RESTRICTED Report No. AF-33a FILE COPY

Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nolr may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized

THE ECONOMY

OF

TjHE KINGDOM OF BURUNDI Public Disclosure Authorized

May 28, 1965 Public Disclosure Authorized

Africa Department CURRENCY EQUIVALENTS

U. S. $1 = 87.5 Burundi francs since February 1965

U-S. S$ i 50. 0 Burundi francs prior to February 1965 TABLE OF CONTENTS

Parge No. BASIC DATA

SUMh4ARY AND CONCLUSIONS ...... i

I. Background ......

TEe Country ...... 1 History and Political Development ...... 1 Population and Education ...... 2

II. Structure of the Economy ...... 3

Introduction ...... 3 The Main Sectors ...... 4 Agriculture ...... 4 Livestock and Fishing ...... 7 Mining and Industry ...... 7 Power and Wllater ...... 8 Transport ...... 9

III. Financial Developments ...... 10

IV. Foreign Trade and Payments ...... 12

V. Public Finance ...... 4

Introduction ...... 14 Revenue ...... 14 Current Expenditure ...... 14 Public Debt ...... 16

VI. Investment and Foreign Capital ...... 16

Public Investment ...... 17 Private Investment ...... 18

VII. Economic Prospects ...... 19

STATISTICAL APPENDIX

M4APS OF Rainfall Population Economic Resources Transportation BASIC DATA

Area Thousand square kilometers 27.8

Population Total (1960 census) 2,200,000 Wage-earners 50,000 School enrollment (% of children of school age 20%

Gross domestic product (1964 estimates) Total GDP 7.5 billion francs GDP/capita 3000 francs V $60 equivalent Monetary GDP/Capita 1200 francs

External Trade (19(.4 estimates) Exports 929 million francs Impcrts 753 million francs

Balance of Payments (196L estimates) Current balance of payrents +9 million francs Foreign assistance payments 99 million francs Total surplus +188 million francs

Public Finance (1964 forecast) Current receipts 771 million francs Current expenditure 860 million francs Public Investment Expenditure (1964 estimates) 100 million francs

At the 1964 exchange rate. SUNMARY AND CONCLUSIONS

1. Burundi, a landlocked and densely populated kingdom in central Africa, became independent in 1962 after having been administered, together with neighboring Rwanda, as a Belgian Trust Territory for the previous L5 years. The country is only at an early stage of economic development, although there was an impressive development effort in the decade of the 1950's which resulted in considerable growrth in the latter half of that decade.

2. After 1960, Burundi left the greater Congolese economic union but retained its strong ties with Rwanda, which, after independence in 1962, con-- siSted mainly of a customs and monetary union, both of which broke down at the end of 1963. The transition to independence also brought wi4th it staffing problems in the now highly Africanized administration, which took place during the period 1959-1963. During the same period the monetary sectors of the economy undenrent a serious decline in activity, due to unfavorable natural conditions, lack of supervision in the agricultural export sector, and po:Litical unrest in the area.

3. A significant recovery of the economy took place in 196b when the output of the main export export product, coffee, which in previous years had undergone a sharp decline, more than dcubled, and total exports almost regained the previous peak of 1959. Total GDP in 1961 may be estimated at 6.3 billion francs in constant prices, compared with 5.5 billion in 1959, giving a compound growth rate of 2.5% per year or about the same as population grow^th. Although activity of the monetary economy had declined in this period there was an improvement in the output of the large subsistence sector. However, per capita GDP is among the lowest in Africa, less than $60 equiva- lent.

4. Burundi's foreign exchange position has been subject to structural deficits on trade balance and invisible accounts. Deficits have been kept in balance by foreign support payments from the Congolese franc area and from the Belgian Government. Since independence there have been strict foreign exchange controls. However, in spite of the downfall in economic activity in 1959-63, there was a substantial increase in bank credit to the government and prices increased sharply frcm 1961 through 1964, bringing severe pressures on the exchange rate. In February 1965, the currency was devalued by 75%, in agreement with the 11W. An IN4F drawing and stabilization program was also agreed on at the same time, and preliminary indications are that the financial situation improved considerably in the first six weeks after devaluation took place.

5. Investment in Burundi has been largely financed by foreign aid, which before independence was available in substantial amounts and enabled the economy the remarkable progress it experienced in the period from 1950 to 19]60. Thereafter a serious drop occurred in the investment rate which accounted in 1963 for only an estimated 5% of GDP as against 11-12% in 1957-59. Public investment expenditure is now almost solely financed by - ii - foreign grant aid. During the same period national savings apparently dropped by even more and were undoubtedly negative in 1963. As a direct result of improved exports and strict import controls foreign exchange reserves did rot undergo any further deterioration in 1964, and the national savings rate again became positive, reflecting forced savings through inflation even though pub- lic savings were negligibleO Given the increased public revenue expected from the devaluation, a modest domestic contribution to public investment should become possible within a year or so.

6. More intensive Goverrunent development efforts, together with ex- panded technical assistance, will be needed to consoLidate the improvements in the economic situation which have taken place in the past eighteen months. In particular, a major improvement in maintenance of the country's basic infrastructure is needed. Foreign financial assistance will also be needed for a long time to come.

7e, External public debt payments are small at present and are lirmited to servicing the $4.8 million Bank loan of 1957 to the former trusteeship of Ruanda-Urundi, accounting for under 3% of the country's current expenditure. Burundits foreign debt position is, however, extremely confused as many claims between Burundi, Rwanda, Congo and Belgium still have to be settled, the outcome of which is not easy to predict. In spite of low deot repay- maents, the country's uncertain prospects do not allow for any significant extension of conventional debt. However, in view of the improvement in economic performance over the past eighteen months, Burundi would appear to qualify for at least moderate amounts of IDA assistance. THE ECONOMY OF BURUNDT

I. BACKGROUND

Th-e Country

1. Burundi is situated in central Africa south of the equator land- locked between Congo and Tanganyika at a distance of roughly 2,000 kilometers from the Atlantic and 1,200 kilometers from the Irdian Ocean. Total land area covers 28,000 square kilometers. The country is characterized by a mountainous plateau with average altitudes around 1,500 meters that slopes gently toward Tanganyika in the east. In the west, the plateau falls abruptly into the Central African Rift Valley, occupied by the Ruzizi River and Lake Tanganyika. The capital, Bujumbura, is located on the lake.

2. Despite its equatorial location, the country's climate is tempered by the altitude. Abundant rainfalls, which have been common in the entire cetntral African region in these years and which have caused heavy inundations, have hit Burundi particularly hard by increasing the water level of Lake Tanganyika to a point where the country's port, industrial and urban and even part of its road infrastructure is seriously damaged End in some cases threatened with complete destruction.

History and Political Development

3. The central African lake region in w,hich Burundi is situated was not explored before the second half of the 19th century when the search for the sources of the Nile reached its last phase. The German occupation of the country, at that time a kingdom under Watusi rule, took place in 1890, but was restricted to military action. After being taken over, together withi neighboring Rwanda, during the First World 14ar by Belgium, Burundi became a Trusteeship Territory. Belgian intervention culminated in a Ten Year Development Plan ending in 1961 when the country gained autonomy. The King- dcm of Burundi became an independent nation under the constitutional rule of MTami Mwambutsa IV in July 1962.

4. The Watusi minority in the area subjugated the local populations and established strongly controlled feudal states; their position in BULrundi was, however, not as centralized as in neighboring Rwanda. Their role was based on domnination of the agricultural population by Tutsi herdsmen who were to be paid food rents and labor services. In Burundi there has, however, been a fairly large integration of the Tutsi element into the local Bahutu population, preventing the country from undergoing a social uprising of the Bahutu majority such as took place in Rwanda in 1959. However, the existence of certain tensions in the country cannot be denied.

5. Before independence, two political parties existed: the UPRONA (Uniorl Progressive Nationale) under the direction of Prince Rwagasore, a son of the Mwami; and the PDC (Partie Democratique Chretien). In both parties Watusis as well as Bahutus were represented with the PDC grouping elements opposed to the rule of 1-7ami :ivalnbutsa. Elections for the first govertnment -ave a majority to the UPRO'MA. Thlis party's leader w-as assassi- na-ted by political opponents in October 1961. The UPROiTA, being virtually the only party now, has in its ranks several tendencies tied to personalities. There is no distinct ideological party program.

6. The Nuami, a constitutional monarch, has often used his prerogatives to reshuffle his Government in an effort to achieve a wiorkable coalition of influential Watusis and Bahutus. Efforts in this respect are apparent in the frequent changes in the premier assignments, which tend to shift between llatusis and Bahutus.

7. Rwanda's 1959 revolution ridding the Kingdom of Tutsi rule and creating an outflowf of Watusi also into Burundi territory was the beginling of open tensions betwieen the two countries culminating, after renewed tribal violence, in late 1963 in the termination of the monetary and customs union and the loss of common services.

8. Burundi initially adopted the stance of a "non-aligned" nation, but in 1964 drifted toward a position of pronounced sympathy with the Chinese People's Republic. Burundi's moral support of the Congolese rebellion strained the country's relations with its neighbor the Congo Democratic Republic. Ln a move to check this development, the IMlwami in January 1965 replaced the Watusi prime minister by a more moderate Bahutu who had occupied the post before. The new premier was assassinated a few days later by extremist elements. His Bahutu successor stands for an equally moderate policy and it is his Government that accepted devaluation of the Burundi franc in late February 1965. The political situation is however still not very stable.

Poulation and Education

9. Burundi, with its population of 2.6 million, allowing for an average density per square kilometer of over 80 inhabitants, is, after the Nile Delta and RFanda, the most densely populated region in Africa. Only slightly under 3% of total population lives in urban centers, Bujumbura accounting for about 50,000 inhabitants of which over 1,500 are Europeans. Generally, the popu- lation is scattered throughout the countryside, every hill forming a small community of its own.

10. The original inhabitants of this equatorial African region, Pygmoid Twa, account at present for only 1% of total population; the Bahutu majority, which settled later in the region, represents now roughly 85% of the total population, the rest being accounted for by the W4atusi of Hamatic origin w7ho immigrated into the region in the 16th century and established their overlord- ship over the local tribes. There are less than 600 foreign settlers in the country, plus a number of Europeans who are active in tlle industrial, com- mercial and public sectors as well as Asians, who are pernanent inhabitants of Burundi and who carry out a large part of the coimmercial activity.

11. Although no recent demographic data are available, the population ma;y be considered to be very young, almost half of it being under 15 years of age and about 405 belonging to the age groups of the active population, of which roughly 450,000 are men. Only a very small number, estimated at about 50,000, are salary earners in the country. Unemployment in Bujumbura has - 3 -

been increasing for a long period but seens 'o be stationiary now at under 3,500. Rurundi provides seasonal labor to East Africa accounting annually for probably 50,000 but exact figures are not available. Long-term labor movements towards the Congo, which were of scme importance before that country's independence, have stopped completely. 12. Although school attendance increased regularly in the past, it includes only under 20% of the children of school age. This is among the lowest rates in Africa. Private education at mission schools accounts for 95% at the primary level but the quality of the almost 3,000 teachers repre- sents a problem since about 60% of them have not received adequate training. Secondary and some higher education is also provided in the country, but it seems until now to have not yet been completely adapted to the needs of the country and its economy. However, a reorganization of the school system, which would introduce improvements, is under preparation with UT1'ESCO assistance.

II. STRUCTURE OF THE ECONIOY

Introduction

13. Burundi is still at a very early stage of economic development and its economy is almost entirely based on agriculture which contributes close to an estimated 70% to the country's domestic output and occupies over 90% of the active population. The secondary and tertiary sectors contribute only slightly over 20% to GDP and depend largely on the agricultural output. Per capita GDP might appear to be under $60 at the pre-devaluation but unrealistic exchange rate. 14. Almost two-thirds of agricultural production is subsistence, an insignificant part of which is marketed. Cash crops account for only slightly over 10% of the country's output, altlhough they represent the main determining factor for Burundi's econcmic activity. 15.. Economic development in the Ruanda-Urundi Trust Territory in the 15--year period before 1960 was favored by remunerative prices for coffee and largely due to government measures among which was the Belgian-financed Ten Year Development Plan that started in 1951. Gross annual investment may be estinated at slightly over 11-12% of the territory's GDP at the end of this plan period. The monetary sector occupying 40-50% of total GDP is largely dependent on foreign elements in the country. Most commercial activities are in the hands of Asians who settled in the country, or are undertaken by larger European oimed companies. Virtually all manufacturing activity is in the hands of European expatriates who seem to be in the country on a semi- permanent basis. 16. The economies of Burundi and Rwanda were highly integrated at the tirne of the Belgian trusteeship and also played a complementary role to the economy of the eastern Congolese provinces at the time of the econonic union with that country which lasted until 1960. After their independence in 1962, the economic unity of the two former trust territories was maintained by a customs and monetary union, which broke down in the beginning of 1964. This - 4 -

left Burundi, on whose territory the forner trusteeship capital is located and, where most of the area's little industrial and transportatio-n infra- structure is concentrated, deprived of an important part of its hinterland and with a serious over-capacity in its embryonic secondary and tertiary sectors.

