Burundi has a relatively small developing financial sector which is dominated by banking with over 75 % of total economy assets.
Players in the sector
There are nine commercial banks, two semi-governmental institutions, 11 insurance business companies and 26 MFIs and National Bank of Economic Development (BNDE)
The Bank of the Republic of Burundi (BRB) is the central bank which regulates the financial sector.
The insurance sector is small with private as well as partially government‐owned companies. The sector is regulated by the Insurance Regulation and Control Agency, which falls under the Ministry of Finance.
Other financial institutions include:
- Funds for Microcredit
- Communal Development Fund (FDC)
- Case Cooperative OfMutual Savings And Credit (CECM)
- Credits Mutual D’Epargne and Credits Cooperatives (COPEC)
The country has not yet established a stock market to mobiles savings for investment. It is only t BRB which issues 91‐day treasury bills for purposes of managing the liquidity within the sector.
The national pension system (INSS) covers only 5 % of the people, and accounts for about 5 % of total financial assets.
Microfinance institutions (MFIs) have experienced rapid growth over recent years with 4 % of Burundians being members of microfinance institutions. There are 26 licensed microfinance institutions (MFIs) offer savings, deposits, and short- to medium-term credit.
Challenges facing financial Sector
- The strengthening the central bank supervisory role of BRD
- Lack of experienced local people to manage the sector
- Lack of facilities offering capacity building
- Reform of the sector in order to effectively serve the community