and job-creating growth