17. From 1959, a lack of experienced supervision in the agricultural sector and in particular of the coffee crop was aggravated by exceptionally unfavorable weather conditions and by declining prices. These circumstances resulted in a falling output of export crops, which could not be checked before 1964. From the fragmentary information available, it may be concluded that Burundi's monetary sector declined steadily betwJeen its peak year of 1959 to a loll point in 1963. However, there is a reasonable presumption that the subsistence sector continued to expand at around 2-3% annually in this period so that real GDP was probably constant between 1959 and 1963. A sig- nificant recovery in the agricultural export sector during 1964 probably led to an expansion in total output of around 10% in that year, so that the aver- age growith between 1959 and 1964 was probably just over 2%, roughly equal to population growth.

18. Since 1959, during the period of dowmnfall in economic activity in Burundi's monetary sector (which occupies 40-50% of total GDP), net private investments have been almost absent and there has been a sharp decline in investments in the public sector, resulting in a gross investment ratio of 5% of GDP in 1963 and 1964, as compared witih one of about 1l-12% in 1957-59. The Main Sectors

Agriculture

19. Agriculture accounts, together with livestock and fishing, for roughly 75% of the country's GDP. Subsistence foodstuff production alone represents over 60%, only an insignificant fraction of which is marketed. Virtually all cultivation is done by Africans and is mostly primitive and on a small scale. The average peasant family of five persons has, in general, less than three, and often only two, hectares at its disposal. Areas still open and suitable for cultivation are estimated at about 40% of presently cropped acreage.

20. Famines occurred often until the beginning of the 1940's but have been eliminated by establishing road connections between regions and in par- ticular by actions in the agricultural field such as the introduction of certain subsistence crops, often strongly enforced, as well as by land inprovement schemes, including the drainage of marshes and anti-erosion me,asures.

21. There is considerable uncertainty as to production figures and yields; of subsistence crops, an important part of potential harvests seems still to be sacrificed for imanediate needs before reaching maturity. However, subsistence output has apparently more than kept pace with the population growth, with growring productivity largely due to the use of improved seeds. - 5 -

22. The main food crops are manioc, beans, sweet potatoes, sorghum and bananas. However, the two last are used mostly for the preparation of honie- made fermented beverages. There are two, or even three, growing seasons in the country for several of these products; therefore seasonal unemploymsnt hardly exists.

23. Cash crops are principally represented by coffee ard cotton and are grown with much more advanced technical methods. The Trusteeship Administration, uhich required every Afcria taxpayer to groyl coffee, rigorously supervised the cultivation of this crop. This, together with substantial assistance from extension services, research and marketing institutions for both cash crops, doubled their output in the ten year period prior to 1959 when they covered 5% of the total cultivated area of the country and contributed almoslt 10% of the economy's GDP.

24. Coffee production now accounts for 80% of export earnings and is almost entirely of the arabica type. It is grown by about 300,000 farm families; some robusta coffee is grown on a few European plantaticns. The coffee crop is marketed by private traders or sometims a farmers' cooperative. The OCIRU (Office des Caf6s du Rwanda-Burundi), a common agency that was split into two national organizations in September 1964, has since 19%9 played an essential role in the economy of both countries by its technical assistance to farmers, and in particular by its classification of the coffee crop applying one of the miost reliable standards existing on the world market and allowing the area's coffee to command high prices, close to those of Colombia type coffee. The agency has also undertaken important actions to stabilize the incame of the coffee growers through an Equalization Fund, establishod in 194 6 for Ruanda-Urundi. and the Congo together, which collected appreciable funds. The Fund has been drawn upon regularly since 1957 in order to support farmers' prices at levels over the prevailing inter- national price. At the end of 1964 the Rwanda-Burundi Fund is expected to amount to about 170 million francs, which will be separated into two national equalization funds, with almost 100 million francs for Burundi.

25. In the 1959 peak year, total coffee output reached 22,000 tons as a result of a combination of factors. These consisted of favorable climatic conditions, a cons-iderable planting effort undertaken during the ten year plan, remunerative prices, and very close supervision of the crop by the extension services, which had strict erforcement measures at their dis- posal. Tree yields in that year were exceptionally high, double those of Colombia's small holder estates, and the coffee production of the highest quality. Quality standards of coffee remained stable but a combination of reduced administrative powers for the extension services, unfavorable climatic conditions and. a gradual drop in prices to about 40% under the 1959 level in 1963 set off a decline in output that reached its lowest point in that year with an 8,000 ton production. In that year, however, a very effective Govern- ment campaign was undertaken to renew the farmers' interest in the coffee crop. This effort, along with higher coffee prices on the world market, and an additional price support by the Coffee Stabilization Fund, enforced by the need of the rural population for monetary earnings and by favorable climatic conditions, brought the crop up to over 18,000 tons in 196[. - 6 -

26.. Assuming normal weather and the regular bi-annual drop in pro- duction., coffee output in 1965 may be in the range of 14,000-15,000 tons. As to the medium term future, the potential for significant further increase already exists as a result of a large scale replanting program dating back to the Ten Year Plan period, which is continuing at the rate of two million trees annually out of the existing 40 million coffee trees in Burundi. The pr:ice incentive should be adequate as a result of the benefits which are e)xected to accrue to the farmers following devaluation. On the other hand, there exists considerable uncertainty about how well the quality of cultivation will be maintained, given the very rapid Africanization of the agricultural extension services. If the cultivation practices do not deteriorate substantially, it should be possible for total production to regain the 1959 peak of 22,000 tons within a four year period. But to retain the same export potential as Burundi has enjoyed in the past will also require ma:intaining the high standards of quality control.

27. Cotton, the second export product, now accounts for about 6% of foreign exchange earnings and is produced by about 15,000 farmers, mostly in the Ruzizi Valley where a limited area of land suitable for this production is available. Producing acreage now amounts to 8,000 hectares and production ancd marketing are highly organized. Over 60% of the cotton output comes from supervised smallholder schemes where crop rotation is strictly applied and allows for highly developed collective work such as the use of aircraft for dusting insecticides. The cotton produced is of high grade and entirely exported. A central organization, COGERCO, markets and exports the fiber on behalf of the growers of Burundi and Rwanda. For this product also, output fell in 1962 to under 50% of its record production of almost 10,000 tons of seeds for the same reasons as applied to the coffee crop, aggravated by severe floodings of Lake Tanganyika in this area. Adjustment in 1963 of the relatively low prices did no-> have the effect hoped for and output stagnates at around 6,oco tons of cotton seeds. As a result of low world prices and the continuous drain on its reserves during the last years, the common Rwanda- rLa2ldi Cotton Support Fund has virtually no funds left for future inter- vention. Devaluation may be expected to give a new impetus to the price incentive for the farmers. Also taking into consideration the previous pro- duction record, local authorities predict a 12,000 ton production level within a four year period. Achievement of this goal will, however, require a continuation of the effective supervision of cultivation practices and marketing, and some uncertainty exists as to wdhether past standards can be maintained.

28. Family palm tree plantations, with a total area of an estimated 7,500 hectares, provide a negligible output, as the monetary incentive is extremely small. Burundi has a limited quinine production for export purposes. Some castor oil and tobacco production is marketed but most is locally consumed.

29. A substantial effort to diversify agricultural production has been undertaken by the establishment of 1,000 hectares of tea plantations financed by the EEC, at an estimated cost of $2.5 million. This is expected to pro- duce about 1,000 tons of processed leaves by 1978 or sooner. The setup of the project is a cooperative one. Further EEC investment in this sector, perhaps for another 1,300 hectares, is under consideration. - 7-

Livestock and Fishing

30. Burundi soc ety is pastoral, since the Watusis came into the country and founded its sociological, political and economic structure on the basis of contractual holdings of cattle, thus establishing pastoral serfdom. The trustee power, in 1954, decided to do away with these contracts but the application of this decision has been extremely slow.

31. In spite of their importance in African society, cattle plays a small role in Burundi's economy relative to their number. Livestock pro- duction contributes an estimated 6% to GDP. Cattle are held in mixed farming, mostly with one or two cows per family and are often under-nourished. Health conditions have been substantially improved by considerable efforts, in par- ticular during the Ten Year Development Plan. Livestock services cover the entire country and epidemic diseases have disappeared. However, endemic diseases, depriving affected cattle of any commercial value, are still pre- valent throughout the country. As breeding is almost never intensive, it will also be necessary in the near future to take measures in order to pre- vent the quality of the livestock from deterioration. Moreover, over- stocking is already a problem in the dry season. The cattle population is estimated at close to 500,000 at present but the output of livestock products is quite low and increasing only slowly. There are some export earnings from hides (accounting for 3% of exports) and before unrest in the Congo stopped commercial relations, cattle was exported on the hoof to Kivu and northern Katanga. 32. Fishing takes place in Lake Tanganyika by individual Africans as well as in an industrial way with about 30 vessels introduced by Greek fishermen. Total catch is estimated at about 10,000 tons, accounting for orly under 1% of GDP. The bulk of it is locally consumed or sold in Bujumbura.

Mining and Industry 33. The country has few mineral deposits. Cassiterite and gold have been mined on a small scale during the second World War. Present production is virtually negligible, although some enterprises still keep a few con- cessions in the country. However, a geological survey of mineral resources has not yet taken place.

3Lt. Manufacturing industry is still of an embryonic character and contributes an estimated 5% to the country's GDP. Most of the industrial activity of the former Ruanda-Urundi Trust Territory is concentrated in Bijumbura, employing close to 9,000 workers. Processing of the agricultural export crops is the most important activity. There are also some mechanical enterprises and small plants for the production of certain consumer goods, buit the bulk of the products for the local consumer market have still to be imported. WJith the exception of a small expansion in the clothing industry, new investments have not taken place since 1959 and manufacturing activity has declined, although replacement investment is still taken care of. - 8 -

35. Decreasing co^fee output availa'Dle for processing, low;er purchasing powfer of the population, together with the loss of markets in the bordering Congo regions, have been the initial reasons for the downfall in activity. The 1564 crop gives a new impetus to the manufacturing sector, wjhich is, however, partially offset by the break-up of most connmercial relations with Rwanda. Continued interrupted relations with Rwanda may result in a further reduction of industrial activity in Burundi which is now only at an estimated 40% of capacity. On the other hand, if the potential increases in agricul- tural output are realized, the manufacturing sector would benefit, both directly by processing and indirectly from higher purchasing power.

36. Industrial quarters in Bujumbura are mainly located in the port area, which is already partly flooded, forcing several enterprises to evacuate their premises. A continued rise in Lake Tanganyika's water level, which may be anticipated at least on short term, will endanger most of the country's industrial capacity and make it necessary that important invest- ments be made either in protective works or in relocation. Power and lWater

37. The power sector in the country is extremely small and almost entirely confined to the capital area. Power sales increased more than three- fo:Ld over a seven year period to the 1962 level of 22.5 million kwh. Elec- tric powTer is distributed by Regideso, an autonomous public agency, and is ma:inly produced by the "Societ6 des Forces Hydro-Electriques de l'Est", a public Congolese company with a 15% private participation. The company owns a hydro plant at i4ururu situated on the Rwanda-Congolese border which provides electric power for Burundi's capital through a 115 kilometer trans- mission line. Total installed capacity is 12,600 kilowatts, but production is 50% under present potential, Bujumbura's-power consumption absorbing the buLk of the plant's output. The issue of ownership and operation rights over the installations make up part of the now immensely complicated conten- tieux problem between Congo, Burundi and Rwanda. However, as the Burundi Government is neither in a position to exercise any influence on the power plant's performance nor has any jurisdiction over it and since recent poLitical trouble with the Congo Republic power supplies have been cut, the Government is aiming at completely domestic power production. This is at the moment provided by a thermal plant of a capacity of close to 4,000 kilo- watts now being reinforced, but wihose electric current is about three times more expensive than was the low contract price for power from the "Forces de l'Est". Hydro potential for a domestic power production appears to be present in the neighborhood of Kitega, where at a cost of an estimated $9 miLlion a plant could be established with sufficient capacity to meet the country's demands.

