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The development of the Burundi private sector has been marred by several constraints. The unavailability of arable lands and under developed farming methods has left very little scope for the bulk of the population which is dependent on agriculture. Unemployment in the industrial sector is rampant due to the lack of technical knowledge of the bulk of the population. There is a growing trend in the region to promote the private sector and the growth of indigenous enterprise to revive the economy. The private sector in Burundi, however, has to counter several impediments which come in the way of its growth. There are the structural constraints which include continental location of the country leads to high transportation expenses. The region is cut off from the markets and the large population and low productivity compound its problems further. The private sector also encounters supply constraints which include outdated machinery, high import duties, lack of financial resources. There is need to repair the administrative machinery in order to tackle this constraint. There are also certain policy induced and regulatory constraints which can be done away with by developing the fiscal program and limiting the corrupt practices. The state of the private sector in Burundi can be improved upon by encouraging competition in the otherwise monopolistic market. The government of Burundi has to take the initiative in this regard and address the key areas with immediate effect.
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