BurundiDownload Full Scorecard
Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services
Core Question: Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? No – Very Weak, institutional capacity is still inadequate despite substantial technical assistance from international development agencies.
5.1.1 What is the strength of the country’s auditing and reporting standards? Very Weak – 141stout of 142; Score 2.7 out of 7
5.1.2 What is the overall level of financial market sophistication in the country? Very Weak – 137th out of 144; Score 2.8 out of 7
Source: 2012-2013 The Global Competitiveness Report, World Economic Forum
Very Weak – Ranking – 161st out of 185 Trend ↑
5.1.3 What is the average time to complete bankruptcy proceedings? 5.0
5.1.4 What is the cost of bankruptcy proceedings as a percentage of the estate? 30%
5.1.5 What is the recovery rate of bankruptcy proceedings? 8.0 cents on the dollar
Source: Doing Business 2013 – Resolving Insolvency http://www.doingbusiness.org/data/exploreeconomies/burundi#resolving-insolvency
Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? No – Very Weak, service delivery is constrained in the public sector particularly in regards to land valuation and conflict resolution.
SQ 19 How easy is it to find a valuer who implements International Valuation Standards? – Very Weak – no standards for valuation in Land Code
SQ 20 What is the level of training of valuers? Unknown
Civil Society Resource: International Real Property Foundation www.irpf.org
SQ 21 Are opinions offered by valuers free of influence from parties to the transaction? Unknown
Civil Society Resource: International Valuation Standards Council www.ivsc.org
Core Question: Is accurate property information available electronically in formats that are consistent with international standards? No – Very Weak, data systems are inefficient and unreliable.
Sales & Operating Data
SQ 22 A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – Very Weak, regional Internet sites starting to emerge
Civil Society Resource: International Consortium of Real Estate Associations www.worldproperties.com
SQ 23 Do resources exist for obtaining building income and expense estimates? No – Very Weak
Civil Society Resource: Institute of Real Estate Management www.irem.org
SQ 24 Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? No – Very Weak
Civil Society Resource: Open Standards Consortium for Real Estate International www.oscre.org
SQ 25 Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? No – Very Weak
Civil Society Resource: Building Owners and Managers Association www.boma.org
FQ 9. How stable has the property market been over the last several years?
The global financial crisis has slowed the Burundian economy and contributed to a significant decline in inflation. Economic growth moderated to 3.5 percent in 2009, from 4.5 percent in 2008, mainly because of lower private transfers and foreign direct investment. Because of lower international oil and food prices, headline inflation (end of period) declined from about 26 percent in 2008 to about 4.5 percent in 2009. Supported by donor flows and the SDR allocation, gross official reserves remained steady at 6.5 months of imports in 2008–09. The economic outlook is generally positive but subject to risks from the security situation and external environment.
Source: International Monetary Fund www.imf.org/external/country/BDI/index.htm
FQ 10. How many independent valuers exist in the market?
To register a property transfer, “an expert is designated by the Ministry of Finance to check whether the price is the correct one.” The process for selection or the qualifications of the valuer are unknown.
FQ 11. How many companies exist and what is the average size of valuation companies?
The Knight Frank Uganda office lists valuation services for Burundi. Firms in the East Africa Region likely provide services in Burundi. No independent, native firms located. www.knightfrank.com/uganda/our-services/
FQ 12. What are the valuation standards and do they conform to international and regional standards?
No national standards.
FQ 13. What valuation methods and techniques are used in the market?
The law fixe dorénavant les taux applicables pour la détermination de ces impôts sets the rates applicable for the determination of such taxes. L’important en la matière con-The important matter consists siste surtout dans les modalités d’évaluation de l’assiette dudit impespecially in terms of assessing the basis of that tax.Celui-ci est variable, pour les ter- It varies for building constructed per square meter of land (the latter being calculated only in terms of buildings, includingcompris terrasses, vérandas, galeries et balcons), et en fonction de la nature de la construction (dure,= decks, porches, balconies and galleries), and depending on the nature of construction (hard, semi-dure ou non dure), mais aussi, dans le cas de Bujumbura, en fonction du classement du quartiersemi-hard or not hard), but also in the case of Bujumbura, according to the classification of neighborhood(équipement minimum, moyennement équipé ou hautement équipé). (Minimum equipment, with moderately or highly equipped). Pour les terrains non bâtis, il est For undeveloped land, it is tenu compte de la superficie et du classement de la zone de situation du terrain.into account the size and ranking of the location of the land area.
FQ 14. Are there valuer associations in the market? What number and percentage of practitioners belong? None known.
FQ 15. What training programs are available to upgrade the quality of valuers? Unknown
FQ 16. Are peer review mechanisms in place to assist in enforcing ethical behavior? Unknown
FQ 17. What is the quality of valuation reports? Unknown
FQ 18. What is the status of proprietary data bases that include property information?
Less than 5% of land is registered and oral traditions predominate.
Source: Internal Displacement Monitoring Center www.internal-displacement.org/idmc/website/countries.nsf/(httpEnvelopes)/70ADDB7DA1026C91802570B8005A7509?OpenDocument
FQ 19. What is the status of existing data sharing mechanisms for properties that are for sale? Some regional Internet sites developing
FQ 20. Do valuers have an established data sharing mechanisms? None known