38. Regideso also takes care of drinking water production and distribu- tion. In Bujumbura, where as a result of the rapid growth of the urban population the existing water system - operated on a ccmruercial basis - is no longer able to meet local demand, measures have to be taken in the short run. A preliminary project, with a total cost of about $1.6 million, has been submitted to IDA. -9-

Transport

39. Transport activity which contributed close to 5% to the country's GDP in 1959, has undergone serious curtailment since then, as the result of the overall decline in the activity of the monetary sectors. Import-export traffic is completely dependerit on a 1,200 kilometer stretch of the East Africa railway system. The country's landlocked position necessitates long and costly transport to the coast, amounting to well over 2,000 francs per ton. Over 80%o of the Rwanda-Burundi area transport was initially routed through Bujumbura, which is connected by w4ater with the Congo and East African railroad heads on Lake Tanganyika. Since the political disturbances in the Congo, the eastern route through Tanganyika by Kigoma where a trans- shipment takes place to Dar-es-Salaam, with a total length of over 1,500 kilometers, is virtually the only liaison used by Burundi traffic. Most of the Rwanda transport, which under the Burundi-Rwanda Customs Union also used tlis liaison, has now been re-routed through Uganda. ho. The internal road network of Burundi amounts to about 6,000 kilo- meters, only 45 of which are asphalt road, part of which road was financed by the $4.8 million Bank loan to the Trust Territory. Over 1,200 kilometers are classified roads to be maintained by the Public Works Department and the remainder, by the rural communities. However, only an estimated 10% of this impor-ant road system can be properly maintained due to the lack of funds and technical know-how in the staff of the Department as in the rural communities. Immediately following independence, budgetary allocations for the Public Works Department -were cut sharply. With the help of Belgian aid, they have been increased somewhat recently, but are still grossly inadequate. As a result, maintenance work outside the capital area is virtually at a standstill. The situation has been aggravated by the uncommonly abundant rainfalls during the last three years, which have seriously damaged the country's roads, as well as by floodings of main trunk roads bordering Lake Tanganyika and by landslides and heavy erosion. These factors have resulted in almost isolating the south-western region of the country. Road improvement projects in this area may be submitted to IDA. 41. A U.S. AID road betterment group, that will arrive within a short tine, may help in improving the present situation and is expected to increase the rate of adequate maintenance to 50%0 of the nationally classified roads. It is howiever, clear that the burden of maintaining the network is too heavy for the country without substantial foreign assistance in the technical, as well as financial, field and that a reorganization of the Public Works Department will be required. A continued neglect of the country's road transport infrastructure would have serious repercussions on Burundi's potential growth.

42. The new lake port, financed in 1957 by $2.1 million out of the $4.8 rmillion Bank loan and having a total capacity of 450,000-500,000 tons pe r year, has harxdled in its top year, 1958, about 220,000 tons, but ftLnctions at present at barely 25% of its maximum capacity. The reasons for this decline are the reduced economic act:ivity in this central African region and the re-routing of Rwanda traffic. Much of the port's older infrastructure has already been subnerged by the floods of the lake and it - 10 - is expected that in the 1096/65 rainy season about hlaf cf the poSt 's new installations will also be under water. Renewed efforts to protect these installations will be undertaken in 1965. Submersions also threaten port installations in Kigoma and overland rail connections in Tanganyika, jeopardizing Burundi's connections with the Indian Ocean.

III. FINANCIAL DEVELOPI-DNTS

The Ruanda-Urundi Trust Territory belonged initially to the Congolese franc monetary zone, wJhich had its bank of issue at Leopoldville. The dissolution of this monetary union after Congo's independence led, in August 1960, to the establishment of a central bank for the Trust Territory@ with i-ts seat in Bujumbura and left to this institution many questions in the financial field to be solved, of which the major were the liquidation of the former central bank, resulting in annual payments totaling 620 million francs to Ruanda-Urundi, and a settlement regarding various claims of the governraents of Burundi and Rwanda and several public agencies. A number of claims are still pending and may be settled at a later stage during negotiations about the Congo-Rwanda-Burundi contentieux. h44. Between September 1960 and January 1964, the BERB issued the RB franc at a par value with the Belgian franc. It headed the monetary union which existed until December 31, 1963, when Rwanda revoked the existing agree- ments; it was replaced by separate national banks which started effectively in May 1964. Immediately upon its establishment in 1960, reserves of the BERB were subjected to a constant strain, due to the basic deficit position of the region in the larger Congolese franc area. The further fragmentation of Rwanda-Birundi in 1964 probably placed a still greater balance of payments burden on the latter, since Rwanda previously had supplied about half of foreign exchange earnings, while Burundi, with its concentration of European population and higher income level, probably used significantly more than half of the available exchange.

45. Exchange and foreign trade control, which were introduced in Sep- terrber 1960, provoked the emergence of a black market in RB francs which was, with the approval of the I.M.F., converted in early 1962 into a free market financing various transfers and imports of certain luxury goods. The volume of operations flowing through this market might be estimated at an annual 300 million francs or about one third of the total. Fluctuations of the franc at the free rate were fairly moderate until mid-1968, when import and ex- change restrictions were tightened considerably. The franc rate then dropped to close to LO% of its legal value in Burundi.

46. Reserves against the aianda-Burundi franc, constituted by convertible foreign exchange holdings of the central bank, have varied roughly between 25% and 50% of currency in circulation. In the new Banque du Royaume de Burundi they reached 50%0 in October 1964 after receipts from higher coffee ex- ports began to come in.

L/ Banque d'Emission du Rwanda et du Burundi (BERB). - 11 -

47. During the monetary union, the central bank did not Diaintain separatc statistics of currency and credits of eachi of the two participant countries. Total note circulation reaches a well-defined peak in June of each year, at the time of the marketing of the coffee crop, and is reduced by about 140% in April. Despite yearly diminishing coffee crops and shrinking economic activity, the money supply barely changed between January 1961 and January 15964, with a consequent pressure on prices and the exchange rate. The successful coffee crop in 1964 required a very substantial expansion in currency as well as in credits, bringing the total money supply for Burundi alone to 1.5 billion francs, only slightly under 80% of the highest supply during the last three years of the monetary union for Rwanda and Burundi together.

48. Central bank advances to the trusteeship administration and to both independent governments for budget financing purposes were the major factor in the stability of the money supply in 1961-63 in the face of contracting activity in the private sector. Credits to the formler amounted to over 550 million francs in 1960 to mid-1962. The first credits to the independent governments were made in late 1962 and rose quickly, accounting in April 1964, at the liquidation of the monetary union, to almost 575 million francs (of which 400 million francs for the government and the remainder for semi-public agencies), equivalent to 30% of the total money supply in June 1962 in the Union and 26% of the two countries' combined total budgetary receipts in the period. Cumrulative advances to the Burundi Government alone amounted to a peak of 274 million francs in May 1964, but by December were down to the level of December 1963, of 230 million francs.

149. In 1964 the large expansion in credits to the private sector by the country's three commnercial banks more than offset the comparative stability of credits to the public sector, creating a large increase in demand. How- evrer, since imports were still kept down throughout 19614, the demand made itself felt in continuous price increases.

5(. In the period 1960-64, price increases have averaged over 10% annually, and to a large extent, the domestic prices of inported goods now reflect the value of the free exchange rate. Thus it is felt that devaluation wfill not result in much additional inflationary impact. Dis- culssions witl the I.M.F. resulted in February 1965 in a 75% devaluation of the Burundi currency, along with an I.M.F. standby credit and a program of monetary stabilization. The stabilization program now in effect includes regulations which will guide the monetary system through the difficult period of adjustment after the devaluation. Measures have been taken to ensure that imports will not run out of hand, including advance import deposits, increased import levies for nonessential items, and a restrictive credit policy. Although there is a liberal attitude toward non-trade transfers, there is not yet a complete liberation of all such transactions. The sub- stantial increase in local currency proceeds of exports will only for a minor part go to the producers; the bulk will go into the Coffee Stabilization Rind and Government revenues, both of which will contribute to increased public savings. - 12 -

IV. FOREIGi. TRADi AND PAY.1ENTS

51. As mentioned, coffee accounts for 70-80% of Burundi's exports, while cotton contributes about i%. The country's main market is the U.S.A., absorbing 90% of the coffee and around 60% of total exports. Exports developed favorably for Burundi until 1959, with growing incomes from coffee and cotton, but declined thereafter in tour years probably by over 60% to s:Lightly over 300 million francs in 1963. However, writh the recovery of coffee exports in l9b, earnings jumped to a record level of 900 million francs in that year. The 18,000 tons of coffee exports in 1964 (representing one-half of one percent of the world market) is over the 15,000 tons that have been allocated to Burundi under the International Coffee Agreement as this country's temporary share in the former combined Rw¢anda-Burundi quota of 30,000 tons. This will probably be accepted because exports of Rwanda did not reach that country's quota. In 1965, Burundi's quota will come up for review under the Agreement.

52. Recorded imports into Rwanda and Burundi declined by about 25% between the late 50's and 1963-64, reflecting the decline in economic activity and the operation of strict import controls. The two largest categories of imported comrnodities in the customs union were textiles and foodstuffs, each accounting for between 20% and 30% of total imported value. Imports of e(quipment goods currently represent about 15% of the total value, although they were closer to 25% in the 1957-59 period. The major part of these im- ports was probably for Burundi, where most expatriates and industrial activity of the area are still concentrated. Belgium, the United States and neigh- boring East Africa have gradually become the main suppliers, providing now together almost 50% of total import value.

5:3. Import quotes and subsequent allocations of foreign exchange are now only given for essential import products. Licenses are, however, often suspended for months during the first half of the calendar year whien foreign culrrency is scarce and at present commercial enterprises may have to advance foreign currency in these periods. For certain non-essential products licenses may be obtained for imports financed by foreign currency purchased in the free market; imports of this type generally do not exceed 15% of total imports.

514. In the last ten years before independence, foreign trade trans- actions for Burundi and Rwanda together balanced only occasionally and export earnings mostly fell short between 20-110% of total imports, resulting in a trade deficit of about 300 million francs even in the late 1950's. Due to Burundi's falling exports after 1959 the gap for Burundi alone amounted to 200-300 million in 1961-63, despite the exchange controls introduced in 1960.

55. In addition to the trade deficit, Rwanda-Burundi's combined balance of pa;yments was also subject to another chronic deficit amounting to 300-600 million francs annually that occurred on the invisibles account and which was initially due to substantial income transfers by expatriates. These trans- fers became more restricted after independence, but the decline in this sec- tor was offset by an important increase in government spending abroad asso- - 13 -

ciated w7ith independence. A lar e part o: this net invisible outflow may be attributed to Burundi, so that the total current defici- of that country has probably been in the order of 400-500 million francs or nearly 10% of GDP in 1961-63. In 1964, the greatly improved export earnings probably brought the current account into equilibrium.

56. Foreign exchange transactions on the free market which are presumed to balance at a level around 300 million francs (as a result of a restrictive policy on the part of the commercial banks) consist on the receipts side matinly of transfers by themissions and on the outflow side of income trans- fers and imports of luxury goods.

57. The structural deficit on current account has been partly balanced by contributions from residual debt repayments by the Congolese central bank. Total inflow on capital account, disregarding trusteeship transactions, was from 300-0oo million francs in 1961 and 1962 and 200 million francs in 1963 and 1964, which would ha-7e resulted in a net use of Burundi's reserves of 100-200 million francs annually in 1960-63. The exceptional conditions for 1964 may allow for an overall yearly surplus of close to 200 million francs. After increasing to 260 million francs in 1965, capital inflow will drop as a result of completed Congolese repayments. It is expected to recover gradually until it will have reached by 1968 a level of well over 200 million francs at the predevaluation exchange rate probably allowing the country to balance its foreign exchange operations.

58. The country's foreign exchange reserves amounted in 196b, in May, which is the yearly low point, and just after the liquidation of the common central bank, to 1WO million francs, representing about two months of imports. This situation occurred despite a virtual ban on imports since the beginning of the year. After coffee export earnings started flowing into the country at the end of October, exchange reserves wzere at over 500 million francs, a level representing more than half of the cowutry's annual imports, slightly better than the situation in the Customs Union at the previous year's end. 55. Although the exchange rate was changed early in 1965, it is still probable that there will be a seasonal disequilibrium between foreign exchange earnings and expenditures, as export receipts do not flow into the country before the month of August: a standby credit of $b million from the fiF has been agreed upon to overcome the seasonal problem. The annual balance of paymenits is, however, expected to be in equilibrium. Over the longer run, the devaluation will give a more adequate price incentive to the agricultural export sector and this may be expected to ensure an expansion in production. The reform also avoids the risk of a collapse of the import control system, which would certainly have taken place under the pressures that existed previously. Moreover the continuous pressure on prices may now be expected to stop, given the reduction in credit expansion likely to follow from recent stabilization measures. pT,3 rCI FI=4NCE

Introduction

60. Between 1951 and 1960, public expenditures in Ruanda-Urundi nearly tripled, while revenues rose by only 80%. The resulting current deficits reached a peak of 700 million francs in 1960, equivalent to 45% of current expenditures. These deficits were financed mainly by interest-free advances from Belgium. With the sharp reduction in Belgian support which followed independence, and a stagnation in revenues in 1961-63, Burundi's expenditures were held approximately stable, but as noted, large scale recourse to Bank financing was still necessary in those years to cover the deficit. In 1964, new tax measures and improved economic activity resulted in a sharp increase in revenues, so that the current budget deficit was just equal to the 90 million francs of Belgian support received in that year, or only 10% of expenditures. Current revenues and expenditures in 1964 were over 20% of monetary GDP and about 11-12% of total GDP - fairly high ratios for a country with such low per capita income.

