Burundi plans 545 billion francs in domestic borrowing
By the AFREEQUE newsroom, based on Burundi Times
Burundi plans to borrow 545 billion francs from domestic banks in 2026-2027, as its net external financing turns negative. The World Bank says countries eligible for its concessional financing paid an average 8.2% interest on new private loans in 2025, the highest level since 1989.
Burundi plans to borrow 545.25 billion Burundian francs from domestic banks and financial institutions to finance its 2026/2027 budget, while net external financing is expected to remain negative at 103.8 billion francs, reports Burundi Times. Increased reliance on domestic financing comes as access to international capital has become more expensive for low-income countries.
The World Bank says countries eligible for concessional financing from the International Development Association (IDA), including Burundi, paid an average 8.2% interest on new commitments from private creditors in 2025. The average rate on new bonds issued by these countries reached 9.4%, according to the World Bank's International Debt Report 2026.
Burundi's 2026/2027 budget amounts to 7.02 trillion francs and provides for 4.22 trillion francs in domestic revenue, an increase of 26.1% from the previous financial year. The budget deficit is projected at 441.3 billion francs, according to Burundi Times.
Haishan Fu, chief statistician of the World Bank Group and director of development data, believes the return of private lending is positive but that the countries concerned are borrowing more and at higher costs. Burundi has not yet accessed international private capital markets, according to Burundi Times.
