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Cash-starved Burundi reports stronger inflow from domestic taxes

8 August 2016 Comments (0) Africa, Latest Updates from Reuters, Politics

KIGALI (Reuters) – Tax revenues in Burundi rose by almost 13 percent last month compared with a year ago, official data showed on Monday, a boost for the economy following a year of unrest linked to the re-election of President Pierre Nkurunziza.

More than 450 people have been killed in violence and more than a quarter of a million people have fled to neighbouring countries since Nkurunziza was re-elected for a third term in the small east African country in what the opposition said was a violation of the constitution.

A strong inflow from domestic taxes as well as modest revenue from coffee and tea exports have become vital for the aid-dependent country, particularly since Belgium and the European Union, key donors, cut external aid over the past year.

Tax collection rose to 50.2 billion francs ($30.32 million), up from 44.7 billion francs collected in July 2015 and well up on the target of 47.1 billion francs, the semi-autonomous revenue authority (OBR) said in a report.

Political unrest held back tax collection last year. Recovery of tax arrears had helped tax collection this year and the fight against tax evasion had been more effective, officials said.

Cumulative tax receipts from January to July jumped to 355.9 billion francs versus 333.03 billion francs the same period last year.

“The OBR reiterates its commitment to continue its mission of maximizing tax collection to support the country’s economy,” it said.

In the 2016 budget, the government foresaw grants falling by almost 50 percent compared to 2015.

($1 = 1,655.9000 Burundi francs)

 

(Reporting by Patrick Nduwimana; Editing by George Obulutsa and Richard Balmforth)

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Burundi’s inflation slows to 2.6% in April yr/yr

16 May 2016 Comments (0) Africa, Business, Latest Updates from Reuters

KIGALI (Reuters) – Burundi’s year-on-year inflation eased to 2.6 percent in April from 4.3 percent in March thanks to a significant fall in food costs, official data showed on Monday.

Food inflation in the year to April slowed to 2.5 percent from 6.4 percent in the previous month, the country’s Institute of Economic Studies and Statistics(ISTEEBU) said in a report.

Burundi has been grappling with unrest for more than a year, mainly in the capital Bujumbura. Western donors have suspended vital aid, leaving the poor nation more dependent on its modest coffee and tea exports and on domestic tax revenues.

Burundi’s economy shrank by 7.2 percent in 2015 and is expected to expand by 3.4 percent this year, the International Monetary Fund (IMF) said in a report.

 

(Reporting by Patrick Nduwimana; Editing by Edmund Blair and Gareth Jones)

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Burundi’s inflation eases to 4.3% in March

20 April 2016 Comments (0) Africa, Business, Latest Updates from Reuters

KIGALI (Reuters) – Burundi’s year-on-year inflation eased to 4.3 percent in March from 6.7 percent in February due to falling food costs, official data showed on Wednesday.

Food inflation in the 12 months to March slowed to 6.4 percent from 10.9 percent in February, the country’s Institute of Economic Studies and Statistics (ISTEEBU) said.

Despite falling inflation, the economy has been battered by a year-long political crisis and associated violence, mainly in the capital. Western donors have reduced vital aid leaving the poor nation more dependent on its modest tea and coffee exports.

Burundi’s economy shrank by 7.2 percent in 2015 and is only expected to expand by 3.4 percent in 2016, according to the International Monetary Fund in a recent report.

 

 

(Reporting by Patrick Nduwimana; Writing by Edmund Blair, editing by David Evans)

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Burundi annual tea revenue jumps by 52%

17 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

KIGALI (Reuters) – Burundi’s tea export revenues jumped 52 percent in 2015 from a year earlier, thanks to a fall in output of regional rival Kenya, a tea board official said on Wednesday.

Tea output in Kenya, the world’s leading exporter of black tea, fell by 10 percent last year, mainly because of dry weather conditions in East Africa’s biggest economy.

