17 January 2017

Burundi: Inflation, Cause of Price Increase in Burundi

Parcem, a local NGO for mentality change in Burundi, has launched this 17 January a sensitization campaign against inflation following the rise in price of some products.

Some causes of inflation are the price increase of stable food, the lack of foreign currency, the increase of tax collection, the central bank loans and corruption, says Faustin Ndikumana, Parcem Chairman, a local NGO, when he launched a sensitization campaign against "Inflation".

At the beginning of the year, different rise in price of products have been observed including the rise in price of Brarudi drinks, sugar, fuel, transportation followed by the rise in price of staple food.

Faustin Ndikumana says the agricultural production is not sufficient for all Burundians, according to the recent data revealed in the previous meeting on the situation of agriculture and livestock in Burundi. "There was a gap of 30% in the importation and 35% of the population do not have where to cultivate to increase the production", he says.

Ndikumana also says the population growth is now estimated at 3% every year and Burundians need, for that reason, to change their mind. "They will die of hunger if nothing is done. In addition, droughts caused by the climate change are observed in various areas of the country", he says.

The chairman of the local NGO says inflation is also caused by the increase of taxes. In the 2017 state budget, Burundi Revenue Authority (OBR) plans to collect BIF 32 million from the new taxes.

Désiré Musharitse, Spokesperson for the Ministry of Finance, said the economic growth is projected to 2, 9%. "It will come from the rate of the tax pressures estimated at 4. 8% for the primary sector, 4. 4% for the secondary sector and 4. 4 % for the tertiary one", he said

Based on the economic growth and the average annual inflation respectively projected to 2.9% and 7.5%, OBR revenues are expected to grow by 10% without considering the new taxes included in the 2017 state budget, said Musharitse.

Burundi Revenue Authority will contribute 70% of revenues to the state budget in 2017 estimated at BIF 1,326 billion.

For overcoming this situation, Faustin Ndikumana calls on all stakeholders in the Burundi crisis to find solutions and restore diplomatic relations, fight against corruption and consider some strategies and programs designed for the country's development.


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