Burundi Jobs and Economic Transformation Project

active

To change its development trajectory, Burundi needs a new private sector-driven growth model based on diversification, technology adoption and adaptation, creation and growth of formal firms and exit of underperforming businesses, access to longer term financing, and resilience to climate change. The project will support MSME recovery from the pandemic impact, increase their resilience, while also promoting climate sustainability and inclusion for women and refugees. The project will address the binding constraints to MSME development identified by the CPSD and will target high-impact sectors including agribusiness, value adding services with a focus on digital services, and financial services that account for half of Burundi’s GDP and can mitigate some of the fragility factors related to inclusion, job creation, food security, displaced populations and host communities, and FOREX resources. Inclusive financial services and agribusiness sectors have the potential for job creation in both urban and rural settings with a particularly strong impact on the economic empowerment of women and youth. The project’s impact on poverty reduction will come from contribution to overall economic growth and increased productivity in key sectors of the economy which can help to: (i) decrease macro-volatility and its impact on equity in the country; (ii) create more and better employment opportunities that can raise incomes; and (iii) increase government revenue through increased economic activity, export promotion and subsequent tax receipts.