Revenue

61. Almost 80% of current revenues come from tax receipts. In contrast to many other African states, direct taxes provide a preponderant contribution, mainly between 35-h5% of current revenues. Within this category, the most important items are income taxes, which are levied on the modern sectors of the economy, accounting for almost half of direct taxes, and a personal minimum contribution by all households. Customs duties have become gradually more important and accounted in 1964 for over 40% of government receipts.

62. After rising by 80% in ten years under the Trusteeship Administration, revenues were forecast by the independent government of Burundi to rise another 25% between 1961 and 1964, due to increased rates and to the estab- lishment of new taxes. However, in 1962 and 1963 actual collections fell far short of these forecasts and were probably no greater than the 1960-61 level. This shortfal1 was due not only to declining economic activity, but also to a drop in standards of collection, especially for direct taxes, wihich fell in the first year 33% and in the second 19% short of the goal. Serious short- falls also occurred in the projected earnings of public enterprises. However, there has been a major improvement in 196h. For the first nine months, receipts were running at the forecast level, which is 40% over actual receipts in 1963.

Current Expenditure

63. Public expenditure in the Trusteeship Administration increased from 1951 to 1961, by about 170% to 1,200 million francs, under pressure of mounting recurrent expenditure originated by capital investment and, in 1960, by a substantial increase in salaries of African personnel. Over the period as a whole, increased expenditure was most significant in the social services sector, due to expansions in health and national education. - 15 -

64. The decision to reduce Belgian budget support after indepondence and the shortfalls in revenue led to a sharp cutback in government expenditure in 1962, in which year Burundi's current outlays came to only 580 million francs. This was increased to 710 million francs in 1963 and 860 million francs in 1961. The structure of government spending has remained roughly the same as during the last years of the Trusteeship. IJages and salaries, which had been close to 505; of total expenditure dLuing the Trusteeship, remained at the same level. However, as no wage increases have been made since independence, despite the increase in prices, pressures for a revision are extremely high. Another financial problem is posed by the Coffee Stabili- zation Fund which ran a deficit of 45 million francs in 1964 as the result of the decision to pay farmers at a price 10% higher than that received by the Fund.

65. As a result of the recently adopted devaluation, together with the assumption that 1965 exports come up to expactations and that world coffee prices hold their present level through that year, Burundi can expect a sub- stantial increase in revenues, the net result of which is expected to amount to about 500 million francs. The surplus in current Government income will for a large part be the effect of a higher taxation of coffee. The distri- bution of this extra incorne between Government budget and Coffee Stabilization Fund has still to be decided upon. There will also be an increased collection from import duties, some adjustments in income taxation and improved methods of tax collection. Higher current income will be partly offset by the elimination of taxes on transfers, higher prices for imported supplies and by increased Government salaries. If other current outlays can be roughly held at the 1961 level, the current budget will be balanced, whereas also a surplus of 100-125 million francs may be expected. This would allow for a planned financial support for the agricultural extension program paid for by the Stabilization Funds, advance repayments on a domestic bond issue made in late 1961, as well as eventually the establishment of a national develop- ment bank.

66. Howjever, in the medium term, real current outlays will have to be increased to meet the obvious need for expanded economic and social services and for a very substantial improvement in maintenance of the country's basic infrastructure. As a tentative approximation, the total increase between 1965 and 1968 might be projected at around 25%. Such an increase might be matched or even slightly exceeded by current revenue by 1968, if the moderately optimistic projections of exports are realized (permitting both higher export tax receipts and higher income from import duties), and if the improvement in tax administration witnessed in 1964 can be reasonably well maintained.

67. Thus, there might exist by 1965 a small and slowly growing surplus on current account which would be available for investment. On the other hand, the surplus of the coffee stabilization fund might be expected to decline slowly from its projected 1965 level, if world prices decline as assumed. In total, however, public savings from these sources might average as much as 100 million francs over the next four years, which would represent a marked contrast with the negative savings of the recent past. MTuch will however depend on the Government's resisting pressures for higher coffee prices to the producers. - 16 -

Public Debt

68. The country's public debt position is not clear. Burundi is ent;angled in an extremely complicated contentieux mith the Rwanda Republic and the Congo Democratic Republic, due to te a= inistrative and monetary union these countries had maintained. The most important of the elements invrolved are investments by the conmon savings bank, social security funds and reserve funds in the Congo; Congolese public debt bonds jointly held by Rwanda and Burundi; investments by the Congo in Ruanda-Urundi Territory, for example, in water and power stations - part of which, however, has already been repaid by the Trusteeship Administration to the Congo. Settlements will also be needed regarding common postal checking accounts, customs funds and participations by the Congo in companies active in the Rwanda-Burundi area. It is not clear at all when discussions on these problems will be held nor what may be the outcome, which will directly influence the country's position with respect to settlement payments to be made or received.

69., Belgium advanced, in the period 1950-62, almost 5.b billion Belgian francs in interest-free reparable loans to the Ruanda-Urundi Treasury, most of it for financing the Ten Year Developmrient Plan. No definite settlement of the matter has yet been reached.

70. Burundi's only clear external debt consists of the $L.8 million Bank loan made to the Trust Territory in 1957. The Bank has taken the position that as successors to the former Trust Territory, Rwanda and Burundi remain jointly and severally liable under the loan until such time as agree- merit may be reached among the various parties involved for the assumption of the loan obligations by one or the other of the two countries. The guaLrantee of Belgium is unimpaired and, as matters stand, Burundi has been meeting the whole of the debt service payments due on the loan, amounting to $hh0,000 a year. This accounts for around 3% of Burundi's present current government and balance of payments expenditures. Payments are, however, made from the financial assistance which Belgium provides to Burundi and absorbed in 1963 about one-third of these support payments which were initially intended solely for investment purposes.

VI. INVESTMENTS AND FOREIGN CAPITAL

71. In the decade of the 1950's, both public and private investment increased markedly in Ruanda-Urundi, with the latter area probably receiv- ing the greater share. Judging from imports of capital goods, and a one time survey of cumulative private investment in 1960, it appears likely that the annual investment rate reached 11-12% in the latter years of the decade. However, between 1959 and 1963, there was a very sharp fall in private investment, and a considerable drop in public investment as well, so that the investment rate was probably no more than 5% in 1963, even after correcting for the undevaluation of imported investment goods at the official exchange rate. - 17 -

Public Investment

72. Public investments in Ruanda-Urundi were made through a capital budget, the operations of which took place in the framework of the Ten Year Development P-lan from 1950-1961. Receipts of the budget were in the form of interest-free advances by the Belgian Treasury amounting to almost 5.4 billion francs. However, roughly 20% of this amount has been used to cover deficits vihich occurred on the ordinary budget. For the financing of specific projects, the 2140 million franc Bank loan in 1957, as well as subventions from the European Development Fund (FED) amounting to roughly 180 million francs in commitmnents during the period 1958-1961, have to be added, of which almost 70 million for Burundi alone. This capital inflow allowed for an average public investment of close to 450 million francs per year during 1958-1961, accounting for about 14%-5% of the region's GDP in the period.

73. Capital investments by administrative services under the Ten Year Plan amounted to over 3 billion francs. The most important outlays took place in the basic infrastructure sector, where about 35% of total investment was channeled toward road, water and air transport provisions and 30% to hc'usirg and urban development. Productive sectors received only 10% and social sectors 20%. In addition to this, autonomous bodies under state con- trol, such as power, water supply and housing companies, as well as research institutions and a welfare fund, invested slightly over 2 billion francs under the Plan, over 80% of this being basic infrastructure including urban and rural water supply facilities.

74. Regarding Burundi alone, since independence in 1962, public invest- ment expenditure has continued but to a much lesser extent than before. Financing has been taken care of mostly by the FED and Belgium. The latter's financial assistance of slightly over 70 million francs per year, initially earmarked for project-tied investment aid, winds up, under present conditions, almost entirely in subsikdzing the current budget. The FED has committed, since 1961, over 170 million francs for investment, the bulk of it, over 70%, in the productive sector for the establishment of tea plantations, but only less than half of total FED ccmmitments has been disbursed. Average annual public investment expenditure, to which very little local contributions are made, therefore dropped to around 2% of estimated GDP in 1963.

75. U.S. AID assistance is small and has until now been limited to sc:holarships, agricultural surplus commodities for refugees, a road better- ment and maintenance group and equipment for security forces. The Federal Republic of Germany finances a radio transmitter and is considering the financing of a professional school. The German KflW is considering the appropriation of about 60 million francs to Burundi but no final agreement has been reached. Occasional contributions are made by the UN Special Fund, the UjT Refugee Fund, the International Association for Rural Development, the U.K. and others. Total aid from all these sources amounts to about 75-100 million francs. Belgium is committed to irmprove Bujumbura airport at a cost of 150 million francs. - 18 -

76. Prospects for Common lia..cet f-nancial assistance are rather bright. Over the next five years Burundi will receive about $5 million from the special EEC diversification fund, most of which, if not all, to be spent on the establishment of tea plantations. In addition, Buirundi may expect to receive, in the framework of the Second Development Fund that will run until mid-1969, about $4 million for investment purposes in economic and social sectors, provided suitable projects are identified and become ready for financing.

77. Under present administrative conditions, this will prove to be one of the main problems in the country, which has to rely heavily on foreign technical assistance. Belgium provides at present around 300 specialists, almost 20% of which are active in the administrative sector, 10% in the Agriculture and P.W. Departments, and almost 40% in the education sector. The number of UN technical specialists has been increasing. In addition, con- siderable amounts of technical assistance are provided in connection with specific projects. However, it is not yet clear whether project preparation and impvlementation will be adequate to make increasingly full and effective use of the foreign financing which might be available in the public sector. If it is, disbursements for public investment could rise to as much as 500 million by 1968, as against only 170 million in the past two years, valued at the new exchange rate. How¢ever, over 70 million of this has been used to balance the current budget, whereas this may be expected to have a surplus on short term available for investment purposes. The present, and in the near future to be expected, deterioration of the country's road network will not only require increased allocations for raaintenance but by 1968 also invest- ment expenditure for reconstruction purposes.

78. The Burundi Government obtained from the Parliament the authority to borrow 80 million francs. By late 1964, Treasury Bonds for 50 million francs had already been issued and taken up by the Coffee Stabilization Fund. The proceeds of these operations will be used in the framework of an equipment budget that will inzest in protective measures to be taken against the flooding of Bujumbura's industrial area and other public works amounting in total to 45 million francs and including road maintenance and the construction of houses for technical assistance personnel. The budget intends also to finance the purchase of equipment and durables for a total amount of 35 million francs.

Private Investment

79.. Prospects for private investment are quite uncertain. They obviously depend heavily on the degree of political and economic stability in the region, and on the attitude of the government to private investors, both foreign and domestic. The government's attitude to non-indigenous business- men and traders has remained reasonably favorable, although unsettled political conditions have induced a high degree of caution on the part of invrestors since 1959. There almost certainly was no net private investment in either 1963 or 1964, and there was probably a considerable net outflow of private foreign capital, despite exchange controls. If there is continued progress toward political stability and further improved monetary stability and if the fairly favorable medium term export prospects are realized, the situation should be conducive to a recovery of private investment. The pro- - 19 - posed new exchange rate, togetlher With the fairly high imiiport dutles, should provide a considerable degree of protection for domestic manufacturing and agricultural output for the home market. If a common market could be reestablished with Rwanda the situation would be further improved. There would also be possibilities for expanded private investment in transport and commerce, especially if improvements in besic transportation facilities can be achieved. Taking a moderately optim,istic view, it seems conceivable that private investment might rise to around 300-400 million francs by 1968, about the same in current prices as the 1959 level, although considerably less in real terns. This would lead to a total investment rate of around 9-10% in that year. However, even this may prove to be on the high side unless there is a significant improvement in social and political stability.

VII. ECONOMIC PROSPECTS

80. Burundi 's medium term prospects have been significartly enhanced by the exchange reform program that is now under execution, although much of its outcome still depends on the Government's ability in the execution of the program. In the first short period after devaluation, experience is, however, very favorable. Prospects in the sector of public finance to balance the current budget and to engage in investment expenditure from local resources are good. The balance of payments of Burundi 'may be expected to attain equilibrium already in 1965, and significant encouragement for the production of export crops and for economic growth has been given.

