Financial Crime World

Anti-Corruption Measures in Finance Falter in Burundi

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Burundi’s struggle with corruption has far-reaching consequences, affecting not only its economy but also its political stability. The country’s foreign exchange market, land, mining, and coffee sectors are particularly vulnerable to grand corruption, with the ruling party CNDD-FFD and security sector actors allegedly complicit in large-scale public resource capture.

The Cost of Corruption

According to estimates, between 1985 and 2013, Burundi lost a staggering $3.7 billion due to illicit financial flows (IFFs), resulting from balance of payment leaks and trade misinvoicing. Additionally, some high-ranking political officials are suspected of siphoning off foreign currency reserves, causing structural economic damage.

Corruption in Key Sectors

  • Influential figures in politics, security, and business sectors frequently seize public lands and natural resources without consequence.
  • Corruption within tax and customs authorities facilitates criminal activities such as arms trafficking, resulting in extensive revenue losses.
  • Mining companies and cooperatives often collude with state officials to underreport production and avoid taxes, while also bypassing screening processes at international airports and land border crossings.

Root Causes of Corruption

The root causes of corruption in Burundi include:

  • Weak institutions
  • Lack of transparency
  • Low public salaries
  • Ethnic politics and the suppression of civic engagement

These factors contribute to a culture of impunity, as highlighted by a lack of judicial independence.

Challenges to Anti-Corruption Efforts

Despite being a signatory to key treaties such as the UNCAC and member of regional networks, Burundi’s legal and institutional anti-corruption framework is hindered by:

  • Weak institutions lacking independence
  • The absence of anti-corruption legislative measures

Way Forward

International partners must work together to strengthen these frameworks and combat corruption in order to foster economic growth and stability in the country.