The Bank’s Ease of Doing Business report, which measures how states facilitate investors and commerce, said the tiny central African state was now among the giants of economic reform globally.
“We’re delighted to be amongst the top reformers in the world, having moved up 13 places this year, on top of having moved up eight places last year,” said the country’s Second Vice President Gervais Rufyikiri to a visiting journalist.
Burundi was ranked 159th. Mauritius and South Africa were the best-ranked African economies at 19 and 39 respectively. The Central African Republic was 185th and last.
TradeMark East Africa, a donor-funded organisation helping East African states to modernise their trade systems, has supported the World Bank’s Ease of Doing Business work with the Government of Burundi, and is equally pleased with progress.
“This is a thoroughly justified honour. It rewards the way Burundi has rebuilt its tax system, is redesigning its physical borders with its neighbours, and is stripping away red tape to win foreign investment. This helps the economy and its people to prosper,” said Anthe Vrijlandt, TradeMark’s Country Director in Burundi.
With TradeMark East Africa’s assistance, Burundi has also
established a new national revenue authority, the Office Burundais de Recettes
(OBR). OBR has implemented reforms in tax administration, and streamlined
border crossing for traders, which together played a big role in Burundi’s
improved ranking.
The OBR doubled tax revenue since it came into operation in
2009. It continues to increase the amount of tax the government receives and
the number of people who pay it, through modern, computerised accounting and
over-the-counter services. With the additional revenue, more than 40,000 more
Burundian patients now receive healthcare services each month.
“It’s terrific to see Burundi getting the recognition it
deserves for the reforms it has undertaken and is continuing to undertake,”
commented OBR’s Commissioner-General Kieran Holmes. “All this will make Burundi
a much more exciting place for foreign investors, and creates a transparent and
level playing field.”
Top-to-bottom reform
of a corrupt and inefficient tax system is a major achievement in a country
until recently torn apart by war and instability. OBR has eliminated
duplication between agencies and has put the taxation system under a single
roof. This has created much more transparency, which the government says will
provide the cornerstone on which more public investment (including modern
health centres, hospitals and a dam) will be built.
Other reforms include
bilateral agreements with all Burundi’s neighbours to establish one-stop-border
posts. These will eliminate time-wasting duplication, and speed up commerce
between the five East African Community States, boosting prosperity in the
region.
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