Burundi: Fuel crisis immobilizes people and things
Summary of the article
–Burundi’s three-year fuel crisis has crippled daily life, causing soaring prices, economic losses, and widespread hardship.
–President Ndayishimiye blamed depleted foreign currency reserves and corruption but offered no solutions, while critics point to poor governance and mismanagement.
–Smuggling and illicit trade have become survival tactics. However, activists argue that resolving the crisis requires transparency, economic reforms, and international support.
For over three years, from dawn to sunset, Burundians both rural and city inhabitants, live and feel the effects of fuel shortage. This crisis has immobilized everyone and everything. Neither the public nor private sectors are under shelter.
Car and other fuel-dependent engine owners spend sleepless nights queuing at fuel pumps while commuters; students and workers are stranded at bus stops. Some end up hiking long miles to reach their offices, homes and schools. Bus fares, food prices and everything sold at the market have skyrocketed immeasurably.
Fuel scarcity continues to be a complex problem or an equation with several unknown factors for Burundians. Some joke by irony with the motto that goes “Burundi is a country of honey and milk not of fuel.” However, everyone wonders what has caused this severe and historical fuel scarcity that Burundi has never experienced since its independence and civil war periods that ravaged Burundi for decades.
The head of state has no solution
During a public address with citizens and journalists on December 27, 2024, President Evariste Ndayishimiye acknowledged the ongoing fuel crisis but offered no immediate solutions.
“Fuel cannot be purchased with Burundian currency; it requires foreign currencies. Unfortunately, reserves have depleted,” he stated. He then asked the audience: “What actions are you undertaking to produce goods for export to generate foreign currency?”
The president added that he is looking for foreign currencies from the mining sector, but he is disappointed by the findings related to it. “Imagine, there are 148 mining cooperatives and 2,000 tons of rare earth have been sold, yet not a single coin has been deposited into the government’s account.”
He also highlighted another significant issue behind fuel shortage “Burundi has no company in charge of fuel storage depots. For this reason, we have initiated SOPEBU, to manage the fuel supply chain in Burundi.” He highlighted. Sopebu, which is a new society managing fuel, is experiencing shells itself in its mission
Aside from that, Ndayishimiye criticized the people of Burundi, stating, “Burundians have endured a long-rooted crisis and became hypocrites and complicit in wrongdoings.” He concluded his remarks by urging Burundians to unite against corruption and the exploitation of their country to reach the 2040 and 2060 vision.
The president contradicts himself
While the head of state cites a lack of foreign currencies as the primary reason for fuel scarcity, his statements appear contradictory.
In a recent report on the fuel shortage, and discrepancies among top officials regarding fuel scarcity in Burundi, the president had claimed that both corruption and what he described as “the devil” are the true culprits behind the fuel shortages.
He also urged Burundians to trust in God for guidance during the crisis. Furthermore, he vowed to personally address the situation after discovering that some individuals within his government were concealing fuel to undermine him in the eyes of the public. Then , surprisingly, he stated that he cannot punish those involved.
Another contradiction within his address is that Burundi used to have a company for fuel storage depots.
According to Wikipedia, the Société d’Entreposage Pétrolier au Burundi (SEP-Burundi) was established in 1967 to facilitate the supply of petroleum products to Burundi, the Democratic Republic of the Congo, and Rwanda. By 1982, five companies Mobil, Texaco, Shell, and BP were importing petrol products and jointly owned SEP-Burundi.
In August 2019, the Council of Ministers, chaired by former President Pierre Nkurunziza, decided to rehabilitate the SEP facility in collaboration with Interpetrol, which is now the sole shareholder and manager of SEP-Burundi.
On the other hand, the Ministry of Hydraulics, Energy, and Mines has stated that Burundi requires $30 million to purchase enough fuel but has not disclosed how much it currently uses monthly.
What’s behind declining foreign currency reserves?
Everyone poses this question, but it remains unanswered. The International Monetary Fund ( IMF) has revealed that Burundi’s foreign currency reserves have continued to decline, reaching US$59.7 million (about 0.5 months of imports) in mid-September 2023 (from 1.3 months of imports at the end of March 2023). As per the IMF, import bills and delayed gold sales were two major causes.
However, Burundi’s prime minister, Gervais Ndirakobuca, gave another reason behind declining foreign currency reserves. For him, the decline stems from the sanctions imposed on Burundi in 2015 by the European Union and other development partners. These partners stopped the injection of foreign aid, which accounts for up to 56% of the national budget.
On the other side, opposition leaders blame the current leadership, particularly the CNDD FDD party, for allowing the late former president Pierre Nkurunziza to run for a third controversial and unconstitutional term, as the East African Court ruled. The third term they name ’’the root cause of every evil.’’
They argue that the ruling party has driven Burundi into poverty and economic crisis due to poor governance and mismanagement of public funds. Specifically, they point to public entities like “ODECA” (Office for the Development of Coffee in Burundi) and OTB (Office of Tea of Burundi)., which are responsible for the farming and commercialization of key or strategic export products such as coffee and tea.
