According to the World Bank report, three sources of growth could contribute to a positive dynamic of the private sector of the East African Community in general and Burundi in particular:

1. Efficient public enterprises

2. FDI integrated into the local economy

3. Dynamic start-ups and small and medium-sized enterprises (SMEs)

 

These sources of growth, combined with financial sector reform that improves access to inclusive finance, could generate a positive ripple effect on the economy and provide "proof of concept" that transformation can occur.

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Modernized and competitive private enterprises, integrated into local and international value chains, can lead to increased productivity, diversification, foreign exchange supply, and, ultimately, the creation of jobs and economic transformation:

• Liberalization and reform of public enterprises could increase the competitiveness of productive sectors (through efficient resource allocation, innovation, and the development of value chains), strengthen competition and trade, and improve the delivery of public services.

• New FDI and better linkages between existing FDI and the local economy could create new markets and formal jobs, increase exports, and promote the diffusion of new technologies and business practices.

• Dynamic entrepreneurs and micro, small, and medium enterprises (MSMEs) could expand the private sector base, create new markets, strengthen supply chains, capture FDI spillovers, increase new business creation, force exit of underperforming businesses, and promote resilience.