“The decline of Kenya’s tea production largely contributed to drive up prices and earnings for Burundi’s tea,” Joseph Marc Ndahigeze, the head of exports for the Burundi tea board (OTB), told Reuters.

The average export price per kilogram climbed to $3.09, against $2.17 in 2014, state-run OTB said in a report.

Tea is Burundi’s second-largest earner of hard currency behind coffee and supports 300,000 farmers in a nation of 10 million people.

OTB, which exports 80 percent of its tea through a regional weekly auction held in the Kenyan port city of Mombasa, said tea export revenue totalled $32.4 million last year, up from $21.3 million in 2014, with export volumes rising by 6.6 percent to 10,495 tonnes.

The rise in Burundi tea exports has come despite nine months of political chaos that has resulted in 400-plus deaths, pushed 240,000 people into exile and hampered many elements of the nation’s fragile economy.

 

 

(Reporting by Patrick Nduwimana; Editing by Drazen Jorgic and David Goodman)

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Burundi’s tea revenues up 64% in nine months to September

28 October 2015 Comments (0) Africa, Business, Latest Updates from Reuters

KIGALI (Reuters) – Burundi’s earnings from tea were up by nearly 64 percent in the last nine months as sales volumes and prices increased, boosted by a drop in Kenya’s output, a tea board official said on Wednesday.

Production in Kenya, the world leading exporter of black tea, can influence the regional market, while Burundi exports 80 percent of its tea through a regional weekly auction held in Mombasa.

Burundi’s state-run tea board (OTB) said it earned $27.3 million between January and September, up from $16.7 million in the same period last year and ahead of the $21.3 million it earned in the whole of 2014.

Exports are up at 8,959,321 kg of tea this year from 7,743,972 kg last year.

The tea industry has emerged largely unscathed from several months of political unrest over President Pierre Nkurunziza’s contested third term in office that has affected other sectors of the country’s fragile economy.

Tea is Burundi’s second-largest hard currency earner after coffee and employs some 300,000 smallholder growers in a nation of 10 million people.

“The combination of higher sales and a decline of Kenya’s tea production has boosted prices as well as earnings for Burundi’s tea,” OTB’s head of exports, Joseph Marc Ndahigeze, told Reuters.

The average export price per kg jumped to $3.05 from $2.16 in 2014, OTB said in its report.

 

(Reporting by Patrick Nduwimana; Editing by Edith Honan, Greg Mahlich, Reuters)

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Burundi’s inflation eases to 4.1% year-on-year in September

13 October 2015 Comments (0) Africa, Business, Latest Updates from Reuters

KIGALI (Reuters) – Burundi’s inflation rate dipped to 4.1 percent year-on-year in September from 4.2 percent a month earlier, helped by better production of some crops which slowed food price rises in local markets, official data showed on Tuesday.

The tiny central African coffee producer nation is facing one of its worst political crises after President Pierre Nkurunziza was re-elected in July for a disputed a third term.

Nkurunziza’s opponents said running again broke a peace pact that ended more than a decade of civil war in 2005. The country endured months of protests and violence and tens of thousands of people fled unrest that included an attempted coup in May.

As a result, Burundi’s economic output is expected to shrink by 7.2 percent this year after growing 4.7 percent in 2014, the International Monetary Fund said in its report on world economic output for October.

Burundi’s Institute of Economic Studies and Statistics (ISTEEBU) said inflation was under control between August and September due to a fall in the price of beans and rice, the most consumed food in a nation of nearly 10 million people.

Food price inflation slowed to 3.8 percent in the year to September from 4.6 percent in August, ISTEEBU said.

Economic analysts fear Burundi’s economic situation could worsen if the crisis persists and if more donors cut aid.

Some major donors such Belgium have already cut aid, in condemnation of the violence and human rights violations committed since April.

The European Union, which funds about half the annual budget of Burundi, is also considering whether to limit its aid, diplomats say, but is wary of hurting the general population.

It has imposed individual sanctions on security officials close to Nkurunziza who were implicated in the violence.

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