2.1 Banks
2.2 Other Sources
2.3 Credit Bureau
In-Country Assessment Information


Goal – An efficient, transparent financial sector that provides a broad range of citizens with access to multiple forms of competitive credit so that they can start businesses, build wealth, and purchase property


2.1 Banks

Core Question: Are traditional banking services robust and extensive enough to serve the needs of the population to help them build wealth and purchase property?  No – Very Weak, retail and corporate banking are at a relatively early stage of development. Many people still rely on microcredit or informal lending.



2.1.1   How easy is it to obtain a bank loan? Very Weak – Ranking 144thout of 144; Score 1.48 out of 7


2.1.2   How sound are the country’s banks? Very Weak – Ranking 140th  out of 144; Score 3.17 out of 7

Source: The Global Competitiveness Report 2012-2013, World Economic Forum

2.1.3  Microlending

Status – Weak Microfinance allows citizens without traditional creditworthiness to build a credit history. How many microfinance institutions are operating in the country? 12

OECAD, CECM, COPED, COSPEC, DUKUZE, FENACOBU, FSTE, MUTEC, RECECA-INKINGI, Turame Community Finance, Twitezimbere, WISE What is the number of active borrowers per institution?

In 2011, OECAD–33,091; CECM–13,999; DUKUZE—2,318; FSTE—12,152; MUTEC—3,474;

RECECA-INKINGI—424; Turame Community Finance—18,183; Twitezimbere—9,791; WISE—2,241.

Source: Microfinance Information Exchange



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2.2 Other Sources


Core Question: Are entrepreneurs free to raise capital outside the banking system including venture capital and/or by issuing stock in a well-regulated stock exchange? No – Very Weak, the state dominates the two largest commercial banks. It is not easy for small enterprises to get credit and the availability of long-term capital is inadequate.


Financial Freedom

2.2.1   How much control does the government exert over financial services? Weak for entrepreneurs – Score 30 out of 100 – Considerable government control

Source: 2013 Index of Economic Freedom, Heritage Foundation


Venture Capital

2.2.2   How easy is it for entrepreneurs to find venture capital?
Very Weak – 143rd out of 144; Score 1.59 out of 7


Equity Investors

2.2.3   How easy is it to raise money by issuing shares on the stock market? Very Weak – 141st out of 144; Score 1.79 out of 7

Source: 2012-2013 The Global Competitiveness Report, World Economic Forum 



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2.3Credit Bureau


Core Question: Is comprehensive credit information available through public and private credit bureaus? No – Very Weak less than 0.05% of people use bank credit services.

Overall Ranking 167th out of 185



2.3.1   What is the depth of information available in credit bureaus? Weak – Score – 1 out of 6 with a higher number indicating more information is available



2.3.2   What is the extent of public credit registry coverage? 0.3% Weak



2.3.3   What is the extent of private credit registry coverage? Very Weak – not available

Source: Doing Business 2013– Getting Credit, World Bank



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In-Country Assessment Information as of 2010



FQ 4.  How available are mortgage loans for purchasing property, who is the typical user and what are the prevailing trends?

Access to financial services is limited, reflecting the underdeveloped payments system. Based on data from 2007–08, only 2 percent of the total population has a bank account, and less than 0.5 percent use bank credit services. Consequently, cash transactions predominate, and payment instruments are physically exchanged. Moreover, most small and medium-size enterprises find it difficult to obtain credit, mainly because of lack of adequate information on the creditworthiness of prospective borrowers, the unavailability of real guarantees, and weak capacity of project preparation.

The Central Bank is engaged in financial sector reform to broaden access to financial services. With the newly established steering committee, work on financial sector reform will accelerate, to enable the council of ministers to adopt a comprehensive strategy in the first quarter of 2011. Urgent reforms are already underway, in close coordination with World Bank technical and financial assistance. These urgent priorities include: (i) modernizing the payment systems (which entails computerization of check clearing); (ii) introducing electronic banking services; (iii) improving regulation and supervision of commercial banks and microfinance institutions; (iv) setting up a credit bureau to ensure effective assessment of borrowers’ creditworthiness; and (v) developing domestic financial markets to provide long-term and stable sources of funds for banks.


FQ 5. What are the interest rates, term and loan-to-value ratios for available mortgages?

Public debt generally “crowds out” private debt. Average lending rates are around 17% for very short terms (less than one year.)

Source: International Monetary Fund


FQ 6.Are there any informal barriers to borrowing such as for women or minorities?

Widespread land disputes over limited territory marginalize Burundi’s poor and disenfranchised communities, already struggling in the wake of civil war. Violence against women in Burundi is also on the rise: women face displacement from their homes and communities, and are threatened by rape. Without strengthening Burundi’s judicial system and advocating for good governance from its leadership, the scope of this crisis could threaten the stability of the country. (2008)

Source: Global Rights