The harvests of these crops have been steadily declining. In 1994, Burundi exported 50,000 tons of coffee but exported 7,500 tons in 2023.
Coffee farmers cried out over underpayment and switched to more lucrative crops like beans and rice. This shift has been exacerbated by corruption and a culture of impunity that ravaged state-owned companies for years.
Additionally, the opposition highlights the diversion of 54 billion Burundian Francs at the Kajeke hydropower plant. Although the president set a two-week deadline to identify the perpetrators, four years have passed with no progress on the case.
These leaders assert that members of the ruling party prioritize their own interests over the nation’s development, referred to as “War Compensation.” They cite the example of former Prime Minister Alain Guillaume Bunyoni, who is currently serving a life sentence for charges related to national security threats and embezzlement.
During his two decades in government, Bunyoni reportedly accumulated 150 houses and 151 cars, a staggering fortune considering a public servant’s salary.
In other ways, anti-corruption and good governance advocacy organizations, such as PARCEM and OLUCOME, attribute the shortage of foreign currencies in Burundi to the relocation of the leadership of the Central Bank of Burundi (BRB) from the Ministry of Finances to the presidential office. They argue that individuals in the presidential office, including those in the National Intelligence Service, misuse the country’s foreign currency reserves.
Beyond this, they criticize the inefficiencies and ineffectiveness of government officials, particularly regarding their management of funds from major funding bodies such as the World Bank and other development partners. Reports indicate that the government utilizes only 20% of the allocated funds, with a staggering 80% returned to donors or funders.
These organizations also highlight the involvement of public servants, particularly high-ranking officials, including senior military personnel and the First Lady, in commercial activities that have led to embezzlement, tax evasion, illicit gains, and other financial crimes.
The president has backed up the above statement by pointing out that “they are people who have withdrawn foreign currencies from the Central Bank under the pretence of importing fuel but returned neither fuel nor money.” But the most intriguing thing here is that there is no single example of punishment for those wrongdoers.
The widening gap between imports and exports, which leads to a negative trade balance, adds salt to the injury of foreign currency depletion.
According to the National Institute of Statistics of Burundi, domestic exports remain considerably lower than import levels. As reported in their external trade bulletin published in November 2024, exports account for only about 10.8% of total trade.
In sharp contrast, imports dominate the trade landscape, representing a substantial 87.7% of total trade during the same period.
This persistent imbalance has resulted in a notably low coverage ratio of imports to exports. As of the third quarter of 2024, this coverage ratio stands at a mere 14.1%.
Aside from that, commercial exchanges in the third quarter of 2024 recorded a decrease of 17.8% in nominal value compared to the same period in 2023.
The fuel crisis paralyses everyone and everything
As fuel pumps ran dry, everyone and everything felt its effects. However, some individuals and businesses, both public and private, lament their losses more than others.
In the Nyamitanga district, situated in the Buganda Commune of Cibitoke Province in the northwest region of Burundi, approximately 35.5 km from Bujumbura, the country’s economic capital, an illicit fuel market has emerged.
Residents of Nyamitanga smuggle fuel from the DRC, located less than 1km away from the border through the Rusizi River, and sell it for profit to support their families. However, circumstances are changing as soldiers and police conduct searches and confiscate their fuel around the clock. And some gunshots have been heard even though none was harmed.
Shooting at us will not stop us, but supplying enough fuel will
A motorcyclist we met at the location shared his experience regarding the illicit fuel trade and its impact on the community.
“First of all, we are not the cause of this fuel shortage,” he stated. “When we noticed the severe fuel scarcity in our country, we reached out to our friends across the border in the DRC for help. We hoped to get some fuel so that people with motorcycles and cars could keep their businesses afloat. However, what started as a simple request has turned into something we never anticipated.”
He told us about a harrowing encounter with a local colonel. “I was caught with 16 cans (320 litres) of fuel. He shot at me three times, but I wasn’t hurt because I fell immediately. Then he took my fuel and left.”
The motorcyclist concluded by urging the government to provide sufficient fuel to eliminate the need for illicit trading. “The government did not send us to smuggle fuel; we wanted to help ourselves because the government has failed to supply. Shooting at us will not stop us, but supplying enough fuel will.”
Illicit fuel trade, a pen earner for students
While smuggling fuel in DRC requires swimming over the Rusizi River, after studies, young students especially boys operate the deal.
One student shared his experience: “I no longer ask my parents for pens, copybooks, school fees, or other school materials. After school, they give me five cans, which I tie together and swim across the Rusizi River. You know cans cannot be submerged.”
Once he reaches the other side, he purchases fuel and returns with the cans filled. For each trip, he earns BIF 10,000, with potential daily earnings ranging from BIF 50,000 to BIF 100,000, depending on the day’s success.
However, the boy is threatened by the ongoing confiscation by police and soldiers. “I am afraid. Our parents are poor, and it is difficult for them to provide us with school materials,” he lamented.