81. However, a number of more basic problems will remain. These relate to the maintenance of efficiency in public administration and to the prospects for productivity increases in both the export sectors and in output for the home market. Several key sectors of t1he economy were brought to a comparative4y high level of productivity during the Ten Year Plan period. Despite some lapses in the first few years of independence the former level was apparently largely regained in 1964. This applies particularly to coffee production and to tax administration. 82. However, maintenance of basic infrastructure remains seriously inadequate especially in the face of difficult natural conditions. If the road network in particular continues to deteriorate it could have a severe adverse impact on coffee marketing and on the provision of public services generally outside the capital. Moreover, in the longer run new roads will. have to be built to open up land for cultivation by the increasing population. Even apart from the transport problem there is an important question about the extent to which public services will be adequate to the task of assisting the subsistence sector in raising output per acre - which will be necessary if per capita income in this sector is to grow.

83. However, taking a moderately optimistic view of the government's abi'lity to cope with these problems in the next few years, the medium term prospects would seem reasonably favorable. The investments already made in coffee and cotton iwill, if supported by adequate cultivation and marketing practices, permit a significant expansion of export earnings by 1968. Assuming 22,000 tons of coffee exports and 12,000 tons of cotton along with - 20 - moderate growith in other exports, 1968 earnings could reach $20 million, as against the record $18 million of 196b and an estimated $15 million for 1965. The price of coffee is expected to continue to decline after 1968 and prospects for getting a substantial increase in its output are uncertain. However, earnings from tea will become substantial - $1.2 to $2 million by 1975, depending on further extensions which are still under consideration and assuming that the medium quality tea market will continue its expansion.

84. Public capital inflow might, after an expected drop in 1966, rise to around $4.5 million by 1968 as against a rate of $L million in the past tw-io years. As how-ever foreign aid will no longer be needed to balance current government financing, all of this will be earmarked for investment purposes. The net oultflow on private account could change by then to a small net inflow (from reinvested earnings) if there is significant progress toward political and economic stability. Assuming no change in the deficit on invisible account and no further accumulation of reserves, these trends could permit imports to rise by 1968 by around L0% over the depressed 1963-64 level, or around 10-12% over the estimated 1961 level. Considering the substantial reduction in expatriates which occurred in 1961, the last full year of the Trusteeship Administration, consumption goods imports may be expected not to rise much on medium tern over that year's level. Therefore, the possible rise in overall imports by 1968 should be adequate to support a significant recovery of imports for investment and maintenance of the economy. Under these conditions, it would not be unreasonable to suppose that output for the domestic market could rise by around 3` in the agricultural sector and at a somewihat faster rate in other sectors. Even though investment has been at a very low level in recent years, considerable unused capacity is still available.

85. Essentially, this xloderate optimism for the medium run derives from the production potential of investments already made, from the exchange reform program that is being implemented, and from the evidence of improved fiscal performance in the past year or two. even in the medium term, it is, however, quite possible that these favorable elements could be offset in considerable measure by the mounting transport problems, by continued political unrest in this Central African region, or a deterioration in public administration and agricultural services. In any event, it is quite clear that for the longer run, Burundi faces a most difficult development problem. Per capita income is very low. Population growth is accelerating and as land becomes scarcer, it will become increasingly difficult for the subsistence sector to absorb the increase. Thus the investment rate must be stepped up sharply from its very low level. But while it should be possible for the economy to achieve some national savings (as against negative savings in recent years) it is clear that the domestic resources for investment wrill be severely limited. Moreover the buildup of technical and administrative skills needed to ensure improvements in efficiency will clearly take a long time.

86. Thus it appears certain that in order to sustain a moderate growth rate in the future, Burundi will need a comparatively substantial amcunt of public capital inflow and technical assistance for a very extensive period. - 21 -

If any substantial portion of this capital were on conventional terms it would lead to the need for large increases in gross inflows to cover the resulting debt service which would soon very probably prove to be in excess of the amounts likely to be available. Thus Burundi would be ill-advised to contract any significant amount of debt on conventional terms. However, extension of IDA credits would seem justified in view of the recent record of performance. Statistical Appendix

Table No.

Note on Statistical Appendix Estimated Land Use 1 Estimated Population 2 Economically Active Population 3 Education 4 Estimated Gross Domestic Product 5 Indicators of Economic Growth and Standard of Living 6 Price Index 7 Estimated Agricultural Production 8 Port of Bujumbura: Cargo Loaded and Unloaded 9 Airport Traffic 10 Road Transport 11 Foreign Trade 12 Export of Principal Commodities 13 Import of Principal Commodities 14 Principal Trading Partners for Export Goods 15 Principal Trading Partners for Import Goods 16 Commodity Trade Balance by Currency Area 17 Estimated Balance of Payments 18 Money Supply 19 National Bank Balance 20a, b Consolidated Balance of the Monetary Institutions 21a, b Current Revenue of the Government 22 Current Expenditure of the Government 23 Budgetary Results 2h Public Investment 25 Foreign Aid to Burundi 26 NOTE ON STATISTICAL APPENDIX

There is a serious lack of basic information on the economy of Burundi as the country has been administered before its independence together with Rwanda. In certain respects this larger unit parti- cipated in an even greater economic area together with neighboring Congo.

After independence in 1962 a monetary and customs union which existed until 1964 provided in many fields also exclusively joint information, and only little data of the country alone have been developed.

Therefore, much of the information in this appendix is not precise but has to be interpreted as indicating orders of magnitude. TABLE 1

ESTDJAED LAIiD USE

(in thousand hectares)

Total Area 2783.8

Cultivated Area 669.o

Shrub and tree cuJture 51.0 of which coffee / 30.0 tea 0 .3 palm trees 7.5 cotton 11.8

Subsistence crops 618.0 of which beans 170.0 corn 25.0 sor-ho 106.0 manioc 132.0 bananas 49.0

Forests Reforestation 37.0

j 40 million coffee bushes.

Source: France: Minist6re de la Coop6ration, Economie et Plan de Developpement de la R6publique Rwandai.se; Stanford University: Ford Research Institute Studies. TABLE 2

ESTThATED POPULATION

African Population Only

1953 13995,000 1954 2,016,000

1955 2,013,000 1956 2,065,000

1957 2,128,000

1958 2,150,000 1959 2,176,000 1960 2,22L,000

1561

1962 2,600,000

Sclirce: United Nations DQnographic Yearbook, 1962. TABLE 3

LYj.-l,JC&AlY .ACT-VEPOPIZJAT"CION

EXCLUDING SUBSISTENCE SEETOR

(in thousard)

1955 1956 1957 1958 1959 1960 1961 1962 1963 PRvanda-Burundi .wa-d

Agriculture 29.6 27.3 25.3 27.h 27.2 2L4.5 19.8 n.a. VS

Extracting Industries 20.9 20.8 17.5 11.5 10.1 9.9 6.1 6.6

Manufacturing Industries 8.1 7.7 10.5 9.6 10.0 8.6 6.3 1.2

Construction 15.1 1I.7 12.0 13.h 13.9 11.8 5.5 1.7

E;ectricity, Public Utilities 3.3 3.8 2.6 3.8 3.3 2.5 2.0 0 .5

Commerce, Banking 16.1 16.5 21.4 18.4 18.2 17.0 11.3 1.6

Transport 17.2 15.8 aha1 12.6 13.4 12.6 8.6 0.3

Services 21.8 23.4 22.3 23.2 216. 21.9 16.2 94

Other 5.0 h.4 h.6 4.5 4.0 3.1 2.4

Total 137.1 131.h 130.3 12L.4 121.6 112.1 76.2 26.1

1/ Government officers and servants are not included in these figures. Their num,ber is estimated at 7295 and 6000 respectively.

Source: Belgian Governmeut: Reports submitted to the General Assembly of the Utnited INations; R6publique Rwandaise: NTinistere des Affaires Sociales. TABLE 4

EDUCATION

Number of Students Enrolled

1955 1956 1957 1953 1959 1960 1961 1963 Ruanda-Urundi Burundi

Primary Bo70-ys 169,197 175,07T 172,225 174,692 176,955 183,33b 77,908 82,087 / Girls 61,713 61,680 69,763 72,580 67,476 82,483 26,o5b 2h,820 ij Total 230,915 236,922 2L2,003 247,272 244,431 266,317 103,962 311,058

Secondary Boys L6U 527 803 1,010 1,133 1,263 1,097 Girls 31 57 26b 4LO b5b 303 138 Total m7 1,067 1,420 1,57 1,566 1,235 2,119

Technical Schools Boys 991 1,203 1,084 1,181 1,27b 1,281 676 Girls 638 662 a 7 12 9 10 Total 1,679 1,870 1,092 1,188 1,286 1,290 686 689

Teacher Training Boys 1,437 1,434 1,542 1,529 1,427 1,317 693 Girls 623 569 520 507 427 835 330 Total 2,060 2,003 2,062 2,036 1,8 2,152 1,023 I,373

Higher Education 21 33 60 121 165 152 291 221

TOTAL 235,170 21I,L12 246,239 252,037 249,323 271,477 107,197 115,h3O

1/ Only private schools.

Source: Belgian Government:Reports submitted to the General Assembly of the United Nations; Royaume du Burundi : Bulletin Economique et Financier; UNESCO. TABLE 5

_ I-71:ATL=D 1RSorS Ef'TIC PROLUCT

(in current billion FRS )

Ruanda- UrunU RBurundi Burundi 1959A/ 1962 1964

Primary sector 7.6 3.8 4.6 cf which subsistence agriculture 5.7 3.3 3.7 export ag culture 1.6 0o4 0.7 livestockTi 0.2 0.1 0.2

Secondary sector 0.6 0.5 0.5

Tertiary sector 1.2 1.0 1.8 of which transportation 0.1 0.2 0.2 coTynnerce 0.7 .. 1.2

Administration 0.8 0.8 0.8

Total GDP 10.2 6-r.1 7.6 HIoney GDP 4.5 2.8 3.9

Total GDP per capita (francs) 2100 2500 3000

Burundi1s share of the territorylls GDP is estimated at roughly 55% of the total.

Marketed only.

Source: Estimates based on Etude Globale; OECD information; BERB and BRB information. TABLE 6

INDICATORS 0 ECONCMIC GROWTH AND 5TAhDARDS OF LIVING

1955 = 100

1956 1c57 195& 1959 1950 1961 1962 1963 Rwanda-Burundi Rwanda Burundi. Rwanda Burundi Rwanda Burundi

Number of Licensed Vehicles 112.7 130.5 131t.8 n.a. n.a. n.a. n.a. 5l1. . of which Private Cars 120.6 13l..1 161.1 70.1 Trucks 105.7 115.7 102.9 40 .5 73.0 Power Conmsirption (.-n rillion Kwh) 23i5.5 275.5 226.2 233.P 2-°7.7 .. 155J1 190.8 153.5

Retail Prices at Jan. 1 of each year 101.0 99.9 102.2 102.7 105.8 103.5 *.

Foreign Trade for Rwanda and Burundi Imports (Volume) Gasoline and Mineral Oil 160.2 275.5 k65.3 073.5 L03.1 353.1 311i.3 26)i.3 Dairy Products 150.0 200.0 150.0 250.0 200.0 1350.0 1100.0 1150.0 Cotton and bynth.Textiles 91.7 125.0 108.3 lhl .7 150.0 258.3 225.0 2L1.7 Exports (Volurre) Minerals 106.3 118.8 121.9 143.8 31.3 125.0 e 128.1 e 115.6 e Pyrethrum Flowers 66.7 hb-5 e e e 44.5 e 66.7 e 55.6 e Coffee 102.0 173.0 133.6 201.5 167.2 59.9 110.9 60.6 111.7 27.0 50.I Cotton 10.5 63.2 73.7 100.0 2L2.1 15.5 1L7.1 10.5 7R-9 10.5 100.0

Education, Pupils enrolled 102.7 lOL.7 107.2 106.0 115.1 .. b5.6 136.2 .. 202.1 19.1

bubsistance, Agriculture (Volune) Beans 306.3 110.1 '12.1L?1.6 102.6 73.3 37.9 n.a. n.a. n.a. Corn 109.7 95.^ 171;, 131.L 112.0 73.5 51.7 borghur- 105.l 107.0 116. lO.L10 102.2 76.2 87.0 Sweet Potatoes 95.5 75.2 67.1 65.6 62.9 56.0 37.9 Manioc 100.1 72.0 65.3 76.7 72.0 5L.6 6.L Bananas 111.5 118.1 11'.? 11tO .9 1.25.5 111.5 -66. TABI2 7 PRICE INDEX FOR BURUNDI Clothing Food M4aintenance or Luxury General Date Products Products Consumption Index

