Country context (P3 lens)

Burundi is a low-income, landlocked country in East Africa with significant infrastructure gaps and constrained fiscal capacity. P3s are very limited but are increasingly considered to mobilize private capital, improve service delivery, and transfer operational risk, particularly in transport, energy, and urban services. Multilateral development institutions play a central role in project preparation and risk mitigation.

Verified sources: World Bank PPP Knowledge Lab, African Development Bank (AfDB), IMF, OECD.

Economic and infrastructure conditions

• Economy: Agriculture-dominated, with limited industrial base and small service sector; government revenue is constrained.

• Infrastructure priorities:

  • Roads, bridges, and transport corridors

  • Electricity generation and distribution

  • Water supply, sanitation, and urban services

  • Social infrastructure (hospitals, schools)

• Private sector: Small and emerging; mostly regional or international investors with experience in concessional or donor-supported projects.

Due to fiscal constraints, revenue-generating or donor-supported P3s are the most feasible.

Public Private Partnerships framework

Legal and institutional setup

• Burundi has a P3/concession legal framework, overseen by the Ministry of Finance and Ministry of Public Works.

• Projects require feasibility studies, fiscal risk assessment, and government approval, often with multilateral advisory support.

• Common P3 structures:

  • Concessions for transport and energy

  • Build-Operate-Transfer (BOT) for roads, bridges, and energy projects

  • Service or management contracts for urban and social infrastructure

Market characteristics

• P3 activity is very limited, with few completed projects.

• Multilateral institutions provide technical assistance, financing, and guarantees.

• Projects are selected for predictable revenue streams or donor-backed support.

Sector experience and opportunities

Transport

• Small-scale road and bridge concessions are possible.

• Urban transport projects are extremely limited.

Energy

• Private participation mostly in small renewable energy or off-grid projects.

• Generation and transmission are primarily public.

Water and municipal services

• Pilot service contracts for water supply and sanitation may be feasible in urban areas.

Social infrastructure

• Hospital and school P3s are rare and typically donor-supported.

Key P3 considerations

• Fiscal risk management: Critical due to limited government revenue.

• Institutional capacity: Project preparation and contract management are limited; multilateral support is essential.

• Market depth: Very small domestic investor base; international and regional players dominate.

• Project selection: Projects with donor support or government guarantees are most viable.

Outlook

Burundi is a very early-stage P3 market:

• Limited to small-scale, revenue-generating, or donor-supported projects

• Sectors with the most potential: transport, energy, and municipal services

• Multilateral involvement is essential for project preparation, financing, and risk mitigation

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The ARCP is a public service expert in the development of Public-Private Partnership Contracts created by Decree No. 100/12 of January 6, 2016. It intervenes, jointly with the Contracting Authority, at all stages of a public-private partnership contract, in particular during the preliminary assessment of the PPP project, the selection of Co-contractors, the negotiation and monitoring of public-private partnership contracts