Housing Finance in Burundi


This profile is also available in French here.

To download a pdf version of the full 2020 Burundi country profile, click here.

Burundi also known as the “heart of Africa” is located in the Great Lakes region of Eastern Africa. The country is predominantly rural and relies mainly on agricultural activities as a source of livelihood. In 2018, Agriculture accounted for 40.7 percent of the Gross Domestic Product (GDP) and increased by 3.3 percent in 2019, primarily due to high coffee exports, a slight increase in public investment and high agricultural production. Similar to most countries across the continent, the effects of Covid 19 pandemic poses to be a threat to the predicted economy growth in 2020.

Burundi’s population was estimated at 11 890 781 in 2020 making it one of the most densely populated countries in Africa. The country presents specific factors of poverty that affect the supply of housing which are: demography, density, low urbanisation and the problem of natural disasters. Affordability of houses for ownership and rental is still an issue in the urban areas which has led to majority of families to share rooms in more informal and less expensive houses which tend to have limited physical space and are poorly ventilated while sanitation, water and electricity are limited or absent.

To overcome the housing supply challenge and meet the needs of the population, Burundi will have to develop each year by 2030 an area of 855 hectares of land and build 25 631 housing units, more than half – 14 365. Housing affordability and supply will stand a better chance when cushioned by infrastructure development, supply of land and land tenure, real estate production, and access to basic services. Integrated community development projects being introduced in Burundi will improve access to basic services in the country while also creating economic opportunities in water supply, sanitation systems, roads, and bridge construction.

Burundi’s financial system is still in infancy after the effects of the civil war. Formal financial services are provided by 52 institutions approved by the Bank of the Republic of Burundi. There are also informal financial organisations called tontine associations and loan sharks. Access to financial credit and housing loans is low with only two percent of the population having obtained a loan at a financial institution in the last 12 months. More still needs to be done to ensure financial services also trickle down to rural areas which are the greater population in Burundi to enable financial inclusion.

Find out more information on Burundi’s housing finance sector, including key stakeholders, important policies and housing affordability:

Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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