July 1, 1960 100 100 100 100

April 1; 1961 105 101 114 110

Dec. 15,1962 98 158 141 142

Mari 26,1963 114 159 133 138

July 16,1963 111 158 133 138

Dec. 16, 1963 108 -L57 150 149

Javn. 31,'1964 118 157 151 151

Feb. 29, 1964 117 138 159 153 iiarcb 31:,1964 14h. 138 161 157

April 30,1964 1W40 138 150 150

I:ay 31, 1964 139 137 154 153

June 30, 1.964 135 137 148 149

July 31, 1964 137 1.37 149 1149

Aug. 31, 1964 137 1.37 154 153

Source: Royaume du Burundi: Banque Centrale TABLE 8

&STTMATEI) AGRTICU,LTJRATL ERODUCTION (in thousand tons) R = Rwanda B - Burundi 196h 1955 1956 1957 1958 1959 1960 1961 1962 1963 B R + B R + R + B R + B R B R + B R + B R R+B R bubsistence Products 178.4 92.3 Beans 243.5 258.9 268.2 294.9 96.7 199.321/ 249.8 68.8 Corn 133.2 1144.8 129.0 195.9 39.5 135.51/ 1h9.2 97.9 209.0 206.2 224.5 130.5 8o.421 197.0 108.o 167.8 Sorghurr 192.8 656.6 Sweet Potatoes 1733.0 1655.8 1313.9 1162.5 )j87.2 631.61/ 1089.5 970.7 Manioc 2086.3 2088.0 1501.6 1361.1t 170.3 1430.621 1501.5 11j8.5 ,13h3 1900.3 1071.8 Bananas 1702.5 1898.6 2010.9 2022.5 8h9.6 15h8.62 2170.6 R B R B R B R B R B Export Products R B R B R B R B R B 7. 1b.1 6-t 1179 10:5 19.6 87 1676 13.7 23.8 10.6 13.5 979 1575 95 lo.o W7 T.o 8.I 18.3 Coffee 0.3 L.6 0.2 6.o 0.3 6.o Cotton 0.7 6.6 0.5 b.7 0.6 5.L 0. 5.1 0.3 9.3 0.6 8.6 0.3 8.6 - - 0.3 - 0.3 Pyrethrnm 1.1 - 1.2 0.8 _ 0.8 - 0.7 - 0.8 - 0.4 o.l - 0.3 - Tea ------0.1 - 0.1 - 0.2 - 0.2 - 0.3

/ Calculated by reduction of the Rwanda figures from the total. / Indicated by the corresponding governments, but not in accordance with export table.

Source: Belgian Government: Reports submitted to the General Assembly of the United Nations. R6publique Rwandaise: Bulletin de Statistique. TA3LE 9

PORT OF BUJUlEBURA - CARGO LOADD AIID UNLCADI

(in thousand tons)

19559/ 19 5 6Y/ 1 9 5 7 J/ 1958 1959 1960 1961 1962 1963 Arrivals: 129.8 153.9 172.7 180.9 152.8 129.7 102.0 202.1 9L.b of which Gas Oil and Fuel Oil ...... 29.4 26.0 Flour ...... 16.3 5.1 balt 6:3 10.2 cement ...... 7.716 l.4 Departures: 38.59 35.1 Ul.8 38 .8 57.2 L9g.7 17.0 39.5 18.1 of which Coffee 23.8 9.7 Cotton ...... 2.0 Cotton cake ...... 3.8 1.6 Pyrethrumn ...... 3 .h e Minerals ...... 6 0.9

17 Estimates of foreign trade only. bource: Belgian Government: Reports submitted to the General Assem,bly of the United Nations. Rwanda-Burundi: Banque d'ahission du Rwanda et du Burundi, Bulletin Mensuel. Royaunme du Burundi: CFL. ?' B1 10

AIRPORT TBAJTIC

(P.wanda -B l3urundil)

Total Traffic at Principal Aiiorts

1955 1956 1957 1958 1959 1960 1961 1962 1963

Bu jumbura

Pasziengers Arrivals 10,686 13,986 13,570 16,732 18,594 28,1468 17,381 33,930 20,173 Departures 11,929 Lb,217 14,667 17,415 20,131 33,707 26,351 14O,16L 2L4,320

Freight (tons) Arrivails 2,1071/ 1,8333/ 2,1751/ 2,393!! 2,361!./ 2,185!/ 2,165 1,3714 Departures 2,287Y/ 1,8661/ 1,904!,! 2,1211/ 2,2361/ 2,330,/ 2,093 1,084L

mail (tons) Arrivals N. N. .. 100 89 Departures . . .. 91 75

Kigali

Passengers Arri;vas b,373 1,723 L,958 1,4L26 .. .. 1,716 1,130 5,62 Departures 5,863 6,301 4,61A5 1,196 .. .. 1,637 5,403 5,532

Freight (tons) Arrivals , 691/ 601/ 831/ .. *491/ 73 108 Departures ON 271/ 1141/ 251/ N- 531/ 70 80

Mail (tons) Arrivals ...... 22 9 Departures ...... e 15 1

1/ Including mail. Source: Belgian Goverinment:Reports submitted to the General Assembly of the United Nations; Rwanda-Burundi: Banque d'idssion du Rwanda et du Burundi, Bulletin Mensuel. TABLE 11.

ROAD TRANSPORT

19L9 1955 3956 1957 1958 1963 .,.r.n4a-Urundi Rwzanda Euruni-9/

Passenger carsi/ 788 1,763 2,126 2,361 2,840 1,236

Trucks 1,003 1,808 1,911 2,092 1,861 732

Tractors 12 o . 46 10 5

Buses .l 416 10 ...

Other o43 34 222 1714 *.

TOTAL 1,8103 3,628 b,087 14,731 4,890 1,973 2,650

P,/ Including station wagons and jeeps. j Only private vehicles.

Source: Belgian Governnent:R'eports submitted to the General Assembly of the United Nations; France: Ministere de la Coop6ration, Economie et Plan de la R6publique Rwandaise; R6publique Rwandaise : Bulletin de Statistiques; Royaume du Burundi : Bulletin Economique et Financier. TAF3Li. 1

FOXREIGN TIRADE±/ Volume in tons - Value in million Burundi F!RS

Imports Net Imports Net Exports Balance Year volume Value Volume Value Volume Value Value

Rwanda-Burundi 1955 147,8U4 2,006 131,257 1,530 93,256 1,530 0 1956 182,878 2,304 168,375 1,848 90,941 1,176 - 372 1957 196,987 2,536 169,906 2,037 106,307 1,916 - 121 1958 191,614 2,405 160,569 1,924 45,506 1,163 - 761 1959 183,295 2,288 183 , 2 3iV 2,285. 97,571a/ 2,1706./ - 115 1960 157,OLO 2,b37 98,900 1,716 72,830 1,b80 236 1961 1,720 113,226 1,609 44,862 1,251 - 358 1962 113,816 1,613 115,664 1,538 38,1148 969 - 569 1963 100,807 1,526 1,505 22,797 675 - 830

Rwandal/ 1961 688 633 626 - 7 1962 645 607 485 - 122 1963 610 600 337 - 263 19645/ 371 521 + 150

Burundi4/ 1961 1,032 976 626 - 350 1962 968 930 185 - L45 1963 916 905 337 - 568 196L/ 9753 929 + 176 i/ From 1955 to 1960 figures are based on the United Nations Report and from 1961 onwards on the Bulletin Mensuel and other sources. 2/ Import figures are too high because Net Exports include most of the Re-Exports. 3J Include Re-Exports. vl/ 1961 to 1963 not in accordance with figures of balance of payments. ;/ Estimates based on balance of payments assunmtiens and not including imports on the fre, ma:-ke'. estimr.ateci at 1 r- 3 0<, oS official in-orts.

Source: Belgian Government: -ports submitted to the General Assabbly of the United Nations, Rwanda-Burundi: Bulletin Mensuel de la Banque d'BTsission du Rwanda et du Burundi, Infomation fram Ministries of Finance and N!ational Cert.ral !banks. TABLE 13

EXPORT OF PRINCIPAL COIDITIE6/

(Volume in thousand tons, value in million FRS)

Pyrethrum Total Coffee Cotton Flowers Minerals, Hides and bkins Net Exports Rwanda Burundi Rwanda Burun Rwanda Rwanda T Rwanda jrundi aniida Birundi

1955 Volume 13.7 1.9 0.9 3.2 1.1 93.3 Value 5h2.7 72.7 29.5 261.5 [42.L 1530.0 In % of total 35.5 4.8 1.9 17.1 2.8 100.0

1956 Volume 14.1 0.2 0.6 3.h 1.1 90.9 Value 717.9 6.A 19.9 227.6 38.3 1476.o

1957 Volume 23.7 1.2 0.4 3.8 1.1 106.3 Value 1219.8 b1.3 13.7 195.4 L2.4 1916.0

1958 Volume 18.3 1.4 8 3.9 0.9 45.5 Value 7U8.7 43.8 0.3 168.0 33-14 1163.0

1959 Volume 27.6 1.9 e 14.6 0.7 97.6 Value 1179.8 49.5 e 122.14 25.7 2170 .0/

1960 Volume 22.9 14.6 e 1.0 0.14 72.9 Value 679.6 111.1 3.7 23.6 16.7 11h50.0 In % of total 415.9 7.8 0.3 1.6 1.1 100.0

1961 Volume 8.2 -15.2 0.3 2.8 0.14 14.0 0.2 o.5 h1h1.9 Value 275.2 511.1 8.9 80.1 13.9 218.9 8.1 114.9 1251.0 1962 Volume 3.3 15.3 0.2 1.5 o.6 4.1 0.2 0.5 38.1 Value 216.7 402.5 14.14 39.9 17.8 212.3 5.8 10.9 969.0

1963 Volune 3.7 6.9 0.2 1.9 0.5 3.7 0.3 o.6 22.8 Value 96.9 179.9 5.7 51.1 114.3 255.2 7.9 114.6 675.0 In % of total 1L.3 26.6 0.3 7.6 2.1 37.8 1.2 2.2 100.0

Not in accordance with Balance of Payments. j Includes re-exporte. 2/Includes a negligible amount for Burundi. te: - es were band oon an agreemnnt betw en the Gustoms 5ervice and the Ministry R ofnda-WA ince bq t argunshed e ornBrthe, Bulentratin alose bource: e ngan uovernmen :eport su rltea 8utheneral Asembl ofOF tbe a6nlted Nations. Rwanda-Burundit Banque d'Emission du Rwanda et d-u Burundi, 'Bulletin Hensuel.- TB3LE IL

IMPORT 0F PRINCIPAL CCOMMODITIES

(Volume in thousand tons - Value c.i.f. in million FRS - Rwanda and Burundi)

Mech- Gas- Iron, anical oiine Steel Mach- Veh- Mill- Salt, and Cot- Syn- and ines icles Chem- Total Dairy ing Lime Min- ton thetic Their and and Fer- ical Net Pro- Pro- and eral Tex- Tex- Pro- Spare Spare til- Pro- im- ducts ducts Cement Oil tiles tiles ducts Parts Parts izer/ ducts ports./

1955: Volume 0.2 2.3 7.1 9.8 0.8 0.4 8.h 1.6 3.1 1 0.L 131.3 Value 7.3 18.9 18.0 55.1 78.3 27.9 97'O 89.0 176.6 7 2.9 1530.0 In % of total 0.5 1.2 1.2 3.6 5.1 1.8 6.3 5.8 11.5 e 0.2 100.0 1956: Volume 0.3 3.7 11.7 15.7 o.6 0.5 8.5 1.1 1.9 4 0.L 168.4 Value 11.1 29.9 3L.0 78.7 56.A 45.7 101.6 104.7 272.1 17 2.6 1848.0 1957, Volume 0.4 4.3 10.3 27.0 1.0 0.5 10.2 1.5 3.8 20 0.2 169.9 Value 11.6 33.6 30.1 125.7 82.3 39.9 130.1 103.4 245.1 166 1.6 2037.0 1958w Volume 0.3 5.6 11.5 15.6 0.5 0.8 12.7 1.6 3.9 32 0.5 160.6 Value 10.1 42.1 28.1 190.7 1o.8 63.4 157.1 1o8.5 250.9 175 3.1 192b.0 1959- Volume 0.5 5.1 5.1 L6.1 0.8 0.9 9.1 1.0 2.3 18 0.4 183.2 Value 114.1 39.1 32.3 1914.9 47.9 65.8 102.5 78.5 150.4 99 2.7 2285.0 J 1960: Volume 0.4 5.9 12.1 39.5 0.9 0.9 1.8 0.6 2.0 126 0.3 98.9 Value 13.2 46.4 25.9 171.5 59.7 78.5 60.9 50.1 128.0 5%2 2.2 1716.0 In % of total 0.8 2.7 1.5 10.2 3.5 1.6 3.5 2.9 7.5 e 0.1 100.0 1961: Volume 2.7 8.1 26.4 31.6 2.1 1.0 L.9 0.? 1.0 . . 113.2 Value 57.0 73.0 32.5 180.1 232.0 111.3 66.3 69.0 76.6 .. .. 1609.0 1962: Volume 2.2 16.5 16.7 30.8 1.4 1.3 3.0 0.4 1.14 . .. 115.7 Value 38.2 118.7 31.9 167.2 116.0 113.8 39.9 82.0 87.6 .. .. 1538.0 1963: Volume 2.3 7.2 28.8 25.9 1.6 1.3 L.L o.6 1.3 Value 39.6 72.6 53.5 135.6 115.2 125.6 65.1 80.9 9.1.8 . 1505.0 In % of total 2.6 4.3 3.6 9.0 9.6 8.3 1.3 5.4 6.1 . . 100.0 1/ -Volume in tons and value in thousand francs. 1961 to 1963 not in accordance with figures of balance of payments. lncludirsI nost of re-expoirts. Sourcet Belgian Government :Reports submitted to the General Assemb]y of the United Nations; Rwanda-Burundi: Banque d'Emission du Rwanda et du Burundi , Bulletin Mensuel. TABLE 15

