Analysis of the Legal Framework for Promoting Foreign Direct Investment in Burundi

ABSTRACT

Foreign Direct Investment as a means of economic growth has been welcomed by most East African nations including Burundi. Considerable liberalization of the prevalent investment regulations has been undertaken to facilitate the smooth flow of FDI. A welcoming investment climate depends of the quality of national laws, foreign investment laws, policies and the international investment legal framework which very are important in attracting FDI to a large number of countries, Burundi inclusive. What provoked this research are the competitive and attractive investment opportunities that Burundi has, to attract FDI; such as in agro-processing, mining, manufacturing, services, tourism, and energy. However the level of FDI is still low. The regulatory Legal Framework for FDI is not adequate and it is confronted with many issues and challenges which make it impossible to achieve the objectives of government to regulate foreign direct investment. This research is to analyse the existing laws regulating investment environment in Burundi, with a view to gauging the effectiveness in promoting FDI in Burundi. The methodology employed in this research is the doctrinal research. Primary and secondary materials sources are analysed. The main finding of the study is that the Burundian government has manifested its commitment to attract FDI, and has made some interesting reforms in its investment laws,by creating the appropriate conditions for attracting FDI and for having it contribute to reconstruction and economic growth and by ratifying international conventions and becoming a member of some Regional Economic Integration, such as EAC and COMESA. It should be noted that although some reforms has been made by Burundi towards FDI; the implementation is still low. A legal framework which should promote FDI will therefore require continuous and coherent efforts from the government. A big number of laws reforms to be undertaken are highly recommended; and the general parts of the investment laws need to be harmonized with other EAC countries