He urged the government to take action: “If the government does not want us to indulge in this illicit fuel trade, it should supply sufficient fuel at gasoil stations or help our parents with school materials. Otherwise, we will end up being robbers.”He concluded.
Losses and deficits in numbers
Charles Ntirampera, executive director at ATRABU, says that his cross-border transportation company, VOLCANO, has seen revenues plummet from FBU 6.67 billion in 2021 to just FBU 418 million in 2024. A loss he says that transportation companies are facing and has resulted in job losses. He pointed out that among 22 vehicles only 6 are working due to fuel shortage.
The Office of Tea in Burundi (OTB) warned that it has so far lost $ 2 million due to the fuel shortage that strangles the state-owned tea company.
Gilles Mukundwa, the director of OTB says that the company is no longer supplied with fuel as it should or used to.”While previously the OTB received 50,000 litres of fuel oil to ensure the proper functioning of its factories, we now receive only 23,000 litres, which is less than half of our needs. This is a critical situation that risks halting production.” He cried out.
The trade union at OTB, SYTRATHE clarifies that “If we consider the missed harvesting days in the 5 OTB factories from July 2 to November 30, 2024, calculations show that the OTB recorded a significant loss of 3,389 tons of green leaves, which could have generated approximately 737 tons of dry tea valued at $1,842,000, assuming that one kilogram would be sold for $2.50. This amount is equivalent to about 5.5 billion FBU.”Denounced the trade union at OTB.
The Burundi Revenue Authority (OBR)did not escape the fuel shortage trap. In the initial four months of the 2024-2025 financial year, the country recorded a loss of 110 billion Burundian francs. In addition to fraud and corruption at ports, the fuel shortage exacerbated the already critical revenue situation.
Fuel scarcity has severely impacted telecommunications companies that provide Internet and other digital services, affecting both Internet users and the availability of digital services.
What solutions for foreign currency reserves or fuel crisis?
As fuel scarcity remains an equation with several unknown factors for Burundians, various groups of people give different solutions. Gabriel Rufyiri, president of OLUCOME, an Anti-Corruption and Economic Malpractice Observatory suggests four key measures to address the crisis:
Forming a multidisciplinary expert committee to provide actionable recommendations.Borrowing $500 million to meet monthly fuel needs of $30 million.Reducing foreign missions by government officials to conserve foreign currency. Leveraging mineral resources, particularly nickel, to generate revenue, albeit with transparency to prevent mismanagement.
-Faustin Ndikumana the president of PARCEM, urges increased transparency in the governmental institutions so that the IMF pays the Extended Credit Facility (ECF), which it has approved with a 38-month arrangement with the access of SDR 200.2 million (or about US$ 261.7 million, representing 130 percent of quota).
In 2023, the International Budget Partnerships mediocrity scored Burundi with 14 out of 100 in budget transparency.
According to the president and his government, the mining sector is the key to earning foreign currencies to meet the fuel demand and other development-related activities. Therefore, on December 23, 2024, the Government of Burundi licensed SOTREVO Mining Company to extract cassiterite, columbite-tantalite, and associated minerals of 12 million tons in the Murehe area of Kirundo province.
This license came six months after the head of State President Evariste Ndayishimiye promised to extract these mineral resources to end poverty and shortages of everything.
Regrettably, the president and the mining minister have failed to provide any information about the company’s owners or shareholders, given that it lacks an online presence. The Council of Ministers announced that the government will receive 20% of the dividends.
This situation has drawn condemnation from anti-corruption activists given that the current president terminated contracts that the late president had signed, accusing them of causing losses to the country.
Anti-corruption activists contend that the recent contract signed with an unidentified mining company underscores the reasons behind Burundi’s reluctance to adopt the Extractive Industries Transparency Initiative (EITI) standard since 2012. This initiative aims to improve transparency and the management of mining revenues.
In its financial year 2023-2024, the government projected to generate 26 billion Burundian Francs from mineral resources. However, only 6 billion was credited to its account. The Burundi Revenue Authority (OBR)reported verifying a mere 55 million of that amount, confirming the illicit trade surrounding minerals in Burundi.
Reverien Ndikuriyo, the general secretary of the ruling CNDD FDD party, during a press conference, on January 3rd, 2025, advised Burundians to wait for five years for sufficient fuel supplies. “If fuel could be traded for termites, taro, and bananas, we wouldn’t face shortages. Unfortunately, it requires foreign currencies,” he said. “However, Burundians are aware that in the next five years, we will have an abundance of fuel as we cultivate coffee and avocados for export,” he added.
While the fuel crisis has also impacted UN agencies operating in Burundi, Hawa Cissé Wagué, the World Bank Country Manager for Burundi, acknowledges that the situation has hindered their activities but emphasizes that the solution lies with the Burundian government. The UN official also notes that the World Bank will engage in discussions on how to assist and reaffirm its support for government programs.