PRINCIPAL TRADING PARTNERS FOR EXPORT GOODS

(in million FRS)

1957 1958- 1959 1960 1961 1962 - 1963 Rwanda-Burundi Rwanda Members of EECand-- -u-d Belgium 599.2 396.7 185.2 333.7 262.6 267.5 il43.0 Other 26.2 18.2 20.2 18.9 17.1 20.5 0.3 Total 65.4 414.9 205.4 352.6 279e7 271.0 1-43T3

Dollar Area 306.4 240.3 267.5 142.4 779.1 689.3

Sterling Area United Kingdom 9.4 3.5 2.4 2.2 3.0 23.0 0.2 Kenya-Uganda-Tanganyika 2.0 1.0 2.6 7.2 10.5 37.3 9.0 Total 11.4 3S v 13.5 60S3 9.2

Other Countries Japan 3.0 o.4 1i1 0.7 2.1 - Congo (Leopoldville) 3Th.6 46.o 221.3 305.7 143.1 70.2 5.5 Consignation 2/ 631.1 389.7 905.8 474.1 n.a. n.a. 20e4 - Other 24.0 30.3 30.7 194.8 33.7 11.4 0.1 Total 972.i7 4 7=4 Is,1559 _7"; 178.6 26. Grand total 1,915.9 1,126.1 1,636.8 1,h79.7 1,251.2 1,119.2 178.5 l/ The figures are base -on export licenses. The actual figures are higher than indicated. 27 Break-up given by the Bulletin Mensuel, but not in accordance with other parts of the same source. S/ Estimates. h/ Mostly coffee with destination U.S.A.

Source: Rwanda-Burundi: Banque d'Emission du Rwanda et du Burundi, 3ulletin Mensuel, Republique Rwandaise: 3ulletin Statistique. TABLE 16

PRINCIPAL TRADING PARTNERS FOR IMPORT GOOD6

(in rillion FRS)

1957 1958 1959 1960 1961 1962 1963 1963 Rwanda-Burundi Rwanda Burundi Members of MC Belgium 282 .1, 302.6 279.0 202.0 335.0 330.6 355.9 58.2 327.6 Other 193.9 215.2 208.7 172.U 222.6 283.6 295.3 2L.0 271.3 Total T76.7 17 TT7.7 37L. 557.6 61b.2 681.1 82.2 598. 9

Dollar Area 271.5 2)t5.5 1lll. 99.0 117.2 248.1j 152.3 2.9 1b9.h oterling Area United Kingdom 113.6 112.1 107.2 92.3 106.L 9&.7 115.7 9.8 105.9 Kenya, Uganda,Tanganyika 150.9 33.6 99.1 122.2 2L3.1 207.9 171.4 81.5 89.9 Total 26195.7 26.3 214.5 3h9.5 302.6 287.1 91.3 195 .8 Other tountries Japan 37.5 33.6 U".0 h7.B 60.3 87.6 125.1 5.4 119.7 Congo (Leopoldville) 800.0 810.2 7M5.9 680.8 377.3 100.2 87.5 28.L 59.1 Iran 20.0 155.6 1UL.0 95.5 85.L 83.9 57.7 1O.L L7.3 Other 18L.o 151.0 166.3 121.9 172.7 176.3 36.81/ 3.6 33.2 Total 10l.5 115 11.2 96 9 .0 448.0 307.5'3 4 7

Total 205h.2 2109.h 1905.6 163-.9 1720.0 1613.2 1L27.6 22h.2 1203.h

1/ Some figures for smaller countries are missing. The actual figure is higher than indicated. EEstimates

Source: Rwanda-Burundi: Banque d'Emission du Swanda et du Burundi, Bulletin Mensuel. R6publique Rwandaise: Bulletin de Statistique. TABLE 1.7

C0O4TOCDI7Y T-PIDE ,BALA!C'2BY CURRBENCY ARE'.S

(in million FRS)

1957 1r95 195=9 1960 1261 1962 163 Rw-anda-Burundi Rwanda

elembers of' EEC 118.7 -102.9 -282.3 -21.8 -277.9 -326.1 61.1

Dollar Area i/ 666.o 38h.5 1061.9 517.5 661.9j/ 440-9O9 17.5

Sterling Area -150.2 -l40.3 - 201.3 -205.1 -336.0 -242.3 -B2.1

Other Countries -699.9 -1073.7 - 847.1 -4h4.8 -516.8 -366.h -42.2

1/ Destination Dar es Salaam and destination Mombassa are included under the figures indicating the exports to the U.S.A. j The figures for destination Dar es Salaarm and Mombassa are not available and not included, TABLE 18

73TI.zAT3D BsAL4NC'E OF PAYMENTS

(in million 23iS)

1964 1961 1962 1963 Forecast

Exports 649.0 581.0 332.0 929.0 Imports 938.0 776.0 556.0 753.0 Balance of Trade - 289.0 -195.0 -224.0 +176.0

Invisible Transactions Net Expenditures & Receipts concerning Expor-ts and Imports - 61.5 -84.0 -'15.3 - 14.0 Travel - 18.0 -23.5 - 7.-1 - 3.0 Income from Investment - 13.5 + 6.0 + 13.6 + 1.0

Government Transactions Expenditures of Foreign Governments + 12.0 + 9.0 + 35.0 + 20.0 Other - -22.0 - 46.1 - 83.0

Other Current Transactions Transfer of salaries - 144.0 -150.0 -12b.0 - 80.0 Other - 45.5 - 30.5 - 10.8 - 8.0

Total Invisible Transactions Net - 270.5 -295.0 -151.0 -167.0 Balance of Pa.ments on current account - 559.5 -h90.0 -375.0 + 9.0

Capital Transactions Trans.Eer of private caoital - 73.0 - 6.o - 1.5 - Participations - 16.0 - - Residual Credits - +128.0 + 87.5 + 80.0 Belgian Aid + 251.0 +251.0 +105.0 - 60.0 International Organizations + 29.0 + 214.0 - 29.0 + 39.0

Balance of payments on capital account + 191.0 +397.0 +162.0 +179e0 Balance - 363.5 - 93.0 -213.0 +188.0

Note: The Balance of Payments is based on the amounts as given by the Ministry of Finance in Burundi. Not including trusteeship administration payments and receipts.

Source Banque d'mrission du Rwanda et du Burundi. Banque du Royaume de Burundi. TAB3I, 19

M[:NEY SUPPLY J (in Tnillion F7RS)

BMB-2/ _ BRB/ 1961 .1961 1961 1962 1962 1963 1963 196gh 196L 1965i Jan.31 June 30 Dec.31 June 30 Dec. 31 June 30 Dec.31 April 30 Nay 31 Oct.30

Fiduciary Currency 915.0 1200.D 1025.6 1112.9 103L.3 1057.2 982.7 890.0 486.5 557.6

Scriptural Currency 927.0 725.0 7L7.L 757.6 816.6 759.7 920.3 95L.3 663. h 549.h

Total 18TL2.0 1925.0 1773.0 1370.5 1850.9 1816.9 1903.0 187L.3 1149.9 1h07.0

j/ Of common Rwanda-Burundi Central Bank until April 30, 19614, thereafter Burundi alone.

j/ BERB Banque d'Emiission du Rwanda et du Burundi.

3/ BRB: Banque du Royaume du Burundi.

$ource: Bulletin Mensuel de la Banque d'Emission du Rwanda et du Burundi. TABLE 20a

BALANCE SHEET

OF THE "BANQUE D'!EIISSION DU RWANDA ET DU BUtRUNDI"

(in million FRS )

ASSETS 1962 1963 19614 Jan.31 June 30 3ct0.31/c.3e

Convertible Foreign Currency b1o.6 1411.1 380.2 207.7 396.1 132.0

Congolese Treasury Bonds 7714.5 512.2 497.14 2419.9 322.9 121.1

Congolese Values - 578.1 578.1 578.1 578.1 -

Credit Operations

a) to the private sector - 54.3 - - - 232.5

b) to the public sector to Rwanda-Burundi 1431.1 570.8 609.3 5i5.2 5314.1 to Rwanda - - - 43.2 193.7 to Bururdi - - 7.4 198.6 232.7

Postal Chec'king Accounts 1.14 1.3 3.1 1.14 1.0 0.2

Fixed Assets 142.4 47.3 60.0 63.9 56.2 37.5

Other 33.5 6k.3 15.5 6.3 39.5 770.6

Total 1693.5 2269.4 2218.0 20314.3 2354.3 i593.9

j Only BRB

Source: Rvanda-Burundi: Bulletin Mensuel; Royaume du Burundi:BRB. TABLE 20b

]BALANCE SHEET

OF THE "BANQUE D' IEISSION DU RWANDA ET DU BURUNDI"

(in million FRS)

LIABILITIES 1962 1963 1964 Jan.31 June 30 Jan.31 June 30 Dec.31 C

Current Liabilities in France

a) Money circulation 988.6 1140.0 1014.1 1072.5 994.8 857.6 b) Government Accounts Rwanda 31.6 2.5 5.0 - - Burundi 6.4 12.6 - - - c) Accounts of Pub.Institutions 105.9 155.2 175.1 194.5 223.3 259.1 d) Accounts of Foreign Govern- ments & Public Institutions 2.0 87.3 52.3 43.9 20.1 21.8 e) Banks 104.6 46.8 304.6 96.6 304.6 216.9 f) Values 47-7 23.6 14.4 21.4 170o4 42.3 g) Othier 19.6 0.3 2.4 1.9 3.3 9.3

Bonds - 482.3 437.3 365.3 210.0 -

Obligations in Foreign Currencies 283.4 175.4 54.5 88.6 276.5 -

Other 36.2 67.6 90.9 82.2 77.7 183.9

Capital 30.0 30.0 30.0 30.0 30.0 -

Reserve,- 37.4 37.4 37.4 37.4 43.1 -

Profits and Losses 0.1 8.4 - - - 3.0

Total 1693.5 2269.4 2218.0 2034.3 2354.3 1593.9

/ Only BRB.

2/ Bonds which were given to the "organismes parastataux" for part of the Congolese values ceded to the BERB.

SOURCE: Rwanda-Burundi:Bulletin MIensuel; Royaume du Burundi:BRB. PA-3LE 21a

CONSOLIDATED BALA14CE OF THE MONETARY INSTITUTIONS

(million FRS)

ASSETS

Rwanda-Burundi Burundi 1962 1963 1964 196 Jan. X1 June 30 Dec. 31 June 30 Dec. 31 April 30 KHay 31 June 30 Accounts in Foreign Exchange 389.0 289.1 265.7 242.2 245.0 177.6 205.2 208.4 Foreign Currency at the Banque d'Emission 41o.6 411.1 462.1 207.7 195.4 301.9 137.2 128.8 Advances 1368.7 1719.1 1766.5 1798.0 1913.2 1846.8 382.3 423.6 of which: Congolese Treasury Bonds 1/ 774.5 5h2.2 497.4 419.9 322.9 242.2 121.1 121.1 Congolese Values 2/ 578.1 - 578.1 578.1 578.1 578.1 - _ Liquidation Account of Trusteeship 4h1.1 570.8 610.3 515.2 534.1 562.9 - - Rwanda Gvt. - - - 43.2 191.7 194.8) Burundi Gvt. - - 28.6 198.5 232.7 197.6) 232.7 27L.0 Credits to the Economy 349.7 529.6 278.2 422.3 323.4 282.6 256.8 533.2 of which: Commercial Papers 17.8 31.7 17.3 30.8 21.5 24.1 28.6 99.2 Bank Acceptances 11.8 97.4 10.1 50.8 25.3 9.2 8.2 88.6 Other Debitors 320.1 400.4 250.8 340.7 276.6 24 9.3 220.0 345.4 Other 60.2 163.6 51.6 46.3 105.6 190.7 600.0 641.8 Fixed Assets 89.5 95.0 91.8 96.1 89.2 107.7 72.2 70.7 Total 2667.7 3207.5 2915.9 2812.6 3071.8 2907.3 1653.7 2006.5 1i Rest Credit of the Banque d'Emission which derive from the liquidation of the former Banque Centrale du Congo Belge et du Ruanda-Urundi, payable in Francs. 21 Values taken by the Banque d'Emission at par value from certain quasi State institutions. Source: RApublique Rwandaise: 3anque Nationale du Rwanda. Rwanda-Burundi: 3anque d' Emission du Rwanda et du Burundi, 3ulletin Mensuel. TABLE 21b

CC)N3OLIDAT2D 3AL.ANCE OF ThE -_ITCETARY Ii,STITUTIONS

(million FRS)

LIABILITIES

_Rwanda-Burundi Burundi 1962 1963 196h 1964 Jan. 31 June 30 Dec.31 June 30 Dec. 31 April 30 May 31 June 30

Obligations in Foreign Currency 582.5 437.4 274.4 2F9.4 375.6 298.4 224.2 199.7

Currency and Sight Deposits 1581.8 1534.6 1482.1 1519.0 1497.1 1565.4 883.1 1198.6

Deposits from Governments and Public Agencies 151.5 335.9 369.3 297.9 405.9 308.9 266.8 274.4

Foreign Aid Counterpart 1.9 163.2 168.6 78.2 169.9 54.8 68.7 86.1

Deposits 42.8 20.1 79.3 57.7 93.9 56.8 57.2 60.3

Time Deposits 36.6 7.8 48.6 39.4 77.7 39.9 4o.6 43.6

Savings Accounts 2.2 1.3 19.7 7.3 3.0 3.7 3.3 3.4

Deposits at the CADECO 4.0 11.0 11.0 11.0 13.2 13.2 13.3 13.3

Bonds issued by the Banque d'Emission - 482.3 437.3 365.3 210.0 307.3 - -

Foreign Banks 35.0 55.4 4.6 3.7 13.0 13.4 1.2 12.7

Other 140.7 199.4 111.8 1137.0 301.4 195.0 97.3 149.1

Deferred Liabilities 133.4 142.4 157.1 142.6 174.9 162.1 110.9 111.7 Total 2667.7 3207.5 2915.9 2812.6 3071.8 2907.7 1653.7 2006.5

1/ Caisse d'Epargne du Congo

Source: Republique Rwandaise: BNR Rwanda-Burundi: Banque d'Emission du Rwanda et du Burundi, Bulletin Mensuel. TABLE 22

CURRENT REVENUE OF THE GOVERNMENT (million FRS)

Ryanda-Burundi Burundi 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 Reali- In % of Reali- Reali- Reali- Reali- In % of Reali- Reali- Fore- Reali- Fore- Reali- In %of Fore- In 5 Of zation total zation zation zation zation total zation zation cast zation cast zation total cast total Fiscal Receipts Direct taxes 276.5 40.6 302.9 291.8 334.9 346.3 30.8 388.0 116.9 243.0 164.4 342.8 268.o 43.9 282.5 32.9 Personal tax 16.0 2.4 16.9 18.9 20.3 20.3 1.8 58.0 7.8 19.5 11.3 20.7 18.0 2.9 20.6 2.4 Head tax 122.9 18.0 123.7 127.0 141.6 150.4 13.4 226.5 ) 120.0 95.5 179.0 103.0 16.9 110.0 12.8 Livestock tax 39.0 5.7 46.o 45.8 49.7 56.4 5.0 _ ) 20.4 8.7 27.9 14.0 2.3 9.0 1.1 Income tax 98.6 14.5 116.3 100.1 123.3 119.2 10.6 103.5 53.6 83.1 48.9 115.2 133.0 21.8 142.9 16.6 Indirect taxes of which import and export duties including excise tax and storage fees 236.5 34.7 230.2 294.5 288.9 320.3 28.5 348.9 406.0 23Y.0 19B.7 229.4 203.0 33.3 364.2 42.4 Other taxes 19.0 2.8 28.0 21.1 18.5 15.6 1.4 0.9 0.8 7.8 11.1 33.1 7.02/ 1.2 49.7 5.8 Income from property services and investment 149.3 21.9 134.4 203.4 136.0 172.3 15.3 169.4 131.0?J 91.7 35.6 130.2 67.0 10.9 75.0 8.7 Reduction _ _ _ - - _ - _ 22.5Z - 35.0 - - - - Total ordinary revenue 681.3 100.0 695.5 810.8 778.3 853.6 76.o 907.2 1 000 .2V 550.0 4e9.8 700.5 545-0 89.3 771.4 89.8 Advances by Belgium - - - - 125.0 270.0 24.0 687.5 - 135.0 35.0 65.o 65.0 10.7 87.3 10.2 Total revenues 681.3 100.0 695.5 810.8 903.3 1123.6 100.0 1594.7 1000.2AI 7t.0 444.8 765.5 610.0 100.0 858.7 100.0

1/ Made by Parliament when voting the budget. 2/ Only services. 2/ Only the receipts of the first 4 months of the year. I/ This total figure is indicated in the source, however, some subtotals have not been uentioned and therefore the various subtotals do not add up. Source: Belgian Government: Reports submitted to the General Assembly of the United Nations; Rvanda-Burundit Banque d'Bcission du Rwanda et do Burunii, Bulletin Mensuel, Royause du Burundi: hinistere des Finances et de l'Economie, Bulletin Econorique et Financier. TABLE 23 2URRENT EXPENDITURE OF THE GOVERNMENT (millicn FRS.)

1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 R w a n d a B u r u n d i Burundi Burundi Burundi Realiz- %of Realiz- Realiz- Realiz- Realiz- 5 Of Realiz- Realiz- 5 of Fore- Realiza- Fore- Realiz- 5 of Fore- 5 of ation Total ation ation ation ation Total ation ation Total cast tion cast ation Total cast Total

Political Administration and Justice 126.6 18.6 137.0 146.3 168.4 211.0 17.3 316.9 248.3 20.8 184.8 177.2 207.8 208.7 28.2 262.2 30.5

Armed Forces 16.4 2.4 17.3 24.0 23.3 29.0 2.4 66.3 36.3 3.0 56.1 43.9 55.8 56.1 7.5 69.5 8.1

Social Services 230.2 33.8 275.7 357.6 426.6 513.0 42.0 747.0 489.6 40.9 ;295.0 214.5 291.1 283.2 38.2 310.8 36.1

Economic Services 284.8 41.8 312.3 399.3 331.5 395.0 32.5 462.6 238.6 20.0 124.8 55.9 70.1 69.9 9.4 144.8 16.8

Public Works ...... 51.9 36.6 57.1 72.2 9.8 65.5 7.6 of which Roads and Bridges ...... 24.2 20.3 30.7 37.5 5.1 31.1 3.6

Fublic Debt 0.4 0.1 16.4 8.4 10.2 26.4 2.2 13.0 11.5 1.0 23.01/ 21.61/ 22.01/ 22.01/ 3.0 22.91/ 2.7 Other 22.3 3.3 14.8 21.0 24.7 42.4 3.4 23.6 171.5 14.3 - 28.71/ 34.32/ 58.64i/ 7.9 9.8 1.1

Reduction ------35.62/ - 8.2Z6 29.8-l 4.0 25.0 2.9 Total Expenditure 68o.7 100.0 773.5 956.6 984.7 1216.8 100.0 1629.4 1195.8 100.0 700.0 578.4 730.0 740.9 100.0 860.0 ]00.0

of which Wages and Salaries 342.8 50.4 379.7 432.6 490.2 588.4 48.4 1029.1yI 546.2-' 45.7-8/ 385.5/284.8 465. 5-/337.7 45.6 447.2-_ 12.0 ~9/ 10 _ of which Supplies and Equipment 68.4 10.1 83.1 98.6 82.6 153.7 12.6 273.1-8 201.6B/ 16.9_/ 64.5 58.6 85.5 88.2 11.9 128.0 14.9 1/ Not including interest payments on Central Bank advances. 2/ Including 25.0 million for common services with Rwanda. 2/ Contributions to international organizations. 4/ Including 35.0 million for common services with Rwanda. 5/ Made by Parliament when voting the budget. 6/ Including 1.0 million deduction made by Parliament when voting the budget, minus 1.8 million for calculation purposes. 7/ 23.0 is expenses for technical assistance personnel which have to be paid later and 6.8 million for calculation purposes. 8/ Estimates. 9/ Including 100.9 million for technical assistance personnel. 10l Including 22.9 million for technical assistance personnel. __/ Including 32.5 million for technical assistance personnel.

Source: Belgian Government,Reports submitted to the General Assembly of the United Nations. Rwanda-Burundi: Bulletin Mensuel Republique Rwandaise; Ministere des Finances Royaume du Burundi; Ministere des Finances et de 1'Economie; Banque Centrale. TABLE 24

BUIDGETARY RESULT6 (in i-ullion FRS) Forecast Current Budget 1955 956 1957 195.? 1959 1960 1961 1962 1963 196h Rwanda-Burundi Rwanda Burundi Rwanca Burundi Rwanda Burundi

Current Receipts 691.3 695.5 310.8 778.3 853.6 907.2 1000.3 n.a. h!09.8 333.7 5b5.0 575.0 771.L

Total Sixpenditures 680.7 773.5 956.6 98L.7 1216.8 1629.h 1195.8 573.)- 5L7.6 7Lo.9 729.6 860.0

Total Surplus or Deficit +0.6 -78.0 -11h5.3 -206.LI -363.2 -722.2 -195.5 -168.6 -213.9 -195.9 -154.6 -88.6

Foreign Budgetary Assistance - _ - 125.0 270.0 687.5 - 35.0 27.9 65.0 5".0 87.3

Total Surplus or Deficit +0.6 -78.0 -1l5.8 -81.4 -93.2 -34.7 -195.5 -133.6 -186.0 -130.9 -lo4~.6 - 1.3 1TA1BLI_ 25

FiuBLIC INVEESlffT (in million FRS)

Ten Year in,vestment Plan for the Administrative Services of Rwanda-Burundi Investment Expenditures included in Extraordinary Budget 1933-1961 1909-1960

Rwanda % Burundi % Total % Forecast Total %

Infrastructure: transport 239.6 12.9 851.1 28.6 1090.7 22.6 1242.7 11 j2.9 35.8 housing - - _ 94.3 915.3 28.7 Total 239.6 12.9 851.1 28.6 1090.7 22.6 1737.0 2058.2 64.5 Social Services: education 163.8 8.5 406.8 13.7 570.5 11.9 206.9 454.0 14.2 health 135.9 7.4 149.4 5.0 285.3 5.9 422.5 163.8 5.2 Total 299.7 16.2 556.2 18.7 855.8 17.8 629.1 617.8 19.4 Productive Services: teleccumunica- tions 21.5 1.2 61.3 .2.1 82.8 1.7 19.L 77.5 2.1 agriculture 143.8 7.7 131.6 4.4 275.4 5.7 56.8 143.3 4.5 forestry 15.9 0.9 13.2 0.5 29.2 0.6 38.4 28.6 0.9 fishing 4.3 0.2 17.8 0.6 22.0 0.5 15.2 10.6 0.3 livestock 71.7 3.9 54.0 1.8 125.7 2.6 62.1 112.0 3.5 other - - - 24.6 36.9 1.2 Total 257.2 13.9 277.9 9.1 535.1 11.1 216.5 1409.4 12.8

Studies 46.3 2.5 31.9 1.1 75.2 1.6 149.8 106.b 3.3

Other 1010.9 54.5 1252.9 42.2 2263.8 46.9 4.8 0.5 - Total 1353.7 100.0 2969.9 100.0 4823.6 100.0 2791.22/ 3192.3 100.0

2/ In accordance with the source; however, figures given for the subdivisios do not exactly add up to the indicated total. Source: Royaume du Burundi: "Inventaire des Investissements Publics au Rwanda et au Burundi". Association Europeeenne de Soci6t6s d'Etudes pour le D6veloppement; "Etude Globale de Developpement du Ruanda et du Burundi". Table 26

FOREIGN AID TO BURUN4DI

(in thousand FRS)

1959 1960 1961 1962 1963 196L Fonds Europeen de Developpement (Commitments) Studies - 3250 3050 - LOQO _ Productive Services - - - 51000 11000 - Social Services 6S00 - 9200 - 17000 8000 Infrastructure 46200 - - 9300 20000 -

Total 52700 3250 1?S10 60300 112000 8000

Special Aid IBRD Loan / 10L750 78950 29250 U50 - - Belgian Aid 75000 72000 of which Road Construction - - - _ 3267 21700 Health and Education - - - - 29935 12500

Water Supply - - L30L 5000

Monetarz Aid To BERB - - - - 210 130 To BRB - - - - - 60 Emergency Deposits - - - - 90 [5

/ To Rwanda and Burundi, disbursements. j Investment aid was made in the framework of the 10-Year Development Plan J Remains property of Belgium

Source: Fonds Europeen de D6veloppement. Belgian Embassy in Bujumbura. SIN5Y1..ADS fyt)>'_,

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